Day one of the Canadian Radio-television and Telecommunications Commission’s hearing on defining Canadian programming highlighted the need for flexibility and incentives to meet the varied needs of the evolving screen industry.

The hearing process started Wednesday (May 14) and is scheduled to run until May 27, culminating in 78 witness testimonies. CRTC chairperson and CEO Vicky Eatrides said at the start of the proceeding that the focus would be on establishing a definition of Canadian content — including the consideration of IP rights — the system’s approach to programming and the data needed to ensure the broadcasting framework is achieving results.

In addition to presenting their own proposals on the topics, witnesses have responded to various CRTC proposals for the system. They include changing the 10-point Cancon system to a 15-point system and removing programs of national interest (PNI) requirements.

The first day’s witnesses at times presented conflicting priorities for the sector. Canadian Association of Broadcasters (CAB) president Kevin Desjardins (pictured) argued that broadcast news is at-risk programming in need of funding, since it can’t be monetized through additional windows and ad revenue is being drawn away by foreign competitors. Mandatory contributions to the Independent Local News Fund are a way to offset some of those losses, according to Desjardins, though the matter is currently before the Federal Court of Appeal.

Earlier, Association québécoise de la production médiatique (AQPM) CEO Hélène Messier argued that news should not be included within PNI requirements, identifying youth, drama and documentary programming as most at-risk due to the higher expense to produce.

Xavier Brassard-Bédard, CEO of Ontario French-language pubcaster TFO, also argued that youth programming is at risk because of its high costs and the difficulty to monetize due to increased global competition. The broadcaster proposed the creation of a new fund for English and French-language youth programming, with a portion dedicated to francophone content in official language minority communities.

Desjardins also argued that consumer habits have moved away from genres required under PNI, favouring content such as reality TV and lifestyle programs.

Several witnesses touched on the need for flexibility in the system. The CAB suggested a tailored approach to conditions of service, with licensees able to have more control over their contributions based on their business models.

“As a general principle, incentives are better than quotas or requirements to achieve outcomes,” said Desjardins, adding that broadcasters are no longer “investment-ready businesses” as their subscriber and ad revenues are funneled to foreign competitors.

Looking at IP ownership, AQPM proposed two different models for Cancon requirements. The first would require 100% ownership from Canadian producers and key roles to be held by Canadians. Licensing agreements with broadcasters would have a maximum of seven years, with future rights to be confirmed in a separate agreement between the parties.

The second model would see at least 51% ownership of IP by Canadians for a minimum of 25 years. Any Canadian programming expenditure requirements would be proportional to ownership levels, meaning if a production had 30% foreign ownership, then 70% of its value would be counted.

Tonya Williams, founder and executive director of the Reelworld Screen Institute, argued that the CRTC should consider introducing incentives to increase private equity investment.

“I’m a big believer in incentivizing private investors … how do we get investors on Bay Street to look at our industry in a way that could actually make money,” she said. “It’s important for government funding to help those companies that are trying to get private investors.”

Reelworld also proposed that the CRTC help support the creation of a star system in Canada, allowing funding for the creation of more daytime and late night talk shows to spotlight domestic performers. Later in her testimony, Williams said that there is “no other better path to discoverability” and marketability than the use of a domestic star system.

“Regular audience members don’t need to [know] — or care — who the director, the writers or the producers are of that content. That shouldn’t be their concern. They get excited about the faces they see on screen,” she said.

While the first day’s hearings didn’t touch too much on the actual definition of Canadian content, Williams contested the notion that there isn’t a clear sense of Canadian identity, in light of trade tensions with the U.S.

“The minute we’re threatened, you see Canadian identity come together. You see an audience that doesn’t even want to buy things on the shelf that are American-made,” she said. “We have a strong Canadian identity… the more we interject our Canadianness in our content, the more we help the rest of the world.”

Netflix Canada and the Motion Picture Association – Canada (MPA-Canada) were slated to appear on the first day of the proceedings. However, at the start of the session, hearing secretary Jade Roy announced that Netflix, Apple Canada and Paramount would no longer be appearing, and that MPA-Canada’s testimony was postponed to Friday (May 16).

A Netflix spokesperson told Playback Daily that MPA-Canada is appearing on behalf of its members. The organization represents the interests of several U.S. media companies in Canada, such as Netflix, Paramount, Disney, Amazon MGM Studios, Sony, Universal and Warner Bros. Discovery.

Apple Canada did not respond to a request for comment at press time.

Among the witnesses slated to appear on Thursday (May 15) are the Shaw Rocket Fund, APTN and a joint presentation from the Canadian Film Centre, National Screen Institute and L’institut national de l’image et du son.

Image courtesy of CPAC