1/24/2007 - Canadian TV Fund In Trouble?

 

As you may or may not know original Canadian television, such as our beloved Degrassi, is actually not funded by the networks unlike in the US. In other words neither CTV or The N actually fund the production of Degrassi. Instead since 1995 in Canada there has been what is known as the Canadian Television Fund or CTF. The CTF was created to promote the production of  high-quality and culturally significant programming in Canada. It is funded partially by the Canadian government with tax dollars, but a majority of the funds come from Canadian cable and satellite providers, at least until now.

Shaw Communications from Calgary, the number two Cable provider in Canada after Roger's Cable, last month withdrew their $56 million annual contribution and stated they will no longer support the fund. Shaw's contribution makes up 20% of the fund's $250 million dollar annual budget. Shaw is taking the stance that the fund should be supporting itself by now and that maybe the networks should also foot more of the bill for their programming. In their letter to the CTF in December they stated "(The CTF) was never intended as a permanent source of funding to subsidize broadcasters' and programmers' acquisition of Canadian programming. Our understanding was that after the initial five-year period, the fund would be self-sustaining and self-financing from a return on investment in successful productions.''

In light of this news it was feared by many in the production industry that other Canadian cable or satellite companies may follow suit. Tuesday those fears were realized when Videotron, a cable company that's part of the Quebecor group and the third largest cable provider in Canada joined Shaw. They stated that they would begin suspending their monthly payments to the fund, calling for a review of how the fund is managed. Thus now two of the top three cable providers in Canada no longer support the fund.

This all couldn't have come at a worse time for the fund as the CTF is up for renewal this spring, and in light of the new circumstances something will definitely have to be done. In the meantime the production industry and broadcasters are worried over the uncertainty of funds for the 2007-2008 season.

What this all means for Degrassi and a possible season 7 is still uncertain, as everyone is waiting to see what will happen next. One thing is for sure Canada's television production system seems to be in line for a definite overhaul. As always we will keep you posted.

Sources: The Toronto Star
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