February 15, 2018 Filed Electronically Mr. Chris Seidl Secretary General Canadian Radio-television and Telecommunications Commission Ottawa, Ontario K1A 0N2 Dear Mr. Seidl: Re: Select broadcasting licences renewed further to Broadcasting Notice of Consultation CRTC 2017-183: Applications 2017-0821-5 (Family Channel), 2017-0822-3 (Family CHRGD), 2017- 0823-1 (Télémagino), 2017-0841-3 (Blue Ant Television General Partnership), 2017-0824-9 (CHCH-DT), 2017-0820-8 (Silver Screen Classics), 2017-0808-3 (Rewind), and 2017-0837-2 (Knowledge). The Writers Guild of Canada (WGC) is the national association representing approximately 2,200 professional screenwriters working in English-language film, television, radio, and digital media production in Canada. The WGC is actively involved in advocating for a strong and vibrant Canadian broadcasting system containing high-quality Canadian programming. Given the WGC’s nature and membership, our comments are limited to the applications of those broadcasters who generally commission programming that engages Canadian screenwriters, and in particular those who significantly invest in programs of national interest (PNI). The WGC conditionally supports the renewal of the above-noted services, subject to our comments below. Executive Summary ES.1 The Commission set out its general approach to Canadian programming expenditure (CPE) and PNI requirements in Broadcasting Regulatory Policy CRTC 2015-86, Let’s Talk TV: The way forward - Creating compelling and diverse Canadian programming (the Create Policy). In it, the Commission was clear that CPE was a central pillar of the regulatory policy framework for Canadian television broadcasting, and that the guiding principle for setting CPE levels for independent broadcasters would be historical spending levels. With respect to PNI, the Commission stated that PNI expenditure requirements continue to be an appropriate tool for ensuring that Canadians have access to the maximum number of programs from program categories that are of national interest and that require continued regulatory support, and that 366 Adelaide Street West Suite 401 Toronto, Ontario M5V 1R9 A Member of the International Affiliation of Writers Guilds Tel 416 979-7907 1-800-567-9974 Fax 416 979-9273 [email protected] www.wgc.ca current requirements would therefore be maintained. Minimum PNI levels, like CPE, have also been calculated on the basis of historical spending on PNI. As such, the Commission’s approach to setting PNI levels has been consistent with its approach to CPE. ES.2 Given the above, the WGC submits that the approach to setting CPE and PNI levels for the broadcasters dealt with in these applications is simple: CPE requirements must be set at their historical spending levels, as a percentage of revenue, or 10%, whichever is greater; and PNI levels, where applicable, must similarly be set at historical spending levels. We submit that anything less than that, for any licensed service, is contrary to the Create Policy, both in letter and spirit, as well as inconsistent with the Act. ES.3 With respect to DHX Television Ltd. (DHX), the WGC objects to the proposal to combine English- language and French-language services in the same designated group for the purposes of a group- based licensing approach. The WGC questions the value of an English-language “designated group” consisting of only two services. However composed in reference to a group-based approach, CPE and PNI requirements for DHX’s services must be based on historical levels, consistent with the Create Policy discussed above. Regarding CPE, this would appear to mean: a) a 3-service group CPE requirement of 20% of the previous year’s broadcasting revenues; b) a 2- service, English-language group CPE requirement of 21%; or, c) individual CPE requirements of 22% for Family Channel, 11% for CHRGD, and 10% for Télémagino. Regarding PNI, this would appear to mean: a) a 3-service group PNI requirement of 15% of the previous year’s broadcasting revenues; or, b) an individual PNI requirement for Family Channel of 17% (the WGC is unable to calculate historical PNI spending for a 2-service English-language group). The WGC suggests the Commission require DHX to file benefits reports annually as part of its licence renewal decision. ES.4 With respect to Blue Ant Media Inc. (Blue Ant), it has proposed a standardized CPE level of 21% for each of the eight discretionary services within the Blue Ant group, but we are aware of analysis demonstrating Blue Ant’s group 3-year average CPE was 31%. This appears to mean that Blue Ant spent significantly more on CPE over these three years than they were required to by regulation. If accurate, we applaud Blue Ant for demonstrating a significant commitment to the production and presentation of Canadian programming, and we also believe this demonstrates a capacity to invest in Canadian programming above the 21% group minimum. Regarding PNI, Blue Ant has not filed, nor has the Commission required it to file, data showing what it spent on PNI over the current licence term. Moreover, the Group PNI reports filed by Blue Ant