Montebello, Quebec
May 8, 2015
Jean-Pierre Blais, Chairman
Canadian Radio-television and Telecommunications Commission
Check against delivery
Thank you for welcoming me here today to talk about the issues that matter to us and are defining the future of the television industry.
We find ourselves at a time when TV content has never been as abundant. Supported by technology that continues to amaze us every day, the world of television is transforming rapidly. Competition has flourished, and comes from all over the world. As producers, your competition is worldwide.
Peter Drucker, a professor, author and theoretician, once said that “Systematic innovation requires a willingness to look on change as an opportunity.” As Quebec producers, it is essential that you realize the advantage you have and that you seize this opportunity now.
It is in this spirit that we held Let’s Talk TV—our national conversation on the future of television. In our ever-changing world, it is key that we update the regulatory framework for television. The system will follow suit to give you the tools and opportunities to compete and showcase your talent.
So you are at a crossroads. What will you do? Will you rest on your laurels, trapped in nostalgia, glorifying the past? Or will you take advantage of your situation to forge ahead and seize this golden opportunity?
The television viewer as emperor
During this major process, we had to take into account Canadians’ new viewing habits. People view audiovisual content at will and according to their schedules. And although content is king, the viewer is now emperor.
To us, it is clear that content produced here can compete with the best worldwide—but we need to provide the tools that will enable our industry to develop to its full potential. The CRTC is therefore introducing measures to support producers and facilitate the export of their product. We firmly believe that our objectives to promote choices for television viewers and encourage the creation of top-quality programs will be achieved through these changes.
We are creating an environment in which Canadians watch content produced by our creators not because it is forced upon them, but because it is excellent.
It should also be noted that we are bringing about these changes in a measured and responsible manner, and that they are centred on openness, innovation and quality.
It is clear to all that we can no longer adopt the measures of the past—such as quotas or genre protection—to reach our objectives. The future of our television system will not be built behind walls. This would be ineffective in the digital age. We are looking to the future, as we should be.
A position of strength
I said earlier that Quebec producers were in an advantageous position to make the shift towards the future.
As you know, Quebec producers produce high-quality television series comparable to the premier American shows. I am thinking, for instance, of 19-2, Unité 9, Mensonges and Série noire. Quebec audiences value local productions and watch them faithfully.
For example, the fourth season of Unité 9, which ended recently, attracted an average of over 2 million viewers per episode in Quebec. I remind you that Quebec has a population of just over 8 million. A quarter of our population followed the series closely. That’s a huge success!
I think you understand what I’m getting at. The affinity Quebecers have for the content produced here is a unique phenomenon in our country. Quebec audiences love not only their actors and actresses, but the industry’s other stakeholders as well, such as its directors, authors and screenwriters. You can regularly find, on the various stages—on television, radio, in the papers, at special events—people like Fabienne Larouche, Jean-François Rivard, Podz or Renée-Claude Brazeau.
International success
For Quebec producers, the road to international success is already well defined. The examples are numerous—for example, Incendo. This company has agreements with major channels all over the world. It sells them broadcast rights to made-for-TV films that are predominantly scripted and directed by Canadian professionals. These productions are also filmed in Montreal, where the company relies on a team of 60 film technicians and professionals.
I also want to congratulate Incendo for its role in producing “Versailles". Co-productions like this are formulas that provide solutions to several challenges, including funding and managing regulatory requirements for content.
And you have another advantage—at least for the time being. That is the low penetration level of online audiovisual services from abroad. It takes the Netflixes of the world much more time to penetrate the French-language market. This is an advantage that the English-language Canadian market doesn’t really share, since it is much nearer to the U.S. reality.
The online world is wide open to your innovations and to players that want to position themselves in this digital world. On that topic, I absolutely have to mention Tou.tv, Illico.tv and the National Film Board’s website, which are homegrown pioneers in the sector. Audiences are hungry for audiovisual content, and they want to watch that content where they want, when they want.
