Submission to CRTC re Bell GlobeMedia [Application 2005-1504-1: PN CRTC 2006-24]

Ms. Diane Rhéaume
Secretary General
CRTC
Ottawa, Ontario
K1A 0N2

Dear Ms. Rhéaume:

Re: Bell Globemedia application 2005-1504-1: PN CRTC 2006-24

1. FRIENDS of Canadian Broadcasting supports the arguments in the joint submission of ACTRA, the Directors Guild of Canada and the Writers Guild of Canada (the creative unions) regarding this application.
2. The benefits policy is intended to provide a public benefit to the broadcasting system as a result of a transfer of ownership whether or not it includes a change of control.
3. Allowing a transaction of such significance to be approved without the payment of benefits will create a significant and dangerous precedent.
4. In the past, the transfer benefits have operated in a fashion akin to a land transfer tax, and in some cases have been cumulative. (Note the joint submission of the creative unions’ reference to CTV’s acquisition of CFCF.)
5. The transfer of CTV and its related stations and specialty services to BCE’s control resulted in the largest package of public benefits yet seen. While benefits have usually been provided into a third-party fund, BCE/CTV argued successfully at that time that a substantial portion of the benefits should be retained and spent by CTV on programming.
6. This argument was based in part on the fact that Canadian priority programming had not been historically successful because no one party could "green light" a project from development to commitment, and the fact that marketing and promotion, critical to this process, had not previously been considered eligible as a public benefit.
7. CTV used the benefits package to produce a number of projects, including Canadian Idol, Corner Gas and Degrassi, as well as to acquire the rights to shows like the Juno Awards, a significant loss to CBC.
8. In its 2005 annual benefits reports submitted to the Commission, CTV penned the following headline: “Proof that Canadian television can be made – and be hugely successful”. This same quote appeared in a TV Times article about Corner Gas, one of the greatest success stories in recent English language Canadian television. Not coincidentally, Corner Gas is a show that CTV proudly supported with BCE/CTV benefits for two years. The quote is equally applicable to many of the television mini-series, movies, series, documentaries and specials that have been supported by these benefits.
9. FRIENDS recommends to the Commission that the above successes should be considered as aptly summarizing the rationale, objectives and results of the benefits policy. The television programming developed, produced and licensed with these benefits has achieved some of the highest audiences for Canadian programming on any English language network in recent years.
10. Audiences have embraced these productions because they are entertaining and compelling, funny and moving; because they employ high production values; and because some of our best producers, writers, actors and directors bring their passion and artistry to each production.
11. The experience of the past several years has demonstrated that Canadian programming, properly funded and promoted, can be successful. BCE/CTV made this case to the Commission six years ago, and the outcomes have proven their words to be truthful and prescient, while justifying the Commission’s judgment.
12. Because of CTV’s weight within the recently released overall industrial numbers for the 2005 broadcast year, it is clear that this success has been a major driver of the health of the English language conventional, as well as specialty television industries.
13. From a business perspective, when 50% of your evening, and 60% of your overall schedule must be Canadian, it makes sense that this programming must not just meet regulatory obligations, but also contribute to your bottom line. This imperative becomes more important as the value of U.S. programming has dropped somewhat in audience generation, while U.S. acquisition costs have increased owing to robust Canadian competition.
14. FRIENDS asks, therefore, why Bell Globemedia would be so reluctant to bring forward a benefits package consistent with the highly successful BCE/CTV model they themselves put forth just six years ago? Why would they risk the Commission ruling against their arguments and forcing the benefits money into a third-party fund, when they have achieved so much success by following their own proven model, with the Commission’s blessing?
15. The stakes of the issue before the Commission in this process are substantial, not just for the future of CTV, including further ownership changes down the road, but also for the whole television industry through the precedent value of the decision you will take.

Yours sincerely,
 
Ian Morrison
Spokesperson
FRIENDS of Canadian Broadcasting

cc:  Bell Globemedia

April 5, 2006 - ACTRA, the Writers Guild and the Directors Guild: Submission to CRTC by ACTRA, the Writers Guild of Canada and the Directors Guild of Canada re Bell GlobeMedia [Application 2005-1504-1: PN CRTC 2006-24]
Creative unions oppose Bell Globemedia's claims to CRTC that the Commission's Benefits Policy does not apply to the proposed application.