More on funding

I think, in the case of the CBC, that parliament might want to consider a new classification; the Crown not for profit Corporation, although this should be applied to the CBC I think Parliament might find it useful in other areas as well in the future. The idea behind the Crown not for profit corporation would be that, obviously, it is expected to provide a service, but not to turn a profit - it would be subsidized by the government but would also be able to accept tax-deductible contributions from individuals, corporations and foundations.

It must also be made clear though that nothing is purchased with a donation. So, in the case of the CBC, a foundation could not say 'we've made significant contributions and now we demand air time'.

This would allow additional revenue to flow to the CBC, aside from the additional appropriations mentioned in my last post.

Suggestion #1: Funding

Just to throw it out there here is a proposal for the future of the CBC that primarily deals with the issues around funding, and also makes the CBC more regionally relevant.

First, we need to start with a pool of about 2.7 billion, or about 3 x the CBC's current government funding. Plus possibly some additional funds initially to help with the digital transition.

Where does all this cash come from? Well - Tea Makers once suggested

First off, broadcast licences are too cheap. They are the cheapest in western civilization. So that needs to be cranked up, and we'll take that extra money. We're going to gouge you guys on this, but you can afford it.

In return we're going to get out of the advertising game. That's about $400 million worth of ads we won't be running, and those clients will be coming to you. Play your cards right, and you'll do well.

So maybe that's part of the answer, maybe not - if the entire amount came from tax revenue it would raise the average Canadians monthly bill to 7.50 a month, which is still considerably less than what the average Brit pays for the BBC. So, once the money is there what does the average Canadian get for their $7.50?

1.5 billion (about what the CBC operates on now, including advertising) would go to the CBC National service. The CBC would continue to operate it's cable channels, but would turn over the main CBC broadcasting to regional branches.

1.2 billion would go to set up regional 'branches' of the CBC: semi-autonomous stations operating in each province. The provinces (who would largely control their regional 'branch' would have the option of adding additional funds and/or combining the efforts of the CBC with existing public broadcasters (such as TVO in Ontario and the Knowledge Network in B.C.). Additionally mechanisms would be set up to allow for private and foundation donations to provincial and national CBC operations.

The CBC would, in return for the additional funds and facilities, drop all advertising and all foreign content (with the exception of international news coverage), this means no more BBC series, no more BBC news, and no more American movies.

The provincial CBC branches would be run by boards of directors, appointed by provincial or territorial governments. The chair of each branch and a chairman appointed by the PM and ratified by the Heritage Committee would make up the National Board. The boards would, as they do now, hire management. If they happen to be reading this 10 years from now, I have one suggestion: It is easier to have a creative manager with a CFO to reign in their enthusiasm than it is to try to get a bureaucrat to think creatively.

Back to the subject at hand: The national CBC would make national programs and acquire programs for nationwide distribution, the provincial branches would make regional programming.With the exception of any programming mandated to be carried by the board, such as perhaps 'the National' or other programming deemed key to the overall brand, each regional branch would be able to build it's own schedule made up of it's own programming, programming created or acquired by the National CBC or programming created or by other provincial branches.

An afterthought

In addition I'd add this to the CBC's new mandate, if I was writing it - a minumum of 20 hours a week of purely instructional programming, this would be available to schools, or individuals who wanted to further their education without returning to school - via the internet, for free.

Topics might include such subjects as

Languages such as French, English or Mandarin

Basic Economics such as - primers on income tax, home budgeting and the stock market for beginners.

Canadian and World history primers

Backgrounders on political issues

Health and Wellness issues

etc.,

etc.,

Stations would be able to use these (and they could be either audio or video) on the air, or they could be downloaded (in the case of audio) in MP3 format or in video formats for cell phones etc., so that people could learn a language, or increase their knowledge on various issues while they commute, ride the street car, etc.,

Is there a future for the CBC?

