Michael Hennessy says he’s angry after broadcasters on Tuesday called for their terms of trade agreement with indie producers to be renegotiated.
And the Canadian Media Production Association topper is taking aim at Rogers Media president Keith Pelley for being an instigator.
“Two months after the terms of trade was signed at Banff, Keith (Pelley) got up and attacked it as a bad deal. And obviously he continues to do that,” Hennessy told Playback after the Rogers Media boss called for broadcasters to receive more international distribution revenue from hit Canadian shows during an appearance on a Banff Industry Day panel.
The producers rep said it was ironic Rogers wants to reopen the terms of trade agreement in 2014, as opposed to 2016 for Bell Media, Corus Entertainment and Shaw Media, as re-negotiations are tied to the conditions of license.
“Rogers got a shortened license term because the CRTC was concerned about their commitment to Canadian programming,” an irritated Hennessy said.
He also took issue with broadcasters insisting they don’t share in the international revenue for homegrown shows.
Hennessy pointed to a so-called super license fee clause in the agreement that allows, at the discretion of producers, broadcasters a share of the international revenue in return for an up-front fee.
The CMPA boss said he would consider more of a partnership between producers and broadcasters after the terms of trade agreement is reworked.
But Hennessy warned that would only come about because of a fair trade-off of revenues, not with broadcasters forcing producers to capitulate.
“We’re happy to discuss ways to address problems we both see, at the right time. But we’re not interested in getting into any discussion where all they (broadcasters) want to do is claw back,” he argued.
Rogers Media’s Pelley on Wednesday reiterated that the current terms of trade agreement is “one-sided” in favour of producers that have already received tax credits and a license fee.
“In a very challenging advertising industry, we need to determine how we can make Canadian programs economically viable for the broadcaster, as the current agreement does not allow for that,” Pelley told Playback in a statement.
He added ancillary revenue beyond license fees and tax credits should be given first to broadcasters until they recoup their investment, and then both sides could share revenues.
Hennessy declined to get specific about possible horse-trading that may be part of upcoming terms of trade agreement bargaining.
But possible scenarios include producers giving up more international distribution or merchandising revenue if broadcasters give producers a share of their domestic advertising or streaming revenue.
At the same time, Hennessy was keen to signal he’s girding for battle if broadcasters look to claw back hard-fought gains by producers in recent years.
“If people want to fight, we will be fighting,” he said.