October 5, 2012 Mr. John Traversy Secretary-General CRTC Ottawa, K1A 0N2 Dear Mr. Traversy: Re: CRTC 2011-379: Licence Renewals for the CBC’s French- and English-language services “With more specific reference to English-language CBC, its radio services have remained non-commercial, giving its audiences a programming with which they are generally satisfied and which is seen as unique. However, English-language television has tended to become more commercial, more in direct competition with private television and more driven to use American programming to attract advertising dollars – an approach which does not appear to be successful. “We believe that CBC English-language television should become, and will have to become, more distinctive if it is to remain viable and fulfill its role as a unique public broadcaster. We should consider giving it a mandate that clearly articulates its role as a unique Canadian broadcaster, and seek to reduce or eliminate mass-audience American programming from its schedule. In terms of foreign content, CBC could concentrate on non- North-American, international programming, that tends to be under-represented in the system. “Along the same lines, we would seek to reduce CBC’s dependence on advertising revenue and its competition with the private sector for these valuable dollars, especially for non- sports programming. This refocused CBC will, obviously, have to be provided with stable and long-term public funding.” Stephen Harper, November 29, 2004 CRTC 2011-379 Executive Summary Hockey Night in Canada accounts for 10% of CBC English Television’s schedule, one-third of its audience share and 50%+ of its advertising revenue. Losing HNIC to Bell or Rogers in next year’s negotiations with the NHL would create a 400 hour hole in the ETV schedule and affect its bottom line by some $200M. In that event, ETV should be called back before the Commission to explain the impact on its operations and business plan. Over the past decade the ETV has become substantially more commercial, running ads for 20% of its broadcast hours, to the displeasure of the public. The Commission should review this trend and continue its condition of licence regarding 80% Canadian content, including an expectation that ETV meet this CanCon commitment weekly. The existing expectation regarding children and youth programming should also be renewed. To stem a trend towards ever-increasing repeat programming on both radio and television, the Commission should issue an expectation that at least 50% of CBC programming be original content during the forthcoming licence period. Radio Two’s format should return to its emphasis on world classical culture. The Commission should deny CBC’s request to place unlimited advertising on Radio Two and Espace Musique. Implementation of new radio services in several Canadian cities promised by CBC to address under-service should become a condition of licence. 1. Friends of Canadian Broadcasting is an independent watchdog for Canadian programming in the English-language audio-visual system supported by 175,000 Canadians, and is not affiliated with any broadcaster or political party. Friends asks to appear at the forthcoming public hearing in order to discuss with the Commission its views on the future of public broadcasting in Canada, as outlined herein. 2. Friends supports the renewal of CBC’s various licences subject to the comments, recommendations and proposed conditions which follow. 3. Since the June 2011 announcement of this public consultation, Friends has brought the Commission’s invitation to comment to the attention of interested persons throughout the country. As a result, to our knowledge, 3,466 individuals have submitted personal, unique comments to your Commission during the 2011 and 2012 consultation periods. 4. Recently we commissioned a content analysis of the first 2,007 of these comments and for the Commission’s interest we can report the following topics as the top ten issues articulated therein – a snapshot of these Canadians’ priority comments: 2 CRTC 2011-379 3 CRTC 2011-379 4 CRTC 2011-379 5 CRTC 2011-379 6 CRTC 2011-379 7 CRTC 2011-379 5. Friends also placed the 2,007 comments into a Wordle program, which created the following word picture: 8 CRTC 2011-379 6. In the lead-up to this public consultation, Friends has also sponsored public meetings in six Canadian cities in order to discuss priorities for Canadian public broadcasting from a local perspective – “The CBC We Want”. Summaries of these discussions are available at friends.ca. 1 7. During the period leading up to the most recent general election, scores of government Members of Parliament and Ministers promised their constituents that the Conservative government was committed to maintain or increase funding to our national public broadcaster. On May 3rd, 2011, the day after that election, Canadian Heritage Minister James Moore repeated this promise: “We believe in the national public