OTTAWA – The CRTC has tweaked its approach regarding contributions by broadcasting distribution undertakings to local expression.
Under the current broadcasting distribution regulations, licensed BDUs must, for each broadcast year, contribute 5% of their gross revenues derived from broadcasting activities in that year to support Canadian programming, and are authorized to allocate up to 2% of those revenues to local expression.
After seeking industry input, the Commission determined that the maximum dollar contribution to local expression by each terrestrial BDU licensee will be based on the amount contributed during the broadcast year ended August 31, 2010 (the 2010 contribution level). This amount will be adjusted yearly for inflation based on the annual Canadian consumer price index (CPI), as reported for the period ending December 31st of the preceding calendar year.
Once the 2010 contribution level (adjusted yearly for inflation) represents 1.5% of the licensee’s gross revenues derived from broadcasting activities, which will eventually occur if increases to a BDU licensee’s revenues are sustained, the allowable contribution to local expression will move to a percentage formula of 1.5% of a BDU’s gross revenues derived from broadcasting activities.
Conversely, if a BDU licensee’s revenues were to remain at or below 2010 levels, the 1.5% threshold would not be attained and the maximum allowable contribution of the licensee to local expression would represent the lesser of 2% of the licensee’s current year’s gross revenues derived from broadcasting activities or the 2010 contribution level to local expression, adjusted annually for inflation.
BDUs may direct the difference to certified independent production funds of their choice and/or the Canada Media Fund, or closed captioning of local expression during the current licence term.
Click here for more on the decision.
