OSM – intervention2013-448 Corus

 Submitted electronically Mr. John Traversy, September 27, 2013 Secretary General Canadian Radio-­‐television and Telecommunications Commission Ottawa, ON K1A 0N2 RE: Broadcasting Notice of Consultation CRTC 2013-­‐448, Items 2 and 3 Application (2013-­‐0596-­‐2) by 8324441 Canada Inc. on behalf of TELETOON Canada Inc. (TELETOON Canada) for authority to effect a change in ownership and effective control of the undertakings of TELETOON Canada to Corus Entertainment Inc. (Corus) Applications to renew the broadcasting licences for TELETOON/ TÉLÉTOON (TELETOON) (2012-­‐1162-­‐2) and TELETOON Retro (2012-­‐1163-­‐0) Applications by Corus Entertainment Inc. (Corus), for authority to acquire the television broadcasting undertakings Historia and Séries+ (2013-­‐0597-­‐0), (2013-­‐0600-­‐4) and (2013-­‐0611-­‐8). ___________________________________________________________________________________ 1.
On Screen Manitoba wishes to comment on Broadcasting Notice of Consultation CRTC 2013-­‐106 regarding the acquisition of Teletoon, Historia and Série + by Corus. 2. On Screen Manitoba wishes to appear during the hearing regarding this issue, scheduled to begin on November 5, 2013. 3. On Screen Manitoba est l’association professionnelle de l’industrie de production des médias au Manitoba. Nos membres comprennent des scénaristes, des réalisateurs, des producteurs, des guildes, des syndicats, des fournisseurs de service, des festivals de film et autres organismes et individus ayant un intérêt dans ce secteur au Manitoba. Ceci représente plus de 60 compagnies de production et fournisseurs de service, soit quelques 1500 individus. 4. Parmi nos membres se trouvent des individus des milieux anglophone, francophone, autochtone et multiculturel. On Screen Manitoba croit que la diversité linguistique et culturelle de la production indépendante au Manitoba est un atout qui enrichi le système de la radiodiffusion au Canada. The Application by Corus to purchase Teletoon 5. The Canadian animation business includes the production of both interactive and linear content in 2D and 3D. Animation hubs exist in Vancouver, Ontario, Québec and Halifax. Within the past 18 months Winnipeg has also increased its presence in the animation industry with the emergence of a commercial studio to complement a post-­‐production sound studio and several small companies producing animation for commercials, games and music videos. 1 6.
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On Screen Manitoba shares many of the same concerns as the CMPA in regard to the purchase of Teletoon and Teletoon-­‐Retro by Corus. We agree that a number of safeguards and condition of licence need to be put in place within the context of the English market acquisition. These concerns are discussed below. As an organization that represents producers in both Anglophone and Francophone communities, On Screen Manitoba notes that Corus appears not to have described benefits that should accrue to the French Language market as a result of the purchase of Télétoon and Télétoon-­‐Rétro. Nous demandons une clarification de comment les avantages découlant de la vente de Télétoon et Télétoon-­‐Rétro vont découler en ce qui concerne le marche de langue française y compris la place des Francophones hors Québec vivant en communauté de langue officiel en situation minoritaire (CLOSM). On note que l’Association québécoise de la production médiatique (AQPM) et l’Alliance des producteurs du Canada (APFC) demande également une clarification sur la répartition des bénéfices.. The Canadian television animation business is based on a combination of foreign service work and original programming. This is a fiercely competitive international business. In Canada several broadcasters Treehouse, CBC and the Educational broadcasters buy animation for very young audiences; however, the bulk of the industry nationally and internationally is focused on young audiences 6 to 11 years of age. There are just two principal independent buyers in Canada for that age group: YTV and Teletoon. On Screen Manitoba joins the CMPA in expressing their concern that with Corus as the owner of both networks, the opportunities for Canadian animation producers to sell original programming would be significantly diminished. The reduction in opportunities to sell original Canadian programming is a concern in terms of the ownership structure (with Corus making programming decisions for both YTV and Teletoon within a group licence) and in terms of Corus’ ownership of Nelvana and its potential reliance on in-­‐house production for original programming. 10. On Screen Manitoba is a strong advocate for the important role Independent Canadian producers who live and work in the regions play in ensuring diversity of voice within the Canadian broadcast system. In that vein we also believe that diversity of voice is best served when regional producers have the option to work with several different broadcasters with separate ownership structures. 11. Manitoba has a long tradition of independent auteur animators, who have carried out their own independent projects while picking up commercial work for advertising. This is includes award-­‐
