OTTAWA-GATINEAU – With the Commission’s report on what ails the Canadian Television Fund due out tomorrow afternoon (the CRTC under the new chair sure is speedy these days!) Shaw Communications CEO Jim Shaw sent a letter to CRTC chairman Konrad von Finckenstein making it quite clear his feelings on the whole matter.
Shaw, and then Videotron, both suspended their payments to the fund this past winter thanks to a number of long-standing complaints. Mr. Shaw said then and since that because the money was coming from Canadians through their cable and satellite companies they should have better representation on the CTF board, for example. He also believes that the number of Canadian TV show success stories springing out of the CTF, despite having spent over $2 billion are too few and too far between.
The CEO believes the fund "has completely failed" and that without real reform, "we cannot continue to support the existing system," he says.
The CRTC responded to the BDUs’ complaints by establishing a task force on the CTF in February headed up by the Commission’s broadcasting vice-chair Michel Arpin. Arpin has filed the report with the chair and it will be made public tomorrow.
Below is the text of Shaw’s letter sent to von Finckenstein today, copied to Heritage Minister Bev Oda, Prime Minister’s Office chief of staff Ian Brodie and CTF board chair Doug Barrett and the members of the board.
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Dear Chairman von Finckenstein,
We are writing this letter to make our position completely clear to you as to why we continue to advocate major changes in the way the Canadian Television Fund is structured and operates.
We believe that the record of the Canadian Television Fund is clear – it has completely wasted valuable funds and has proven incapable of meeting the mandate set out for it by the CRTC. As such, it provides no value to Canadians or their broadcasting system.
In the new digital environment, the primary focus of our broadcasting system must be on giving Canadians the choice, quality and value they demand, in Canadian and non-Canadian programming. If attractive Canadian programming is not available, Canadians will naturally gravitate to the best programming available. Moreover, Canadian programmers have forfeited, and will continue to forfeit, perhaps their best opportunity to strengthen and differentiate their services in a global and digital media industry.
The CTF has completely failed its mandate to deliver high quality, popular Canadian programming to viewers, or to encourage our broadcasters to make a real commitment to excellence in Canadian programming. Until recently, the CTF did not even try to measure viewership to funded programs, and it sets no performance or qualitative standards for that programming. It has not been held accountable by the CRTC, the Government of Canada or broadcasters for its failure to deliver quality Canadian programming alternatives to Canadian audiences through its funding decisions.
The CTF simply hands out tens of millions of dollars of Canadians’ money each year to those who meet certain formulaic criteria. This has included giving $6 million to a program that promotes swearing, drinking and drug use; completely neutralizing the attempt by other Government departments to reduce health damaging habits like smoking and drug use. By funding this aberrant behavior, the CRTC and Heritage Canada are in effect condoning it. That is both foolish and hypocritical.
(Ed. Note: We think he’s writing about Trailer Park Boys but can’t be sure as Mr. Shaw is unavailable for comment.)
The CTF’s funding choices have no discernible connection to Canadians, to programming most Canadians want to watch or to the public policy objectives put forward by Heritage Canada. Ultimately, the CTF measures its "success" only in terms of hours of programming funded, not whether Canadians actually watch that programming or whether the programs strengthen our broadcasting system. This happens to work for Canadian broadcasters because their business is the resale of popular US programming to Canadians, not developing, producing or exhibiting high quality Canadian content. This is made possible by regulatory protections and the CTF’s licence fee subsidies.
Broadcasters ‘ real business is clear from the recent media coverage of their high profile unveiling of fall lineups, showcasing hugely expensive American programs. Our broadcasters justify this annual ritual as being necessary to "cross-subsidize" Canadian content. In fact, they treat Canadian content as a regulatory albatross destined to commercial failure.
A funding model, such as the CTF, that doles out money without serving Canadian viewers with popular Canadian programming or generating a return on investment is unjustifiable and unsustainable.
We, however, want and need to give our subscribers value for their money, including Canadian programming that is popular and makes commercial sense. Our cable and satellite customers have paid for it. They and all other Canadian viewers deserve much better.
That is why we believe that the structure, rationale, mission and goals of Canadian program funding must be radically altered. The CTF needs to be dismantled and a new, viewer-driven approach to the production and exhibition of high quality Canadian programming introduced. As always, we would be pleased to be of any possible assistance as the Commission moves forward with any proposals for change.
We also believe that without significant changes to the CTF, it would be irresponsible for us to continue to support it by taking money from our subscribers and funneling it to the CTF. Since little is gained by this taxation of our customers, we believe the process should stop. Without real reform, we cannot continue to support the existing system.
Sincerely,
Jim Shaw
CEO
Shaw Communications
