ARCHIVED - Transcript, Hearing 29 November 2012
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Volume 9, 29 November 2012
TRANSCRIPTION OF PROCEEDINGS BEFORE THE CANADIAN RADIO-TELEVISION AND TELECOMMUNICATIONS COMMISSION
SUBJECT:
To consider the broadcasting applications for the licence renewals for the Canadian Broadcasting Corporation’s French- and English-language services as listed in Broadcasting Notice of Consultation CRTC 2011-379, 2011-379-1, 2011-379-2, 2011-379-3, 2011-379-4 and 2011-379-5
HELD AT:
Outaouais Room
Conference Centre
140 Promenade du Portage
Gatineau, Quebec
29 November 2012
Transcription
In order to meet the requirements of the Official Languages Act, transcripts of proceedings before the Commission will be bilingual as to their covers, the listing of the CRTC members and staff attending the public hearings, and the Table of Contents.
However, the aforementioned publication is the recorded verbatim transcript and, as such, is taped and transcribed in either of the official languages, depending on the language spoken by the participant at the public hearing.
Canadian Radio-television and Telecommunications Commission
Transcription
To consider the broadcasting applications for the licence renewals for the Canadian Broadcasting Corporation’s French- and English-language services as listed in Broadcasting Notice of Consultation CRTC 2011-379, 2011-379-1, 2011-379-2, 2011-379-3, 2011-379-4 and 2011-379-5
BEFORE:
Jean-Pierre BlaisChairperson
Tom PentefountasCommissioner
Elizabeth DuncanCommissioner
Louise PoirierCommissioner
Stephen SimpsonCommissioner
ALSO PRESENT:
Jade RoySecretary
Véronique LehouxLegal Counsel
Jean-Sébastien Gagnon
Aspa KotsopoulosHearing Managers
Guillaume Castonguay
HELD AT:
Outaouais Room
Conference Centre
140 Promenade du Portage
Gatineau, Quebec
29 November 2012
- iv -
TABLE OF CONTENTS
PAGE / PARA
PHASE II
INTERVENTION BY
78. Mark Goldman2929 /16938
80. CKUA Radio Network2941 /17001
67. Alliance des radios communautaires du Canada et l'Association des radiodiffuseurs communautaires du Québec2978 /17237
68. Stingray Digital Group Inc.3012 /17423
70. The National Campus and Community Radio Association3044 /17589
53. Panel des régions de Radio-Canada3063 /17695
72. Conseil de la culture des régions de Québec et de Chaudière-Appalaches3116 /18008
73. MZ Media Inc.3135 /18100
79. JAZZ.FM913190 /18471
Gatineau, Quebec
--- Upon commencing on Thursday, November 29, 2012 at 0904
16929 LE PRÉSIDENT : À l'ordre, s'il vous plaît.
16930 Madame la Secrétaire...?
16931 LA SECRÉTAIRE : Merci.
16932 Mr. Goldman, can you hear me well?
16933 MR. GOLDMAN: Indeed.
16934 THE SECRETARY: Pardon?
16935 MR. GOLDMAN: Yes, I can.
16936 THE SECRETARY: Perfect, thank you.
16937 So welcome to the hearing. When you are ready you can begin. You have 10 minutes for your presentation.
INTERVENTION
16938 MR. GOLDMAN: Thank you very much.
16939 Mr. Chair and Commissioners, my name is Mark Goldman, I am a former CBC broadcaster, having worked as an announcer and producer for the CBC national network in Inuvik, Edmonton, Vancouver, Toronto and Montreal, as well as Radio Canada International and, finally, as a Director of Marketing for the Corporation responsible for the distribution of the CBC's record labels, radio programs and publishing, both domestically and abroad.
16940 I appreciate your time today in allowing me to express my deep concern with the CBC's proposal to sell airtime on Radio 2. I believe this to be fundamentally wrong.
16941 There are many countries with a national public broadcaster, but not one I believe as vital as the CBC. We live next door to the largest most developed entertainment industry in the world. CBC Radio I think is the very heart of our country, it allows us to define ourselves to a great extent and that definition is unique. Without a CBC network reaching across the country, we would become extremely regionalized and in many cases quite insular.
16942 CBC Radio's networks, and especially the repeaters that are operating throughout the country so that Canadians in rural and sometimes remote areas can be connected, ties us all together. This was particularly evident to me when I lived in the far north. CBC Radio connected communities who would otherwise be completely isolated. In some cases, it could mean the difference between life and death, especially in communities that were only accessible by water or by air, and even twice a year when they were out of reach.
16943 J'ai également vu à plusieurs reprises comment le réseau de la radio française de Radio-Canada est énormément apprécié par les francophones à travers le pays qui peuvent se brancher dans toute la culture canadienne française de Terre-Neuve à la Colombie -Britannique, ainsi que le Nord.
16944 CBC and Radio-Canada programming is exceptional. One of the main reasons it's so exceptional is that it's not compelled to try to reach all audiences all of the time. No, it's not all things to all Canadians, but it is many things for many. Allowing airtime to be sold would compel the CBC to try to reach larger and in many cases lowest common denominator audiences in order to attract sponsors. This is simple math, it's not a complex formula, and one that serves the private very sector well in many cases. That is not, however, the CBC or Radio-Canada.
16945 Some years ago I did in fact syndicate some CBC programs to a U.S. network. "Quirks and Quarks" particularly was of great interest to WFMT in Chicago, one of the main radio syndicators throughout the U.S. at the time.
16946 They came up to Montreal and so certain they were about the quality of "Quirks and Quarks" that prior to securing a sponsor they undertook to pay for the series themselves, something that was risky and they wouldn't normally do. The program was received very well in the U.S. in their market and their member stations, but WFMT was never able to deliver the audience in the numbers sufficient to attract sponsors and, in fact, they did come back and suggest programming changes in order for them to do so. We of course did not change the program and it was dropped by WFMT the following year.
16947 This brings us to my main concern. If the CBC is to attract sponsors it must deliver audiences in higher numbers. They know this, we know this. What happens, for example, if a program such as "Saturday Night Blues" or "Randy Bachman's Vinyl Tap" cannot attract a sponsor? Is the target market not the demographic the sponsor is looking for? Are the audience numbers too small? Does this then mean we drop this program? In which way can the CBC raise revenue through the selling of airtime without endangering its core programming? The argument is that this would only be for Radio 2 ou Espace Musique, however in my view, c'est le pied dans la porte, it's just potentially the beginning.
16948 For a period of two years or more I was the producer of "Cross Country Checkup". In that time, we did programs on a broad variety of subjects, in some cases originated these programs from different regions in the country. Did we ever have to encourage people to call to express their views? "We have open lines, gives us a call now." No. Canadians from all walks of life from all parts of this country would call to express their points of view. I was constantly reminded of just how much we are all plugged into each other.
16949 Three years ago I consulted on a project in La Tabatiere -- on the lower North Shore. La Tabatière -- which the Anglo community there refers to "Tabatcher" -- has a total of seven kilometres of roads. There is a regional school and in winter when the roads, which go nowhere, are snow-covered and cars are buried in snow up to their rear-view mirrors, the kids come to school by snowmobile.
16950 CBC community radio is the lifeline to the outside world. Why would we trust the CBC to be concerned about this community as it seeks sponsorship for some of its programs? There are many communities like this.
16951 Yes, there is a lot of new technology. Radio Canada International no longer broadcasts on shortwave for example. We have satellites, cell phones, Internet, but the need for substantive uninhibited programming is a constant. The CBC and Radio-Canada can provide this. If the CRTC agrees to allow the CBC and Radio-Canada to sell airtime, I believe that this will be the first step in the fundamental changing of programming in order to obtain revenue. I also believe that the CBC/Radio-Canada has severely underestimated the backlash from the private sector, who I can assure you from personal experience with respect to the recording industry, will be considerable.
16952 Having said all that, I realize that with their shrinking budgets and changing scenario refusing to allow the CBC/Radio-Canada the option of selling airtime would increase the pressure on the corporation.
16953 This is not the intention of my intervention here today. Rather, I wish to underscore how important these radio networks are and that they must be safeguarded. Yes, some things can change, but the real pressure must be upon the government to recognize the importance of this vital service. Refusing this request I believe is the first step and one I believe would be supported by a vast majority of Canadians.
16954 Thank you for your time. Merci de m'avoir écouté aujourd'hui.
16955 LE PRÉSIDENT : Merci. Thank you.
16956 Commissioner Duncan will have some questions for you.
16957 MR. GOLDMAN: Yes.
16958 COMMISSIONER DUNCAN: Thank you, Mr. Goldman, for that very well presented opinion.
16959 I have a couple of questions for you. We certainly are hearing from a lot of Canadians who feel very strongly about Radio-Canada and its importance and the service it offers Canadians.
16960 I'm just wondering, obviously you have acknowledged that CBC has some financing problems and you are suggesting it is the government's responsibility to look after that. Of course, as you know I'm sure, it's not in our purview to change that, but I'm wondering in the meantime, while CBC has this problem and they are facing these budget cuts it seems frequently, what alternatives would you see?
16961 I notice that you mention that you were selling this program "Quirks and Quarks" into the U.S., do you think there are revenue opportunities that the CBC could explore that might be an option other than -- or an alternative to selling ads?
16962 MR. GOLDMAN: It's a difficult question and it's a precarious one at the same time.
16963 There are opportunities to sell programs, more so in television than in radio, but radio does have an audience, depending on the programs.
16964 This was tried by the Corporation some years ago with an organization called CBC Enterprises. I don't think it was given a fair chance to operate at that time, and there was a tremendous backlash, as I say, from the private sector.
16965 But that is a potential means of raising some revenue.
16966 Ad revenue on CBC I don't really see as being the mainstream of bringing in revenue.
16967 My concern, again, is how this might impact the programming. In the case of Radio-Canada, it's somewhat different than the CBC. The markets are different, and if I go to the music industry, particularly different.
16968 I don't know what the alternatives are. There are some programs that could be sold, there are some programs that could be syndicated, there are some programs that could be released through other means. They certainly could be downloaded.
16969 The CBC has an extraordinary amount of archival material that would be useful. In fact, as early as about three years ago I was approached -- and I am not working for the CBC any longer -- I was approached by some syndicators in the United States, looking for material for spoken word on the Internet and on radio.
16970 The CBC has extraordinary amounts of radio drama that is sitting there, which I believe is an alternative to raising some funds.
16971 Again, we are not talking about vast sums of money in terms of what the Corporation requires, but there are little pockets of it here and there that could be explored.
16972 I am not sitting on a committee examining that. I do recognize that the CRTC is not in a position to fund the CBC, but I do believe that this country requires a service like this, and Canadians would stand behind it.
16973 And, quite frankly, the people that I know -- and I have spoken to many people across the country, from one end to the other -- would be very happy to contribute a little more money each year to have this service.
16974 As you know, there are some services, public broadcasting services, that do charge a licence fee in the world.
16975 That, Commissioner Duncan, would be my answer to that.
16976 COMMISSIONER DUNCAN: Thank you.
16977 I notice in your comments -- and I am drawing from those -- that any type of advertising, including sponsorship, you are opposed to.
16978 MR. GOLDMAN: I am opposed to selling airtime. I am not opposed to sponsorship, per se. I am a little opposed to sponsorship for certain kinds of programs, but the selling of ads on radio, to me, would interfere with the rhythm and the integrity of the programs.
16979 If you were talking to somebody in Nova Scotia and there was a squall developing and boats are warned not to go out -- you know, "We'll be back right after these messages from Procter & Gamble." I don't think that sits particularly well, nor does it do a service to the community it is supposed to be serving.
16980 Sponsorship is a different issue. If you look for a sponsor for a particular -- I did this, in fact. I took a whole bunch of Canadians to perform in Europe at the Montreux Jazz Festival, and I got a lot of flak from the private sector, saying: Well, you're so heavily funded, and it's unfair competition.
16981 We won a JUNO for one of the programs that we did.
16982 In fact, the money did not come from the CBC. I went out and spoke to Air Canada, the Canadian Dairy Association, the Maple Producers Association -- a whole slew of people -- in order to put something together that I think would have been, and was of interest to the Europeans, and we did quite well with it. We did it for two years.
16983 The private sector is able to do that.
16984 I think that the CBC should continue looking at those kinds of things, but advertising, per se, no, I don't like selling cars on radio.
16985 COMMISSIONER DUNCAN: Okay. Thank you very much.
16986 I am curious about your statement that CBC/Radio-Canada has underestimated the potential backlash from the private sector if they get into advertising.
16987 MR. GOLDMAN: Yes.
16988 COMMISSIONER DUNCAN: I'm just wondering what exactly you are meaning there.
16989 MR. GOLDMAN: The private sector funds itself through the sale of airtime. CBC, of course, is subsidized, to a great extent, by Canadian tax dollars. They have always seen this as unfair competition, and the example that I was referring to happens to be with the record industry. I ran the CBC record labels for several years, but prior to that I was also producing new artists for Radio Canada International, and one year we submitted an album with, actually, Tommy Banks, and won a JUNO, and CARAS, who ran the JUNOs, who formed the JUNOs, was very upset about that, and they said, "Well, you can't come in."
