The first two testimonies at the Canadian Radio-television and Telecommunications Commission’s (CRTC) three-week hearings to modernize Canada’s broadcasting system made one thing clear: the need for new contributions is urgent.
The in-person hearings in Gatineau, Que., titled “The Path Forward – Working towards a modernized regulatory framework regarding contributions to support Canadian and Indigenous content,” are part of a public consultation process to determine how foreign online undertakings – now under CRTC regulation with the passing of Bill C-11, a.k.a. the Online Streaming Act – will contribute to the creation of domestic content.
CRTC chairperson and CEO Vicky Eatrides noted the urgent need for expediency in her opening remarks, stating that a decision around contributions is expected to be made “in the coming months.”
Quebecor, on behalf of TVA and Videotron, and the Canada Media Fund (CMF) were the first organizations up to the mic on Monday (Nov. 20).
“We’ve been hearing through our country-wide industry consultations since 2017… about the urgency for change, and part of the change is financial resources,” said CMF president and CEO Valerie Creighton (pictured). “Since then, the acceleration of downward pressure on our broadcast system has become evident. It’s very dire.”
Quebecor president and CEO Pierre Karl Péladeau pointed to continued changes to the streaming business model with the growth of sports, which an area where Canadian broadcasters once had exclusivity, stating that TVA lost the rights to Major League Soccer to Apple.
As to how contributions should be implemented, the CMF argued that the current allocation system – 80% to the CMF, and 20% to other certified independent production funds (CIPF) – should continue, due to the CMF’s ability to “effectively and efficiently” serve the “evolving audiovisual sector.”
Notably, the CMF specified the Indigenous Screen Office – which was recently given CIPF status – as an institution that should receive direct funding from the contributions.
During the testimony, Creighton also unveiled new details of the CMF’s current modernization process after Canadian Heritage unlocked certain new authorities. Key among them is a proposed change to allow Canadian distributors to trigger funding, in addition to Canadian broadcasters. The CMF is also looking at how to support two key genres that are struggling in the system: documentary and children’s and youth programming.
When asked by Eatrides what the key focus should be for the CRTC, Creighton said, “please keep your eye on the content… it is our true North Star, that’s why we’re here.”
Péladeau spoke of the importance of Quebec broadcasters for any new competitors in the system, in terms of understanding French culture and connecting with Francophone audiences. During the presentation, the company noted an ongoing call for contributions to French- and English-language content to change to a 40%/60% split, compared to the current 66%/33% system.
He also warned that regulation may not be as effective or efficient in the modern age, with foreign entities able to enter the system so easily via the internet. “Globalization makes countries irrelevant,” he said. “It’s unfortunate to say that, but it’s the reality.”
The Path Forward hearings are scheduled to continue to Dec. 8.
This story originally appeared in Playback