winning animators such as Brad Caslor, Richard Condie and Cordell Barker. 12. There is a new emerging animation scene in Manitoba that includes those working in both interactive and linear animation. The opening of a commercial studio and the completion of an animated feature animation in Winnipeg this past year resulted in the creation of 45 positions for animators. It also afforded a Manitoba resident the opportunity to direct this animated feature, which is being distributed internationally on television and DVD. Winnipeg also has a post-­‐sound facility that has been providing music and voice over to international television animation projects for many years. This company has built up its business from straight service work to co-­‐productions and is now beginning to pitch original programming ideas. There is an new energy in the media production community in Manitoba as it develops capacity in animation. 2
13. Manitoba is a tiny player in the Canadian animation business, but it is home to a community of creative entrepreneurs, who are seeking opportunity to produce original Canadian programming. There are other provinces that have communities of animators looking for opportunity to participate in the industry. We encourage the Commission to ensure that the purchase of Teletoon by Corus includes measures to offer opportunity to independent producers in all regions of Canada, working in both official languages, to provide original Canadian content in the form of animation for young audiences. 14. As an organization that represents regionally-­‐based writers, directors and producers working in both official languages, On Screen Manitoba is concerned when creators and producers have access to fewer content buyers. Ultimately fewer television buyers results in less choice for audiences. The members of On Screen Manitoba have chosen to live and work in Manitoba, they believe strongly that the stories and perspectives they bring to Canadian television content is essential to ensuring that the Canadian broadcast system reflects the reality of all Canadians including young audiences. 15. Corus already controls the majority of the Canadian children’s market, Teletoon will add to that concentration. For this reason, On Screen Manitoba supports the CMPA’s call for the maintenance and addition of safeguards to reduce the impact of what will essentially be a Corus’ monopoly of the children’s programming market in Canada. Again, when a single player controls the decision-­‐
making process with regard to programming expenditures and content, there is a real risk that that young audiences in Canada will see a reduction in the diversity of programming offered. 16. On Screen Manitoba supports the sale of Teletoon to Corus but agrees with the CMPA that a number of safeguards are required. These safeguards include: • Excluding Teletoon and Teletoon-­‐retro from Corus group licence; • A separate program commissioning team for Teletoon; • A condition a of licence (COL) that a minimum of 75% of all expenditures for original, first-­‐run Canadian programming broadcast on the service is directed to independent production companies; • A COL to ensures that a minimum of 75% of all original, first run Canadian programming broadcast on the service is acquired from independent production companies; • Confirmation that Nelvana will not qualify as an “independent producer” as Corus has indicated to the CMPA; • No program cross-­‐over, ie programs broadcast on other Corus children’s services should not be broadcast in the same year on Teletoon. 17. On Screen Manitoba urges the Commission, as it has consistently in the past, to require Teletoon adhere to the Terms of Trade with the CMPA as a COL; and, to establish a transparent annual reporting mechanism that would demonstrate that producers in all regions of Canada have contributed to the original Canadian programming on Teletoon and that Teletoon is not relying on Nelvana to produce original independent programming. We agree with the CMPA that the Commission’s recent decision to require APTN tor eport on its independent productions provides a useful model. 18. Finally, any annual reporting required as a COL should also include a mechanism to verify that original programming and expenditures and exhibition obligations are being met. 3
