Thursday, January 11, 2007

Rights, Responsibilities, and Jim Shaw's Checkbook Tantrum

This started as a comment response, then metastisized. I'm rewriting an outline right now so it's not going to be particularly edited. Forgive me for that.

Oh, one more thing. Watching Vancouverites drive in snow is like watching a line of fat kids in a swimming pool try to do the butterfly. I say both these things from painful personal experience.

In response to my pass along about the WGC's response to the AA/Canwest deal, Diane brought up this article, which flipped across the transom today:

OTTAWA - Calgary-based cable-TV executive Jim Shaw says he will no longer send his firm's contribution of about $56 million to Ottawa this year to support the Canadian Television Fund.
Shaw, CEOof Shaw Communications, says until the fund is restructured, he will withhold the five per cent of his company's revenues that legislation stipulates be used to support the production of Canadian TVshows...

``Over the past 10 years,''his letter states, ``Shaw has contributed over $350 million in direct subsidies to the Canadian production industry.''

Shaw goes on to argue that the ``CTF has become nothing more than a means of subsidizing broadcasters, pay and specialty services and independent producers to produce Canadian television programming that few watch and has no commercial or exportable value.''

The CTF was created in 1996 with a mandate to produce ``high-quality culturally significant Canadian television programs in both official languages.'' It also has an annual budget of $250 million a year _ $100 million of which is provided by the federal government.
That leads directly to another of Shaw's beefs.

He is particularly rankled that 37 per cent of the CTF's revenues are set aside annually for the CBC _ something he declares ``should be ended immediately'' in light of the fact that ``CBC already receives over $1.2 billion from Canadian taxpayers in the form of grants and mandatory subscriber fees.'
When I was a little kid, the thing that my Dad drove into my head over and over (and over, and over) was the balance everyone had to face between their rights and their responsibilities. He always made sure to let you know that he saw these two things as linked, and that you didn't get to have one without the other. You can't talk about your rights, if you aren't willing to fulfill your responsbilities.

Among the many dishonesties of the Bush adventure in Iraq was the fact that it became a deliberate strategy to sell the war to Americans based on fear, but to make sure that you didn't ask too much of them. So the tax cuts could stay in place, of course...and there didn't need to be a draft, to spread around the burden. Americans really weren't asked to sacrifice anything specific. That's why it took 3 years for them to turn against Bush an the war.

Well, the rights and responsibilities thing has also seriously gotten out of whack in the Canadian broadcast sector.

Jim Shaw's obviously a curmudgeon with a beef, but my feeling is that he's using the cudgel that he has to try and force a discussion. I could be wrong, but I'm going to hope that he actually wouldn't throw current programs out of whack to make his point. But you have to admit, it's a great stunt to get people listening.

So what's he doing?

Well, for one thing, I happen to not think he's wrong about the CBC and the CTF. I think that the entire issue of what we want the CBC to be, what its purpose is, and how it will accomplish that, needs to be discussed openly, and some binding recommendations need to be made to refocus and reframe the corporation. The CBC has a lot of competing demands put on it. Its mission is diffuse and unfocused. Even the greatest cheerleaders admit that it's asked to do way too much, without a clear plan or stable funding. But I think his point - that a corporation that gets lotsa dough from one place shouldn't get it from another -- well, there's nothing inherently ridiculous about that. He's got a point.

But-- and this is a big but --if it doesn't get CTF money, then where does it get the money from? For years, they've cut CBC's grant without spelling out what's expected of it, and accountability is lacking because it's run as a bureaucracy and not a business. Fiefdoms rule and plans -- expensive ones -- are made and then abandoned without benchmarks or a plan of victory. (You thought the Bush comparison off the top was superfluous, didn't you? Take that, bitches!)

Three years ago the CBC wanted to have a daily serial. So they commissioned a couple. By the time they were done, they were dumped on the air with no promo and left to wither on the vine. Why? New chiefs. New fiefdoms. More money down the drain.

Should the CBC have commercials? Should they do sports? Should they do lots more drama? Should they do cultural programming? Should they try to get ratings, or should they be an antidote to the American offerings of the Canadian private broadcasters?

I have views on all these things. I'm sure Jim Shaw does too. I have a stupid blog. He has that $56 million check he writes once a year. Who's got trump?

Money talks -- everywhere. If Jim wants to stamp his feet, good on him. Because shit needs to be said. And you know what? Maybe Jim's dead wrong and the CBC should get CTF money. But let's talk about it. Because - and here's the real point - the system aint working well right now. If we actually talked about it, well, maybe it would turn out that Jim's dead wrong. Then, suck it up buttercup and write your check. But the reason why he's stamping his feet is because our entire industry is based on looking the other way. Now Jim's gonna take his checkbook and go home. Awk-ward.

The rest of it, I think, is open to discussion too. The private broadcasters in this country do pay too little even when they do make shows. The license fees are too low. In a real sense, the CTF has become yet another source of welfare for businesses that are very profitable -- profitable enough to spend 2.3 billion dollars on mergers. (By the way, that's about THREE HUNDRED 6 part TV series like Across the River to Motor City.) In other words, say it with me now-- they're very quick to claim their rights, and have been extremely effective in denying their responsibilties.

