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CRTC Exhibit 1 - Broadcasting Notice of Consultation CRTC 2019-303

Regional Outreach Program

Question 1

On 18 April 2019, CRTC staff requested that you provide a detailed description of each outreach initiative included in the expenditures that you reported to the Commission pertaining to COLs 6 and 8 for the 2013-2014 to 2017-2018 broadcast years. The requested additional details were as follows:

Initiative Total amount $ Location Description of expenditure
       

In your response filed with the Commission on 8 May 2019, it appears that some Regional Outreach events have been claimed towards meeting both the requirements of Regional Outreach Program under the conditions of licence 6 and 8.

  1. Provide proof of payments for each of the events indicated in the following table in order to demonstrate that these events were not double counted.
    Condition of licence Broadcast year Initiative Amount Location
    6 2014 Yorkton Short Film & Video Festival $5,000 Yorton
    8 2014 Yorkton Short Film & Video Festival $5,000 Yorton
    6 2016 Atlantic Film Festival $15,000 Halifax
    8 2016 Atlantic Film Festival $15,000 Halifax
    6 2017 Atlantic Film Festival 2017 $20,000 Halifax
    8 2017 Atlantic Film Festival 2017 $20,000 Halifax
    6 2017 Crystal Awards Gala Luncheon $10,000 Toronto
    8 2017 Crystal Awards Gala Luncheon $10,000 Toronto
    6 2017 National Genre Script Contest $10,000 Vancouver
    8 2017 National Genre Script Contest $10,000 Vancouver
    6 2017 Toronto International Film Festival (TIFF) $5,000 Toronto
    8 2017 Toronto International Film Festival (TIFF) $5,000 Toronto
    6 2017 Vancouver International Film Festival (VIFF) $60,000 Vancouver
    8 2017 Vancouver International Film Festival (VIFF) $60,000 Vancouver
    6 2017 Whistler Film Festival 2016 $10,000 Whistler
    8 2017 Whistler Film Festival 2016 $10,000 Whistler

Question 2

You have argued, on several occasions in your replies and in your responses to the request for information sent by CRTC staff, that there is no clear definition of regional outreach expenses.

  1. Keeping in mind that the intention underlying the Regional Outreach Program condition of licence was to provide support to and to foster regional production, please provide a proposed definition of “regional outreach expenses” that could be used in the event that a regional outreach condition of licence is maintained following a renewal of your licence.

Question 3

From broadcast years 2013-2014 to 2017-2018, you reported $4,514,245 of regional outreach program expenses towards meeting the requirement under conditions of licence 6 and 8.

Should the Commission determine that all of the expenditures claimed for Regional outreach program are ineligible, this could result in a potential shortfall of up to $4,514,245.

  1. Please comment on the Commission imposing a condition of licence requiring you to pay any resulting shortfall.

Script and Concept Development

Question 4

From broadcast years 2013-2014 to 2017-2018, you reported $6,541,123 of Script and concept development expenses towards meeting your requirement under conditions of licence 7 and 8.

In your response, dated 18 June 2018, to a CRTC staff request for information, you confirmed that all of these reported amounts were in fact collectable development loans. Loans, as accounts receivable, are not expenses.

In your response to the Commission on 8 May 2019, following another CRTC staff request for information, you indicated that, as of 28 February 2019, a total of $3,935,875 of the overall $6,541,123 had been repaid to Super Channel.

  1. Please provide an updated amount, accounting for the period between 1 March 2019 and 31 August 2019 as well as an amount accounting for the period of 1 September 2019 to 1 November 2019, of repaid loans to Super Channel. Provide your response using the table below, which will render a breakdown, from 1 September 2013 to 31 October 2019, of the collected loans that have been reported towards meeting the requirements under conditions of licence 7 and 8 from broadcast years 2013-2014 to 2017-2018.
    Date Document number Name Producer Memo Amount Unpaid amount as of 31 October 2019
                 
                 

  2. In the event that some loans have not been repaid as of 31 October 2019, please submit a proposal on the manner in which you intend to report the updated repaid loans to the Commission.

    Should the Commission determine that all of the expenditures claimed for Script and Concept development are ineligible, this could result in a potential shortfall up to $6,541,123.

  3. Please comment on the Commission imposing a condition of licence requiring you to pay any resulting shortfall.

Question 5

You have argued, on several occasions in your replies and in your responses to the request for information sent by CRTC staff that there is no clear definition of script and concept development expenses.

  1. Please provide your rationale on reporting a loan as an expense.
  2. Keeping in mind that the intention behind the Script and Concept development condition of licence is to contribute to the production community, please provide a proposed definition of acceptable script and concept development expenses for the purposes of the condition of licence or other regulatory measures, such as a mandatory order.

Financial Projections

Question 6

If the Commission determines that all or some expenditures claimed for Regional outreach program and for Script and Concept development from the 2013-2014 through 2017-2018 broadcast years are ineligible, this could result in a potential shortfall of up to $11,055,368.

  1. Please provide to the Commission updated financial projections for the next licence term for these scenarios:
    1. Including a full repayment of the shortfall.
    2. Without any repayment of the shortfall.

List all assumptions upon which you base these projections, including how repayment of the shortfall will impact expenses and revenues. Note that the Commission may issue a licence that is less than 5 years, so please comment on whether the projections are markedly impacted by a shorter licence term (either 1, 2, 3 or 4 years). And if so, how.

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