Challenges
I also understand that you face challenges. The Quebec market is relatively narrow. That affects advertising support and also limits opportunities for repeats. You reach the vast majority of audiences with the first broadcast.
Furthermore, it is true that public broadcasters have much less flexibility than in the past. The public is demanding greater investment in health, education, infrastructure and environment. There’s no point in kidding ourselves or being nostalgic: public funding will never again be what it once was.
However, you have the means to rise above those challenges. They are all the more reason to welcome change with open arms and think globally. You are now competing with the whole world, and that opens the door to international audiences you didn’t have access to before.
Funding
Now let’s talk about the funding system for television productions, which is quite complex and consists of a combination of public and private funds. Each year, Canadian television productions receive over $4 billion in public funding.
In fact, public money currently supports the greater part of Quebec and Canadian productions. Funds invested by French-language producers represent only 1.7% of production budgets.
We also need more large-scale productions to be able to compete with large international productions. We believe that there would be significant benefit in pooling our resources and investing jointly in large productions to show the world what we can do.
Creating the conditions for success – pilot projects
I don’t want to spend too much time talking about recent CRTC decisions. I would, however, like to highlight an initiative that will encourage governments and partner organizations to consider more flexible and forward-looking approaches to the production and funding of Canadian programs. The CRTC is launching two pilot projects aimed at redefining Canadian productions.
We want to broaden the definition of “made by Canada” to include large-scale drama and comedy series with budgets of at least $2 million an hour, as well as series based on best-selling novels by Canadian authors. Yes, it is true that both pilot projects are directed primarily at English-language productions.
However, as we mentioned in our March 12th decision, I can tell you that we are very open to projects conceived by Quebec producers, among others. We are aware that the realities of the French-language market are different, and we are therefore open to proposals other than those set out in the decision.
If you have a forward-looking concept that would benefit the industry, that reflects our Francophone specificity and is in line with our philosophy of openness, come and see us!
Discoverability
In this age of content abundance, a critical issue for the success of Quebec and Canadian productions is the ability to discover content. And I’m not only talking about audiences here, but the world over. Content availability is not a one-way street. How can we make sure that audiences here and abroad can find our productions?
Even if, during our recent consultations, many stakeholders acknowledged the importance of the discovery and promotion of content made by Canada, few concrete proposals have been put forward to that effect. Therefore, this fall, the CRTC is organizing a Discoverability Summit to explore the tools that could help TV viewers find Canadian-made content in this age of abundance.
The Summit will bring together leading innovators and players in the public and private sectors from here and across the world. This will not be a regulatory exercise, but rather a chance to give free reign to innovative ideas.
The future
It is now clear that the world of broadcasting is increasingly tied to the world of telecommunications. And while some of you are nostalgic, you are missing an opportunity to shape the future.
Today, Canadians rely on their connectivity in almost every facet of their lives. It is central not only to our economy, but to our culture as well. But technology cannot accomplish its mission unless it is available, reliable, secure, neutral and affordable.
That is why we began a major proceeding in which we will review the basic services Canadians need to actively participate in the digital economy.
We are looking at telecommunications services from every angle. We are asking such questions as: “What download and upload speeds are required in this digital age? Should broadband be considered an essential basic service for all Canadians?
It goes without saying that these issues affect you directly. Your market is increasingly dependent on the ability to connect with households.
Conclusion
My message today, therefore, is that the market is wide open to you, and we would like to help you conquer it. You owe it to your faithful audience to adapt to the future. To stay fixated on the past would be to its detriment.
Certain things must come into play—including change management—that may be more challenging for some industry players than for others—particularly those who do not put in place the means to adapt. Competition is coming from all directions, but you have the tools and the talent needed to remain successful.
The time to change and innovate has come. Your advantageous position is your springboard to the future. As Peter Drucker said, change is an opportunity—a chance. It must be seized. And the time to do so is now.
Thank you.
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