Unions opposed to broadcasters’ calls to lighten regulatory load until C-11 is fully implemented

Several trade unions representing Canadian media members, artists, and producers are opposed to Corus Entertainment Inc.’s and other Canadian broadcasters’ calls for the CRTC to lighten their regulatory load until a new framework is implemented. In a request filed to the CRTC in November, Corus said it is struggling to keep up with unregulated foreign competitors, particularly online streaming services, and asked the commission to amend its conditions of licence. Beyond the “unfair advantage” afforded to foreign services, Corus also blamed their financial challenges on COVID shutdowns, high cost of foreign programming, an advertising recession, and loss of funding from Shaw after its acquisition. Interventions from Rogers Communications Inc., Quebecor Inc., Blue Ant Media Inc., the Canadian Association of Broadcasters (CAB), and the Forum for Research and Policy in Communications (FRPC) expressed support for Corus’ request. The company is asking for a reduction of its obligations to contribute to Programs of National Interest (PNI) from 8.5 per cent to 5 per cent of last year’s revenues, its Canadian Programming Expenditure (CPE) requirements from 30 to 25 per cent, and discontinuing its obligation to contribute 0.17 per cent of last year’s revenues to the FACTOR and Musicaction funds. Many of these conditions were set in May 2017 and August 2018, and set to expire in 2022. In July of last year however, the CRTC renewed Corus’ licence for two years under the same conditions, against Corus’ wishes. “Corus did not request renewal of our licences on the same conditions and, unfortunately, the decision represents a harmful and unfair outcome for our company,” it said in its application. Corus says the obligations are “based on now outdated market realities and intended to be temporary.” Adding that these conditions “exacerbate our competitive disadvantages” against platforms like Disney+, Apple Inc.’s Apple TV+, Paramount Global’s Paramount+, Warner Bros. Discovery’s Discovery+, over-the-top sports streaming service DAZN, and others. Interventions from the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), Canadian Media Producers Association (CMPA), Directors Guild of Canada (DGC), and the Writers Guild of Canada (WGC), opposed Corus’ request. While they acknowledged the challenges broadcasters are facing, they stated relief is not only unjustified but inappropriately timed. Many cited the self-adjusting nature of percentage-based requirements. “Regulatory relief is already baked into these obligations,” wrote the CMPA, “a revenue decline in one year will accordingly reduce CPE and PNI requirements in the subsequent year.” Regarding Rogers’ acquisition of Shaw and the subsequent loss of $13 million in annual local expression funding from Corus’ Global stations, opponents of the request argue that was a decision freely made by Corus’ corporate ownership and does not justify reducing their support for Canadian programming. “We question the basis for a regulatory relief application founded on the consequences of the $26 billion sale of an affiliate,” said the CMPA. They also referred to relief already granted to Corus by the CRTC as a result of pandemic-related revenue declines, extending the deadlines to pay expenditure shortfalls. Considering the recent passage of Bill C-11, the Online Streaming Act, and ongoing consultations, the DGC says it would be “a waste of the CRTC’s already stretched thin administrative resources” to grant Corus’ request. These consultations are aimed at reviewing and implementing new rules that would bring online platforms into the regulatory framework. Although their application was submitted in November, five months before Bill C-11 was passed, a Corus spokesperson explained that they are proceeding with their application for interim relief because the CRTC has said the implementation of a more flexible and equitable regulatory regime “could take years.” “Corus is pleased that Parliament passed amendments to the Broadcasting Act that will finally begin to level the playing field for Canadian broadcasters with foreign, digital giants,” they said. However, “amidst significant, ongoing industry and macro changes, Corus is not in a position to operate within the rigid obligations of an outdated regime or to wait years for change.” Rogers’ intervention agreed. “While Rogers understands the process to modernize the regulatory framework will take time to develop and implement, we also believe it is important that Canadian broadcasting undertakings be given the opportunity to respond to market changes now by making certain adjustments to their licence conditions,” it wrote. This comes following a substantial layoff of Corus employees in March, as well as the recent layoff of 1,300 Bell employees Wednesday. “I'm sympathetic to the situation that Corus finds itself in… they've had to compete within a very large unregulated section of the business, and that has not been fair,” said Lana Payne, national president of Unifor. Unifor is Canada’s largest private sector union and represents approximately 12,000 media workers, 800 of whom were Corus employees in March. The issue of funding Canadian content is “very much connected to our concern about what's happening with local news,” said Payne, stating that “employment levels within the broadcast media sector… really reflect what has been almost a collapse of the funding model for local news.” According to Unifor, between 2009 and 2022, employment in radio and television broadcasting sectors has decreased by about 30 per cent. However, as some opposing interventions also stated, she said “Corus’ application is coming in at a time when we know that there's something down the road here,” referring to the C-11 consultations, “I think it's very much premature, and would not be something that we would support.” “Our goal here should be really to protect and strengthen these obligations for Canadian content. Not water them down even further.” She further added, if Corus’ request is accepted, “we better make sure that it is a temporary fix, because otherwise, it is only going to make this entire situation we're in right now in Canada worse.” – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Unions opposed to broadcasters’ calls to lighten regulatory load until C-11 is fully implemented

News | June 16, 2023

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