and available on the CRTC’s website appear to be inaccurate. As such, interveners do not have access to the necessary data to assess Blue Ant’s historical spending on PNI over the current licence term and whether it has met its regulatory obligation regarding PNI and if the current and proposed PNI spending requirement remains appropriate for the next licence term. ES.5 With respect to Rewind and Silver Screen Classics, these services should be subject to minimum CPE requirements of 12% and 10%, respectively, of their previous year’s revenues. CHCH-DT should be subject to a minimum CPE requirement based on its historical spending. ES.6 With respect to Knowledge, the WGC supports its renewal as proposed in its application. The WGC supports Knowledge’s mandate and activities as a public broadcaster, and encourages Knowledge 2 to continue its positive contribution to the production and distribution of original Canadian programming, including with regard to PNI. CPE and PNI Requirements for Independent Broadcasters 1. The Commission set out its general approach to Canadian programming expenditure (CPE) and PNI requirements in Broadcasting Regulatory Policy CRTC 2015-86, Let’s Talk TV: The way forward - Creating compelling and diverse Canadian programming (the Create Policy). 2. With respect to CPE, discussed at paragraphs 213-225 of the Create Policy, the Commission noted that: Canadians expect content of high quality from their television system, and the creation of compelling high-quality productions by Canadians requires financial investment; CPE requirements provide necessary incentives to create virtuous cycles of production, and are important tools to fulfil the objectives of the Broadcasting Act (the Act); CPE requirements are particularly important in light of the determinations elsewhere in the Create Policy reducing exhibition requirements; CPE requirements will be expanded to apply to all licensed programming services; and, this overall approach takes into account the possible impacts of other changes to be implemented in the Create Policy and other related determinations in the Let’s Talk TV proceeding. As such, the Commission stated: In light of the above, in the English-language market (including third-language services), the Commission will apply CPE requirements to all licensed services. Services that do not currently have a CPE requirement will be assigned one at licence renewal. The CPE levels will be based on historical expenditure levels.1 3. Regarding independent broadcasters—i.e. those not part of the large private broadcast groups subject to the Broadcasting Regulatory Policy CRTC 2010-167: A group-based approach to the licensing of private television services (the Group Policy) and subsequent decisions—the Commission stated: Since independent over-the-air stations will have a CPE requirement for the first time, the appropriate level of CPE will be set at the time of licence renewal, based on historical levels of expenditure. It will take into account any relevant outcomes of the proceeding reviewing local and community programming as announced in Broadcasting Regulatory Policy 2015- 24. With respect to English- and third-language discretionary services, CPE requirements will be implemented for all services with over 200,000 subscribers. As discussed later in this document, all discretionary services under 200,000 subscribers will be exempt from licensing under a new exemption order. CPE for licensed services will be established in a case-by-case manner and based on historical levels. However, given the great variation in the revenues and expenditures of discretionary services and the fact that certain services make little or no expenditures on Canadian programming, the minimum level of CPE applied will be 10%. In the Commission’s view, this level represents an attainable floor for any discretionary services that still ensures some contribution to the creation and 1 Broadcasting Regulatory Policy CRTC 2015-86, Let’s Talk TV: The way forward - Creating compelling and diverse Canadian programming (the Create Policy), para. 217. 3 presentation of Canadian programming. Currently, 19 services have CPE of less than 10%, with an average of 5%.2 4. The Commission was therefore clear that CPE was a central pillar of the regulatory policy framework for Canadian television broadcasting, and that the guiding principle for setting CPE levels for independent broadcasters is historical spending levels, subject to the above-noted criteria. 5. With respect to PNI, the Commission stated the following in the Create Policy: The Commission considers that PNI expenditure requirements continue to be an appropriate tool for ensuring that Canadians have access to the maximum number of programs from program categories that are of national interest and that require continued regulatory support. This view was also shared by a vast number of interveners, including individual Canadians who participated in the proceeding. PNI requirements were introduced in the English-language market in 2011, in the French- language market in 2012 and for CBC services in 2013.