Canadian programming: the CRTC returns to regulation

CCA Bulletin 25/11

August 8, 2011

The CRTC requires private English television service providers to support the production of domestic programming, including “programs of national interest” such as drama or comedy series, documentaries and awards shows that promote Canadian culture.

Following the group-based licence renewal process, the CRTC now requires Bell Media, Corus Entertainment and Shaw Media to devote at least 30% of their gross annual revenues to Canadian programming production. The majority of these funds go towards the production of information programming, although 5% must be devoted to programs of national interest, with the exception of Corus, which must spend at least 9% of its annual revenue on this type of programming.

Many have been critical of the special treatment Rogers has received in this case. Unlike the other service providers, Rogers must allocate only 23% of its annual revenue to Canadian programming, which will be broadcast on its conventional television stations.  On the other hand, unlike the other networks, Rogers will not have the flexibility to redistribute its financial resources between its television services to fulfill this obligation.

The CRTC’s mid-summer decision has been met with prudence by various unions and professional associations. In general, they applaud the CRTC for returning to a regulatory system which acknowledges that the Commission made a mistake in 1999 by adopting an incentive based approach. Over the last 12 years, the amount of revenue used by private English-language networks to acquire American programming has steadily increased, to the point that in 2009, the networks spent $846 million to buy television shows from Hollywood and New York, which represented 59% of their programming expenditure. However, the Broadcasting Act states that “each broadcasting undertaking shall make maximum use, and in no case less than predominant use, of Canadian creative and other resources in the creation and presentation of programming. (Art. 3, (1) f)

The CCA is pleased that the CRTC’s decision recognizes the value of regulation, and that without it, there would be very little home-grown programming available in Canada. However, we were disappointed by the rather soft approach taken with respect to programs of national interest, and in particular, drama series. The CRTC has rejected the idea of imposing regulations that oblige broadcasters to schedule programs of national interest between 8 pm and 11 pm, Sunday to Monday. Without these guidelines, broadcasters can air Canadian drama programs when audiences are at their lowest. This means that networks do not have to invest in promoting these programs, using the age-old excuse that these shows do not attract the Canadian public’s attention.

The CCA will continue to monitor developments on this matter.