First, the background.
The Canadian Television Fund, a partnership between the feds and cable/satellite companies, essentially taxes those cable and satellite companies. The money gets redistributed to support producing and broadcasting Canadian content.
Broadcasters don’t get any money from the CTF, but rather the CTF directs it to the various independent shows they are ordering. The producers of those shows get the actual money from CTF, provided the shows meet Fund’s eligibility.
The CBC’s allocation is 37 per cent of the fund (minus administrative and other minor costs). In news releases, you’ll see allocation referred to as our “envelope.” (Why not just “allocation”? Who knows.)
The amount of money most broadcasters get changes from year-to-year based on things like audience success and regional activity. Over the years, audience success has become a more important factor to the CTF in determining how much of that pie you’re going to get (eat?).
The CBC’s 37% portion, though, doesn’t change. This is because, as the national public broadcaster, the CBC is mandated to deliver a wide range of Canadian content. So maximizing audience is not necessarily as big a goal as private broadcasters, for whom audience share (and, thus, advertising revenue and ultimately share price) is the primary consideration.
What the CBC proposed earlier this week.
- That the fund not be split into two streams (one funded by government, one funded by cable/satellite providers)
- That our 37 per cent envelope be retained as a minimum
- That our success be measured the same way as that of other broadcasters, so that if our performance entitles us to more than 37 per cent of the Fund, we should get the higher amount
According to the CBC, if our recommendations are accepted, it would “ensure the Fund remains the best vehicle to promote Canadian programming, and would ensure that Canadians are able to see high-quality independent productions on television in prime time.”