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Speech
The CRTC Perspective: Vision and Action
Notes for an address
by Françoise Bertrand
Chairperson, Canadian Radio-television
and Telecommunications Commission
at the Canadian Film and Television Production
Association Conference
Ottawa, Ontario
February 6, 1998
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Your collective creative and entrepreneurial efforts with such instruments
as the Canada Television and Cable Production Fund and the essential
participation and commitment of Canadian broadcasters have given great
opportunities to Canadians to learn about each other and this country, to
see on both small and large screens a reflection of our own society and its
peoples, and to recognize the creativity and achievements of Canadian artists.
It is indeed appropriate to applaud your achievements.
As you all know by now, I believe very strongly in the enthusiastic approach,
to being loud and clear about our faith in the viability and excellence of
Canadian programming.
There should be no small measure to the passion with which we set the course
for its future growth and development.
And as this gathering indicates, we recognize the importance of working together
to address the issues facing the industry. If anything, this is a time for
increased collaboration, cooperation and generosity among all the players
that will be the basis on which to build an industrial strategy for Canadian
content.
The CRTC Perspective: Vision and Action
Before I go further about this strategy, I would like to talk first about
context and do so, I'll give you three points of reference.
As a first point of reference, in 1996 when I spoke to the Canadian
Association of Broadcasters, I set out the indicators we would use together
to measure our progress over the next five years.
I think it is appropriate to repeat them here:
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The number of hours of Canadian drama, children's and other entertainment
programs that are shown in peak viewing hours;
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The viewership to Canadian programs in underrepresented categories;
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The amount of distinctively Canadian programs broadcast;
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The use of Canadian talent in all aspects of production — writers, actors,
singers, musicians, producers, and technicians;
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The sales of Canadian programs internationally;
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The number of strong, high-quality production companies exporting globally;
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The success of adapting to the convergence of multi-media; and
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The return on our investment in the mid-and long-term.
These indicators are part of a broad strategy, which will clearly benefit
from a coordinated partnership among all sectors of the system.
My second point of reference today relates to last September, when
we announced our new Vision and Action Calendar. This lays out publicly the
principles, objectives and approaches that will guide our actions and decisions
over the next three years. What this Vision says is that World Class Quality
Communications, with a distinct Canadian presence, in the public interest
is the guiding principle for our actions and decisions.
This principle breaks down into specific objectives:
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To assure the presence of a diversity of Canada's Voices at home and abroad;
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To assure that there is a wide array of Choices for Canadians through strong,
competitive communications industries; and thirdly,
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To ensure Good Governance, a public process, openness and fairness, effectiveness
and trust.
Now let's turn to some CRTC's decisions of the past year as my third point
of reference. We have made what we believe to be significant decisions
over the past year, in response to the evolution of the market and in undertaking
new initiatives in line with our Vision.
To mention a few of the recent decisions:
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The New Broadcasting Distribution Regulations have two basic objectives:
to promote fair and lasting competition in the distribution market, and thereby
give consumers a wider choice; and to at the same time sustain and increase
the amount of quality Canadian programming;
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The new telecommunications decisions, commonly referred to as the Mayday
decisions, aim to reflect the changes stemming from the more competitive
environment that will have a major impact for the industries, the people
of Canada, the international community and the regulators. The themes behind
these telecommunication policies are fair and open competition, a broader
choice for subscribers and measures to protect consumers. While these may
seem unrelated, this competition should lead to more rapid broadband multimedia
distribution infrastructure to homes and businesses.
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We should also mention VOD licensing, the licensing of MDS wireless cable
systems in Ontario and Saskatchewan, all reflecting the importance of preparing
for the competitive, digitally-delivered communications universe of the 21st
century.
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There was the Baton-CTV decision which gave Baton control of CTV thus providing
the stability required to permit realization of CTV's full potential as an
essential component of and contributor to the Canadian broadcasting system.
