Current Priorities

Below you will find updates on key policy issues for the Writers Guild of Canada.

CMF Guidelines and Envelope Allocations Released

Generally speaking, the guidelines were as we expected.

The fund will be divided into two streams: a Convergent Stream ($277M – the largest part of the Fund, opening April 1- $187.3M of that allocated to English language projects) supporting television projects with additional content for at least one other digital platform; and an Experimental Stream ($27M – opening June 25), a selective, equity investment fund supporting various kinds of non-linear , interactive digital projects (and software applications) outside conventional TV broadcast and with a connection to the Canadian cultural sector.

As anticipated, the CMF Convergent stream is looking for cross-platform projects, which means pitches need to include serious consideration of the nature of the content additional to the conventional TV component. Writers need to be ready for these new expectations, and start thinking about the additional platform & content most appropriate to a given project – whether that is mobile, webisodes, interactive web content, podcasts, videogames, iPhone app components, etc. Producers are now realizing that to create successful value-added content those who know the TV side and its audience best – the showrunner and the story room – need to be involved from the beginning.

CMF also announced its envelope allocations, and English-language TV will receive $187 million. The money is apportioned for support of drama ($57M), children's and youth ($19M), documentary ($15M), and variety and performing arts ($2M) programming. The remaining portion, about $93M, is for broadcasters to spend at their discretion across those genres.

There’s been much in the press about the reduction of CMF support for Canadian programming, particularly at the CBC. While it is true that CBC’s envelope is less than last year, it is not unusual for broadcaster envelopes to vary widely year to year. CBC will still receive the largest envelope in English Canada at roughly $65 million and, depending on their production this year, they could receive more next year. Anticipated changes to the envelope-factor weights will emphasize ‘original’ production over repeats, and CBC expects to benefit from this.

At the same time, CTV's envelope is up slightly this year, and Showcase is also up. And Space, YTV and Comedy – all drama-heavy channels – also saw increases to their envelopes. So while some services have less allocated to them to spend on Canadian programming, other services are receiving more – the expectation, then, is that overall production should not decrease.

For the other side of the CMF coin, the Experimental stream, a television component will not be required. It will fund original online linear video but there must be an interactive aspect to the project. The extent of the interactive is TBD, so get in there and pitch. Writers can apply to this stream directly but may have a better chance of success partnering with a TV or interactive producer with a proven track record on such projects. See the full guidelines at www.cmf-fmc.ca

TV Policy Decision at CRTC

The CRTC released (March 22) its long-awaited decision setting forth the coming TV policy in Canada. But it’s not coming for a while yet. In releasing the decision, the CRTC extended broadcast licences to Aug 31, 2011. This will mean that the new policies will not take effect until at least Fall 2011, before which a full licence renewal process must take place. Much of the details of how the policy will play out in actuality remain to be decided at those hearings, likely to take place in Spring 2011. In the meantime, there is much work to do crunching numbers, researching in preparation for licence applications, and more. Read the WGC press release here.

But what do the new policies look like? Well, we’re still looking deeper and we’ll provide more information soon, but at first blush, there are a few things that seem positive. The CRTC heard us when we stressed the need for an overall ownership-group Canadian Programming Expenditure (CPE) in order to put a stop to conventional broadcasters excessive spend on foreign programming.

They will require the three largest ownership groups (excluding their news and sports services) to spend at least 30% of their gross revenues on Canadian programming. We are not sure how such a requirement will play out in the absence of an exhibition requirement, but the level of required investment may provide broadcasters with sufficient motivation to air the shows when they can gain the best audience numbers – they will have the inventory so they will want to make money from it.

The CRTC decision also signals the death of priority programming, a policy that diluted the quality of Canadian programming for more than 10 years. It will be replaced by regulatory support for “programs of national interest,” which is being much more narrowly defined as drama & comedy series & long-form documentaries (including kids programming), and award shows that promote Canadian culture. For drama, the CRTC is ‘proposing’ expenditures of at least 5% of gross revenues for the group. This may provide some hope – on the conventional broadcaster side, we haven’t seen anything approaching 5% since before the 1999 policy – and, according to last week’s CRTC figures, private English conventional broadcasters spent only 1.5% of revenues on Canadian drama in 2009.

