The CRTC supports the production of original content

Licence renewals of large television groups

OTTAWA-GATINEAU, May 15, 2017 /CNW/ - As part of the licence renewals of the large television groups today, the Canadian Radio-television and Telecommunications Commission (CRTC) is supporting the creation of diverse, compelling and original Canadian content.

The CRTC ensures on stable funding for Canadian production in all program categories, by focusing especially on dramas, documentaries, and musical and variety shows. As such, broadcasters have the tools they need to stay competitive in an on-demand environment, and consumers have access to a wide range of programming.

With respect to the underrepresentation of certain groups, the CRTC has put in place credits that give an incentive to Indigenous producers and producers from official language minority communities to create programming.

In addition, as part of the licence renewals, the CRTC is implementing the local television policy to ensure that Canadians have access to local news and programming that reflect them and inform them about their communities.

Finally, the CRTC recognizes that women face a number of challenges with respect to key positions in the production and creative sectors. To promote women's access to leadership positions, the CRTC will organize an event on women in production.

Quick Facts

• The licences of the large French-language television groups Groupe TVA, Groupe V, Bell and Corus and the large English-language television groups Bell, Rogers and Corus have been renewed for a new five-year term effective September 2017.
• In Rogers's case, the CRTC has renewed the licences of OMNI's local stations for an interim period of three years, to coincide with the decision taken today to grant mandatory distribution to OMNI Regional in small basic packages until 2020.
• In accordance with the conclusions of Let's Talk TV, the CRTC is maintaining its support for the creation of Canadian content, while giving the groups flexibility so that they can adapt to new digital realities and compete with online services.
• In the event of a local station's closure, the licensee must inform the CRTC 120 days prior to ceasing operations. This gives Canadians an opportunity to express their opinions, if need be.

Quote
"We continue to require the large groups to make an important contribution not only to Canadian programming, but also to the broadcast of original programming. The measures we are taking as part of these licence renewals also promote the creation of programming that reflects the linguistic duality and diversity of Canadian society, including the special place of Indigenous peoples in our society. Moreover, Canadians will have access to local information and news."

– Jean-Pierre Blais, Chairman and CEO, CRTC

Related Products

• Broadcasting Decision CRTC 2017-148 – Renewal of television licences held by large French-language television ownership groups – Introductory decision
• Broadcasting Decision CRTC 2017-143 – Renewal of television licences held by large English-language television ownership groups – Introductory decision
• Broadcasting Decision CRTC 2017-144 - Bell Media Inc. – Licence renewals for French-language television services
• Broadcasting Decision CRTC 2017-145 - Corus Entertainment Inc. – Licence renewals for French-language television services
• Broadcasting Decision CRTC 2017-147 Quebecor Media Inc. – Group-based licence renewals for French-language television stations and services
• Broadcasting Decision CRTC 2017-146 Groupe V Média inc. – Licence renewals for French-language network, television stations and services
• Broadcasting Decision CRTC 2017-149 Bell Media Inc. – Licence renewals for English-language television stations and services
• Broadcasting Decision CRTC 2017-150 Corus Entertainment Inc. – Licence renewals for English‑language television stations and services
• Broadcasting Decision CRTC 2017-151 Rogers Media Inc. – Licence renewals for English-language television stations, services and network

Related Links

• Broadcasting Notice of Consultation CRTC 2016-225 - Renewal of television licences held by large English- and French-language ownership groups
• Broadcasting Regulatory Policy CRTC 2016-224 – Policy framework for local and community television
• Broadcasting Regulatory Policy CRTC 2015-86 – The way forward – Creating compelling and diverse Canadian programming
• Broadcasting Regulatory Policy CRTC 2016-436 – Standard requirements for television stations, discretionary services, and on-demand services

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Related Document 1: Summary of Determinations – French-Language Groups

