DGC lobbies for 7% share

The Directors Guild of Canada is heading into the November national network hearings prepared to fight for a baseline 7% of gross revenue from the private broadcasters for Canadian drama and other underrepresented programming genres.

Among the first to propose a solid benchmark for contribution to Canadian production from the national broadcasters, the dgc has filed a strong intervention for the Nov. 5 proceedings, which are gearing up to be more about content and contribution than network structure.

According to the dgc, the latest statistics on spending by the private nets on drama and music and variety programs represents 3.3% and 0.9% of total revenues respectively.

The proceedings at hand, triggered by the Global Television Network appeal into the Alberta decision, ‘should lead to a strengthened regulatory approach capable of greatly expanding the commitment of private conventional broadcasters to [regularly scheduled, new and distinctively Canadian drama as well as to the underrepresented categories],’ says the guild.

The dgc claims that based on current revenue figures, a 7% requirement on ctv and its affiliate stations in 1996, for example, would have driven the network’s underserved programming contribution up to $82 million.

‘Based on the multiplier effects through other funding sources, this could generate over $100 million a year in additional Canadian program production by the independent sector, or as much as two hours of new drama production per week.’

The dgc suggests that individual stations that are part of private networks contribute a pro rata share, that the new criterion be imposed at years six and seven of current licences, and suggests that a greater percentage of ad revenue be imposed where commitments are made as part of a competitive licensing process. ‘Over time, the benchmark for category 7, 8 and 9 Canadian programming should be increased to a level commensurate with the 12% already expended by French language tv stations in Canada.’

In its submission, the cftpa steers clear of putting forth a number. It does, however, submit a commissioned report from Nordicity Group which, among several suggestions for bolstering the underserved program categories, points out that contributing 7.5% of revenue to the underrepresented categories would result in another $27 million in the kitty this year, ‘the likely majority of which would flow to independent producers.’

The dgc is also encouraging the crtc to reconsider Cable Production Fund guidelines. Specifically, the clause that permits private broadcasters to claim the full amount of the licence fee, including the portion contributed by the fund, as eligible program expenditures.

‘As funding for the ctcpf increases, the real effect of this must be addressed. Taken to its logical conclusion, it could mean that every dollar contributed by bdus into the ctcpf could be matched by a commensurate reduction in the Canadian expenditure obligations of private broadcasters,’ says the guild, which recommends that the 7% gauge apply to the broadcasters’ contribution outside of any contribution from the ctcpf.

All of the above will create an interesting producers/broadcasters push/pull at the hearings. According to its intervention, priorities on the Global Television agenda include ‘whether the imposition of peak time exhibition requirements is helpful or detrimental to achieve maximum audiences for Canadian programming,’ and ‘how revenues can be maximized in order to make Canadian programming a financially viable industry for broadcasters.’