16990 The following year we submitted something else, and they refused us, saying, "They aren't real records. They are not available in stores."
16991 And the following year we developed a series of labels, so it was distributed throughout Canada, and there was something else that they weren't happy with.
16992 There was this constant battle with the private sector about what the CBC was doing, and they feared that we were treading onto ground that was sacred to them.
16993 But who else is promoting and developing Canadian talent? There is a list that goes on and on. We are the largest producer of music per capita -- new talent per capita in the world.
16994 COMMISSIONER DUNCAN: Thank you, Mr. Goldman. It sounds like you have had a wonderful career with the CBC, and I appreciate your comments.
16995 Mr. Chairman, those are my questions.
16996 THE CHAIRPERSON: Thank you, Mr. Goldman, for sharing your views with us. Those are our questions. Thank you very much.
16997 MR. GOLDMAN: Thank you for your time.
16998 THE CHAIRPERSON: Madam Secretary...
16999 THE SECRETARY: I would now ask CKUA Radio Network to come to the presentation table.
17000 THE CHAIRPERSON: Welcome, gentlemen. Please identify yourselves for the purpose of the transcript, and go ahead when you are ready.
INTERVENTION
17001 MR. REGAN: Thank you, Mr. Chairman.
17002 Mr. Chairman and Commissioners, we appreciate the opportunity to present CKUA's perspective on these important deliberations.
17003 Before we begin, I will identify myself and my colleague.
17004 My name is Ken Regan. I am the Chief Executive Officer for the CKUA Radio Network. I am a journalist by trade, and I have worked in print, radio and television, including stints as a producer with CBC Television News and as a senior producer with Discovery Channel USA. Since 1999 I have been the CEO at CKUA Radio, which is Canada's first public broadcaster, predating the CBC by almost a decade, but today funded, first and foremost, through voluntary financial contributions from our audience.
17005 Joining me today is Mr. Adam Fox, Content Director for CKUA. His experience includes nine years in community radio, service on the Board of the National Campus & Community Radio Association, and Adam has worked as a freelance journalist for both print media and briefly for the CBC.
17006 Mr. Chairman, these hearings encompass many important issues about the CBC, some we do not feel comfortable or qualified to comment on, but we do wish to comment on some fundamental questions under review by the Commission, specifically CBC/Radio-Canada's overall strategy and the addition of advertising on Radio 2 and Espace Musique.
17007 We appreciate the opportunity because we believe that CKUA offers a unique perspective, because while we are licensed as a commercial FM undertaking, our not-for-profit status, promise of performance and core values mean that we operate, really, as a public broadcaster, and we are proud to say that CKUA is self-sufficient and self-sustaining.
17008 But let me be clear, we believe absolutely in the need for a strong and vibrant CBC. We know that the CBC does many things exceedingly well, and at its best, CBC does cultivate and nurture a national identity. And we believe that the CBC should be appropriately funded.
17009 But any licensing framework for the CBC must ultimately be economically viable and sustainable, and it cannot threaten or undermine other elements of the Canadian broadcasting system.
17010 We submit that the current CBC model is unsustainable and does undermine commercial and not-for-profit broadcasters.
17011 Moreover, we submit that if granted the right to sell advertising on Radio 2 and Espace Musique, this situation will only be exacerbated.
17012 So let us address the CBC strategic direction and practices first.
17013 Based on CBC's own comments and recent actions, which have seen it selling off transmission and other capital resources, as well as laying off personnel, it would suggest that CBC infrastructure can't be sustained without some significant increase on either or both of its revenue streams, parliamentary allotment or advertising.
17014 And yet the CBC, as stated in its latest strategic plan, "Everyone, Every Way", plans to expand operations and service modalities despite this reality.
17015 Contrast this approach to that of the BBC, arguably the standard-bearer for public broadcasters throughout the world. In 2010, the BBC published results of an internal review of operations and strategies. It was an intensive self-examination of the BBC's mandate, programming, services, and structure, and it was conducted to answer the fundamental question: "...how the BBC can best fulfil the public purposes that are set down in the Charter."
17016 In other words, what should the BBC look like in order to be a true public broadcaster.
17017 In stark contrast to CBC's strategy of expansionism, and its stated strategic direction to become even more commercial to pay for it all, BBC's conclusions were to refocus, retrench, consolidate resources, and in fact eliminate some services already offered by the private sector, for the express purpose of underscoring its mandated role as a public broadcaster.
17018 On the other hand, given the opportunity to reflect, the CBC's response to economic and market challenges is akin to doubling down, and we submit that this strategy is misguided and risky. It is, in effect, saying: Although current revenues are insufficient to support operations and this planned expansion, we are going to do it anyway, and we are going to become more commercial in the process.
17019 MR. FOX: Mr. Chairman, Commissioners, we would now like to address our second argument, the CBC request to allow advertising on Radio 2 and Espace Musique.
17020 We understand that there is a precedent for advertising on CBC television and some digital properties, but that doesn't make it right, because, first and foremost, it creates an uneven playing field. The CBC has its own publicly subsidized sandbox, guaranteed and underwritten by taxpayers, and one that is exclusive to the CBC.
17021 That's fine, but historically they've also been allowed to play in the private sector's sandbox by advertising. Now, they not only want to continue to play in both sandboxes, they want more sand.
17022 - Allowing CBC to advertise on Radio 2 and Espace musique, as requested, will only perpetuate this inequity.
17023 Lastly, CKUA agrees with the submission by Shaw Communications that CBC program content should complement, not duplicate, what is already available in the private -- and we would add -- the non-profit sector. This is an issue of particular concern to CKUA.
17024 In 2008, CBC flipped its Radio 2 format from one that was primarily devoted to Category 3 selections of classical and jazz music to one that now consists primarily of popular music from Category 2.
17025 Aside from the fact there was no public consultation or opportunity for input into the decision, the format flip represented an immediate threat to CKUA, because it virtually replicated what we have been offering our audience for over a decade.
17026 In the Alberta market -- because CKUA is a province-wide broadcaster -- this is a clear and unwarranted duplication of service. Had CBC been required to apply for a licence to launch such a service into our market, we would have had an opportunity to challenge that proposal and we think we would have made a convincing case to preclude it.
17027 Instead, we are faced with the potential consequence that this duplicate service could erode CKUA's audience base and by extension, our donor base. This is critical because for CKUA there is a direct correlation between audience and revenue -- and ultimately, survival.
17028 CKUA is not afraid of competition, but this isn't really a fair fight. The playing field is pitched dramatically in favour of Radio 2 and its clearly superior resources.
17029 So why did CBC "popularize" Radio 2?
17030 According to CBC, the impetus was to increase exposure of musicians and genres other than classical and jazz that received little air time on private radio. We would like to point out there is another entire sector of broadcasting, that includes CKUA, that has in fact been doing this work for decades.
17031 But even if you take CBC's rationale for the change at face value, how do you square it with the content that it currently offers on Radio 2?
17032 Yes, you will hear some emerging Canadian artists on that platform, but you will also hear a lot of established artists like Arcade Fire, Diana Krall, Blue Rodeo, as well as non-Canadian, mainstream artists like Bruce Springsteen, The Police and David Bowie, artists routinely played throughout the country by other broadcasters, including CKUA. Bruce Springsteen and Sting -- do they really need CBC's help?
17033 Radio 2's previous focus on Category 3 classical and jazz content actually served and fulfilled a purpose consistent with the CBC's broader mandate by offering specialized programming that was generally underserved elsewhere. Radio 2 instead has migrated from programming that actually adhered to mandate, to a format that duplicates existing services provided by non-subsidized media. To reiterate, this is an unwarranted duplication of CKUA's service, one that could negatively impact CKUA's ability to sustain itself.
17034 MR. REGAN: To summarize, CKUA opposes CBC's request to allow advertizing on Radio 2 and Espace musique. We believe the increase in commercialization would perpetuate an inequity that already exists -- caused by CBC's current dependence on advertising -- and not only skews the market but also allows the federal government to abdicate its responsibility to appropriately fund the CBC.
17035 Lastly -- and frankly, I would agree with Mr. Goldman's comments previously as well in terms of the potential impact of advertising on CBC Radio programming.
17036 Lastly, CKUA has serious concerns with Radio 2's format flip and its potential impact on our long-term viability. We concur with statements made previously at these hearings by the Friends of Canadian Broadcasting that when CBC wishes to implement such dramatic programming shifts, there should be some mechanism to allow input from stakeholders -- other broadcasters and the public at large.
17037 Mr. Chairman, Commissioners, our comments, though they are critical, are not intended to insult, antagonize or degrade the CBC, nor to detract from its vital significance to the cultural fabric of this country. We believe unequivocally in the need for a CBC that is strong, vibrant and appropriately funded.
17038 We disagree with the current CBC strategy of expanding operations at a time of diminishing revenue and respectfully submit that instead the CBC should at least consider the BBC example to refocus, restructure and retrench: to perhaps do less better and to leverage its formidable strengths, and to finally serve the public interest effectively and efficiently.
17039 We believe these things need to happen for the betterment of the Canadian broadcasting system overall, for the security of CKUA, frankly, and other non-profit broadcasters, and ultimately for the good of the CBC itself.
17040 Thank you again for your consideration. We would be happy to take any questions.
17041 THE CHAIRPERSON: Thank you very much, gentlemen. The Vice Chair will have some questions for you.
17042 COMMISSIONER PENTEFOUNTAS: Good morning.
17043 MR. REGAN: Good morning.
17044 COMMISSIONER PENTEFOUNTAS: Pretty clear -- very clear actually. Just a couple of points. Maybe we can give you a chance to expand on the thesis you've put forth before us this morning.
17045 You talked about the fact that your sense is that they're moving away from their mandate, and obviously we're going to stick to the radio mandate, but what would the Radio 2 mandate be?
17046 MR. REGAN: Well, I think it's spelled out pretty clearly in the Act in terms of creating a shared experience for Canadians, representing French and English language and other minorities across the country, but I think in general terms the idea of the mandate is to provide services that might otherwise not be available through other broadcasters, the private sector or in some cases the not-for-profit sector. I think --
17047 COMMISSIONER PENTEFOUNTAS: And that's clearly indicated for you in the Act?
17048 MR. REGAN: Well, I think it's not articulated specifically that way in the Act, but I think in reality part of the problem that we see, in our opinion, with the CBC is trying to be all things to all people at a time when by their own admission resources are tight and diminishing.
17049 So it's not -- I guess it's not so much a question of are they fulfilling their mandate. I think for the most part they are. It may be a question that perhaps in some cases they're exceeding their mandate or exceeding their reach in trying to exercise the mandate.
17050 COMMISSIONER PENTEFOUNTAS: My point is that their mandate doesn't limit them exclusively and is not restrictive in concentrating on areas that are not at all offered by the private sector.
17051 MR. REGAN: M'hmm.
17052 COMMISSIONER PENTEFOUNTAS: You would agree with me on that point?
17053 MR. REGAN: Yes, absolutely.
17054 COMMISSIONER PENTEFOUNTAS: In that sense their mandate is quite large --
17055 MR. REGAN: Absolutely
17056 COMMISSIONER PENTEFOUNTAS: -- and they do have a fair bit of leeway?
17057 MR. REGAN: Yes.
17058 COMMISSIONER PENTEFOUNTAS: Okay. That being said, a private broadcaster who wishes to change format or change direction, what would the process be for that?
17059 MR. REGAN: It would be very similar to what the CBC did with Radio 2. They would flip the format.
17060 COMMISSIONER PENTEFOUNTAS: And would they need --
17061 MR. REGAN: It's a tried and true practice.
17062 COMMISSIONER PENTEFOUNTAS: -- the Commission's approval? I mean what would be the --
17063 MR. REGAN: No, unfortunately, they wouldn't. And frankly -- and I've said this before at other submissions -- I think there should be a process for that because part of the problem, particularly when spectrum is -- in FM radio when spectrum is as tight as it is, my feeling is that if a broadcaster is granted the privilege of a licence based upon promises that are made to the Commission and to the community in terms of what they're going to do, that if they decide two or three years into the licence, or four years or whatever the case might be, that they're not making enough money with exercising that mandate or that promise and decide to flip to whatever is going to make a lot of money, there should be a process requiring essentially a call for comment at least and perhaps a call for applications.
17064 I think if you're granted a licence on the basis of one thing and you decide to do something else, it's not really fair. So whether it's the CBC or the private sector, I think -- and our colleagues in the private sector wouldn't necessarily appreciate me saying that -- but I think it should be an equal process or a level playing field there too.
17065 COMMISSIONER PENTEFOUNTAS: And if you went from a non-profit status, a community radio station, to a full-fledged private radio station, you would set forth a call for a market, would you not?