Tangible Benefits related to Teletoon 19. On Screen Manitoba appreciates that Corus has proposed tangible benefits that represent 10% of the estimated $249M transaction. On Screen Manitoba leaves the determination of the value of the transaction to the expertise of the CRTC. 20. Finally, On Screen Manitoba urges the Commission, as it has in many recent decisions, to require as a COL that Teletoon adhere to the Terms of Trade with the CMPA; and, that the Commission also establish as a COL, transparent annual reporting that would demonstrate that producers in all regions of Canada have contributed to the original Canadian programming on Teletoon and that Teletoon is not relying on Nelvana to produce original independent programming. We agree with the CMPA that the Commission’s recent decision to require as a COL that APTN report on its independent productions provides a useful model. Any annual reporting required as a COL should also include a mechanism to verify that original programming and expenditures and exhibition obligations are being met. 21. On Screen Manitoba supports Corus’ allocation of 85% of the tangible benefits to on-­‐screen initiatives including the $2.8M for the Script and Concept Development and the $875,000 to Telefilm Canada’s Canadian Talent Fund for emerging animation talent. 22. In speaking for a region that has an emerging animation sector; and, as an organization that represents regionally-­‐based writers, directors and producers On Screen Manitoba strongly supports the Script and Concept Development Fund along with the contribution to Telefilm’s Canadian Talent Fund; but we urge the Commission to include as a COL that a portion of the on-­‐
screen tangible benefits be spent on productions sourced from all regions of Canada both in terms of the licensing of original Canadian content and in terms of the Script and Development Fund along with Telefilm’s Canadian Talent Fund. 23. On Screen Manitoba applauds the proposed allocation of $1.75M to an “export initiative” that would result in a fund administered by a third party that would provide marketing and travel support for independent producers. As an organization representing regionally-­‐based producers On Screen Manitoba is acutely aware of the added challenge producers not living in major centres face in terms of travel costs to markets. Media production is a very competitive business and support for marketing Canadian content would be beneficial to independent producers. 24. However, we believe that this Fund should not be considered an on-­‐screen benefit instead it should be supported through the off-­‐screen benefit stream. The $1.75M of on-­‐screen benefits would be better spent on the commissioning of original Canadian programming. 25. On Screen Manitoba is in agreement with the CMPA that it is not appropriate to allow Corus to reserve one third of the on-­‐screen benefits intended for the production of high-­‐quality Canadian programming for its own use. We believe that 100% of on-­‐screen benefits should be directed to independently-­‐produced original Canadian programming as a COL. 26. We would add that the above COL should also include a COL that on-­‐screen benefits are intended to support independently-­‐produced original Canadian Program from content creators in all regions of Canada in both minority and majority official language communities. 4
27. We leave the allotment of social benefits to the expertise of the CRTC to determine appropriate allocations that will benefit the Canadian communities impacted by the transaction and that will benefit the Canadian Broadcast System as a whole. 28. Finally we ask that, following usual practice, the CRTC require as a COL annual reporting on the tangible benefits resulting from this transaction. Teletoon and Teletoon-­‐retro Licence Renewal 29. On Screen Manitoba supports the licence renewal of Teletoon and Teletoon-­‐retro taking into consideration the safeguards and COLs discussed above. We agree with the CMPA that in order to ensure Teletoon and Teletoon-­‐retro continue as independent buyers of original Canadian programming that they should be excluded form the Corus group; however should the CRTC determine that a group licence approach is appropriate we believe that the licence period should end as previously determined for Corus in August 2016. 