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

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

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