17066 MR. REGAN: I would presume -- yes, in a case -- if you were doing something like that, if you were making a switch from a not-for-profit entity into the commercial realm, I think it would require a call for amendment of licence, for sure.
17067 COMMISSIONER PENTEFOUNTAS: You raised it here. Would you make that kind of comparison in this instance?
17068 MR. REGAN: Yes. It's probably a fair comparison. Just to clarify though, I hope no one is under the misapprehension that CKUA did that. We are --
17069 COMMISSIONER PENTEFOUNTAS: No, no, no. That's not the point I'm making.
17070 MR. REGAN: Okay. Okay.
17071 COMMISSIONER PENTEFOUNTAS: I'm strictly --
17072 MR. REGAN: Fair enough.
17073 COMMISSIONER PENTEFOUNTAS: -- speaking on the issue of Espace musique and Radio 2.
17074 MR. REGAN: Right.
17075 COMMISSIONER PENTEFOUNTAS: You spoke about your donor base and the pressure potentially on your donor base if CBC were to be allowed to advertise.
17076 Do you want to speak to us on that, how your donor base works, for the record?
17077 MR. REGAN: Sure.
17078 We are, first and foremost, listener-supported. So our annual operating budget is about $5 million a year, and about $3.2 million of that comes directly through voluntary donations from the audience. So for CKUA, audience is critical because it equates directly to financial support.
17079 So our concern about -- and, frankly, it's less about the advertising component of Radio 2 and more a concern about the duplication of service provided by Radio 2 that has the potential, at least in our --
17080 COMMISSIONER PENTEFOUNTAS: Let's stick with the advertising component --
17081 MR. REGAN: Yes.
17082 COMMISSIONER PENTEFOUNTAS: -- and then we're going to move on to the other issue that you raised.
17083 MR. REGAN: Sure.
17084 COMMISSIONER PENTEFOUNTAS: So there's $3.2 million that comes in from donations, I guess we would call them?
17085 MR. REGAN: Yes, absolutely.
17086 COMMISSIONER PENTEFOUNTAS: And the other $1.8 of your budget?
17087 MR. REGAN: Comes from various things. We do have what's called a restricted advertising licence. So we are allowed to sell some advertisements on CKUA. We don't --
17088 COMMISSIONER PENTEFOUNTAS: And that advertising would be of a local nature?
17089 MR. REGAN: Yes, correct.
17090 COMMISSIONER PENTEFOUNTAS: Okay.
17091 MR. REGAN: And that probably equates to about another three-quarters of a million dollars a year.
17092 And then we also have -- because we have a province-wide transmission network we also have fee-for-services for some of our engineering services.
17093 COMMISSIONER PENTEFOUNTAS: Okay.
17094 MR. REGAN: So we lease space on some of our towers, for example, and provide other engineering services.
17095 COMMISSIONER PENTEFOUNTAS: So from a financial perspective strictly --
17096 MR. REGAN: Yes.
17097 COMMISSIONER PENTEFOUNTAS: -- CBC having the right to advertise, what would the impact be on CKUA?
17098 MR. REGAN: To be honest, I don't think it would be huge because -- although, you know, as the CAB radio panel pointed out, even though CBC's application is a request to sell national advertising, I think it still can have an impact.
17099 Now, we don't rely heavily on advertising. We choose to rely first and foremost on our audience to support us, but advertising is an important supplement if you like to --
17100 COMMISSIONER PENTEFOUNTAS: But your advertising is strictly local. We agree with that?
17101 MR. REGAN: Yes. That doesn't mean we --
17102 COMMISSIONER PENTEFOUNTAS: Or provincial?
17103 MR. REGAN: Yes, but it doesn't mean that we wouldn't like to sell national advertising, so that's where the potential --
17104 COMMISSIONER PENTEFOUNTAS: But as it stands, you don't?
17105 MR. REGAN: That is correct.
17106 COMMISSIONER PENTEFOUNTAS: Okay. And how -- you know, back to your donor base, I mean, how would your donor base be affected or hurt by CBC's request for advertising?
17107 MR. REGAN: Well, because -- as I say, because Radio 2 is virtually, you know, I wouldn't say a carbon copy, but it is extremely similar to what CKUA plays and has been playing for 15 years to our audience. So -- and we know anecdotally that we are losing some audience to CBC.
17108 And again, I don't mind CBC, you know, I'm flattered by the emulation of our product and I don't mind competing with CBC head to head. The problem is I don't have the resources to compete with a federally subsidized entity whose marketing budget is probably -- marketing budget alone is probably three or four times my entire operating budget.
17109 COMMISSIONER PENTEFOUNTAS: I understand that. Back to your donor base, how would you -- although you're mentioning that your donor base would be affected and I am still trying to understand how. Those would be your most faithfully listeners; would they not?
17110 MR. REGAN: Well, yes, yes, but we have other listeners who would be potential donors.
17111 COMMISSIONER PENTEFOUNTAS: Okay. But would some of those donors stop donating to CKUA?
17112 MR. REGAN: Quite possibly.
17113 COMMISSIONER PENTEFOUNTAS: And you can make that assertion based on?
17114 MR. REGAN: Well, as I say, well I can -- okay, let me give you an example. Prior to CBC's change to Radio 2, our on-air fund raising campaigns, we do two a year, and we were -- essentially the revenue coming from those campaigns was probably increasing by about two percent, two and a half percent annually.
17115 Since the advent of Radio 2, and it didn't happen immediately, but in the last three years, we have seen a decline in fund raising revenues by five to eight percent.
17116 COMMISSIONER PENTEFOUNTAS: And you attribute that to the change of format for the CBC?
17117 MR. REGAN: Not necessarily, but --
17118 COMMISSIONER PENTEFOUNTAS: And your colleague is shaking his head in the affirmative and you're telling us "not necessarily"?
17119 MR. REGAN: Well, I am just saying that we don't have empirical evidence for that.
17120 COMMISSIONER PENTEFOUNTAS: Right, okay.
17121 MR. REGAN: But, you know, coincidentally, that's what we've -- that's what we have seen. And, frankly, I wouldn't attribute it, even if there was a correlation, I wouldn't attribute it all to the CBC change.
17122 But the problem for us is that any erosion of our audience, any erosion of our audience by CBC or even interception if you like of our audience by a product that virtually replicates what we offer, one that was instituted without any kind of consultation or opportunity to make a case for, you know, this, any erosion is problematic for us because it represents a potential threat of loss of revenue, whether it takes a listener away or whether it prevents a listener from coming to us.
17123 COMMISSIONER PENTEFOUNTAS: Yes. And the change of format has been going on for a few years now?
17124 MR. REGAN: Um-hm.
17125 COMMISSIONER PENTEFOUNTAS: And do you have empirical evidence that you are losing a market share?
17126 MR. REGAN: No. And part of the problem that we face, Commissioner Pentefountas, is that we can't afford to participate in the PPM.
17127 COMMISSIONER PENTEFOUNTAS: That's fine.
17128 MR. REGAN: So, it's difficult for us to measure exactly what's going on with the audience and really, we're relegated, therefore, to rely largely on our fund raising as a measurement of how we are doing in the market.
17129 COMMISSIONER PENTEFOUNTAS: Okay. The crock of your argument is that the content that the CBC is making available on Radio 2 is already available, readily available in the market?
17130 MR. REGAN: Well, it's readily available from CKUA in our market and again because we broadcast province-wide, yes.
17131 COMMISSIONER PENTEFOUNTAS: Can we also say that for the -- on the jazz and classical side? I mean, it's available, there are the sources?
17132 MR. REGAN: There aren't many. CKUA does play some jazz and classical, but when Radio 2 was -- was focused primarily on those genres, they would have -- they would probably be the primary source maybe in this country other than, you know, I know that there is a commercial classical station in Toronto and as well as a commercial jazz station in Toronto.
17133 But, across the countrym CBC would probably be the primary source for those particular genres. And as I say, well, CKUA does play some of that music. It's not -- most of what we play is more of the triple A format that CBC has now adopted.
17134 COMMISSIONER PENTEFOUNTAS: You also spoke of CBC spend on what we maybe call not traditional platforms and given the fact that their resources are diminishing constantly, that they should sort of retrench, there should be a retrenchment, a sort of retreat, and concentrate on their core mandate on the core platforms.
17135 But isn't part of their mandate to sort of make the CBC available where Canadians are, back to the sort of whenever wherever argument?
17136 MR. REGAN: Yes. But I think -- I think as a business, as an enterprise, you have to -- you have to weigh that against the available resources. I guess part of our concern, and frankly it's a concern for the CBC, is that if you are in a situation where you're dealing with diminished resources and having struggling, let's say, to maintain current infrastructure, and you start expanding on that infrastructure, you have more infrastructure to maintain.
17137 And so, to do that and then say, we will just take from the private sector pool of money more money to pay for that, I am just not sure, I don't think it's wise from a business standpoint and frankly, I think it's fundamentally unfair.
17138 COMMISSIONER PENTEFOUNTAS: But from a business standpoint, shouldn't you be on those platforms, otherwise you are really going to be sort of left behind in 20th Century technology when down the road more and more people are going to be on these platforms?
17139 MR. REGAN: Absolutely.
17140 MR. FOX: I would just like to add we are not suggesting that CBC doesn't have to do it out of its digital platforms, that's not what we are suggesting at all.
17141 What we are suggesting is that there needs to be a more strategic approach to looking at what the programming offerings are on every platform and then, a more I think rational and pragmatic approach needs to be how do you develop content that serves your core mandate, your core audience that can live on all these platforms.
17142 Of course, a media broadcaster today has to be, you know, they have to develop digitally. So we are not suggesting that they don't. We are suggesting they just need to be -- all things to all people and everyone every way, we are suggesting maybe that's a misguided philosophy.
17143 COMMISSIONER PENTEFOUNTAS: I mean, why would they limit themselves to sort of a core content? I mean you seem to be associating their mandate with a core content which would be rather restrictive and would minimize their market share.
17144 I understand that as potentially a private broadcaster the fewer people you have in the sandbox that you mentioned, the better, but explain to me why their core mandate should limit themselves to content that may be of lesser interest to the vast majority of Canadians?
17145 MR. REGAN: Well, I think it's --
17146 COMMISSIONER PENTEFOUNTAS: We go back to sort of a classic argument and their format change.
17147 MR. REGAN: Sure. Yes, yes. Whatever they choose for content, it's less about the nature of the content, although as I say, we have issues with the duplication of service that exists with Radio 2 today. But it's less about what they have for content and more about the resources they have to develop and distribute that content.
17148 So, yes, we all want and need to be on all of those other platforms. We at CKUA would love to have 40 channels of online music channels, but we don't have the resources, so we are penalised.
17149 CBC is there, but at the same time they are saying, in order to continue to support this expansion we now need more resources.
17150 Well, there is -- that's problematic. If you don't have the money, why are you -- why are you doing what you are doing?
17151 COMMISSIONER PENTEFOUNTAS: Essential --
17152 MR. REGAN: Sorry; I'm sorry.
17153 COMMISSIONER PENTEFOUNTAS: No, please go ahead.
17154 MR. REGAN: Yes. So, when we talk about core content or core operations, the specific elements of the core are less relevant perhaps than the idea of consolidating resources and living within your means, right.
17155 COMMISSIONER PENTEFOUNTAS: And the more -- I guess essential to your argument is that the more you expand in other fields, given the fact that your resources are more restricted, you'll inevitably hyper-commercialize your content to allow you to find the means to deliver on the platforms in the way that you have chosen to do so?
17156 MR. REGAN: There is that. I guess there is that potential and I think again as people or individuals and as an organization that respects the CBC and wants the CBC ultimately to succeed and wants the CBC to be strong, there is that -- I am concerned by the growing commercialization of the CBC.
17157 And we appreciate that there is the precedent for commercial advertising on television and I think as Mr. Goldman suggested earlier, there is a difference between advertising and underwriting and public broadcasting in the United States engages a significant amount of corporate underwriting if you like.
17158 But that is a -- there is a real, it may be somewhat subtle, but there is a real difference in how that -- the messaging is positioned, so --
17159 COMMISSIONER PENTEFOUNTAS: So you would be more comfortable with a sponsorship model as opposed to the purebred advertising model.
17160 MR. REGAN: Yes. I think even for CBC's own benefit really that Canadians, even many of their critics, would be more comfortable and more accepting of that kind of a model then strictly an advertising model.
17161 COMMISSIONER PENTEFOUNTAS: How would you respond to their argument that in effect all they are doing is growing the size of the pie, henceforth they will not be damaging the existing players in the market?
17162 MR. REGAN: I'm not sure I understand when you say growing the size of --
17163 COMMISSIONER PENTEFOUNTAS: They will find advertisers that are from without -- from outside of the system and not within the system. In other words, there will be external revenues coming in.
