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Analysis of Canadian Programming Expenditure

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Analysis of Canadian Programming Expenditure ANALYSIS OF CANADIAN PROGRAMMING EXPENDITURE AND PROGRAMS OF NATIONAL INTEREST PROPOSALS FILED BY THE ENGLISH-LANGUAGE BROADCAST GROUPS AS PART OF THEIR GROUP LICENCE RENEWAL APPLICATIONS (Broadcasting Notice of Consultation CRTC 2016-225) Prepared by: Mario Mota, Boon Dog Professional Services Inc. For: Alliance of Canadian Cinema, Television and Radio Artists (ACTRA); Canadian Media Producers Association (CMPA); Directors Guild of Canada (DGC); and Writers Guild of Canada (WGC) August 2016 i TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................................... 1 Bell Media English Group .............................................................................................................. 1 Corus Entertainment ..................................................................................................................... 1 Rogers Media ................................................................................................................................ 2 II. INTRODUCTION ........................................................................................................................... 2 Background ................................................................................................................................... 2 Some Trends Over the Current Licence Term ............................................................................... 4 II. GENERAL COMMENTS ABOUT THE BROADCAST GROUPS’ CPE AND PNI PROPOSALS .. 4 The Broadcast Groups’ CPE and PNI Proposals Would Result in Significantly Lower CPE and PNI Spending in the Next Licence Term ........................................................................................ 4 III. ANALYSIS OF EACH BROADCAST GROUP’S CPE AND PNI PROPOSALS .......................... 5 Bell .................................................................................................................................................... 5 New Group Composition ............................................................................................................... 5 Limitations of Publicly Available Data ............................................................................................ 6 CPE .............................................................................................................................................. 6 PNI .............................................................................................................................................. 10 Corus .............................................................................................................................................. 13 New Group Composition ............................................................................................................. 13 Limitations of Publicly Available Data .......................................................................................... 14 CPE ............................................................................................................................................ 15 PNI .............................................................................................................................................. 19 Rogers ............................................................................................................................................ 22 New Group Composition ............................................................................................................. 22 Limitations of Publicly Available Data .......................................................................................... 24 CPE ............................................................................................................................................ 24 PNI .............................................................................................................................................. 26 IV. ANALYSIS OF DATA GAPS AND INCONSISTENCIES IN INFORMATION AVAILABLE ON THE PUBLIC FILE .......................................................................................................................... 27 Lack of Historical Spending Data by Programming Category for All Groups ................................ 28 Inconsistent Measuring of Original First Run and New Commissioned CPE and PNI .................. 28 APPENDIX 1 ................................................................................................................................... 29 APPENDIX 2 ................................................................................................................................... 31 1 I. EXECUTIVE SUMMARY The Alliance of Canadian Cinema, Television and Radio Artists; Canadian Media Producers Association; Directors Guild of Canada; and Writers Guild of Canada commissioned Boon Dog Professional Services Inc. to analyze the proposals related to Canadian programming expenditure (“CPE”) and programs of national interest (“PNI”) requirements filed by the English-language broadcast groups as part of their respective group licence renewal applications pursuant to Broadcasting Notice of Consultation CRTC 2016-225) (“BNC 2016-225”). This report details Boon Dog’s analysis of the impact of the CPE and PNI proposals made by Bell Media English Group, Corus Entertainment, and Rogers Media (hereinafter collectively the “Broadcast Groups”) under the CRTC’s group-based licensing policy. Boon Dog notes that there are some gaps in data and inconsistencies in information regarding the Broadcast Groups’ revenue and programming expenses available on the public file of this proceeding. This makes it very difficult for interveners to accurately and properly assess the Broadcast Groups’ CPE and PNI proposals. Accordingly, the analysis in this report related to the Broadcast Groups’ CPE and PNI proposals is preliminary and limited, and is subject to confirmation by the Commission’s internal analysis of recent historical spending using all of the necessary and relevant data. With respect to the specific proposals related to CPE and PNI requirements put forward by each of the Broadcast Groups, and notwithstanding the lack of complete and consistent data publicly available to properly and accurately assess the Broadcast Groups’ proposals, Boon Dog finds the following: The proposals by Bell and Corus, if approved, would result in a significant reduction in overall spending on Canadian programming and PNI in the broadcasting system over the next licence term. With respect to PNI specifically, this would be over and above the already large decrease in spending on PNI experienced over the current licence term, as noted by the Commission in BNC 2016-225 and summarized below. Bell Media English Group Our analysis of historical spending on Canadian programming for the proposed new Bell Media English Group as a whole based on existing CPE requirements results in an average CPE level of 28%, which is higher than the 27% level Bell proposes for the next licence term. Our analysis of historical spending on Canadian programming for the proposed new Bell Media English Group’s conventional TV stations based on existing CPE requirements results in an average CPE level of 27%, which is higher than the 22% level Bell proposes for the next licence term. Our analysis of historical spending on PNI for the proposed new Bell Media English Group based on existing PNI requirements results in an average PNI level of 8%, which is higher than the 5% level Bell proposes for the next licence term. Corus Entertainment Our analysis of historical spending on Canadian programming for the proposed new Corus group as a whole based on existing CPE requirements results in an average CPE level of 29%, which is higher than the 26% level Corus proposes for the next licence term. 2 Our analysis of historical spending on Canadian programming for the proposed new Corus group’s conventional TV stations based on existing CPE requirements results in an average CPE level of 34%, which is higher than the 27% level Corus proposes for the next licence term. Our analysis of historical spending on PNI for the proposed new Corus group based on existing PNI requirements results in an average PNI level of 8%, which is higher than the 5% level Corus proposes for the next licence term. Rogers Media It is not possible to do an analysis of historical spending on CPE and PNI for the proposed new Rogers group due to the lack of certain key information available on the public file. As such, the Commission should require Rogers to file for the public file of this proceeding revenue data for the City stations that are part of its designated group (i.e., excluding City Saskatchewan) for each of the 2011-2012, 2012-2013, and 2013-2014 broadcast years so interveners can properly assess Rogers’ CPE and PNI proposals. In addition, the Commission should require Rogers to place on the public file prior to the public hearing PNI spending data for FX and FXX for each full broadcast year that these services have been in operation so interveners can properly assess Rogers’ PNI proposal. II. INTRODUCTION Background The Alliance of Canadian Cinema, Television and Radio Artists; Canadian Media Producers Association; Directors Guild of Canada; and Writers Guild of Canada commissioned Boon Dog Professional Services Inc.1 to analyze the proposals related to Canadian programming expenditure (“CPE”) and programs of national interest (“PNI”) requirements
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