Another encouraging sign is the CRTC’s decision to disqualify CTF/CMF contributions to programming from counting against broadcaster CPEs. The so-called “licence fee top up” will no longer be eligible. This means that public money like the CMF cannot be used by broadcasters to effectively reduce their obligations to Canadian programming.

The decision also notes that category B services with more than 1 million subscribers (like Scream, Showcase Action, Showcase Diva, Teletoon Retro and more) will be included in the corporate group revenue calculation and have their own CPEs. This means there are many more channels that will now have to think about commissioning programming – time to hone those pitches.

As for the big bogeyman of Value-for-Signal – the issue on which the broadcasters and cable companies spent so much time, energy and money battling out on your TV screens and in full-page ads – the CRTC appears ready to impose negotiations but will first refer the issue to the Federal Court of Appeals. Stay tuned for more on this.

We will continue to analyze the CRTC TV Policy decision, and keep you informed as we learn more.

Digital Media

In June, the CRTC issued their decision on New Media broadcasting in Canada, and will extend the exemption on New Media broadcasting services for what will likely be at least five more years. We are disappointed and believe that the commission missed an opportunity to strengthen Canadian content online, and that a five year wait will put us even farther behind in what may be the real future of broadcasting. The WGC issued a press release in response to the decision - you can find it here

Backgrounder

The CRTC held public hearings to look at New Media broadcasting in Canada. The hearings began in February 2009 and continued through March. Through these hearings, the CRTC was to decide the ways and extent to which new media broadcasting will support the Canadian broadcasting system with original Canadian new media content and through new media exploitation of traditional broadcast. 

In a speech to the Canadian Association of Broadcasters (November 3, 2008), CRTC Chairman Konrad von Finckenstein noted that New Media platforms “unquestionably deliver broadcasting content.” And the CRTC’s October 2008 decision on the pay/specialty BDU hearings seemed to serve notice that the objectives of the Broadcasting Act will have to be served through Canada’s approach to New Media going forward.

Leading into the hearings in February 2009, the CRTC published two studies: Alan Sawyers’ “Changing Channels: Alternative Distribution of Television Content,” and Eli M. Noam’s “TV or Not TV: Three Screens, One Regulation?” These reports will give you a sense of the way the commission’s thinking on the issue is being shaped and some of the directions they may take.

The WGC appeared before the CRTC in February and presented statistics about the inadequate funding for original New Media content. The WGC recommended the creation of a fund for original Canadian content derived from a very modest levy on ISPs and WSPs. The WGC also demonstrated to the commission the difficulty of finding traditional Canadian programming on the Canadian broadcasters' websites. We recommended a number of solutions to create greater visibility for Canadian programming online.

The WGC told the commission that without original Canadian new media content to engage the viewing audience, those viewers are likely to turn to non-Canadian sources for their new media entertainment. The WGC advocated for incremental funding to nurture Canada’s growth in content development for new media platforms. Only the allocation of new resources, both public and private, will help secure Canada’s place in the digital age to the benefit of the nation’s culture and economy. 

The WGC also advocated for promotional requirements so that Canadians are made aware that this content is available to them.  To read the WGC full presentation please click here. The WGC also filed its reply to the CRTC hearing - in this stage, the WGC had the opportunity to address issues raised over the course of the hearings. Read the reply here. 

In the end, the CRTC was unconvinced of the need to regulate. It said that the case had not been made that there was insufficient funding or that regulation was needed to ensure that there was sufficient Canadian content on new media platforms. In the coming months, there will be public hearings on a proposed reporting requirement for the broadcasting services, so that when the commission revisits this issue (perhaps within five years) it will have the data and information necessary for a clearer picture of Canadian new media broadcasting. The CRTC has also decided to send to Federal Court the issue of whether or not the CRTC has jurisdiction over the ISPs - it is our position, supported by a legal opinion, that they do.

Copyright

The Government of Canada sought extensive public and stakeholder input on forthcoming copyright legislation. As copyright holders and consumers, Guild members made their voices heard. Thank you for that involvement. Individual creators had been under-represented in the online exchange, and they needed to hear your perspectives.

The WGC's approach to copyright is grounded in one simple principle: copyright law should encourage widespread use and distribution of copyright works while ensuring creators are appropriately compensated for those uses. A more complete discussion of the WGC's thinking on copyright can be found here.