They're so confident of this, that the head of their lobby group can deride having to spend money on Canadian TV altogether, even though they get breaks on things like cable substitution and a protected market. They can even have the stones to get up there before the CRTC, cry poor, and demand cable fees for broadcasting U.S. shows to you that you get anyway on the U.S. channels.

You don't think that has something to do with Jim Shaw's tantrum? You bet your sweet bippy it does.

Remember -- the discussion is never going to take place if we leave it to pols. Because there are no votes in Canadian TV. (Beyond we who make it, I mean.) It's not an issue that's on the radar, for all the reasons that we've talked about on this blog, and Tv, Eh? and in John Doyle's column in the Globe a million times.

Canadians are wonderfully patriotic. They don't want to be like Americans. They just want to watch every piece of shit on American TV, for free, like they're Americans. Is that inconsistent? Hell yeah it is. Let's talk about that, too.

Jim Shaw may regret opening the whole can of worms by putting down his pen, but fuck it. It's past time. This shit's broken hard. Let's talk. But let's talk about all of it. And this time, maybe the papers won't punk out like they did at the CRTC hearings.

UPDATE: one of the things about writing something fast is sometimes you reread it later and realize, mmm...I left something out. And it's this: I've met exactly two people in my life who worked at the CTF. And they both worked very, very, very hard, and believed in Canadian TV powerful much. And if Jim Shaw actually does follow this thing all the way through, and doesn't cough up the money, then -- and this is the point that maybe didn't come through -- he's a dink. Fullstop.

(this post was also edited to correct a math mistake above)

14 comments:

Cunningham said...

Shit never goes well for the guy who looks across the crowded room, points and says,"Hey, what's that elephant doing in here?"

From the position of the guy who's writing the check Shaw makes a point - why keep spending money on stuff nobody watches and you can't export?

And I like your "rights and responsibilities" tack here, Denis. There are occasions where my colleagues ask me to call a client and ask for a check. First words out of my mouth when they ask is always, "Have we done everything we said we were going to do for them?"

I tell you - it's a great motivator for both sides of the fence.

Charlatan said...

Bravo!

Let's hope the right people read this and get the message through their thick skulls.

Dwight Williams said...

Except that we've already proven that people can and will watch what CBC airs, and that it can be exported. Successfully.

Besides which, why is Shaw undermining his usefulness to his customers by attacking the funding of a channel his service's users apparently still want to watch in large numbers?

Teresa said...

"Watching Vancouverites drive in snow is like watching a line of fat kids in a swimming pool try to do the butterfly. I say both these things from painful personal experience."

This was my belly laugh for the day... I knew it'd be an 'interesting' experience for you.

As for the rest of it, I'm still digesting. It's a whole new world for me. On the surface of it all though it seems as if there is lots of money around for getting decent Canadian content on our screens, but no one wants to be bothered to do it. It's like, why eat the broccoli when throwing a temper tantrum means you get dessert anyway?

Dwight Williams said...

The trick is to get them to realize that broccoli should be eaten properly washed, but raw. You get the best taste AND the vitamins as a bonus.

jimhenshaw said...

Jim Shaw's my hero today. Simply for demanding that the business be run like a business. We all know how CTF money was intended to be used and how it's really being used.

I don't begrudge the CBC or any other broadcaster getting money for programming I'll never watch as long as somebody's watching it either in enough numbers to justify its production or as part of an audience that would never have gotten the programming they want or need without it.

An infusion of $350M a year for this long should have built some stability in the industry by now instead of the instability we have.

Shaw's looking out for his own company here, to be sure. How can you encourage people to buy more programming when they're just getting repeats or more of the same on every channel? But aren't those the very things that would make our lives better as well?

ME said...

I agree with Shaw but let's be honest ... he's reaped the benefits of a cable monopoly himself so can hardly chastise others credibly for accepting what is tantamount to corporate welfare when he himself has flourished because no one else was allowed to play. Good on him for raising it, but he's not exactly lily-white, either. As I said before, I love the guy. He's totally unpredicable, brash, brazen and thinks he's ten feet tall and bulletproof. Tell me he wouldn't make good reality tv.

Anonymous said...

None of the admittedly awkward instruments for financing Canadian film and television would be necessary if the parties making enormous profits from the licences granted them by the Canadian state reinvested. Mr. Shaw's proposition is absurd, his puny contribution is a very modest tax. If he wants product that can compete in the export market he had better be prepared to shell out considerably more than he is now. Perhaps we should give all the exhibitors and carriers the option of opting out of the system and paying fair market value for their licences and the shows they air. Maybe it is Mr. Shaw who is being subsidized.

DMc said...

Yup. This is exactly the thing that I'm talking about: it ALL goes on the table.

The only person I don't support in this is ANY PERSON LOOKING TO MAINTAIN THE STATUS QUO UNCHANGED.

DecoderRing said...

