IIC 2009 ANNUAL CONFERECE – Session 7 Defining a New Economic Model for High Quality Content in the Communications World o...
CANADIAN HIGH QUALITY CONTENT <ul><li>In Canadian Regulatory environment: </li></ul><ul><ul><li>high-quality content = dra...
WHY IS DRAMA A CULTURALLY IMPORTANT PRODUCT? <ul><li>Telling Canadian stories supports cultural objectives. </li></ul><ul>...
Does Drama  Support Make Sense? <ul><li>I am not here to criticize any of these four propositions. </li></ul><ul><li>My ar...
MURDOCH MYSTERIES <ul><li>Popular </li></ul><ul><li>Good audience  </li></ul><ul><li>Co-production with Britain </li></ul>
MURDOCH MYSTERIES - FINANCES <ul><li>$1.1 million per episode to produce = $14.5 million for 13 episodes </li></ul><ul><ul...
ENGLISH- LANGUAGE CANADIAN DRAMA <ul><li>Will always need a large subsidy </li></ul><ul><li>Not an infant industry problem...
POLICY RECOMMENDATIONS <ul><li>Let’s stop beating ourselves up on drama. </li></ul><ul><li>Let’s be happy with Canadian ne...
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Defining A New Economic Model For High Quality Content In The Communications World 2015

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Ken Engelhart of Rogers Communications in Canada discusses policy issues in the broadcasting arena

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Defining A New Economic Model For High Quality Content In The Communications World 2015

  1. 1. IIC 2009 ANNUAL CONFERECE – Session 7 Defining a New Economic Model for High Quality Content in the Communications World of 2015 Ken Engelhart Senior Vice President - Regulatory Rogers Communications Inc. Tuesday, October 27, 2009
  2. 2. CANADIAN HIGH QUALITY CONTENT <ul><li>In Canadian Regulatory environment: </li></ul><ul><ul><li>high-quality content = drama </li></ul></ul><ul><li>Regulatory instruments: </li></ul><ul><ul><li>CMF </li></ul></ul><ul><ul><li>Priority Programming </li></ul></ul><ul><ul><li>150% time credit </li></ul></ul>
  3. 3. WHY IS DRAMA A CULTURALLY IMPORTANT PRODUCT? <ul><li>Telling Canadian stories supports cultural objectives. </li></ul><ul><li>Canadians like to watch drama. </li></ul><ul><li>Drama is expensive to produce. </li></ul><ul><li>High-quality US drama is available at reasonable cost = very profitable. </li></ul>
  4. 4. Does Drama Support Make Sense? <ul><li>I am not here to criticize any of these four propositions. </li></ul><ul><li>My argument: Drama has such a poor economic return that subsidizing it is not a sustainable policy in English Canada. </li></ul><ul><li>(French Language Canada drama is more popular and subsidizing drama may be a sustainable policy in Quebec.) </li></ul>
  5. 5. MURDOCH MYSTERIES <ul><li>Popular </li></ul><ul><li>Good audience </li></ul><ul><li>Co-production with Britain </li></ul>
  6. 6. MURDOCH MYSTERIES - FINANCES <ul><li>$1.1 million per episode to produce = $14.5 million for 13 episodes </li></ul><ul><ul><ul><li>$14.5 M </li></ul></ul></ul><ul><ul><ul><li>_ 2.5 M Britain & International Sales </li></ul></ul></ul><ul><ul><ul><li>$12.0 M </li></ul></ul></ul><ul><ul><ul><li>_ 3.0 M CMF </li></ul></ul></ul><ul><ul><ul><li>- 5.0 M Tax credits </li></ul></ul></ul><ul><ul><ul><li> $4.0 M Cost to Rogers </li></ul></ul></ul><ul><li>Ad Revenue (several airings) = $500 K in year one. </li></ul>
  7. 7. ENGLISH- LANGUAGE CANADIAN DRAMA <ul><li>Will always need a large subsidy </li></ul><ul><li>Not an infant industry problem. </li></ul><ul><li>Not a sustainable policy. </li></ul>
  8. 8. POLICY RECOMMENDATIONS <ul><li>Let’s stop beating ourselves up on drama. </li></ul><ul><li>Let’s be happy with Canadian news, sports, game shows, entertainment & lifestyle and reality programming. (13 hours of drama = 200 hours of news.) </li></ul><ul><li>CMF should fund other types of shows. </li></ul><ul><li>Commission should drop Priority Programming requirements. </li></ul>

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