OTTAWA – The CFTPA has added one of the architects of the Canada-U.S. free trade agreement, Gordon Ritchie, to its negotiating team, just prior to beginning talks on program rights deals with the major private over-the-air television networks, as well as CBC.
“Gordon’s wealth of experience and sound judgment will be invaluable to us as we sit down with CTV, Canwest Global, Rogers and CBC to negotiate more equitable trading terms with our broadcaster partners that reflect the realities facing independent Canadian producers,” said Canadian Film and Television Producers Association chair Sandra Cunningham, in a release.
According to the association’s release, Ritchie’s appointment by the CFTPA “signals the increasing importance that the CRTC has placed on broadcasters and independent producers reaching agreement on so-called ‘terms of trade’ – framework agreements aimed at defining and valuing program rights, including new media rights, for platforms such as broadband and mobile.”
These framework agreements would apply to individual negotiations between broadcasters and producers for program rights – something that producers hope will alleviate what they view as “severe imbalances in negotiating power” thanks to broadcaster consolidation.
“The viability of Canada’s independent production sector is under tremendous strain in the face of unprecedented broadcaster consolidation,” said Cunningham. “Independent producers regard terms of trade as essential in ensuring that they can continue to provide high-quality programming to Canadians and to viewers around the world.”
In his speech at the Banff World Television Festival in June 2008, CRTC Chairman Konrad von Finckenstein said that a key issue for the CRTC was how broadcasters and independent producers should split revenues generated by new media. “Who pays what to whom, and for what rights? There is a lot of uncertainty about what these rights may be worth on the various platforms,” he said then.
Von Finckenstein reiterated the Commission’s expectation that terms of trade agreements be filed with the license renewal applications of the over-the-air broadcasters, with the deadline expected to be in late 2008 or early 2009.
“Consolidation has created a lopsided relationship between independent producers, who are largely small business people, and these mega-conglomerate media groups,” said Guy Mayson, president and CEO of the CFTPA. “This concentrated broadcaster decision-making power is one of the main reasons why we’re so thrilled that Gordon has agreed to join our negotiating team. Anyone familiar with the history of the Free Trade Agreement knows that Gordon is used to representing the underdog in very high stakes negotiations. His record demonstrates that if you’re well-prepared, reasonable, practical and principled, you can reach a fair and meaningful deal to the betterment of both sides.”
Negotiations between the broadcasters and independent producers are slated to begin next week.