The Anonymous comment is right on in saying that everybody is getting propped up and everybody had better be prepared to help with the propping. But I would debate the point that there is any equation under which "None of the admittedly awkward instruments for financing Canadian film and television would be necessary..."

If Michigan, Georgia and New Mexico decided to have their own, seperate television industry, it would always, always need support. The free market, left entirely to it's own devices could never keep that aloft.

Especially with the huge distances and differences... if the audience in Georgia resented Michigan and wouldn't watch any show made there, and the folks in N.M. were always demanding an equal share of the industry... And according to some very hasty web-research I'm spotting English Canada about 170,000 people. (Admittedly, on 2001 figures)

I (and I expect everyone who come by Dead Things H.Q.) think that we should have a domestic television industry - that as the dominant art form it's important for Canadian television to be created. And I agree with DMc that the current model is broken and should be talked about. But let's acknowledge that a totally free market approach is never going to work. We need funds and government regulation and every aspect of the industry had better be prepared to do their part. And sometimes that means writing a cheque to support something you loathe.

Anonymous said...

The anonymous referred to above here. I was never suggesting a totally free market, only that Shaw and his fellow carriers benefit more from the current system than any sucker dumb enough to work the production end of the biz. It goes without saying that in the absense of regulation and subsidy there would be no Canadian industry and our culture would be in very serious jeopardy.

ME said...

You know, I'm not so sure we need funds. Tax credits, yes. Work is flooding to Manitoba, because the combined federal and provincial labour tax credit is 50%. Not bad. If they just increased the tax credit across the board, that would take care of the money and they woudn't have to spend a huge percentage of it administering the CTF. Unless you meet certificaton standards, you don't get the money, and the monitoring is already in place.

I just hate what the CTF has become. We actually got notes back on a wildlife series that got funded that said that they didn't the shows were visibly Canadian enough. They were about moose and beavers. What did they want? A Canadian flag tattoo on the moose's rump? The mind boggles. I do believe the people at the CTF are well meaning and work hard, but they've been set up to be in a ridiculous position.

Giving the broadcasters control of their own CTF envelopes has just allowed them to play favourites with their cronies. If there was no more CTF and your project had to stand on its own merits and either be fully financed by multiple windows here, foreign pre-sales or done as a co-production, it would result in better quality work. Not that making pre-sales is getting easier, especially since, just as TCM and AMC from the US are starting to commission original series, what does the CRTC do? Let them in on cable as direct feeds. Thanks, CRTC. How many channels does that make that screw my tax credits? A&E, Spike, TLC, TBS ... there's more.

The last two shows I've worked on had no CTF, no Rogers fund, no Telefilm, no nothing. Just pre-sales from broadcasters and tax credits. And it worked. Worked great, actually, because we didn't lose equity, get caught in bureaucratic quagmire and were in profit from the first international sale. Clean, simple and in production way faster.

The other thing nobody is talking about right now which should be on the table is what is going on at Telefilm. A few years back, the provincial cultural agencies all had their own exhibit stand at international markets like NATPE and MIPTV. Telefilm did a big dog and pony show and decided to rally the troops and bring everyone under one umbrella to exhibit en masse as Canada. I bought in, good branding, lots of presence. Canada actually has the largest stand at MIPTV, and people from other countries have marvelled at how well we work together and how supportive we are of each other.
And then, a few years later, they tried to take the umbrella away.

Well, Telefilm is setting up an ugly fight over money between the tv and film camps. Last summer, without warning, we got an email from Telefilm saying they were not going to support NATPE at all. Bye bye umbrella exhibit stand. A bunch of prodcos and distribcos protested to the powers that be and we got a meeting where we were told the gravy train had to stop and that feature film needed money, too. I'm sure they told the film people tv needed money when they cut their support of AFM (ironic they cut the only two big markets for the respective industries that are actually on our continent and not is some glam location like Cannes ... just sayin')

Someone aptly pointed out that more money is made and more people employed by the tv side of the business in this country in one year than have been by film in the entire history of Canadian film. That didn't go over well.

After much fighting, we got them to recant, but $$ support and staffing were reduced. But it does raise an interesting question, and being a person who up to this point has worked exclusively in tv, I guess I'm wondering how the money gets allocated and how much is going to tv vs. film. I really have no idea, and trying to ask these questions at Telefilm and you may as well be speaking Klingon. No answers.

I don't really have a point. I'm just random thoughting here as it comes to me. Carry on.

Anonymous said...

Indeed giving envelopes to the broadcasters, especially the CBC, has been a disaster.

jimhenshaw said...

Caroline's got the right idea. Talk to US studios or broadcasters about how the process works here and their eyes just glaze over. Nobody can figure out how we work this way and it's getting to the point where we can't either.

Creatives can't get the money they feel they deserve because producers can't negotiate the terms they need to make a profit because the nets can't depend on the revenue streams they used to have.

In the middle of this are government agencies with a myriad of regional and social agendas that don't have a lot to do with making a good film or TV show.

The system needs to get simpler and geared toward serving the appetites of the audience both here and internationally. If the stuff isn't being either seen and appreciated, why are we bothering?