30. Whether Teletoon is determined to fall under a group licence or not, On Screen Manitoba agrees with the CMPA that Teletoon should be subject to the following requirements as COLs (in addition to those it has agreed to maintain): • The CPE and PNI levels Corus has proposed, namely 31% and 26%, respectively; • Allocation of at least 75% of its PNI spending to independent production companies (which excludes Nelvana); • The standard requirements regarding over-­‐ and under-­‐ CPE/PNI expenditures; • The standard 10% limit on categories 12, 13 and 14 Echoing the CMPA, On Screen Manitoba asks the Commission to consider maintaining or adding as COLs the following: • Maintain Teletoon’s COL requiring 90% of programming to be animation or “animation-­‐
related” • Maintain the 6am – 6pm part of Teletoon’s schedule as a “safe haven” when children can watch its programming unsupervised; • Continue to program the 6pm – 9pm period for children to watch with an adult (co-­‐viewing); • Continue to schedule programs targeted to adults only after 9pm; and • Maintain Teletoon’s COL defining “peak time” for its Canadian programming exhibition obligation as the period from 4pm – 10pm; • Maintain TELETOON’s COL prohibiting allocation of any script and concept development funding to its shareholders or affiliated corporations); and • Accept a COL requiring Teletoon (and Teletoon Retro) to adhere to a Terms of Trade Agreement with the CMPA. 31. In conclusion, although a small player in the animation sector, On Screen Manitoba appreciates the opportunity to speak to the importance of establishing COL and according tangible benefits that ensure diversity of voice and the opportunity for regionally-­‐based creators and producers to participate in the production of original Canadian animation programs. 5
La Proposition de Corus d’acquérir Historia et Série + 32. Le Manitoba est une communauté francophone dynamique et qui reflète la diversité de la francophonie au Canada aujourd’hui. Notre population inclut des Franco-­‐Manitobains établis depuis des centaines d’années ainsi que des Métis Francophones. Suite à l’implantation des écoles d’immersion dans les années 70 nous avons vu croître le nombre de Francophiles. Plus récemment encore, le Manitoba accueille un nombre croissant d’immigrés Francophones d’Afrique et d’ailleurs. Le nombre d’élèves de la Division Scolaire Franco-­‐Manitobaine a augmenté de 14,4% depuis 20011, et en ce qui concerne les écoles d’immersion, le nombre d’élèves a augmenté de 3000 en 5 ans2. 33. Ces jeunes audiences, leurs familles, leurs enseignants et les autres membres de la communauté francophone au Manitoba ont besoin d’avoir accès à de la programmation canadienne originale qui reflète leur réalité. Une réalité qu’ils partagent avec d’autres communautés francophones en situation minoritaire au Canada. C’est pour ces raisons que On Screen Manitoba souligne l’importance de considérer la contribution des producteurs hors Québec en déterminant la distribution des avantages qui découlent de la vente de Télétoon, Télétoon-­‐rétro, Historia et Série+ à Corus. 34. Dans sa proposition, Corus ne semble pas tenir compte de la diversité de la production francophone au Canada, ni de la place des francophones hors Québec dans le marché francophone. Ceci est préoccupant pour les créateurs au Manitoba et dans d’autres CLOSM. 35. Dans plusieurs de ses décisions récentes (SRC, TV5-­‐Unis et dans le cadre de la transaction Bell-­‐
Astral), le CRTC a noté l’importance de l’inclusion des CLOSM dans les offres des diffuseurs ainsi que dans la production des émissions. En vue d’assurer la diversité des voix francophones, le CRTC avait réservé 10 % des fonds à des entreprises de production de langue française situées à l'extérieur du Québec dans ses décisions 2013-­‐106 (Bell-­‐Astral) et 2001-­‐384 (TVA-­‐Québecor Média inc.). 36. Historia et Série+ sont des chaines importantes pour les audiences et la production indépendante hors Québec. Historia notamment a longtemps collaboré avec les producteurs francophones hors Québec. Ceci dit, les pratiques du passé sous une nouvelle direction ne garantissent pas l’avenir. 37. On Screen Manitoba est en accord avec l’APFC et demande au CRTC de mettre en place un CDL exigeant que Corus s’engage à réserver 10% des dépenses sur des productions originales Canadiennes. 38. On Screen Manitoba apprécie que Corus propose 10% de la valeur de la vente en avantages mais tout comme l’APFC demande à ce que le calcul de Corus soit considéré de nouveau pour inclure les avantages qui découlent de l’achat des parts d’Historia et de Série+ aussi bien de Bell que de Shaw enfin de refléter la totalité de la valeur d’Historia et de Shaw. 1