17164 MR. REGAN: Yes. Not sure I buy it.
17165 COMMISSIONER PENTEFOUNTAS: It's your right to buy it or not to buy it, I just put out the question.
17166 MR. REGAN: Yes, No, I mean --
17167 COMMISSIONER PENTEFOUNTAS: You don't see it?
17168 MR. REGAN: I don't see it working that way, yes.
17169 You know, if you look now -- and again, I'm at a disadvantage in that I don't have the latest numbers for advertising revenue on CBC television for example, but the last number that I saw not too long ago was in the range of about $727 million. If that money were left in the marketplace for the private sector broadcasters, which I think in principle it should be, I think it would benefit them significantly.
17170 COMMISSIONER PENTEFOUNTAS: The private broadcaster?
17171 MR. REGAN: The private broadcasters, that is correct.
17172 COMMISSIONER PENTEFOUNTAS: Yes.
17173 MR. REGAN: But I think if CBC were to hopefully someday get out of the advertising game, I think it would also benefit the CBC in that it would not only, I think as Mr. Goldman suggested, provide a certain integrity to their programming that may have been or could be denigrated, if you like, by the need to cater to the commercial mandate versus the public mandate. So I think that would be a benefit to CBC and, frankly, I think it would give them more of the moral high ground.
17174 It's difficult -- as we say in our argument, the reliance and the increased reliance on commercial revenue at the CBC really allows the federal government to abdicate its responsibility and I don't think that benefits the CBC ultimately, I don't think it benefits the private sector ultimately.
17175 COMMISSIONER PENTEFOUNTAS: That's a whole other issue.
17176 I would imagine that you would also argue that given the fact that the content is not dissimilar from what the privates are offering, it would be rather difficult to find new advertisers, given that you are attracting the same clientele.
17177 MR. REGAN: Yes.
17178 COMMISSIONER PENTEFOUNTAS: It's not as if the offer is different to attract a different listenership.
17179 MR. REGAN: No, I think that's true. I mean even if the CBC were relegated to seeking national advertisers, well, there are only so many national entitles and people with the advertising budgets that they would be seeking. Frankly, the advertisers that CBC attracts today are virtually the same as any private broadcaster in the country.
17180 COMMISSIONER PENTEFOUNTAS: And that's more pronounced given the fact that the content is the same as what's being offered?
17181 MR. REGAN: You mean on CBC television as an example?
17182 COMMISSIONER PENTEFOUNTAS: Radio.
17183 MR. REGAN: On radio.
17184 COMMISSIONER PENTEFOUNTAS: Radio 2 that is.
17185 MR. REGAN: Radio 2. The content that they have today, it's different by degrees from what is available in the private sector. It is very, very similar to what is available on CKUA, but it's probably more eclectic than anything you would see in most private sector radio, but even then, as I say, it's different by degrees, not so much in kind.
17186 COMMISSIONER PENTEFOUNTAS: Thank you very much.
17187 Thank you.
17188 THE CHAIRPERSON: Commissioner Poirier...?
17189 COMMISSIONER POIRIER: Good morning, Mr. Regan.
17190 MR. REGAN: Good morning.
17191 COMMISSIONER POIRIER: Two subjects.
17192 The first one, we have created a special fund for community radio stations, are you accessing some of that money?
17193 MR. REGAN: No, we are not and it's in part because of the way the Charter was established for the Community Radio Fund. It stipulates that you must be licensed as a campus or community broadcaster. Because historically we have been licensed as a commercial FM undertaking, even though our mandate and our operations are more akin to a community broadcaster, and so we are not eligible to apply.
17194 COMMISSIONER POIRIER: So in a way you are some kind of a hybrid radio station?
17195 MR. REGAN: Very much so.
17196 COMMISSIONER POIRIER: In between community, campus and commercial radio stations.
17197 MR. REGAN: And private, yes. Correct, yes.
17198 COMMISSIONER POIRIER: Okay. I'm impressed by the amount of money you raise yearly, $3.2 million.
17199 MR. REGAN: That's correct.
17200 COMMISSIONER POIRIER: Okay. So when you mentioned that I thought of PBS and some public radio stations in the United States also reaching out in the public and being funded by some money from the public.
17201 So would that be a good avenue for CBC to go in?
17202 MR. REGAN: You know it's a very interesting question and I think if -- let's just say the CBC were to adopt that model, I think they would do very well, because Canadians love the CBC, rightly so. I think they would do very well.
17203 The difficulty I think that would exist is that Canadians are already paying, they are already contributing through the subsidization of CBC. That might make it more difficult for them, whereas at CKUA we receive no government subsidy.
17204 The other thing is that again I think that could only work if CBC were to either get out of the advertising business all together and potentially -- if the CBC was to try and rely solely on listener support, the infrastructure is so vast that I don't think it would be viable. And if you get into seeking listener donations in conjunction with those other sources of funding it gets complicated.
17205 COMMISSIONER POIRIER: And it could harm you, too.
17206 MR. REGAN: Yes.
17207 COMMISSIONER POIRIER: You rely --
17208 MR. REGAN: Oh, yes. In terms of the potential impact on CKUA, I think it -- yes, it could be problematic for us.
17209 COMMISSIONER POIRIER: Thank you very much, sir.
17210 MR. REGAN: Thank you.
17211 THE CHAIRPERSON: Commissioner Simpson...?
17212 COMMISSIONER SIMPSON: I'm sorry, I was getting a green light, I have never had one of those before.
17213 On the funding models that Ms Poirier was just speaking to you on, I keep dwelling on your opening statement where you said the:
"... current CBC model is UN-sustainable and does undermine commercial and not-for-profit broadcasters."
17214 My question is this -- the ability of CKUA to raise money within Alberta a matter of record and my question is: How would CKUA relate to its audience -- what would be the reception if it was a tax to Albertans and not a voluntary contribution? Would it change how they feel about you, regardless of how you tried to address their needs?
17215 MR. REGAN: Yes.
--- Laughter
17216 MR. REGAN: There are people within our audience who are very angry at the Alberta government for having withdrawn its support of CKUA in the mid-1990s, but I think Albertans generally prefer the model that exists today where it is a voluntary contribution, so that if they listen to CKUA -- and what we say to people is, if you value the service, please understand and appreciate that it is only here because of the support of people like you. That seems to resonate.
17217 But I think if we were government-funded, that willingness to support CKUA would evaporate, because people wouldn't -- they just wouldn't see the reason to give their money if they are already being subsidized, or it is being subsidized through taxation.
17218 COMMISSIONER SIMPSON: Yes.
17219 So a last question: I am always attempting to try and understand that dilemma that CBC is in, not only from their mandate -- the critiques on their mandate, but also the difficulties they have being half commercial-half publicly funded. This question goes to the wealth of experience you have accumulated.
17220 If CBC was totally voluntarily funded with tax benefits included, something like public radio in the States, does the effect of that cause CBC to become better attuned to the relationship it has with somebody who writes that cheque and, also, does the amount of money that they take in make them then more self-limiting?
17221 MR. REGAN: Absolutely. Absolutely.
17222 One of the fantastic things about being listener supported, as we are, is that we are absolutely accountable to our audience. It makes us extremely focused, it requires us to be, frankly, exceptional, exceptional business operators, and the relationship that we have with the audience is a direct one.
17223 So in terms of the way we design our programming, the kind of programming that we present, the audience is -- our primarily focus is the audience in everything that we do. You know, some days we are better at it than others and the audience lets us know, which I love. And our rule is that if someone calls or e-mails us with a complaint or a question we will get back to that person, hopefully within in 24 hours, because it's the least they should expect if they are listening to us and prepared to support us voluntarily with their money.
17224 To your question of would it make CBC more self-policing with respect to operations and expenditures, there's no question about it. I think first and foremost again I'm not sure that it's necessarily a viable solution for CBC in its entirety, because the infrastructure for a national broadcaster in this country is so significant there are inherent expenditures that I'm not sure could be compensated just by listeners' support. It might drastically alter the nature of the CBC and maybe not for the better, frankly.
17225 I think on a smaller scale like with CKUA, a regional basis, I think it's a viable proposition. On a national basis for something like the CBC, I'm not sure.
17226 And again I think it goes back to the issue of... And again I appreciate the CRTC is not in a position to command the federal government to appropriately fund CBC, but I think the government hopefully respects the opinion of the Commission with respect to matters such as that. And I think it's right that we should have a national public broadcaster that is funded by our federal government.
17227 People can argue about the degree of that funding. I don't think anyone would say that it should be less than what it is today and probably should be more than what it is today. Exactly what it should be, I think the CBC has a responsibility to help determine that. And, frankly, I think, Canadians have a responsibility in this as well.
17228 We all want the CBC to serve our interests wherever we are in the country and whatever those interests might be. And I think our expectations of the CBC to do that are one of the things that drive the CBC to try to be all things to all people. And I think as Canadians we need to appreciate that, if we hope that CBC will be strong, and vibrant, and viable, we should maybe expect that they need to do some, take some drastic measures that might inhibit their ability to serve my interests. But if at the end of that we have a better, stronger more viable CBC, then maybe that's the way it should be.
17229 COMMISSIONER SIMPSON: Thank you.
17230 THE CHAIRPERSON: Commissioner Duncan? No? Sorry. Okay. Well, thank you very much, gentlemen --
17231 MR. REGAN: Thank you.
17232 THE CHAIRPERSON: -- for your participation in hearing and answering our questions.
17233 MR. REGAN: Thank you very much.
17234 THE CHAIRPERSON: Thank you. Madame la secrétaire.
17235 LA SECRÉTAIRE : Merci. J'inviterais maintenant l'Alliance des radios communautaires du Canada et l'Association des radiodiffuseurs communautaires du Québec à venir à la table en avant. Merci.
17236 LE PRÉSIDENT : Alors, bienvenue. Et j'aimerais comme d'habitude que vous vous identifiez pour les fins de la transcription et faire votre présentation.
INTERVENTION
17237 M. BOUGIE : Alors, Monsieur le Président, mesdames, messieurs les conseillers, l'Association des radiodiffuseurs communautaires du Québec et l'Alliance des radios communautaires du Canada vous remercie de leur offrir la chance de venir exprimer leur opinion lors de ces audiences sur les services de CBC et Radio-Canada.
17238 Alors, à ma droite, je vous présente François Côté, secrétaire général de l'Alliance des radios communautaires du Canada. Et, moi-même, Martin Bougie, directeur général de l'Association des radios communautaires du Québec.
17239 Nos deux organisations vouées à la promotion et à la défense des intérêts des radios communautaires ont toujours cru à la pertinence de trois piliers dans notre système de radiodiffusion canadien, c'est-à-dire le public, privé et communautaire. Chacun des piliers a son rôle à remplir. Tous sont complémentaires les uns les autres.
17240 Et le cadre réglementaire doit permettre à chacun de réaliser sa mission, tant au chapitre du financement que de ses obligations. Il est souhaitable, voire même essentiel à notre avis que les trois piliers collaborent afin d'offrir aux citoyens un univers radiophonique qui soit à la fois diversifié, pertinent et performant.
17241 M. CôTÉ : Nous allons traiter essentiellement de deux sujets lors de notre présentation. D'abord des inquiétudes que nous avons quant à la diffusion de publicité à l'antenne d'Espace musique et de CBC Radio 2 puis d'un accroissement que nous estimons souhaitable de la collaboration entre Radio-Canada et nos radios communautaires.
17242 Premièrement et contrairement à ce qu'affirmait la semaine dernière monsieur Jean Mongeau devant vous, nous n'avons pas du tout l'impression que l'arrivée de CBC Radio-Canada va -- et je cite -- « rajouter de l'échelle au volume total publicitaire et au marché potentiel ».
17243 On ne péchera pas par un semblable élan d'optimisme, puisque, en regardant les revenus tirés de la vente de publicité au gouvernement pour les cinq dernières années, on constate qu'à part 2011, au cours de laquelle il y a eu une grosse campagne sur le recensement, et 2009 avec la campagne sur la grippe A, nos revenus provenant du gouvernement ne cessent de fléchir.
17244 À l'heure actuelle pour cette année, nos revenus publicitaires provenant du gouvernement sont à peu près 11 fois moins élevés qu'ils ne l'étaient pour l'année fiscale radio en 2011-2012 et 15 fois moins élevés qu'ils ne l'étaient pour l'année fiscale gouvernementale 2011-2012. C'est vous dire, mesdames, messieurs, à quel point la différence est immense.
17245 M. BOUGIE : Si CBC/Radio-Canada obtient le droit de diffuser de la publicité à l'antenne de CBC Radio 2 et d'Espace musique, loin d'apporter de l'échelle au marché comme l'affirmait monsieur Mongeau, nous sommes d'avis qu'au contraire, on assistera à une fragmentation de l'assiette publicitaire et que cela créera une pression indue sur notre secteur.