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The purchase of Télévision Quatre-Saisons by Quebecor will
make a solid contribution to French language broadcasting and contribute
to the vitality of the independent production sector through the programming
commitments of TQS.
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And the consolidation of cable in Québec through the acquisition of
CF Cable by Vidéotron, will strengthen the industry while ensuring
that the public interest continues to be served.
Finally, this morning, we will be releasing the Commission's response to
the Order in Council regarding the licensing of an additional TV network.
We have concluded that it would not serve the objectives of the broadcasting
policy for Canada, or the priorities set out in the Order in Council to call
for applications but we are also exploring a licensing requirement that would
allow larger multi-station ownership groups to apply for a group licence.
We have also laid out the characteristics of a broadcasting system which
would better serve the objectives of the Act and the priorities of the Order:
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strong conventional television licensees having the capacity to deliver
increasing amounts of attractive Canadian programs to viewers throughout
the country;
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a high level of cooperation between broadcasters and the independent production
sector, with a view to producing attractive Canadian programming, particularly
drama, documentary and other entertainment programs that reflect Canadian
values and stories and that has potential for international sales; and
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Federal and provincial government policies that support the production, promotion
and distribution of Canadian television programs in a diversity of formats.
We invite you to read our Public Notice that will be available as of this
morning.
Challenges facing the Industry
Canadian production is a thriving sector, generating $2.8 million in
1996-97. The industry provided direct or indirect employment for some
80,000 people, and exports totaled $1.4 billion.
Let's stop here for a moment. The economic success of the industry may be
recent, and a secret well kept, but it speaks for itself and it also tells
us that there is still much more potential. In saying this, I would
like to underline the importance of the economic impact of production and
cultural activities in Canada.
Further development and success requires that we see to both our cultural
and our economic objectives. They should work in tandem. Otherwise, for example,
we will likely miss the opportunity to achieve real commercial success with
highly cultural products. Let's be clear: not all programming will be profitable;
but it remains very important that financial success remain an objective
so as to support more production in this country.
More choice, quality, access and economic success for Canadian programming:
this is all very good news indeed. While we have indeed come a long way,
there remain significant challenges to address.
One is that fact that still about 60% of English programming and 86% of English
prime time drama is foreign.
On the other hand, we also know that Canadians will watch Canadian content
when it is available. At this point, it seems that the CBC's Canadian programming
strategy is gaining strength and viewership. And in Québec, we know
that 85% of viewers are watching Canadian programming and this is not strictly
due to the language. This certainly speaks loud and clear to the fact that
the long-term investment in Québec in indigenous programming pays
off.
What this experience tells us is that we have to remain confident in Canadian
programming and look to our long-term success with commitment and passion.
Another economic factor that comes into play is the small profit on investments
in Canadian programming. Private English-language broadcasters tell us that
every dollar invested in a Canadian program yields only 88 cents compared
with $1.42 for American programs. Bear in mind, however, that the situation
is completely different for French-language programming. That is why it is
important, I repeat, to have a long-range vision.
Other issues are raised when we discuss the evolution of the Canadian
marketplace. For example, we have to consider that, as Canadian broadcasters
turn to Canadian programming as a business strategy, they are looking to
a greater financial return and more control over production.
Another important element of change for the industry is consolidation. What
we want to look for here is how consolidation will serve the Broadcasting
Act and the Telecommunications Act and our overall objectives.
For example, will consolidation mean that strong broadcasters with national
reach will be better able to acquire Canadian programs at reasonable rates,
schedule them at advantageous times and promote them well to Canadians?
Recognizing the importance of small producers, will vertical integration
help assure the presence of strong, well-financed independent producers?
Three Words to guide our actions
I have only sketched some of the issues and options facing the industry.
As we debate and decide, it becomes clear why I place the emphasis today
on the three words, collaboration, viewers and creativity.
