Open letter to CRTC chairman Charles Dalfen

CFTPA is deeply concerned by [the March 3] release of the Pay and Specialty Statistical and Financial Summaries, 2000-2004. Contrary to the CRTC’s historical practice, the commission has chosen to release only aggregate financial data pertaining to the 115 Canadian programming services covered in this report.

The CRTC’s March 3 press release indicates this sector is healthy and profitable. Revenues increased 9% between 2003 and 2004 to $2.05 billion and operating margins and EBIT are very strong.

The notes to the report indicate that the Canadian Association of Broadcasters asked the CRTC to keep individual licensee financial information confidential. We urge you to dismiss this request in the interest of full disclosure.

Since at least 1997, CRTC has published the revenues and expenses of each pay and specialty licensee. This information has been invaluable to the production industry, as it provides a clear indication of the Canadian program expenditures of each program service, broken down by acquisition of program rights, script and concept development, program production and investment. Such information on an aggregate basis is useful only in a general way.

We strongly object to the CRTC withholding this information and request, at minimum, that the CAB’s letter, with its supporting arguments, be placed on the public file allowing the production community and other interested parties to respond.

In a number of recent public notices and decisions relating to broadcasting undertakings, the CRTC has emphasized the need for openness and transparency, which the CFTPA firmly endorses.

In its November 2004 public notice Incentives for English-language Canadian Television Drama (2004-93), the CRTC emphasized that full and transparent annual reporting is important and must be published in a timely manner. This permits both the CRTC and interested parties with the necessary information to evaluate broadcaster activity.

Transparency or openness is a two-way street, and is the basis of sound regulatory policy. The CRTC regulates ‘in the public interest,’ not simply in the interests of the broadcasters it regulates.

Guy Mayson,
President and CEO,
CFTPA, Ottawa.

Television Policy in ‘urgent’ need of repair

Re: ‘Broadcaster revenues climb to $2.1 billion: CRTC’ (Playback, Feb. 28, p. 7)

I want to thank you for running this story that focuses on the rising revenues of private broadcasters. It is especially welcome at a time when we are continuing to experience a crisis in English-language television dramas. I am also pleased that reporter Sean Davidson added mention of the disastrous CRTC 1999 Television Policy, but I am concerned that the final paragraph of the story could be misleading to some readers.

The CRTC Broadcasting Policy Monitoring Report that was released late last year and in previous years clearly shows that since the 1999 Television Policy took effect, there has been a very steep decline in broadcaster expenditures on Canadian English-language drama.

In 1998, there was a 62% increase in drama expenditures by private broadcasters. This increase was followed by a 21% decline in 1999. That decline has subsequently been followed by only very modest increases.

To get a clear picture of the state of English-language drama spending by private broadcasters you must use 1999 as a benchmark year when citing statistics. Looking back at the statistics over five years exposes the long-term damaging effect the CRTC 1999 Television Policy has had for English-language drama and the urgent need for this policy to be repaired.

Stephen Waddell,
National executive director,
ACTRA, Toronto.