17246 Il est peu probable que cette nouvelle offre amène les annonceurs à augmenter leurs investissements. Et, comme CBC/Radio-Canada entretient déjà des relations privilégiées avec une multitude de grands annonceurs nationaux à travers ses autres plateformes, son arrivée dans le marché publicitaire radiophonique aura un impact à très court terme, ce qui nous laissera peu de temps pour nous repositionner.
17247 Les revenus en provenance des sources publiques représentent en moyenne moins de 20 pour cent du budget d'une radio communautaire, et nos radios doivent donc combler 80 pour cent de leur budget par des sources de revenu autonomes de la communauté ou de la vente de publicité. Il est donc certain que l'avènement d'un joueur comme CBC/Radio-Canada s'avérerait catastrophique.
17248 Nous craignons particulièrement que le gouvernement, qui n'achète malheureusement pas déjà beaucoup de publicité dans les radios communautaires, décide d'acheter du temps d'antenne à CBC/Radio-Canada plutôt que sur nos radios afin de pallier en quelque sorte aux récentes coupures budgétaires et en même temps continuer à se soumettre à ces obligations en vertu de la Loi sur les langues officielles.
17249 M. CôTÉ : Dans le contexte actuel, plusieurs de nos stations communautaires ne parviennent pas à générer suffisamment de revenus pour réaliser pleinement leur mission en termes d'information locale, de promotion des nouveaux talents, d'accès citoyen aux zones et de service à la communauté.
17250 Nous sommes conscients du rôle de la Société d'État et, en même temps que nous nous inquiétons des conséquences tragiques que pourrait avoir la vente publicitaire sur l'ensemble des communautés francophones du pays, nous sommes d'avis qu'une plus grande collaboration entre nos deux secteurs serait bénéfique pour l'ensemble de l'univers médiatique au pays.
17251 Il existe de nombreuses similitudes sur la façon de faire de la radio entre Radio-Canada et nos stations communautaires dans l'ADN de nos missions respectives, en ce sens qu'elles sont toutes deux tournées vers le citoyen et non à la recherche de profits. L'une est à l'échelle nationale; l'autre est à l'échelle locale.
17252 On ne doit d'ailleurs pas s'étonner que la radio communautaire soit souvent vue comme une pépinière de talents pour Radio-Canada et que plusieurs membres de son personnel soient déjà passés par l'une ou l'autre de nos radios avant de poursuivre leur carrière au sein de la Société d'État.
17253 D'ailleurs, deux de nos anciens collègues de l'ARC du Canada sont maintenant des animateurs du matin à la Société Radio-Canada. Nous ne voyons pas cette situation comme un problème, mais plutôt comme une opportunité pour nos deux secteurs de travailler ensemble sur la formation et le coaching de la relève.
17254 M. BOUGIE : Des avenues pourraient être explorées au niveau de l'accès de nos employés bénévoles aux formations offertes par la SRC à ses employés, mais aussi à l'élaboration de programmes de formation conjointe. Certaines stations communautaires font appel à des employés de Radio-Canada pour offrir de la formation à leurs employés bénévoles, mais c'est toujours sur une base informelle et individuelle. Nous croyons qu'à ce chapitre, tous auraient avantage à formaliser une collaboration.
17255 Une autre problématique vécue par nos radios est l'accès à des ressources techniques, tels techniciens pour des sites émetteurs et équipements et ce, particulièrement dans les régions éloignées.
17256 La SRC diffusant dans l'ensemble du territoire et disposant de ressources techniques pour l'ensemble de ses infrastructures, il pourrait s'avérer bénéfique pour nos stations que les ressources techniques de la SRC puissent avoir la possibilité d'offrir leurs services aux radios communautaires. C'est important de souligner qu'il n'est ici pas question de service offert gratuitement, mais d'une accessibilité à ces ressources.
17257 M. CôTÉ : Nos recommandations sont donc : que le Conseil refuse à CBC/Radio-Canada le droit de diffuser de la publicité à Espace musique et CBC Radio 2; que la Société d'État et le mouvement de la radio communautaire tissent des liens pour la formation et le coaching de notre personnel et de nos bénévoles; et que nous disposions d'un accès accru et plus facile aux ressources techniques de CBC/Radio-Canada et ce, tout particulièrement dans les régions éloignées.
17258 Nous sommes prêts, mesdames, messieurs, à répondre à vos questions. Merci.
17259 LE PRÉSIDENT : Merci bien, messieurs, et bienvenue. Monsieur le Vice-président aura des questions pour vous.
17260 CONSEILLER PENTEFOUNTAS : Bonjour.
17261 M. BOUGIE : Bonjour.
17262 CONSEILLER PENTEFOUNTAS : Merci encore d'avoir pris le temps d'être parmi nous aujourd'hui. D'abord, j'ai pris le temps de lire les notes sténo sur l'entrevue entre vous et monsieur Lafrance. Mis à part le fait que vous avez une ADN qui se ressemble, c'est-à-dire que, votre priorité, c'est l'auditeur et non pas l'annonceur, est-ce qu'il y avait d'autres choses que vous vouliez soulever avec ces sept, huit pages d'entrevue par rapport au sujet du jour?
17263 M. BOUGIE : Oui, bien, en fait, l'essentiel, là, la pertinence qu'on voyait de mettre cette annexe-là au mémoire qu'on a déposé, c'est vraiment pour souligner, bon, je reviens sur la question de l'ADN, mais qu'au niveau du type de radio qui est faite autant à Radio-Canada que dans la radio communautaire, il y a beaucoup de ressemblances.
17264 Ce n'est pas nécessairement un type de radio, une façon de faire de la radio qui est enseignée dans les écoles; d'où le pourquoi qu'on voit tellement de nos gens qui commencent chez nous et terminent ensuite à Radio-Canada. Donc, c'est vraiment pour mettre en lumière ça, là, qu'on croyait que c'était pertinent de mettre cette entrevue.
17265 CONSEILLER PENTEFOUNTAS : Est-ce que vous luttez pour les mêmes audiences et conséquemment les mêmes revenus si la deuxième chaîne puisse annoncer ou chercher des revenus publicitaires?
17266 M. BOUGIE : Bien, ultimement, oui, c'est sûr. On s'adresse tous les deux, autant le milieu communautaire que la Société Radio-Canada s'adressent aux citoyens canadiens. On arrive de deux perspectives différentes. Radio-Canada s'adresse aux citoyens d'une perspective globale, c'est-à-dire qu'il est là pour transmettre l'identité, les valeurs canadiennes, le point de vue canadien à travers ses contenus. Tandis que, nous, on est à l'échelle locale. Donc, c'est au niveau des identités locales.
17267 Donc, oui, on est sur les mêmes audiences. On remarque même souvent, si je regarde aussi les formats puis il y a des croisements de sondage, plusieurs de nos stations, quand on fait l'analyse des auditoires, il y a beaucoup de croisements d'auditoires entre Radio-Canada et nos radios. C'est particulièrement vrai dans les milieux urbains.
17268 Donc, les gens qui sont intéressés à un format parlé, à un format où il y a une musique, des musiques différentes, des musiques plus spécialisées vont être moins portés à aller vers la radio privée. Donc, ils vont alterner entre les deux. Donc, il y a même particulièrement encore là, ce qu'on observe au Québec, là, dans les marchés urbains, un croisement encore plus direct d'auditoires.
17269 CONSEILLER PENTEFOUNTAS : Et est-ce que le changement de format a accéléré ce croisement de l'auditoire?
17270 M. BOUGIE : Je ne pourrais pas dire si on note une accélération. Ce qu'on note, c'est qu'on attire le même genre d'auditeur. C'est...
17271 CONSEILLER PENTEFOUNTAS : Est-ce que vous jouez le même genre de musique? Quand je parle de format. Parce qu'il y avait une époque où c'était plus vers les classiques et jazz, et, maintenant, c'est beaucoup plus popularisé comme choix.
17272 M. BOUGIE : Bien, il y a beaucoup de ressemblances. Sans dire que c'est le même format, il y a beaucoup de ressemblances au niveau des musiques de catégorie 3, c'est-à-dire les contenus spécialisés de la chanson francophone, de la promotion de la relève. Donc, oui, il y a du croisement là aussi, là.
17273 CONSEILLER PENTEFOUNTAS : Et... Oui.
17274 M. CôTÉ : Si je peux juste ajouter.
17275 CONSEILLER PENTEFOUNTAS : Certainement.
17276 M. CôTÉ : Dans les communautés, parce que, moi, je vais parler pour ailleurs qu'au Québec, effectivement, il y a un croisement, mais on s'aperçoit beaucoup que, nous, étant donné que nous sommes des radios de proximité, on diffuse surtout ce qui est local alors que Radio-Canada doit jouer qu'est-ce qui est un peu plus pour l'ensemble du pays. Alors, il y a cette différence-là.
17277 CONSEILLER PENTEFOUNTAS : O.K. Vous avez dit d'une façon assez, vous avez répété en quelque sorte d'une manière éloquente ce que les représentants de Radio-Canada ont indiqué plus tôt la semaine passée à l'effet qu'ils étaient pour rajouter de l'échelle au volume total publicitaire. Moi, je parle d'un gonflement de la tarte, là, mais vous ne le voyez pas?
17278 M. CôTÉ : Vraiment pas. Et, de toute façon -- et c'est ce qu'on se disait entre nous -- s'il y avait une possibilité de gonfler la tarte, est-ce que le secteur privé, qui sont les experts de la publicité, n'aurait pas déjà gonflé la tarte? Alors, nous, on ne voit pas, vraiment pas. Au contraire, ce qui va arriver, c'est une diminution de la tarte pour nos radios.
17279 CONSEILLER PENTEFOUNTAS : Mais est-ce qu'ils ne réussissent pas à aller chercher un auditoire qui est perdu au privé par la qualité de leur contenu?
17280 M. BOUGIE : Bien, écoutez, moi, mon point de vue...
17281 CONSEILLER PENTEFOUNTAS : Je répète en quelque sorte leurs arguments, là, mais...
17282 M. BOUGIE : Oui, oui, bien, ce que vous dites, si je comprends bien la question, c'est : est-ce que l'arrivée de Radio-Canada qui offrirait un nouveau type d'auditeur en termes de qualité amènerait des annonceurs à investir? Je reste d'avis que non. Je ne pense pas que... Encore là, d'une part, il y a des machines immenses au niveau de la radio privée qui font du démarchage. Est-ce qu'il y a beaucoup de... est-ce qu'il y a beaucoup d'entreprises qui doivent communiquer qui n'investissent pas? Ça m'étonnerait. On n'est pas non plus dans un contexte économique de croissance. On ne voit pas des gros changements, mais...
17283 Et, ultimement, est-ce que ça bénéficierait par la bande comme le prétendait Radio-Canada à nos radios? Je ne penserais pas. Au contraire, là-dessus, nous, on voit vraiment une menace pour plusieurs de nos stations, particulièrement si je prends les radios qui ont le plus de mal à se démarquer au niveau du marché publicitaire qui sont les radios en milieu urbain.
17284 Les radios en milieu éloigné, pour l'instant, il y a un positionnement pour eux autres qui est intéressant qui leur permet de générer des revenus publicitaires au niveau national qui sont modestes, mais que, pour un annonceur national, perdrait beaucoup d'intérêt si Radio-Canada était là.
17285 CONSEILLER PENTEFOUNTAS : Mais n'existe-t-il pas une clientèle qui est perdue et qui sera perdue à perpétuité au privé, mais qui s'intéresse par la programmation de Radio-Canada; et, conséquemment, ça fera une base à aller chercher qui ne fait pas présentement partie de la tarte?
17286 M. CôTÉ : Mais la majorité des grandes entreprises ou des entreprises qui veulent annoncer annoncent déjà. Alors, je ne suis pas certain que l'arrivée de Radio-Canada sur le marché de la publicité va générer d'autres revenus si ces revenus sont déjà dépensés.
17287 CONSEILLER PENTEFOUNTAS : Vous avez également... Oui, vas-y.
17288 M. BOUGIE : Oui, juste pour être clair, posons l'hypothèse que ça se réalise, qu'il y ait un gonflement des revenus publicitaires -- ce qui m'étonnerait beaucoup -- nous autres, on est ici pour vous faire part, là, des craintes qu'on a par rapport à nos marchés. Donc, est-ce que Radio-Canada réussirait? Tant mieux pour eux s'ils réussissent à faire augmenter cette tarte-là.
17289 Mais, pour les annonceurs qui sont déjà présents, pour nous, on voit clairement une menace de perte d'intérêt pour placer sur nos radios, particulièrement les radios en milieu éloigné qui, eux, rejoignent des citoyens qui ne sont pas rejoints par la radio privée; qui ont des revenus très modestes; qui, du jour au lendemain, avec l'arrivée d'un joueur majeur comme Radio-Canada, la partie de tarte qu'on a en ce moment, elle diminuerait, peu importe la taille de la tarte, là, potentielle.