Communiqué de Presse, DSFM, le 4 octobre 2012 https://www.dsfm.mb.ca/SiteWeb2010/documents/Publications%20et%20liens/Communiqués/2012-­‐
2013/CMN%20de%20presse_inscriptions_4%20oct%202012.pdf 2
Reportage Radio-­‐Canada, les Immigrants à l’assaut des écoles d’immersion,Édition Manitoba le 7 mai 2013. http://www.radio-­‐canada.ca/regions/manitoba/2013/05/08/001-­‐hausse-­‐frequentation-­‐ecole-­‐
immersion.shtml 6
39. En tous les cas, On Screen Manitoba demande au CRTC de mettre en vigueur un CDL qui oblige Corus à réserver 10% des avantages à l’écran à la production hors Québec. 40. On Screen Manitoba en tant qu’organisme qui représente des scénaristes, des réalisateurs et des producteurs en région apprécie fortement la proposition de la création d’un fonds de scénarisation ainsi que le soutien proposé pour les nouveaux talents à Téléfilm Canada. On Screen Manitoba demande au CRTC à ce que Corus confirme que ces avantages qui découlent d’Historia et de Série+ seront dédiés au marché francophone. De plus, sachant la difficulté à faire valoir les voix Francophones issues des CLOSM sur le marché francophone, On Screen Manitoba demande à ce qu’il y ait un mécanisme mise en place pour assurer que 10% de ces fonds soient réservés aux productions hors Québec. 41. Comme nous avons mentionné dans le contexte des avantages de Teletoon on applaudit la création d’un fond indépendant pour soutenir le marketing et le coût des voyages de producteurs indépendants voulant assister aux marchés internationaux. Mais nous notons de nouveau que ce fonds devrait sortir des avantages hors écrans et que les avantages de l’écran devraient être dirigés à 100% vers la commission d’émissions canadiennes originales. 42. En ce qui concerne les avantages hors écran, On Screen Manitoba laisse au CRTC le soin de vérifier que les proposition de Corus soutiennent les communautés affectées par la vente d’Historia et de Série+. Nous sommes en accord avec l’APFC que 10% des avantages hors écran devraient être dirigés vers les initiatives hors Québec, en privilégiant la formation des créateurs et des producteurs. 43. Toutefois, sachant que l’un des plus anciens groupes de théâtre au Canada, Le Cercle Molière (basé à Winnipeg), est parmi les organismes considérés pour les avantages hors écrans et sachant qu’il existe peu d’organismes qui permettent aux acteurs francophones hors Québec à développer leur talents ; nous appuyons tout particulièrement cette proposition. Mais, nous proposons que le Cercle Molière utilise ces fonds pour former des acteurs au jeu devant la caméra et non-­‐seulement pour le jeu de la scène. Une des raisons pour laquelle la production de fiction avance lentement en CLOSM est qu’il y a peu d’occasions pour les acteurs de suivre une formation et de gagner une expérience à l’écran. 44. En conclusion, On Screen Manitoba, en accord avec l’APFC appuie la demande de Corus d’acquérir Historia et Série+ à condition que : • Les avantages tangibles soient calculés sur la totalité de la valeur de la transaction. • Corus précise que les avantages tangibles ne serviront que le marché de langue française. • Corus s’engage à ce que les sommes affectées à l’initiative « Émissions » soient en compléments des obligations en DÉC de Historia et Séries+. • Corus s’engage par condition de licence à réserver 10% des avantages tangibles « à l’écran » à des entreprises de production indépendante de langue française situées en milieu minoritaire, et que 10% des avantages tangibles « hors écran » aient un impact direct sur l’industrie de la production dans son ensemble, y compris à travers des formations offertes par des institutions comme HEC et L’Inis. • Corus prévoit, dans le cadre de l’initiative Scénarisation, un mécanisme avec le(s) éventuel(s) gestionnaire(s) des fonds permettant de réserver 10% de la somme destinée à l’aide à la scénarisation aux producteurs de l’extérieur du Québec. 7
De plus On Screen Manitoba demande au CRTC de mettre en place un mécanisme de rapport annuel qui démontre la dépense des avantages à l’écran ainsi que les avantages hors l’écran et ceci par province. 28. On Screen Manitoba appreciates the opportunity to provide its comments to the Commission. A copy of this intervention has been provided to the applicants in accordance with the Commission’s directives on procedure. Sincerely, Nicole Matiation Executive Director On Screen Manitoba *** End of Document *** 8