Radio / Television News

Bell joins others in requesting reductions in CanCon obligations


By Ahmad Hathout

OTTAWA – Bell has joined other broadcasters in requesting amendments to its Canadian content spending obligations at least until the next licence renewal period.

In a Part 1 filed this month, the broadcaster said it is seeking a reduction to its Canadian programming expenditures (CPE) from 30 per cent of previous year’s revenues to 20 per cent, a reduction from 7.5 per cent to 5 per cent of revenues for programs of national interest (PNI), and an expansion of the PNI categories to reality television, music and general entertainment in exchange for increasing their obligation from 75 per cent to 100 per cent of PNI expenditures made to independent productions.

“The requested relief we are seeking would allow us to better manage our regulatory obligations through the evolving competitive landscape of the Canadian broadcasting industry in the face of competition from digital media broadcasting undertakings (DMBUs),” Bell said in the application, adding this would temporary relief at least until the next licence renewal period next August.

“The Canadian broadcasting industry is in crisis due in large part to a virtually unlimited array of foreign-owned digital media broadcasting undertakings (DMBUs) being present in the Canadian market for several years without any regulatory obligations,” Bell said.

Bell said while the implementation of the Online Streaming Act – which will force these online players to contribute to the system and ease the pressure on traditional Canadian broadcasters – is good news, it will be a while before the new Broadcasting Act framework will take effect.

“Of the three industry sectors impacted by Bill C-11 – foreign streamers, Canadian producers, and Canadian broadcasters – it is clear that only one is in crisis:  Canadian broadcasters,” Bell added.

Bell announced last week its plan to slash 1,300 jobs, close six AM radio stations and sell three others due to tough industry dynamics.

Corus similarly requested a reduction in their CPE and PNI spending. Creative unions responded by the asking the CRTC to deny the application.

Rogers has similarly asked that the commission amend its Cancon obligations to allow it to expand the categories of PNI to include more programming categories in exchange for increasing to 100 per cent its independent production spending.

And earlier this week, Quebecor backed off closing two weekend newscasts in Quebec before regulatory approval. It announced its plan to do so after it filed its own Part 1 requesting that its Cancon obligations be lightened.