17290 CONSEILLER PENTEFOUNTAS : Je comprends. Vous avez également parlé d'une chance de se repositionner qui serait inexistante. Qu'est-ce que vous pouvez faire pour vous repositionner si vous auriez plus de temps pour faire ainsi?
17291 M. CôTÉ : Je pense qu'il va falloir s'asseoir et réfléchir à la situation, parce que, nous, pour nous, certaines de nos stations, la publicité représente 80 pour cent de leurs revenus et la publicité nationale est presque 100 pour cent. Je pense à des stations comme Iqaluit, Yellowknife dans des très petits marchés...
17292 CONSEILLER PENTEFOUNTAS : O.K.
17293 M. CôTÉ : ...que, si, demain matin, on leur coupe la publicité du gouvernement -- et c'est ce qui arriverait fort probablement -- bien, on est aussi bien de dire à adieu à ces stations-là, surtout en milieu éloigné.
17294 CONSEILLER PENTEFOUNTAS : Mais, déjà, vous dites que les publicités gouvernementales sont minimes...
17295 M. CôTÉ : Oui, mais on...
17296 CONSEILLER PENTEFOUNTAS : ...et en décroissance marquée.
17297 M. CôTÉ : Oui, on parle de revenus de 3 000 $, 4 000 $, 5 000 $ par station pour ces stations-là, mais c'est 5 000 $ qu'ils ne peuvent pas aller chercher ailleurs. Alors, c'est 5 000 $ sur un budget de, disons, 60 000 $. C'est énorme. Alors, si vous leur enlevez ça...
17298 CONSEILLER PENTEFOUNTAS : Quand vous parlez des publicités qui sont offertes par le gouvernement, vous parlez au niveau fédéral?
17299 M. CôTÉ : Fédéral.
17300 CONSEILLER PENTEFOUNTAS : Votre relation avec les gouvernements provinciaux est toujours bonne?
17301 M. CôTÉ : Ça dépend des provinces.
17302 CONSEILLER PENTEFOUNTAS : O.K. Mais ça ne sera pas affecté ou est-ce que vous voyez des sommes...
17303 M. CôTÉ : Oui, ça pourrait, effectivement, ça pourrait être affecté. Je pense au Nouveau-Brunswick, je pense à la Nouvelle-Écosse aussi, là. Des gouvernements qui annoncent sur nos radios pourraient effectivement décider d'annoncer sur Radio-Canada.
17304 CONSEILLER PENTEFOUNTAS : Deuxième élément de votre mémoire et de votre allocution du jour, non seulement vous voulez les empêcher d'aller chercher ces revenus supplémentaires, c'est-à-dire la Société Radio-Canada, mais vous voulez également qu'ils vous aident en quelque sorte. Vous les appeler à tisser des liens de façon plus formelle, mais, d'abord, vous aimeriez qu'ils vous aident avec la formation de votre personnel; c'est exact?
17305 M. BOUGIE : Oui, mais je voudrais juste resouligner encore que, pour nous, ici, il s'agit de mesures qui n'ont pas d'impact financier pour Radio-Canada. On parle ici de formaliser une collaboration, c'est-à-dire, quand on parle, par exemple, d'accès aux programmes de formation offerts aux journalistes, par exemple, de Radio-Canada, c'est de donner accès à nos journalistes à ces formations-là. On est prêts à payer.
17306 Même chose pour l'accès aux ressources techniques. C'est de permettre à ces ressources techniques-là qui sont partout au pays de pouvoir travailler avec nos stations. Donc, je pense que, ce qui est important ici de vraiment le resouligner, c'est qu'on n'attend pas à ce que ça exige des investissements de la part de Radio-Canada.
17307 On est conscients de leur situation. On fait juste dire qu'il devrait y avoir une collaboration plus formalisée entre nos deux secteurs, étant donné qu'il y a de toute façon un transfert de ressources qui se fait naturellement.
17308 CONSEILLER PENTEFOUNTAS : Mais ce qui ne ressort pas dans votre mémoire ni dans votre présentation d'aujourd'hui, c'est que vous serez en mesure de payer pour ces services-là. Parce que, la formation, ce n'est pas gratis, ça coûte. Il y a un coût qui est impliqué avec ça. D'utiliser l'infrastructure de Radio-Canada, ça comporte également des coûts. Et, là, vous êtes prêts à contribuer, à payer pour ces services-là?
17309 M. CôTÉ : Mais ça se fait déjà dans certaines régions. Je peux vous nommer Hearst. Il y a également à Kapuskasing. Il y a également à Iqaluit où ça se fait.
17310 CONSEILLER PENTEFOUNTAS : Mais, ça, ça se fait de gré à gré puis il n'y a pas de...
17311 M. CôTÉ : Exactement. Il n'y a rien de formalisé, là.
17312 CONSEILLER PENTEFOUNTAS : Il n'y a pas de... oui.
17313 M. CôTÉ : C'est ce que nous demandons à Radio-Canada depuis plusieurs années, c'est de formaliser une entente, de s'asseoir et de dire : « Bon, bien, si on est dans votre tour, ça coûte tant. Si on veut avoir accès à votre technicien, bien, c'est tant de plus. » Parce que ça se fait déjà.
17314 CONSEILLER PENTEFOUNTAS : Et le Conseil, vous voulez que le Conseil impose ces conditions-là ou des tarifs?
17315 M. BOUGIE : Ce n'est pas une question d'imposer des conditions. Je pense que, pour nous, il y a eu des approches dans le passé qui ont été essayées de faire. Pour nous, c'est plus de formaliser au moins une volonté de voir les deux secteurs collaborer ensemble.
17316 Donc, ce n'est pas une question non plus pour nous d'augmenter les coûts, là. Si on donne l'exemple d'accès technicien pour les radios en milieu éloigné, s'il y a un problème technique qui arrive sur une tour, sur un site émetteur, la station doit payer de toute façon. Ce qu'on se dit, c'est que les techniciens de Radio-Canada sont déjà sur place. En ce moment, la collaboration est loin d'être évidente. Mais si on pouvait au moins avoir ces ressources-là pour lesquelles on paierait de toute façon, ça faciliterait la vie de tout le monde.
17317 CONSEILLER PENTEFOUNTAS : Oui, mais, là, je reviens à ma question.
17318 M. BOUGIE : Oui.
17319 CONSEILLER PENTEFOUNTAS : Qu'est-ce que le Conseil peut faire pour vous aider dans vos démarches? Présentement, le...
17320 M. BOUGIE : Oui, bien, pour nous, en fait...
17321 CONSEILLER PENTEFOUNTAS : ...la collaboration entre vous et la Société, vous trouvez que ça va mal?
17322 M. BOUGIE : C'est que ça tient sur des ententes des fois qui sont sur des personnes ou c'est des ententes qui sont sur une base ponctuelle. Ce qu'on attend du Conseil là-dedans, c'est au moins qu'il y ait une volonté officielle de dire en fait à la radio publique que la radio communautaire de dire, voilà, il pourrait y avoir collaboration entre les secteurs.
17323 Et c'est qu'on entend souvent dans le discours de Radio-Canada qu'ils aident les radios communautaires, mais c'est parce qu'on aimerait ça aussi, nous, savoir de quelle façon ils nous aident et de formaliser un peu les choses.
17324 C'est de répondre un peu à ce qu'ils disent. C'est surtout ça qu'on voulait faire.
17325 CONSEILLER PENTEFOUNTAS : O.k. Écoute, ça complète pour moi. Merci beaucoup.
17326 LE PRÉSIDENT : Madame Poirier.
17327 CONSEILLÈRE POIRIER : Alors, bonjour, messieurs. Merci d'être venus, vous déplacer pour nous rencontrer. Deux sujets.
17328 J'aimerais d'abord faire une analogie entre les radios communautaires et la radio de Radio-Canada de façon assez... je vais dire grossière, là, dans un sens macro.
17329 Vos radios, au Québec en tout cas, sont subventionnées en partie, comme Radio-Canada reçoit des crédits parlementaires, dans le reste du Canada, bien, elles ne le sont pas. C'est vraiment la situation. Cependant, on a créé un fonds qui aide quand même les radios.
17330 Au Québec, ça vient s'ajouter aux subventions du Gouvernement du Québec. Dans le reste du Canada ça vient créer un tout petit support pour des radios.
17331 Alors, si vous avez droit à de la publicité, pourquoi, à ce moment-là, les deux Radio-Canada comme le radiodiffuseur public, n'auraient pas le droit eux aussi d'en avoir?
17332 M. CôTÉ : Nous ne sommes pas financés à 100 pour cent par le gouvernement. Vous comprendrez que, oui, on a le Fonds canadien de la radio communautaire, mais ça représente à peu près 4 000,00 $ par station de Radio-Canada, alors c'est minime.
17333 M. BOUGIE : Puis si je veux faire un lien avec qu'est-ce qui se passe au Québec, effectivement au Québec il y a un programme d'aide au financement... au fonctionnement, pardon, pour les médias communautaires, mais ça constitue environ 10 pour cent d'un budget total, en moyenne, d'une radio communautaire, donc, ce n'est pas là.
17334 Puis au total au Québec c'est 20 pour cent maximum d'un budget en moyenne d'une radio communautaire qui provient de sources de financement, là, qu'elles soient publiques, nationales ou publiques au niveau local.
17335 Donc, les revenus publicitaires... puis quand on parle de publicité ici aujourd'hui, c'est surtout... pour nous, la crainte est particulièrement au niveau de nos stations en milieu éloigné qui doivent compter sur ces revenus-là, avec des budgets des fois qui sont autour de 100 000,00 $ pour boucler la boucle.
17336 Et, ça, dans des conditions offertes... dans des conditions qui sont souvent très précaires, fonctionner avec des ressources limitées, fonctionner avec des ressources qui sont peut-être souvent pas payées à leur juste valeur.
17337 Donc, pour nous, entre guillemets, là, cette « possibilité-là » qu'on a de vendre de la publicité nous amène la possibilité d'au moins être capable de garder ces radios-là en vie.
17338 Ce n'est pas... ce n'est pas les revenus publics qui nous permettent de rester en vie. Ça amène une aide, mais ce n'est pas tout. Il y a 80 pour cent du budget qui doit être auto-financé soit par la communauté ou par la vente de publicité.
17339 Maintenant, si je vous donne l'exemple d'une radio au Québec dans un village qui s'appelle « Tête-à-la-Baleine » sur la Basse Côte-nord du Québec, 169 habitants, vous comprendrez que la capacité de la communauté à contribuer au financement cette radio-là est très limitée, que la source de revenus publicitaires sur lesquels ils peuvent compter ne sont que les sources gouvernementales.
17340 Donc c'est vraiment... pour nous, il y a vraiment une menace directe à plusieurs de nos stations.
17341 Si je parle juste au Québec, François pourra compléter avec les stations hors Québec, mais c'est au moins 30 pour cent, là, au moins 30 pour cent de nos stations qui sont dans le milieu qu'on dit « éloigné » donc, qui sont déjà dans des situations précaires et qui vont voir leur situation se fragiliser encore plus avec l'arrivée d'un gros joueur sur le marché national.
17342 CONSEILLÈRE POIRIER : Alors, plus on est petit, plus on est fragile à des solutions comme celles présentées par Radio-Canada?
17343 M. CôTÉ : Absolument.
17344 M. BOUGIE : Tout à fait.
17345 M. CôTÉ : Nous, on parle de 50 pour cent à peu près de nos stations qui sont dans le petit marché.
17346 CONSEILLÈRE POIRIER : Dans le petit marché. Mais je vais revenir à un autre exemple qui est celui des stations de radio qui sont situées dans des milieux de langues officielles, mais minoritaires et elles ont toutes... toutes les associations ont fait front commun en disant qu'elles supportaient votre position par rapport au fait qu'il faudrait refuser à Radio-Canada la possibilité d'avoir des revenus publicitaires.
17347 Pourquoi dans ces stations-là en particulier est-ce que ça semble encore plus vital et unanime? Est-ce qu'il y a une raison? Est-ce qu'il y a des revenus si importants que ça associés à la publicité? Et je parle vraiment des stations de langues officielles en milieux minoritaires?
17348 M. CôTÉ : Oui, absolument. Ces stations-là sont, premièrement, dans de très petits marchés la plupart du temps, des petites marchés qui ne sont pas nécessairement capables de faire vivre une station de radio.
17349 Martin parlait de « Tête-à-la-Baleine », on a aussi, nous, nos exemples comme ça. à Iqaluit, ce n'est pas des gens qui vont pouvoir faire vivre la station. Alors, pour eux, la publicité nationale, ça représente quasiment 80 pour cent de leur budget.
17350 Alors, si, demain matin, on a la publicité à Radio-Canada et on sait que le gouvernement va prendre cette chance-là pour pouvoir palier aux coupures dans les derniers budgets, nous, ça va représenter un problème majeur. Alors, on a de nos stations, effectivement, qui ne seront pas capables d'arriver demain matin, là.
