By Denis Carmel
GATINEAU – Having been surprised by increasing revenues last year, Corus Entertainment last fall sought relief from the CRTC in order to allow it to defer spending on Canadian production and programs of national interest and on Friday the Commission heeded the big broadcaster’s request.
Corus enjoyed a rebound year in 2019 and since its content spending commitments are linked to revenue levels, the company found itself in a situation where it would have to spend more money in Canadian productions than anticipated which, it said, could result in programs of lesser quality having to be rushed into production in order to meet its regulatory obligations.
Since the CRTC already allows the flexibility to underspend by 5%, granted it is “repaid” the next year, Corus was seeking a 10% reduction. Friday the Commission granted the unusual request, noting “the need for regulatory flexibility formed part of the basis of the Commission’s 2018 report entitled Harnessing Change: The Future of Programming Distribution in Canada. In the report, the Commission recognized that online services have turned the media ecosystem on its head with increased accessibility, flexibility, and low pricing, and stated that this reality has had a direct impact on regulated broadcasters. As a result of these changes, the Commission further noted in the report that the tools it develops for the future must assume that unforeseen changes will be the norm and must be flexible enough to continuously adapt along with them.”
The decision will not apply to the French portion of the children’s programming service Télétoon.
“Corus is pleased with the decision and appreciates the additional flexibility granted,” said Troy Reeb, executive vice-president broadcast networks., in an email to Cartt.ca. “As the CRTC rightly notes, ‘the tools it develops for the future must assume that unforeseen changes will be the norm and must be flexible enough to continuously adapt along with them.’ This is a particularly timely statement as our sector confronts the most profound, unforeseeable disruption in its history – Covid-19. Now more than ever, flexible approaches are needed.
“Corus is immensely proud to tell Canadian stories, build Canadian brands and support Canadian talent every day. We are especially proud to have delivered ‘essential’ news and information services to Canadians during the current national health crisis. But to continue doing this long into the future, amidst an extremely competitive and volatile media marketplace, the rules must allow us to do more of what we do best,” the statement continued.
“As the government turns its attention to developing a new broadcasting regulatory framework later this year, it will be critical to allow all players – traditional and digital, domestic and foreign – to make equitable contributions to the system, consistent with their resources and strategies. In that spirit, we were encouraged to see the Commission highlight the importance of a broadcaster’s ‘longer-term programming and business strategies’ in today’s decision.”
UPDATE: According to the CRTC, since there is no date of implementation in the decision, Corus can take advantage of this flexibility immediately.
