Notes for an address
by Françoise Bertrand
Chairperson, Canadian Radio-television
and Telecommunications Commission

to the Banff Television Festival

Banff, Alberta
June 14, 1999

Good morning ladies and gentleman.

It is truly delightful to wake up in Banff this morning. That’s not to say I don’t love my day job in Ottawa, but if you have been keeping track of our work plan, you will know that we have had a very busy time lately. My colleague Joan Pennefather and the Commission staff who are here can certainly testify to that!

A month ago we released the results of our survey on Canada’s new media industry and shortly after announced the licensing of four new French-language specialty services. Following that, we spent three weeks reviewing all of CBC's radio, television and specialty licences – taking a look at the whole picture for Canada’s national public broadcaster.

And if that wasn’t enough, just last Friday we unveiled the new TV policy that will guide television broadcasters, and have a significant effect on Canadian television producers, in the future.

But before I elaborate on these policies and decisions, let’s take a deep breath of this energizing mountain air and consider the Banff Television Festival.

Twenty years old and counting! Some of you were here at the beginning – like Vision TV’s Fil Fraser and the Festival’s Senior Vice President Jerry Ezekial and so many others who have been faithful Board members or participants in the intervening decades. People – who contrary to beliefs popular at the time – had faith in an idea and brought that idea to life. The idea that television could have its very own festival and Canada’s premier national park was just the place to hold it.

The Banff Rockie Awards have indeed become the Olympics of television awards with close to one thousand programs and more than forty countries competing for the honours. In addition, the growth and prominence of the Festival is testimony to the maturation of Canada’s own television industry – both domestically and internationally. My congratulations to Banff Television Festival President Pat Ferns and his hard working Board and staff for mounting yet another fabulous event this year.

Before I talk about the new television policy we released Friday, a word about the Internet.

As a team, the Commission recently came to a newsworthy position on new media. In deciding not to regulate, we became one of the first regulators globally to clarify its stand on the Internet.

The Canadian new media industry is vibrant, highly-competitive and successful without regulation. By not regulating this booming sector, the Commission hopes to support the continued exponential growth of new media services in Canada.

We based our approach on a critical evaluation of whether the content on the 'net is broadcasting -- as defined by the Broadcasting Act. We found that

• alphanumeric programming and
• Internet material that is predominantly customizable by the user

are, by definition, not broadcasting.

Other kinds of Internet material – that would in fact fall within the definition of broadcasting – will be exempt from regulation.

We have many reasons for issuing exemption orders for this material. From the public record, new media appear to complement rather than substitute for traditional broadcasting. In addition, there’s a substantial Canadian presence on the Internet today – some five percent. It appears that the new media industry requires local Canadian content to develop its businesses and that there is an increasing demand by Internet users for a Canadian perspective.

All in all, ample business and market incentives exist for the continued production and distribution of Canadian new media content. Federal and provincial levels of government, as well as the private sector, have initiatives in place to support Canadian content on the web.

Finally from a legal perspective, regulation of new media would not further the objectives of the Broadcasting Act. Furthermore, other Canadian laws, industry self-regulation and content filtering software, as well as increased media literacy, are more appropriate tools to deal with offensive and illegal content than regulatory measures.

I am pleased to see the Festival itself is again home to a number of new media happenings including the launch this afternoon of "cyberpitch" for the development of a new media project which best reflects the ultimate marriage between television and new media.

Speaking of which, television is a key medium in our communications system and a primary means for Canadians to see and hear each other and represent themselves to the world. On Friday we released the results of a comprehensive review of our television policy.

The approach we developed is based on a formal public process that included three hundred and fifty submissions from thoughtful individuals and organizations and more than ninety oral presentations to a public hearing held last Fall, from a cross-section of the Canadian broadcasting and production industry. It also encompassed informal public consultations, including one held here in Banff coincident with the Festival last year.

We appreciate the quality of this participation. And I want to thank you personally for allowing us to collect so much information prior to making our decision.

In all of the consultations, briefs and presentations, one message came through loud and clear: Canada must build on its proud television past to forge a brave new future.

To reflect the industry’s stature, the Commission has developed a broader policy focused on programming where a diverse range of Canadian programming that Canadians want to watch remains our priority.

The goals of the new television policy are to:

• provide greater flexibility to meet future challenges,
• ensure Canadians have access to a variety of high-quality Canadian programs during peak viewing times, and
• ensure a more focused approach where regulatory intervention is necessary, in the context of the low acquisition costs for U.S. programs and the need to invest in our own dramatic stories.

That having been said, here are some highlights of the Commission’s renovated approach.

We recognize the changed ownership structure of Canadian television and the progress the system has made in pursuit of the objectives of the Broadcasting Act. Virtually all private television licensees are part of an ownership group that controls several stations. In many cases, such multi-station ownership groups also control specialty or pay television services.

A central challenge of this new policy framework is to define fair and equitable contributions for all of these ownership groups – despite different circumstances. In doing so, the Commission has based its conclusions on the ownership structure that actually exists. This new approach makes no distinction between networks and ownership groups in terms of their responsibilities.

As might have been expected, we have decided to consider the regulatory obligations of the private television stations controlled by any one corporate entity at the same time. This move on our part reflects the reality of industry consolidation and allows multi-station groups to present a corporate strategy that will be reflected in their brands.