17351 CONSEILLÈRE POIRIER : Et quand vous parlez de gouvernement, bon, au Québec c'est le Gouvernement du Québec et le Gouvernement fédéral, c'est les deux qui achètent de la publicité dans vos radios, tandis que dans l'ARC du Canada, c'est seulement le gouvernement...
17352 M. CôTÉ : C'est seulement le Fédéral.
17353 CONSEILLÈRE POIRIER : Fédéral?
17354 M. CôTÉ : Oui.
17355 CONSEILLÈRE POIRIER : O.k. Donc... et, vous, c'est les deux gouvernements?
17356 M. BOUGIE : C'est les deux. La part du Gouvernement fédéral est en décroissance et la part du Gouvernement provincial tient à se stabiliser.
17357 Je voudrais juste aussi mettre en... parce qu'on parle de pourcentage, mais aussi mettre en perspective de façon plus concrète, en 2011-2012 pour l'ensemble de nos deux réseaux, donc environ une soixantaine de stations, c'est moins de 900 000,00 $, là, qui ont été achetés dans nos radios par le Gouvernement du Canada.
17358 Donc, on ne parle pas de gros revenus, mais des revenus... en moyenne 13 000,00 $ par station qui font la différence, là, surtout dans nos petites stations.
17359 CONSEILLÈRE POIRIER : Donc, vous auriez peur que ce 900 000,00 $ là, en tout cas au Québec, s'en aille dans les poches de Radio-Canada et au Canada, est-ce que vous avez un estimé comme ça, semblable?
17360 M. BOUGIE : Le chiffre de 900 000,00 $, c'est pour l'ensemble...
17361 CONSEILLÈRE POIRIER : C'est pour l'ensemble.
17362 M. BOUGIE : ... des radios communautaires francophones du Canada.
17363 CONSEILLÈRE POIRIER : Du Canada.
17364 M. CôTÉ : Oui.
17365 CONSEILLÈRE POIRIER : O.k., francophone.
17366 M. CôTÉ : Pour la publicité gouvernementale, oui.
17367 CONSEILLÈRE POIRIER : O.k. Mais il y aurait des radios anglophones aussi.
17368 M. CôTÉ : Dans ces chiffres-là c'est seulement nous.
17369 CONSEILLÈRE POIRIER : O.k. Parfait. Ma dernière question; j'ai comme senti que beaucoup d'associations nous disaient que s'il y avait eu une entente entre Radio-Canada et les deux organismes que vous représentez, peut-être que vous auriez pu prendre une position différente pour permettre et appuyer le fait que Radio-Canada vende de la publicité.
17370 Est-ce que j'ai mal lu? Est-ce que vous auriez été prêts à une condition quelconque d'accepter que Radio-Canada s'en aille dans le marché de la publicité et si oui, à quelle condition?
17371 M. CôTÉ : Moi, je ne pense pas qu'on est prêt à accepter que Radio-Canada entre dans le marché publicitaire.
17372 CONSEILLÈRE POIRIER : Jamais, à aucune condition?
17373 M. CôTÉ : À n'importe quelle condition. On parle de la survie de nos radios.
17374 M. BOUGIE : Bien, oui, effectivement, là, parce que c'est une question de financement. D'un côté, oui, on est pour une plus grande collaboration, mais à des conditions... à moins qu'on...
17375 CONSEILLÈRE POIRIER : Par exemple, moins de minutes; au lieu de neuf minutes à l'heure, vous diriez seulement quatre minutes ou, par exemple, la publicité de prestige seulement ou aucune condition ne serait acceptable pour vous?
17376 M. BOUGIE : Bien, c'est parce que pour nous ça représente une diminution des revenus pour nos stations. Alors, que ce soit quatre minutes, neuf minutes, puis je le répète c'est encore souvent pour... c'est pour nos stations qui sont dans les plus petits marchés ou dans les marchés urbains qui ont de la misère à se démarquer au niveau... au niveau commercial, au niveau de la vente de publicité.
17377 Alors, l'arrivée de Radio-Canada, qu'il y ait des restrictions va venir... va venir chercher ces revenus-là. Il faut comprendre, puis on parle beaucoup des ventes du gouvernement parce que le gouvernement dans ses stratégies de placement doit parler à tous les citoyens.
17378 Donc, il va utiliser des stratégies de médias qui sont différents des entreprises privées, donc faire des placements sur des radios qui ne sont pas rejoints par la radio privée.
17379 Alors, l'arrivée de ce nouvel annonceur national-là qui a la capacité de s'adresser à l'ensemble des citoyens du Canada, c'est une menace directe sur nos radios.
17380 CONSEILLÈRE POIRIER : Merci beaucoup.
17381 M. BOUGIE : Merci.
17382 LE PRÉSIDENT : Madame Duncan.
17383 COMMISSIONER DUNCAN: Good morning. I am just curious to know if it concerns you that CBC may be able to attract more advertising that only could be by virtue of its ability to package for advertisers its television properties and its radio properties?
17384 MR. BOUGIE: I am not sure I understand the question. You mean if we are concerned by the fact that the radio is -- CBC has the capacity to package more media -- bigger media mix than we do?
17385 COMMISSIONER DUNCAN: No, not than you do, but by virtue of the fact that they can package it, would that make them even more attractive to advertisers?
17386 MR. BOUGIE: For sure.
17387 COMMISSIONER DUNCAN: And more likely for you to lose the revenues that you get?
17388 MR. BOUGIE: Yes, for sure, that's another concern. I mean, we are not able to -- we are not able to do that kind of mix. I mean, our stations are trying hard to be present on the new technologies, but it comes at a cost and so, yes.
17389 So, the capacity of CBC of being able to offer TV, radio and then the Web, considering that they already have relationships with those advertisers, it means even it's a bigger threat to us, yes.
17390 COMMISSIONER DUNCAN: Thank you very much. Those are my questions. Thank you.
17391 LE PRÉSIDENT : Peut-être que je vais vouloir revenir quelques moments sur la publicité du Gouvernement fédéral.
17392 Je regardais récemment le gouvernement à travers les Travaux publics publie un Rapport annuel sur les dépenses. Je crois que vous connaissez ce rapport-là; le rapport de 2012 évidemment, ne couvre que 2010-2011, il y a un certain retard dans...
17393 Bon, sauf pour 2009-2010 qui était une année exceptionnelle, je pense que cette année-là, il y avait à peu près 136 millions $ dépensés par le Gouvernement fédéral. Il y avait le Plan d'action pour le Budget 2008, H1N1 et donc, cette année-là était exceptionnelle. C'était dans les bouts de 136 millions $. Mais bon an, mal an, c'est plus dans les eaux de 80 millions $ pour les dépenses du Gouvernement fédéral.
17394 La radio, en moyenne, toute la radio au Canada, va chercher seulement à peu près 7,5 pour cent, qui est à peu près moins de 5 millions $. Vous me dites que vous allez quand même chercher presque un quart de ce montant-là?
17395 M. CôTÉ : Oh! pour l'année 2010-2011, je ne sais pas si c'est à cette année-là que vous faites références?
17396 LE PRÉSIDENT : Oui.
17397 M. CôTÉ : Et si oui, nous, on a eu 230 00,00 $, mais cette année-là a été une année où le gouvernement avait décidé stratégiquement de faire plus télévision que radio. Alors, c'est une année où nous... Mais c'est une tendance qui semble vouloir se maintenir au niveau du gouvernement.
17398 Alors, vous allez voir même dans les prochaines années, ça va être ça aussi.
17399 LE PRÉSIDENT : Tout à l'heure vous avez mentionné un chiffre de 900 000,00 $, c'est pour quelle année celle-là?
17400 M. CôTÉ : 2011-2012, donc l'année du recensement.
17401 LE PRÉSIDENT : L'année du recensement qui n'est pas encore couvert dans le rapport auquel je faisais référence.
17402 M. CôTÉ : Exact. Oui.
17403 LE PRÉSIDENT : Mais cela n'indique pas, justement, qu'il y a peut-être des forces en présence autres qui affectent votre revenu publicitaire du Gouvernement fédéral, qui n'ont rien à voir avec l'arrivée de Radio-Canada dans le marché, des choix... bien, premièrement, le fait que l'assiette de financement pour faire de la publicité, ça semble être en réduction, au moins se stabiliser.
17404 Et par ailleurs, le gouvernement choisit, parce que tout annonceur a le droit de choisir sa stratégie d'aller vers d'autres plates-formes, mais la radio reçoit un faible pourcentage, que ce n'est pas vraiment tributaire de votre perte possible de revenu et on ne peut pas dire que ça va être directement tributaire de l'arrivée de Radio-Canada?
17405 M. BOUGIE : La force en présence, là, qui... c'est parce que sur ce 900 000,00 $ là, bon, j'estime qu'il y a à peu près au moins 70, 80 pour cent qui va aux radios francophones hors Québec et la force en présence c'est leur statut de radio de langues officielles en milieu minoritaire, donc l'obligation pour le Gouvernement du Canada de communiquer aux citoyens en anglais et en français, ce que pourrait être en mesure de faire Radio-Canada dans son arrivée.
17406 Donc, c'est vraiment... corrige-moi, François si je me trompe, mais c'est vraiment le seul levier, là, qui peut profiter aux radios communautaires dans ce contexte-là.
17407 LE PRÉSIDENT : Encore là, je regarde le rapport et dans l'année 10, 11, le montant pour la radio langues officielles n'était que 441 000,00 $.
17408 M. BOUGIE : Oui, mais il n'y a seulement des radios communautaires qui sont en milieux minoritaires.
17409 LE PRÉSIDENT : Je comprends, mais le montant d'argent en jeu est relativement petit.
17410 M. BOUGIE : Oui. Ça peut vous sembler petit. Par contre, pour une station qui a un budget de, comme je vous disais tantôt, disons 50 000,00 $, et de ça il y a 8 0000,00 $ qui est de la publicité nationale, l'enjeu est énorme.
17411 LE PRÉSIDENT : Je comprends bien, mais...
17412 M. BOUGIE : Il faut faire la relation entre le budget et le montant placé, là.
17413 LE PRÉSIDENT : Mais en terme de causalité, qu'est-ce qui pourrait affecter vos revenus publicitaires... Oui, je comprends bien vous faites le cas que l'arrivée potentielle de Radio-Canada pourrait avoir un impact, mais il y a tellement d'autres facteurs qui pourraient avoir une influence sur votre part du 441 000,00 $?
17414 M. BOUGIE : Certainement, mais si on parle en ce moment de Radio-Canada, s'ils arrivent sur le marché demain matin et que le gouvernement décide de remplir ses obligations sur les Lois... sur la Loi des langues officielles, par Radio-Canada, bien qu'on parle de 200 000,00 $ à 230 000,00 $ c'est 230 000,00 $ de moins dans nos radios qu'on doit aller chercher ailleurs et que, en ce moment, il n'y a pas d'autre endroit où aller chercher.
17415 LE PRÉSIDENT : Hum.
17416 M. BOUGIE : Alors, c'est un manque à gagner de 230 000,00 $. Pour nous, c'est énorme. Pour la radio privée, pour Radio-Canada, c'est peut-être des peanuts, mais pour nous c'est énorme.
17417 LE PRÉSIDENT : Je comprends. D'accord. Merci. Ce sont nos questions pour vous. Merci beaucoup, messieurs.
17418 On va prendre une pause jusqu'à 1050.
--- Upon recessing at 1040
--- Upon resuming at 1051
17419 THE CHAIRPERSON: Madam Secretary...
17420 THE SECRETARY: Thank you.
17421 We will now hear the presentation of Stingray Digital Group.
17422 Please introduce yourself and your colleagues. You will have ten minutes.
INTERVENTION
17423 MR. BOYKO: Good morning, Mr. Chairman, Mr. Vice-Chairman, Commissioners and Staff. My name is Eric Boyko, and I am the President, CEO and Co-Founder of Stingray Digital Group Inc. I am joined today by Eric Albert, my Executive Vice-President, and Rob Braide, Vice-President of Regulatory Affairs.
17424 Stingray Digital operates multiple music services that are now available in over 75 million households, in 61 countries. Our pay audio music services are now available in more than 10 million Canadian homes, and reach another 12 million households in the United States, Central and Latin America, Europe, Africa, and the Middle East.
17425 Thanks to its technology development teams based in Montreal, Stingray fully exploits new technologies and distribution platforms, such as connected TVs, advanced set-top boxes, game consoles, IPTV, mobile and tablet devices, and over the last five years has acquired extensive expertise in the development of services for these emerging distribution platforms.
17426 Stingray Digital is a private company, and we are proud of our entrepreneurial approach and contribution to the cultural industries, and our company's continued expansion in international markets that contributes to promoting and supporting Canadian artists.
17427 As we did in our October 5th submission, today's presentation will be focused on CBC's digital online services and, more specifically, its online music offering, CBC Music.