Issue	Determination
Canadian program expenditures (CPE) – Approach	Case-by-case approach for each group.
CPE – Calculation structure	Calculation of CPE as a percentage of the previous year's revenues.
CPE – Minimum levels	Groupe TVA: 45% of the previous year's revenues Groupe V: 35% of the previous year's revenues Bell – French: 35% of the previous year's revenues Corus – French: 26% of the previous year's revenues
CPE – 25% limit	Impose a 25% limit on the flexibility between conventional television and discretionary services.
Programs of national interest (PNI) – Minimum levels	Groupe TVA: 15% of the previous year's revenues Groupe V: 10% of the previous year's revenues Bell – French: 18% of the previous year's revenues Corus – French: 15% of the previous year's revenues
Independent production	At least 75% of PNI requirements.   According to financial projections, this would represent $69.1 million each year, or $345.6 million over five years.
Original French-language programs	No requirement, but monitoring by means of reports
Local programming (local relevance) – Minimum levels	Groupe TVA Montreal: Quebec City:   Saguenay, Sherbrooke, Trois-Rivières, Rimouski:   Groupe V All stations	25 hrs/week 18 hrs/week and maintenance of special conditions 5 hrs/week     5 hrs/week
Hours of locally reflective news and information programming – Minimum levels	Groupe TVA Montreal: Quebec City: Saguenay, Sherbrooke, Trois-Rivières, Rimouski:   Groupe V All stations:	6 hrs/week 3.5 hrs/week   2.5 hrs/week     2.5 hrs/week
Level of locally reflective news and information programming expenditures (LNE)	Base the LNE requirements on the previous year's revenues of each conventional station, for all stations being renewed. Impose a new standardized LNE requirement of 5% of previous year's revenues for all of the designated groups' stations. Allow flexibility among stations to meet LNE requirements in order to permit large or innovative projects (e.g. investigative journalism). The same rules governing year to year overspending and underspending for CPE will be applied to LNE.
Monitoring of compliance with requirements related to locally reflective news and information programming	Local programming: By means of program logs Hours of local news programming: By means of ad hoc reports / sampling Local news expenditures: In annual financial reports
Consideration of amounts transferred by broadcasting distribution undertakings in keeping with the flexibility to transfer part of their contribution to local expression	Allow amounts received as a result of the flexibility that BDUs have to transfer a portion of their contribution to local expression to be counted as LNE without incremental requirements.
Process in the event of the closure of a conventional television station	Impose condition of licence on all services within a same licensing group that would require those stations to notify the Commission of their intention to cease operations 120 days prior to ceasing operations which would trigger a public process.
Expectations with respect to regional reflection official languages minority communities	Express an expectation to the effect that all discretionary services ensure that broadcasts adequately reflect all of Quebec's regions, including those outside Montreal, as well as all regions of Canada, and that licensees provide producers in these regions with an opportunity to produce programming for their services.
Support for under-represented groups – OLMC	Incentive measure: 125% CPE credit when designated licensee groups do business with OLMC producers up to the total expenditures credited (expenditures + amount credited for the OLMC and Indigenous credit) equal to 10% of the group's CPE.   Add questions in the annual reports submitted by each designated licensee group in order to obtain the following information: the number of OLMC producers they meet with each year, the list of projects in development and in production that were commissioned from OLMC producers, as well as the budget and the CPE allocated to these projects.
Support for under-represented groups – Indigenous	Incentive measures: 150% CPE credit when dealing with Indigenous producers, up to a total amount of credited expenditures (expenditures + credited amount for the OLMC and Indigenous credit) equal to 10% of the group's CPEs.   Add questions in the annual reports submitted by each designated licensee group in order to obtain the following information: the number of Indigenous producers they meet with each year, the list of projects in development and in production that were commissioned from Indigenous producers, as well as the budget and the CPE allocated to these projects.
Support for under-represented groups – Women in key production positions	Use the Commission's convening powers to initiate a summit on women in production with particular emphasis on women in leadership positions.   Add a question in the annual reports submitted by each designated licensee group in order to obtain the following information: the appointment of women in key creative positions in productions (producer, director, writer, director of the photography and image editor).

