Timeline may shake up funding model

Continued from FP1

“It’s important to keep this on the public and political radar,” Canadian Media Producers Association (CMPA) CEO Reynolds Mastin said Monday.

“We think these decisions go completely contrary to what Minister Joly is trying to achieve.”

There’s also a time crunch to influence Joly’s opinion before she releases the government’s review of support for Canadian content in the digital era, a major cultural policy expected in September.

This could shake up the industry’s funding model, which has traditionally relied on CRTC regulations to push spending on Canadian content or “Cancon.”

Joly has indicated a shift towards promotion of Cancon rather than maintaining the existing model of quotas and subsidies as Canadians increasingly get their content outside the closed broadcasting system from streaming services such as Netflix.

The government has outright rejected a Netflix or internet tax to fund content, leaving creative groups to rely on broadcasters for now.

That’s why they’re angry at the CRTC’s decision to set the floor for spending on programs of national interest at five per cent of revenue for the three major broadcasters and

Rogers’ spending was already set at five per cent, but Bell and Corus were historically required to spend more.

The creative groups expect to see a “meaningful” decrease in spending by Corus and Bell, Mastin said. An analysis by Nordicity on behalf of the CMPA estimated production would decrease by $189 million in 2017-2018 and $911 million over the five-year licence period.

“We have a long history where broadcasters do the minimums,” he said. “What should be floors become ceilings.”

For their part, the broadcasters asked the CRTC for standardized spending levels. Bell said it needed the flexibility to spend on relevant programming and Corus said it would exceed the proposed spending level in spaces that warrant higher spending due to audience demand.

As it stands, private broadcaster licensing fees were the second-largest source of funding of Canadian television production in 2015-2016, according to the latest report by the CMPA. Tax credits were the largest funding source at 28 per cent, followed by the broadcaster fees at 18 per cent and foreign funding at 13 per cent.

The groups advocate the government maintain spending at historical levels in order to keep talent from fleeing south of the border, Mastin said. He argues that without the cash and the requirement that Canadian content be shown during prime time, shows won’t get the promotion required to become stars in other markets – Joly’s ultimate goal.

The Minister’s press secretary, Pierre-Olivier Herbert, said the government understands the sector is concerned and is still reviewing the impact of the decision.