GATINEAU – While several television producers who produce shows for CanWest and may be beneficiaries of the deal’s benefits package, voiced their support for the CanWest Global and Goldman Sachs purchase of Alliance Atlantis (including Insight Productions, Tricon Films, Barna-Alper Productions and the Aboriginal Peoples Television Network), the producers’ association had some harsher words for the benefits package the deal contemplates.
(Even supporter Lazlo Barna wants to see the benefits money spent over five years and not 10).
The Canadian Film and Television Producers’ Association does not object to the control structure of the deal, as many others have already addressed. “The Commission has been very vigilant in identifying the risks associated with the control provisions imposed on CanWest by Goldman Sachs – specifically, limitations on increasing the debt, the requirement to maintain a high EBITDA, and ensuring that a minimum rate of return is achieved,” said Sandra Cunningham, chair of the CFTPA.
The association’s remaining conditions, she added, are: that CanWest establish a terms of trade agreement with the CFTPA on behalf of independent production companies; that CanWest maintain distinct programming executives and strategies for the (Alliance Atlantis) specialty services; and that it file a revised benefits package.
The producers are concerned that the synergies discussed at length yesterday in the deal might siphon off talent and diminish the original programming on channels like Showcase, History and HGTV. “It would be a shame to see Showcase turn into a farm team… a triple-A team to use a baseball analogy, for Global,” said Kevin Tierney, president of ParkEx Pictures.
The CFTPA also wants to see the benefits package proposed by CanWest increased from $136.9 million to $142.2 million and that over a quarter of the proposed benefits themselves are inadmissible.
A new, revised, benefits package should redirect $34 million to scripted drama and other priority programming and new media (although the bulk of CanWest’s package is committed to scripted original programming), according to the CFTPA.
As well, if the benefits are self-administered, all of it should be allocated to independent producers – and the money should be spent in five years, no 10, since the GS-CanWest agreement calls for a trigger in 2011-2013 where GS would get their return by either CanWest buying them out, or taking the media company fully public.
“If CanWest is prepared to enter into a $1.4 billion transaction as a means of growing its business, it should be prepared to commit to greater expenditures to support the development, licensing, and promotion of original Canadian programming,” added Ira Levy, of Breakthrough Films and Television.
CanWest is scheduled to respond to the hearing this afternoon. Stay tuned to Cartt.ca for coverage.