Related Document 2: Summary of Determinations – English-Language Groups

Issue	Determination
Canadian programming expenditures (CPEs)	Standard requirement of 30% for all groups, conventional stations and discretionary services.
25% limit on flexibility with respect to conventional television stations' expenditures on discretionary services	Maintain the limit.
Programs of National Interest (PNIs) + independent productions	Standard requirement of 5% for all groups, conventional stations and discretionary services. Maintain the requirement of 75% PNIs directed to independent producers. According to financial projections, this would represent $111 million each year, or $554.9 million over five years.
Local Programming: Establishment of exhibition COLs for locally reflective news	For non-metropolitan markets, maintain the current standard requirement to broadcast 7 hours of local programming. For metropolitan markets, maintain the current standard requirement to broadcast 14 hours of local programming. For non-metropolitan markets, impose a new standard requirement to broadcast three hours of locally reflective news and information programming. For metropolitan markets, impose a new standard requirement to broadcast six hours of locally reflective news and information programming.
Local programming: establishment of conditions of licence for expenditures on locally reflective news and information programming (LNEs)	Base the LNE requirements on the previous year's revenues of each conventional station, for all stations being renewed. Impose a new standardized LNE requirement of 11% of previous year's revenues for all of the designated groups' stations. Allow flexibility among stations to meet LNE requirements in order to permit large or innovative projects (e.g. investigative journalism). The same rules governing year to year overspending and underspending for CPE will be applied to LNE.
Local programming: monitoring of compliance with requirements related to the monitoring of exhibition and expenditures for locally reflective news	Local programming: By means of program logs Hours of local news programming: By means of ad hoc reports / sampling Local news programming expenses: In annual financial reports
Local programming: Consideration, in the calculation of a station's revenues and the CPEs determined on the basis of those revenues, amounts received due to the flexibility granted to BDUs allowing them to transfer a portion of their contribution to local expression	Allow amounts received to be taken into account to meet LNE requirements, without an additional requirement.
Conditions of licence to address the closure of local over-the-air television stations	Impose on each service included in the designated group a condition of licence requiring that the licensee notify the Commission of its intention to close the service at least 120 days prior to ceasing operations, which would trigger a public process.
Compliance – Audit of compliance with CPE and PNI requirements at the end of a licence term	Impose a condition of licence requiring that a licensee be required to report and respond, at any time until August 31, 2019, to any request for information regarding expenditures incurred by itself and by the group, on Canadian programming and on programs of national interest, during the previous licence term. Impose a condition of licence stipulating that the licensee is responsible for any failure to meet the CPE and PNI requirements imposed in its previous licence term. Indicate in the decision that the Commission could use the information gathered from the licensee to verify the licensee's compliance with its CPE and PNI expenditure requirements during its previous licence term.
Issues related to production and reporting requirements	Create new forms, staff to informally consult with broadcasters to get industry feedback and issue an information bulletin in order to ensure uniform reporting by all broadcasters.
Support for under-represented groups – official languages minority communities (OLMC), Indigenous peoples and women	OLMC Incentive: 125% CPE credit when designated groups do business with OLMC producers, up to a total amount of expenditures credited (expenditures + amount credited for the OLMC and Indigenous peoples credit) equivalent to 10% of the group's CPEs. Addition of questions in annual reports concerning the use of OLMC producers so that designated groups indicate the number of OLMC producers met with and provide a list of projects commissioned, in production or completed, as well as the budget and the CPEs allocated to these projects. Indigenous peoples Incentive: 150% CPE credit when designated groups do business with Indigenous producers, up to a total amount of expenditures credited (expenditures + amount credited, for the OLMC and Indigenous peoples credit) equivalent to 10% of the group's CPEs. Addition of questions in annual reports concerning the use of Indigenous producers so that designated groups indicate the number of Indigenous peoples met with and provide a list of projects commissioned, in production or completed, as well as the budget and the CPEs allocated to those projects. NOTE: Both credits (OLMC and Indigenous peoples) would be limited to the same maximum amount, i.e., 10% of CPEs. Women Use the Commission's convening authority to hold a summit on women in the production industry, while emphasizing women's access to key positions. Addition of issues in annual reports concerning the access of women to key production positions (producer, director, script writer, director of photography and picture editor).

SOURCE Canadian Radio-television and Telecommunications Commission

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