Collaboration is essential if we are to assure that Canadian programming
continues to be successful. If we build isolated and disconnected strategies,
we will quite certainly fail.
Collaboration is key if we are to find viable solutions to the continuing
challenges of designing and holding a strong place for Canadian product in
the communications environment of today and tomorrow.
Collaboration is needed among all the players, the broadcasters, the
independent producers, the regulator and the government.
From the public sector, one expects leadership, and certainly bold and consistent
efforts to build the audiences, both in Canada and abroad, for Canadian product.
We know we are getting somewhere when successful public products are in turn
challenged by the private sector for these same audiences.
The continuing collaboration of our private broadcasters, who have
and will continue to make such an important contribution to Canadian programming,
is essential.
The collaboration between broadcasters and producers, in finding mutually
viable solutions to the financial and cultural challenges ahead, is fundamental
to our future success.
It is time now to be even more proactive in this regard. We need new and
inventive solutions, and they will best come from you, the players who have
to build the basis for an industrial strategy for Canadian content.
From the regulator's perspective, we have a responsibility to encourage,
facilitate and respect this more proactive, collaborative approach. As we
say in our Vision, the CRTC will move:
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from protection to promotion
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from constraint to competition
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from detailed regulation to broad parameters
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from judicial process to a more collaborative process.
It is our position that regulation does continue to have its role, even in
the digital world. But we are equally determined to take a balanced approach,
and examine all the means at our disposal to promote as well as protect Canadian
content. I encourage an approach that uses and adapts all the policy instruments,
which we have built over the years in support of Canadian content. All these
instruments should be constantly reviewed, discussed, renewed. Regulation
alone is not the answer.
In setting out the Commission's new Vision, we took a long hard look at the
issues, and at how we could be more effective in approaching these issues.
The result is a process, which enhances the existing process for consultation
and public hearings.
In this regard, we have already taken the first steps and brought players
to round tables to discuss certain issues affecting the broadcasting and
telecommunications industries in Canada.
The whole idea is to move ideas forward, to listen, to find creative solutions
and to turn consensus into action, based on a strong industrial strategy.
Open and frequent dialogue is an absolute necessity in an environment where
everything has become inter-connected.
Consultation is a two way street. We are counting on organizations such as
the CFPTA/APFTQ to continue to participate in this new approach, as you have
done so generously in the past.
Your experience and input will be invaluable as we approach the following
reviews that we are anticipating:
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The Television Network Round Table concerning the "Group Licensing" concept
in March or April 1998;
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The Television Policy Review focusing on Strategies for Canadian Content
in September 1998;
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On-going industry consultation and public discussion on New Media;
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The CBC Renewal Hearings in the spring of 1999; and
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The CTV Renewal Hearings in the fall of 1999.
The Commission is looking to this new consultative process to provide the
kind of forum that will encourage solutions, ones that have a broad perspective.
In that sense, calling consultation a two-way street is not really appropriate.
The third party at the table has to be the viewer, the Canadian public.
The CRTC's approach to consultation will include the views of
Canadians across this country. As I mentioned at the opening
of my remarks, the interests of citizens is a central theme of our
recent decisions, and will continue to be so.
When I refer to Canadians, I am really talking about the Canadian
public playing many roles: as a participant in consultations, as a viewer,
as a consumer of information, products and services, as a citizen.
Everyone in this room is entirely aware that in this business we will not
go far without the audience. Let's take a close look at the statistics, which
tell us about consumer demand and consumer need. As we look to the future,
we may want to apply more of our thinking to the demand side of the equation
as well as the supply side.
There is an audience out there. In keeping with my point on the importance
of understanding all sides of the issues, let's not lose sight of the fact
that broadcasters must find programming which attracts viewers and in turn
advertizing revenues. Producers must collaborate with broadcasters in remembering
this fact. Keeping the audience in mind will work for both producer and
broadcaster and really assist in successful product development.