broadcaster. We have said that we will maintain or increase support for the CBC. That is our platform and we have said that before and we will commit to that.” 2 8. Notwithstanding this promise, the newly-elected government introduced a massive cut to CBC’s parliamentary appropriation in its March 2012 Budget. The impact of this cut, projected forward to 2015 based on Department of Finance and Treasury Board data (including inflation estimates) has opened a 37% gap between the CBC’s parliamentary appropriation and overall program spending during the period 2006 to 2015: 3 1 http://www.friends.ca/TheCBCWeWant/ 2 http://www.friends.ca/news-item/10188 3 http://www.friends.ca/Campaigns/CBC-cuts Reproduced from a full-page advertisement in the National Edition of the Globe and Mail, April 19 and 21, 2012. 9 CRTC 2011-379 9. We recognize, of course, that your Commission has no control over CBC’s finances. We do, however, recommend that you exercise your discretion to send a clear message to the government regarding the increasing gap between the CBC’s Broadcasting Act mandate 4 and its parliamentary allocation – a gap that affects our national public broadcaster’s capacity to meet the needs of Canadians from coast to coast to coast, who depend on it daily to deliver on that mandate. 10. An international comparison of investment in public broadcasting in western democracies commissioned by the House of Commons Standing Committee on Canadian Figures expressed as a percentage of 2006/07 amounts. Percentages based on C$millions adjusted to year 2012 dollars using Statistics Canada Consumer Price Index data (February 2012), and Consumer Price Index inflation projections in Table 2.1 of Economic Action Plan (Federal Budget) 2012. Years reflect Government of Canada fiscal year ending March 31. Total program expenses for 2006/07-2010/11 are as stated in Summary Statements of Transactions published in 2008-2012 Federal Budgets. Total program expenses for 2011/12-2014/15 reflect projections contained in Table 6.4 of Economic Action Plan 2012. Program expenses exclude public debt service. CBC figures for 2006/07-2011/12 reflect Treasury Board Main Estimates for operations, working capital and capital expenditures combined with one-time additional funding, if any, in Supplementary Estimates. CBC figures for 2012/13-2014/15 reflect base funding for 2011/12 contained in Treasury Board Main Estimates, reduced by the amount of annual reductions stated in Table A1.11 of Economic Action Plan 2012, and increased by $60 million in each year to reflect assumption that historical one-time additional funding will be continued. CBC figures do not reflect production fund or tax credit contributions to CBC productions. 4 Section 3 (1)(l&m) 10 CRTC 2011-379 Heritage in 2003 demonstrates that CBC’s funding, expressed as a share of the Gross Domestic Product, is tied for 20th place with Spain, and fifth from the bottom of the list: 5 11. Canadians look to the Commission – as an arms-length agency of Parliament – to address some very serious and searching questions about CBC’s priorities. This submission focuses on the following topics: • English Television: Hockey • English Television: Commercial Advertising • English Television: Program Content • Radio Two: Format Change • Radio Two: Commercial Proposal • Regional Service and Regional Reflection • Repeat Programs on Radio and Television • Corporate Governance and Accountability 5 Our Cultural Sovereignty, House of Commons Standing Committee on Canadian Heritage, 2003. Page 178. 11 CRTC 2011-379 CBC English Television: Hockey 12. The current broadcast rights contract between the CBC’s English Television Network (ETV) and the National Hockey League expires in 2014 – early in the proposed new licence term. In recent months, senior representatives of at least two other major Canadian broadcasting organizations with deep pockets and ample shelf space signalled their desire to win this contract away from the CBC. 13. A headline in the Toronto Star on May 29, 2012 reads: “Hockey Night In Canada rights expected to produce fierce battle between media companies.” 6 In that story, Rogers Media president Keith Pelley is quoted as follows: “the possibility now exists that we could be a candidate for Hockey Night In Canada,” while Bell Media’s Vice-President of Communications, Scott Henderson, states: “We would most likely take a look at it when the time comes.” 14. Friends is not advocating that the CBC relinquish its rights to hockey broadcasts, nor is it expressing a preference for such an outcome. However, we do strongly recommend that the potential loss of Hockey Night in Canada be taken into account during the current licence renewal process. Otherwise, in licensing the ETV for at least a five-year term, the Commission would be writing the CBC a blank cheque, as explained below. 15. Perhaps the most iconic program on Canadian television, Hockey Night In Canada first aired in 1952.