This cultural approach, based on an economical strategy will, from now on, translate into the simultaneous licence renewal of all the television stations owned by the same corporate entity, like we have recently done for Radio-Canada and CBC.

This will allow each group to present to the Commission a comprehensive strategic plan for all of its stations. By opening up the dialogue between the Commission and these multi-station ownership groups, which have the financial capacity to contribute to the production of quality Canadian programs, we hope to improve the social and cultural contract that binds them to the Canadian viewers.

Furthermore, we have separated the broadcasters into two broad categories:

• the broadcasters reaching more than 70% of the audience in one of the two official languages, and operating in several provinces; and
• those reaching less than 70% of the audience, and operating in smaller markets.

In other words, the first category includes the stations owned by CTV, Global, WIC and TVA, while the CHUM, Craig and TQS television stations belong to the second category.

However, for all broadcasters, our requirement for a minimum Canadian content level remains the same. The requirement to air a minimum of sixty percent of Canadian programs in a broadcast day and, for the private sector, at least fifty percent Canadian content during the evening broadcast period is a rule that has been efficient up until now and we maintain it. These rules have been praised and copied around the world.

Now, let’s look at what applies specifically to the multi-station ownership groups CTV, Global, WIC and TVA.

We have broadened the definition of priority programming in peak viewing hours. From now on, long-form documentaries, regional programs (in categories other than news and sports) and magazine programs which promote the Canadian entertainment industry are added to drama comedy, music and variety programs.

Our new recognition of magazine programs which focus on Canada’s creative talent reflects the success of the star system in Quebec and elsewhere in the world. We believe the better Canadians know the personalities that produce their entertainment, the more intrigued they will be by the final products. In addition, we have woven allowances into our rules on advertising which encourage the promotion of Canadian films, whether or not they will be broadcast by the station promoting the film.

CTV, Global, WIC and TVA will be required to broadcast, in the new, more flexible peak viewing hours between 7 p.m. and 11 p.m., from Monday to Sunday, a minimum of eight hours per week of the priority programming.

Programming expenditures are a clear example of one regulatory approach that is no longer necessary in this context. The Commission believes that in a competitive environment licensees will require high quality programming to win audience loyalty. Their spending decisions will be based on their established criteria for success in the marketplace.

From now on, we are changing our approach to on-air credits for drama. The concept of Canadian content generally remains important, but what is now even more critical is increased incentives to invest in the high costs associated with the production of fiction programs. For this reason the new credits will be applied to the fulfillment of the new priority program requirement only.

We believe that the new credits, combined with existing public and private support programs, will provide a significant boost for the production community. For the first time, the Commission has recognized – through the one hundred and twenty-five percent credit – the value of Canadian drama programs that do not meet the ten-out-of-ten, distinctively Canadian test.

Smaller multi-station groups, such as CHUM and Craig broadcasting in English Canada, and TQS in Quebec, also have an important role in the system. Regionally based, they generally offer a distinctive alternative from the groups with a national focus. The distinctive personalities they present will become increasingly important in the broadcasting system of the future.

To enable these smaller groups to flourish, the Commission will not impose the same level of priority programming requirements on them. However, these licensees will be expected to demonstrate their programming is consistent with the goals of the new policy at licence renewal time.

In some ways, these highlights outline the details of how Canadian television will be delivered. What remains a key concern to the Commission and, we believe, to Canadians, is what must be created and presented to Canadian television.

Our population is rich with regional experience and with the wealth of cultures from the motherlands of our immigrant populations. The face of Canadian television must be the face of its viewer. Television programs must reflect today’s Canadians in an effort to truly serve the needs of all Canadians, to attract new audiences at home and open new markets overseas.

So now, as I conclude, I must tip my hat to all of you, broadcasters, independent producers, talents, creators. The success that we have today is based on a combination of various factors: the creativity of our talent pool, the high quality of our television product, viewers’ loyalty for our programs, the business acumen of the industry and the effectiveness of the public policy supports.

Twenty years ago few people had faith that an annual television festival held here would have a future, let alone be an international success story.

Similarly, fifty years ago few believed that Canadian television programming had a chance, let alone would ascend to the heights it has at home and abroad, in English and in French and in the public and private sectors. Fifty years ago the concept of independent production barely existed.

Since the CBC public hearing is now over, I would like to bring you the Commission’s view about the importance of the CBC in the broadcasting system. As an individual who places great value on surrounding circumstances, I strongly believe that positive interaction and interconnection among all the players serves to strengthen the system as a whole.

The CBC has a unique, important role. To have a strong broadcasting system, we need a strong public broadcaster. Because at the end of the day, it will take private broadcasters, independent producers and public sector players to support Canadian talent and bring Canadian programming to television screens at home and around the world.

Just a short time ago, no one would have believed that Canadians could capture a significant share of a barely understood concept called the World Wide Web. Onward and upward. Watching from the sidelines at times, and from the director's chair at others, the Commission salutes you and looks forward to future successes on television and in cyberspace.

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Contact:  Denis Carmel, Ottawa, Ontario K1A 0N2
               Tel.: (819) 997-9403, TDD: (819) 994-0423, Fax: (819) 997-4245
               e-mail: denis.carmel@crtc.gc.ca
               Toll-free # 1-877-249-CRTC (2782)