Consistently including the viewer in our deliberations not only makes
good business sense; it makes sense in terms of maintaining the balance between
our economic and our cultural objectives. The Acts, which govern our industry,
and the guiding principle of world class quality communications, require
us to work in the public interest.
As we address the evolving communications environment, it is surely in the
public interest to work towards a strong Canadian presence in this new context.
Here we come to the final word on my list, but certainly not the last,
creativity. Let me explain.
We are all very aware of the impact of the new communications technologies
in our personal and professional lives. We are accessing more and more
information, at faster speeds, from an increasingly connected world.
How will we respond to the challenge, and the opportunities, of the information
society? How we will assure that we maintain a strong Canadian presence in
the digital world?
The current literature on the digital world, including
the recent Speech from the Throne, deals extensively with the knowledge economy
and its requirements. Are we ready to assure that this will mean more Canadian
content as well as more access to world programming and information?
In this world, it is said that distribution is king,
content is queen.
We all have a part to play in answering these questions, and we should draw
on our best creative talents as we do so.
We see this creativity in action already. What we now call New Media,
or content and services designed for two-way electronic access, has attracted
some of Canada's finest production and distribution talent.
At the same time, television is evolving toward interactivity in the form
of Web TV. And let's not forget the coming of HDTV. Implementing digital
television will require collaboration across the system, from hardware makers
and distributors to software and content providers.
In positioning ourselves for the digital universe, once again, collaboration
and a regard for the interests of consumers will bolster our efforts to find
creative solutions that will work for everyone.
Conclusion: Passion and Commitment
I said earlier that what we need are clever new solutions, new ways of supporting
our cultural achievements and our broadcasting system.
We definitely have to work together to adapt to the new context and take
new aim as the need arises. But to my mind, the most important thing, the
thing that will make for greater co-operation, is the passion we all
share for Canadian programming.
We have to believe in Canadian programming with all our hearts. We have to
relentlessly pursue our goal of ensuring that Caandian programming grows,
develops, becomes even more dynamic, and achieves even greater success both
at home and abroad.
That is what we have to set our sights on. The notion of Canadian content
extends far beyond the forces of technology, regulations and globalization.
It also includes the work of Canadian creators, who have to be supported,
driven by those forces.
Finding solutions to all the economic, social, technological, cultural and
international challenges ahead will obviously require creativity on
all our parts! Canadian programming, and the success of this industry to
date, is a testament to the creativity that exists in this room and
among your colleagues across Canada.
I feel strongly that industry in fact can and must come up with many of the
answers on improving the current level of production in this country, and
on how we turn the digital economy to our advantage. It is in all our best
interests, particularly as the demand for content will increase, to foster
the best possible climate for Canadian production, Canadian stories and the
Canadian imagination.
In the midst of all our deliberations, we at the CRTC pledge with you to
never lose sight of the fact that we must do everything in our power to assure
that Canadian creative voices, in all their diversity and colour, can continue
to be heard in Canada and in all corners of the globe.
The Canadian creative presence in the new information world speaks to diversity
and presents a worldview through the unique experiences of this country and
its peoples. Canadian programming stands with the best the world has to offer.
I have sketched a complex and challenging scene today, one in which it is
clear that the regulatory approach is changing. We are going to need other
alternatives if we are to stay the course here and on the international scene.
But most of all, we are going to need the power of our imaginations to overcome
existing obstacles and pursue new dreams. We are all going to have to stay
the course, and to have faith in our achievements and in our capacity to
succeed, even in light of the formidable challenges we face. Sharing our
drive and our energy, I am convinced that in a few short years from now,
we will say we did it, we did it together, we did it for for the viewers
— the Canadian people.
Thank you for your kind attention.
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Contact: CRTC Communications Branch, Ottawa, Ontario K1A 0N2
Tel.: (819) 997-0313, TDD:
(819) 994-0423, Fax: (819) 994-0218
This document is available in alternative format upon request.
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