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| by: | Feb 5, 2007 |
The moves by Shaw and Videotron to abandon their obligations to the Canadian Television Fund may be motivated by some legitimate beefs with the system, but ultimately show that the dissenting cablers have forgotten what the CTF is all about.
Shortly before this writing, Minister of Heritage Bev Oda met with the CTF's major BDU contributors in an emergency powwow aimed at averting a crisis the two companies have caused by threatening to withdraw their support from the fund.
I say "threatened," because Shaw and Quebecor-owned Videotron haven't yet dropped out altogether, and it could all amount to a mere bargaining ploy. They are refusing to make their monthly payments, arguing that they are not obliged to pay by the month. The CTF contests this, although the CRTC has acknowledged that the BDUs are not required to do so. But if Shaw and Videotron refuse to make their annual payments of 5% of gross broadcasting revenues by Sept. 15 - 15 days after their fiscal year-end - then the CRTC can take them to court.
The timing, first of all, is curious. It would have made more sense for Shaw and Videotron to make their dissatisfaction heard back in November 2005, after Auditor General Sheila Fraser issued a report that was critical of the fund, one of its primary complaints being conflict of interest issues - i.e. companies with decision-makers on the board stood to benefit by the very funds the CTF distributed.
The CTF, as has been the case for more than a decade now, was quick to adapt, adding a double-majority system to its voting system and ensuring the presence of board members who are not members of stakeholder organizations. It is also worth noting that the former CCTA nominated Alex Park, VP programming at Shaw Cablesystems, to the CTF board, while the CAB nominated Pierre Lampron, Quebecor's VP of institutional relations. Park resigned from the board following his company's withdrawal.
Both Shaw and Quebecor have pointed their guns squarely at CBC here, protesting the fact that independent productions airing on the pubcaster are guaranteed 37% of the fund's $240 million or so in annual spending. This is a familiar refrain from private-sector broadcasters, keeping in mind that the Shaw family owns a majority of voting shares in Corus Entertainment, and Quebecor owns not only Videotron but also TVA. When Shaw CEO Jim Shaw said he would stop contributing to the CTF back on Dec. 20, he no doubt saw the Ceeb, coming off months of underperforming programs, as ripe for the picking. Of course, three weeks later, the CBC scored a stunning success with Little Mosque on the Prairie, and can once again make a case for its relevance.
There is nothing to say Minister Oda can't reopen discussion as to whether or not CBC productions should automatically get 37%. (Once upon a time, they got 50%.) The point is - especially as the CBC is moving away from a traditional public broadcaster role in favor of providing more populist fare - that it doesn't matter so much on which channel Canadian programs air, as long as they do. Nonetheless, even if the CBC wasn't guaranteed anything from the CTF, it would still end up with the largest chunk, because, among networks in English Canada, who else is going to air as much first-window Canadian fare?