This question came up over and over during the eight week lock out. Since the lock out ended though it seems to have almost completely gone away. Yes there is still a hearing coming up in which the Heritage Committee will question senior CBC executives but the question "Is there a future for the CBC" will not be answered in that hearing. Members of senior management will talk about the CBC, it's present status and their actions up to and during the lock out but nothing they say will answer the question about the future. The lock out may have brought some of these questions to the forefront, but it did not create the questions - they have been there for a long time.

The CBC has many challenges ahead. This is especially true for television but radio and the internet will have their challenges too. A way must be found for the CBC to become commercial free (or become just another broadcaster - without a mandate) and increase it's available funds at the same time. The CBC must find a way (in keeping with it's mandate) to acquire more Canadian content to replace the BBC (news, Coronation Street etc), American movies and other foreign content. The CBC must find a way to become more relevant and regional.

Technology, in all media, will present huge challenges as well: It won't be long before all content (radio, television, and internet) produced by anyone, anywhere in the world, ever - will be available on demand and commercial free, 24/7/365 to all consumers via their televisions, desk tops, lap tops, cell phones, and other devices and the CBC will have to compete for eyes and ears in this environment - with or without Government subsidies, but almost surely without ad revenue.

The CBC is currently locked in a cycle of diminishing revenue, downsizing, increased foreign content and labour disruptions and until some questions about the CBC's future are answered, until strategies are developed to meet the coming challenges and meet them in a way that makes the CBC more successful than it is now - the cycle is likely to continue.

It has been disappointing to see how little response there has been on publicbroadcasting.ca to any of this. Hopefully it will not take another crisis for people to begin talking about these issues. I don't know how many more of those the CBC can withstand.

Another Glimpse into the Crystal Ball

There has been some talk - not only recently but going back quite some time, about whether CBC should receive public funding, or whether they should be expected to survive in the commercial television universe. One of the problems with this, and another factor that Canadians and the CBC have to take into consideration in the years to come is that commercial television is nearly over. Already devices like TiVo allow users to skip commercials.

In the years to come 'convergence' will mean that any content - telephone, text, video, sound, etc., will be available on a variety of devices - cell phones, lap tops, televisions, desk tops ... the content will be delivered on demand and commercials will be optional. In some cases producers of content - television, film and music production companies will sell directly to consumers, in other cases it will be sold to distributors who will put it in bundles and sell those bundles to consumers.

In addition to the disappearance of ad revenue, broadcasters will say goodbye to most sports - there will be no reason for the NHL or CFL to use a 'middle man' when they can sell directly to consumers on a pay per view or 'season ticket' basis. Most big first run movies will also be distributed directly be the producer or distributor. Likewise, the BBC will have no need to sell programs to the CBC or anyone else when they can get more money by selling directly to consumers, or content companies (cable and satellite providers.)

For Canadian content the challenge will be that Canada will not be enough of a market, by itself, to pay for production. So, without subsidies Canadian content will also have to appeal to US, European or other foreign markets. CSI has done that successfully as have a few musical acts (Nickelback most recently) but, according to most, the reason for the success of these snipets of Canadian content is that no one outside of Canada knows that they are Canadian. Even if Canadians are content with content that gives no indication that it is Canadian, it does not solve the problem of local news, especially in markets where the local population does not financially justify anyone producing news for them.

The questions Canadians have to ask themselves is will they be satisfied with American and other foreign content alone? Or with Canadian content that pretends to be American in order to be financially viable? Will they be satisfied with CNN and Fox being their primary sources of news and information? If the answer to these questions is no then we are back to subsidized content - which begs it's own questions. If Canadian content is going to be subsidized so that Canadians can continue to tell their stories, without pretending to be American then would you like those subsidies to go to for profit corporations who have few if any rules about what they produce or to public broadcasters who have strict guidelines regarding the quality and substance of what is produced?

It is my belief that those who say that the CBC and other public broadcasters should lose all subsidies and simply compete with the commercial networks are really just trying to save a bit on their taxes and do not understand what is coming in terms of technology, or they do understand it and simply don't believe that Canadians have anything relevant to say.