Licencing decision gives CBC more latitude, concerning some commissioners about mandate
GATINEAU — Canada’s broadcasting regulator is taking a new approach to the objectives of the government-funded CBC/Radio-Canada Wednesday, as it shifts the focus on spending over certain hourly quotas in the hopes of supporting a broader range of diverse Canadian programming over more platforms.
Following a lengthy proceeding that included a 14-day public hearing in January 2021, the CRTC announced today the five-year renewal of CBC/Radio-Canada’s broadcasting licences until August 31, 2027, saying the commission is adopting a “modern approach” for the public broadcaster’s traditional and digital services.
Over some of CBC’s objections, that modern approach includes a requirement that the broadcaster put expenditures toward more inclusive programming, rather than just requiring the CBC to fulfill its Canadian content obligations via number of hours dedicated to such programming.
In the lengthy decision, the CRTC reasoned that having the latter requirement, called “exhibition,” would not necessarily make that content more “discoverable, reflective or relevant.” Instead, the regulator decided that the former requirement, called “expenditure,” be adopted as the broad focus.
That means the broadcaster must dedicate a certain percentage of its total programming and production spending toward those goals – as it largely relies on government funding – rather than the traditional spend based on gross revenues from the previous year.
It’s a hybrid approach that the CRTC said it hopes will ensure that more representative Canadian content is not only created but featured on the public broadcaster’s many platforms – especially digital.
“The Commission finds that an expenditure requirement is a more adaptable and appropriate regulatory tool for certain types of programming than an exhibition requirement for providing the CBC with the flexibility it requires in order to tailor its programming strategies to the needs of evolving audiences swiftly in the years to come on multiple platforms, and for ensuring that the public broadcaster fulfills its mandate,” the decision read.
“Being required to adhere to minimum exhibition thresholds could result in the CBC spreading out certain investments, which could reduce the relevance of certain programming to the audiences served,” the decision added.
This hybrid approach, the CRTC added, will not only increase investments in such diversity programming but will give the CBC the flexibility to apply toward its overall regulatory obligations spending it makes on digital platforms. (Digital platforms have been exempted from such regulatory obligations under a long-standing exemption order.)
But with this flexibility comes added obligations: The CRTC has also increased its Canadian programming expenditure (CPE) obligation to devote no less than 85 per cent of the amount dedicated, each, to English- and French-language audiovisual programming in each broadcast year.
It is also requiring that no less than 55 and 42 per cent of the amount the broadcaster allocates to CPE on English- and French-language programming, respectively, be devoted to the acquisition or investment in that type of national interest programming in each year.
But the regulator – which acknowledged that the CBC has exceeded its minimum exhibition requirements on its networks – is not getting rid of those exhibition guidelines. Instead, it will impose those types of requirements “where deemed most appropriate.” That includes maintaining exhibition requirements for local programming of seven hours per broadcast week in English-language non-metropolitan markets, and five hours in French-language non-metro markets.
The regulator, however, refrained from imposing exhibition requirements on local programming, including news, in metropolitan areas. Meanwhile, the discretionary national news services would not be included in the hybrid approach, as the commission said it is already subject to mandatory carriage by the broadcasting distribution undertakings as part of the law’s 9(1)h provision (the regulator also renewed its mandatory distribution of CBC News Network and ICI RDI).
On that, the CBC was granted an increase in the monthly wholesale rates for the BDUs to carry certain news programming from 15 cents to 20 cents per subscriber in French-language markets and from 10 cents to 13 cents in English markets.
With today’s decision, the CRTC sought to tackle two broad issues: how the broadcaster should keep up with its Canadian content requirements in an increasingly digital landscape, and how to get more representation on the government-funded network.
As such, the CRTC’s “equity” focus includes: a fixed portion of independent programming spend dedicated to programming produced by Indigenous people, official language minority communities [not less than six per cent of program spend], racialized Canadians, Canadians with disabilities, those who identify as LGBTQ2, and a women in production credit.
The CRTC will also require a new content requirement for Indigenous music on the CBC/Radio-Canada’s English and French-language radio services.
While the regulator imposed new requirements on the broadcaster, it also kept some obligations the same – such as keeping the current percentage of Cancon musical selections on radio – and did not impose an expenditure requirement on news programming.
“For the CBC’s radio services, it is the Commission’s view that broadcasting quotas continue to be the best way to support Canadian artists as they benefit from royalties paid for the broadcast of their music,” the decision said.
The commission is also requiring the CBC to conduct regular surveys of all Canadians on how it is meeting their needs, and to hold formal consultations every two years with Indigenous Peoples, official-language minority communities, racialized persons, persons with disabilities and persons who identify as LGBTQ2.
The CBC will also be required to clearly distinguish advertising from news and information, in light of complaints that a branded content product called Tandem harmed the integrity of the broadcaster by creating confusion as to what is news and what is sponsored content.
In a dissenting opinion on the decision, CRTC Commissioner Caroline Simard noted that the regulator relaxed some conditions of license when it moved away from the exhibition requirements in some programming areas, calling it a “laissez-faire” approach that “carries real and unnecessary risks of undermining the mandate of the [CBC] and the Canadian broadcasting policy as set out in the Broadcasting Act.”
Simard questioned how the CBC can be “held accountable” if it is not required to make certain hours of local programming in metropolitan markets, for example.
“I believe that the exhibition-expenditure model adopted in the majority decision has, on the one hand, prematurely and unnecessarily sacrificed the requirements for the exhibition of Canadian content on traditional platforms and, on the other hand, given the CBC excessive latitude through expenditure requirements without real limits,” Simard added.
Commissioner Monique Lafontaine, while generally supporting the expenditure model, dissented on the fact that the framework “does not establish any minimum spending requirements” for television services.
“Under the majority decision, CBC/Radio-Canada can spend as much of its annual budgets as it chooses on its unregulated online platforms during the next licence term,” Lafontaine said. “This element of the majority decision does not sufficiently balance the interests of Canadians and industry stakeholders.
Noting the lack of minimum requirements for the CBC’s licensed television services, Lafontaine concluded that the decision “does not sufficiently meet, and in many instances is inconsistent with, the public policy objectives of the Broadcasting Act.”
In a statement released this afternoon, Catherine Tait, president and CEO of CBC/Radio-Canada, said: “We’re pleased that the CRTC has, for the first time ever, recognized the significant contribution of our digital streaming services, CBC Gem and ICI TOU.TV, and CBC Listen and Radio-Canada OHdio, to the Canadian content ecosystem.
“CBC/Radio-Canada’s services as a multiplatform digital and linear media company will now be reflected in our regulatory obligations,” Tait said.
“We’re equally heartened that the Commission’s decision recognizes diversity and representation of contemporary Canada in our content as critical to the future of the national public broadcaster.”
