Television in Canada: Its FutuTe

Transcription

1 85 19E Television in Canada: Its FutuTe Terrence J. Thomas Economics Division 26 November 1985

2 :~L~ * (~j CANADA TELEVISION IN CANADA: ITS FUTURE The future of Canadian broadcasting is a perennia issue in this country. Worries about it go back almost to the invention of radio and increased with the development of television and then cable. Recent changes (the proliferation of new cable channels, advances in satellite television, cutbacks at the CBC and the possibility that free trade negotiations with the u.s. will include bargaining over Canadian cultural and communications policy) have made Canadians wonder if future broadcasting will include any distinctively Canadian television. This review examines the current state of discussion on this topic and points out additional information that is needed before we can reach any definite conclusions. CURRENT VIEWS ON CANADIAN TELEVISION The Canadian Conference on the Arts (CCA) recently sponsored a conference on the Future of the Canadian Broadcasting System (October 1518, 1985 in Ottawa). The following points are the most important ones made at the conference and provide a good summary of the issue today.

3 2 1. The American presence on Canadian television. The outstanding problem in Canadian television is its domination by American programming. Much evidence was presented to prove this domination, particularly the fact that Canadians watch 80% foreign (i.e., American) and 20% Canadian shows on Canadian television. Several participants at the conference claimed that this ratio has been fairly constant over time. Many noted that drama (a category that includes Dallas and Love Boat as well as CBC specials such as Charlie Grant s War) was even more dominated by American programs. 2. Canadians want more Canadian television. This was probably the statement repeated most often at the conference. Unfortunately, it is not possible to say whether it is a fact, an opinion or merely wishful thinking. Speakers mentioned surveys that seemed to support the statement, but such surveys for example, those asking the leading question Are you in favour of Canadian culture? policymakers. are really of little use to Large audiences for some CBC shows were cited as proving that Canadians would watch Canadian shows instead of American shows if given the choice. More detailed analysis of CBC data is needed, however, before one can suggest that this is the case. 3. Canadian want more high quality Canadian shows. variant of the previous statement. plenary session pointed because they watched out that This is a One speaker at the closing Canadians American television were shows; not he bad then asserted that Canadians want high quality Canadian shows. The meaning of high quality was left up in the air. Various speakers interpreted it to mean shows with large audiences, shows like certain CBC specials (Charlie Grant s War, A Gift to Last), shows with high production costs or shows that were

4 3 unlike American shows. Not enough time was spent on defining a high quality show or calculating what such a show would cost. 4. Al Johnson s proposal Equal time for Canada on our television screens. The most popular presentation at the conference was by the former head of the CBC, Al Johnson. The Johnson proposal implies direct competition for American shows on Canadian television. It was supported by many at the conference and was certainly more popular than the PBS model that is occasionally suggested for Canada. elements to the Johnson proposal the goal There are three, the cost and the means of financing. a. Goal objective The implies, equal to choice for Canadian Johnson, an increase in production of 100 hours per week in prime time. Most of this increase would be in drama. The 100 hours per week would be the equivalent of 3 full, and fully Canadian, networks. b. Cost Johnson estimates that the cost of this production would be $200,000 per hour for a total of $1 billion. (The $1 billion is obviously for prime time production, but Johnson later implied that the $1 billion would be the cost of the complete proposal and suggested that the cost would be spread over five years or more. ) One participant estimated that the Johnson proposal of direct competition with American television could cost up to $6 billion. c. Means of Financing The money for the Johnson proposat would come from a tax on cable subscribers; payments from Canadian broadcasters who televise American programs; commercial revenues from the new Canadian programs; and other taxes on television sets, video recorders, satellite dishes and other communications equipment. The cable tax would be about 25 cents per day per household and would hope to raise about $500 million. As this is a tax of about 80% on cable subscribers, however, it would probabljilead to a rash of disconnections,

5 4 some bankruptcies of cable companies, higher costs for remaining subscribers and revenue from the tax of less than $500 million. 5. Regulation of television has been ineffective. Everyone agreed that the CRTC has not been effective in promoting Canadian television (or limiting American television in Canada). There was no agreement, however, on whether this meant there should be more regulation or deregulation. Several participants blamed private broadcasters and cable companies that were more interested in maximizing profits than in serving the needs of Canadians. A representative of a cable company pointed out that there ~weresubstitutes for cable offair reception, sophisticated antennae or satellite dishes and that attempts at heavy regulation or taxation would not solve the problem of too much American television, but would simply bankrupt many cable companies. 6. Free trade could be a problem. There was considerable worry that the free trade negotiations would bargain away some cultural policies (for example, the prohibition of foreign ownership of Canadian media) for concessions in other areas. 7. The regions should have adequate access to television. This was an idea that came up several times during the conference. It assumes that regional differences are important and that Canadian television should highlight these differences. For several participants this meant that more production should take place outside Toronto. Unfortunately, there were no estimates presented for the cost of greater regional television.

6 5 UNEXPLORED QUESTIONS A simple summary of views expressed at the CCA conference would be that more Canadian programs of high quality must be produced if future television in this country is to be, even in part, distinctively Canadian. The conference, unfortunately, left too many questions unanswered. The following are some that should be addressed. 1. How popular are the currently available, high quality Canadian shows? (The present evidence is too anecdotal and could mask biases in the data.) 2. How much does a high quality show cost? (American shows with high production standards (though possibly with weak plots) now cost around $1 million (Can.) per hour. Can Canadians produce competitive shows for much less than this? How much have the high profile CBC specials cost?) ~ :3. Are there significant differences between the efficiency of the CBC and that of the private Canadian networks? (This is a variant of the public v. private efficiency question faced in many industries. The answer is important if the government is thinking of promoting Canadian television by beefing up the CBC.) 4. How would the increased expenditure on Canadian television be financed? (An 80 per cent tax on cable is not practical. In a time of economic restraint, when financing cannot be met by increasing the deficit, will Canadians agree to increased taxes to finance more Canadian television?) 5. Will increased funding for Canadian television come at the expense of funding for the arts? (Will talent flow to Canadian television if this becomes adequately funded? Would such funding lead a future Margaret Atwood or Robertson Davies to write television scripts instead of novels?) There is not space in this review to answer these questions (for some of which the brushed aside or ignored turn out that if future will have to give up data may not be available), but they must not be by those pushing for Canadian television. It may television is to have a Canadian accent, Canadians the dream of direct competition with American television and look for a niche as producers of certain high quality shows perhaps programs for children or documentaries Dynasty and Dallas. that can coexist with