17428 It is difficult to imagine a more competitive media space than right now exists for the distribution of musical content. Stingray has been successful in competing with some of the largest media players in the world, including Viacom, Apple, Google, Amazon, Pandora and Spotify.
17429 Recently, as the Commission is aware, Stingray and other Canadian companies have been forced to compete with a new entrant to the online music business, CBC Music. CBC heavily promotes this service as a free service, which only helps to perpetuate the unfortunate perception that music should not be paid for.
17430 M. ALBERT : Il y a cinq points, énumérés plus bas, dont nous aimerions discuter aujourd'hui :
17431 - les choix qu'imposent des ressources financières réduites;
17432 - le rôle de CBC dans l'ère des médias numériques;
17433 - la concurrence entre CBC et le secteur privé;
17434 - la non-viabilité du service de CBC Music tel qu'il existe aujourd'hui;
17435 - le besoin et la nécessité du CRTC à faciliter l'imputabilité face au public.
17436 First, as stated by Chairman Blais during his opening remarks, the Commission is considering CBC's overall corporate strategy as a part of this proceeding, including the Corporation's endeavours in digital media.
17437 Digital services draw on CBC's financial resources. From one perspective, digital services divert resources that could be used by CBC to provide its core services to Canadians. CBC has said that funds allocated to its digital media initiatives will amount to only 5 percent of its operations. However, on a $1.5 billion annual budget, that is at least $75 million each year, or more than half a billion dollars over a seven-year licence period.
17438 In a world of limited financial resources, it becomes a question of trade-offs. The CBC has said that it has been faced with very difficult choices and has cut back some of the core services it provides to Canadians. Half a billion dollars is a lot of money to divert from core broadcasting activities, and it is a lot of money to compete in digital media.
17439 As such, close attention should be paid to the Corporation's endeavours in digital media space and the trade-offs that it has to make to pursue its digital media goals.
17440 Second, Stingray recognizes that CBC has a role to play in digital media. CBC has said in its renewal application that its digital services should provide increased Canadian content, develop new, experimental distribution platforms, involve the pursuit of new partnerships with the private sector, and provide digital services that are distinctive in approach and in content.
17441 Unfortunately, the CBC Music service appears to ignore most of these principles.
17442 Though Canadian content is somewhat more visible now compared to when it first launched, most streaming stations on the CBC Music service still feature non-Canadian content, and some of these channels may be predominantly non-Canadian.
17443 Unfortunately, it is difficult to confirm exactly, since to this date the CBC has not communicated any information publicly on the level of Canadian content featured on this service.
17444 This should be a concern to Canadians. CBC's mandate is to offer programming that is both predominantly and distinctively Canadian. That is why Canadians fund the CBC.
17445 It is also a concern in terms of where CBC's copyright payments end up. The more non-Canadian music CBC features, the more CBC money goes to non-Canadian pop singers and music conglomerates offshore than to Canadian artists, emerging or established.
17446 The CBC is uniquely positioned, due to its government support, to act as a leader in digital media and to push the boundaries and promote Canadian culture to the world in a way that is more difficult for most private enterprises.
17447 CBC Music n'est pas un service innovant d'un point de vue technologique ou en terme de fonctionnalités offertes aux consommateurs et ne semble pas être fondé sur aucun partenariat avec le secteur privé. Il s'agit essentiellement d'un service de musique en ligne très similaire à d'autres services déjà disponibles sur le marché. Ce qui distingue le service CBC Music, par contre, est que le service est promu comme étant entièrement gratuit, et, en vérité, supporté par les revenus publicitaires et, en grande partie, par les fonds publics.
17448 Selon nous, lancer un service qui ne se différencie que très peu de l'offre existante, qui concurrence directement au lieu de coopérer avec le secteur privé, qui offre une programmation principalement et typiquement non canadienne, et qui dirige les fonds public vers des entités étrangères plutôt que les artistes canadiens, est non seulement contraire aux objectifs que s'est fixée la CBC elle-même mais semble aussi être une mauvaise allocation des fonds publics.
17449 MR. BRAIDE: The CRTC's Public Notice for this hearing quoted from "Improving Canada's Digital Advantage", the federal government's 2010 consultation paper.
17450 That paper stated that CBC should play a leadership role in providing Canadians with access to leading edge digital content, which we support. But the quote continues, "...while not unfairly competing with the private sector."
17451 This is the root of the issue that Stingray has with CBC Music.
17452 Stingray operates in 61 different jurisdictions, and Canada is the only one in which we compete directly with an entity that is funded largely by the government.
17453 Stingray and other private players cannot possibly offer a free online music service in the same way that CBC can. We currently have to pay more for music content than the CBC does under tariffs approved by the Copyright Board. And CBC is reported to be seeking a continuation of its rights in current tariff proceedings.
17454 CBC's free offering threatens the viability and sustainability of other online music services, while diverting resources that could be used to further the Corporation's own mandate. This cannot be viewed as good policy or good corporate strategy.
17455 CBC Music is a drain on CBC's resources. The free model promoted by the CBC isn't viable in the long term and will continue to be a cost centre for years to come.
17456 In February 2012, when CBC Music launched, CBC reassured Canadians that "a large, new service like CBC Music has to be self-sustaining." The plan at the time was to generate enough revenue through advertising to support the service's costs.
17457 CBC reiterated this point in a letter to the CRTC in May 2012, when CBC was responding to a complaint that Stingray had filed about CBC Music.
17458 CBC told the CRTC that advertising revenue was already in excess of expectations, and that this revenue will result in little or no dependence on government funding to support CBC Music.
17459 However, CBC recently revealed, as reported in an article in the Wire Report, which was included with our written submission and is attached here for reference, that CBC Music was expected to generate less than $800,000 in advertising for the year, but would cost in excess of $6 million a year to operate. That is a very long way from being self-supporting. The gap is simply too big to fill.
17460 It is, therefore, inevitable that the difference has to come from funding that would be used to support other core CBC services.
17461 Accountability was stated by the Chair as one of the three main components of the agenda for this hearing. We also believe that there is a need for accountability to Canadians, in addition to having a need for transparency.
17462 It is ironic that the financial information that we do have about CBC Music was revealed during the course of another administrative proceeding, before the Copyright Board, when it suited CBC's purpose to argue that CBC Music is actually a drain on the Corporation's resources, contrary to what it has said before.
17463 For that reason, we have recommended that as a part of this licence renewal proceeding, CBC be far more forthcoming about its digital media initiatives in general, and not just about CBC Music.
17464 M. ALBERT : En conclusion, notre proposition, telle que mentionnée dans notre intervention écrite, est que :
17465 - CBC/Radio-Canada devrait fournir plus de détails sur ses plans pour les médias numériques dans le cadre de ce processus de renouvellement de licence;
17466 - CBC/Radio-Canada devrait démontrer que ses plans pour les médias numériques n'ont pas d'impact négatif sur le financement de ses activités principales;
17467 - CBC/Radio-Canada devrait, pour le service CBC Music en particulier, expliquer comment elle compte atteindre les objectifs que s'est fixée la CBC elle-même pour ses projets de médias numériques incluant des niveaux élevés de contenu canadien, des partenariats avec le secteur privé et d'être innovante dans son offre de service;
17468 - finalement, sur une base prospective, la CBC devrait fournir des informations financières au CRTC et au public en général concernant ses activités dans les nouveaux médias pour que le public puisse évaluer la pertinence de ces projets dans le contexte de la poursuite du mandat de CBC/Radio-Canada fixé par la Loi sur la radiodiffusion.
17469 These are not onerous or limiting requirements, they merely ensure transparency and accountability.
17470 Thank you for this opportunity to present this intervention. We would be pleased to answer any questions that you may have.
17471 THE CHAIRPERSON: Thank you, gentlemen. Before I pass you on to Commissioner Simpson, you brought a complaint to the CRTC on something very similar to all of this, on which the Commission ruled. I think the appeal period has probably passed by now.
17472 Aren't you trying to come in through the back door to re-question a decision of the Commission that is final and without appeal?
17473 MR. ALBERT: We did file a complaint with the Commission back in May. We respect the Commission's decision. However, we believe that the issue raised specifically around CBC Music applies to all of CBC's new media endeavours, not just CBC Music.
17474 We believe that the way that CBC Music was launched -- if this were to apply to video services, for example, or to television services, it would have a major impact on the rest of the broadcasting industry.
17475 So we believe that the Commission should be looking at this in a broader scope than just the complaint that we filed back in the spring.
17476 THE CHAIRPERSON: But I am seeing a lot of the very same arguments that we considered at that time with respect to the music service.
17477 MR. ALBERT: You are correct, and we think that these arguments are valid.
17478 MR. BOYKO: Also, I think the new information that came to us, which I think is different, is that CBC was representing to us that this would be a break-even operation, that it would be making money on this. Then we found out, when they went to the Copyright Board, that they will be losing $6 million in the first year.
17479 That is also new information, which was new to us.
17480 THE CHAIRPERSON: Yes, except that in broadcasting, unlike in telecommunications, there is no review, our decisions are final.
17481 I put that as the context for the conversation that you are going to have. Let's make sure we are not dealing with something that is final before the Commission.
17482 I take your point that you may be saying something more broadly about their activities elsewhere.
17483 MR. ALBERT: And I do point out that our requests, as part of this proceeding, are different. They apply to CBC's licence conditions as a whole. Our complaint was very specific, around CBC Music.
17484 THE CHAIRPERSON: Okay. Thank you.
17485 Commissioner Simpson...
17486 COMMISSIONER SIMPSON: Good morning. Wow, 75 million households in 61 countries. What are you doing picking on the poor national broadcaster?
--- Laughter
17487 COMMISSIONER SIMPSON: I note that Mr. Boyko is, uncustomarily, lost for words.
17488 I'm sorry, I just wanted to say that your success is great to see as a Canadian company, and I will move forthwith into the issues at hand.
17489 We have been hearing a lot about reporting. We have been hearing it from private producers, we have been hearing it from consumer groups. Their biggest concern is -- there is a general feeling or a tone that has been running through this whole hearing that the CBC could be doing a lot more with respect to transparency, because it is so disproportionately reliant upon public funds, and its mandate to try to be all things to all people and all places is coming headlong up against financial realities.
17490 At the very outset, you said that you feel that the CBC is not providing enough information, they are not being forthcoming enough with respect to their digital plans in general. I would like, as a private company, for you to comment on whether you find, as a private company -- if you were to have, for some reason, information about your management decisions, or how you are going to apply your capital resources and your growth plans -- if those had to become public, how would that impede you with respect to being competitive?
17491 And is this an area that the CBC is now finding itself in because it is becoming more and more reliant upon private funds as its public funding is under threat?
17492 MR. BOYKO: Just for the first statement, I always say that I love CBC. My two favourite channels are RDI and Newsworld, so I'm a big CBC fan.
17493 The reason why -- you know, we are in a marketplace with ten competitors in Canada. Radio is charging $10, Slacker is charging $10, XM Sirius is $15, we are at $10 a month, and you have a service that is free.
17494 So, for sure, that's the issue. It is more about who is wrong, is it the person giving it free?
17495 Regarding your question, if we had more information from CBC, would we act differently?
17496 COMMISSIONER SIMPSON: No, I was asking, if you found yourself, as a private company, in the position where you had to divulge publicly information regarding your finances and how you apply those finances to be competitive against other private companies, would that harm your competitiveness, and isn't that the problem that CBC may find itself in, in that it is becoming more reliant on advertising revenues and becoming more commercial and finding itself in a similar situation?
17497 MR. BOYKO: With that statement I agree 100 percent. One of the advantages of being a private -- you know, us compared to Pandora. Pandora is public. XM Sirius is public. I get to see all of their information because they are public companies. We are private, so that is one of the main advantages of staying private as a company.
17498 In the case of CBC, CBC is a form of a public company, so they should be giving the same information as a public company does on the stock market.
17499 I don't see a difference.
17500 MR. ALBERT: I do think that you touch on the core of the issue there, which is that CBC has to compete to attract advertising dollars. It has to compete with the private sector, basically, for that money. To do so, it puts it in the position where it has to retain information.
17501 Canadian taxpayers are the shareholders of the CBC. They are entitled to know how that money is invested and how that money is used.
17502 So it is a bit of a conundrum that they have to face, and it is a very difficult situation, no questions asked.
17503 I do believe that the CBC has an obligation to be transparent in how it uses its money.
17504 For example, if you read the CBC Annual Report, they are very proud to say that 88 percent of the content on television is Canadian content. We have no way of knowing at this point what the Canadian content levels are on new media, because they don't report that, they have no obligation.
17505 So what we are asking is that basically the same obligations that they have for the regulated or licensed broadcast base should apply, to a certain extent, to new media, simply because more and more money of their corporate budgets is going to be allocated to new media in the future.
17506 As we mentioned, it is half a billion dollars over the licence period of this renewal. It will only increase, because they will have to be more present in this space. So the more money that goes into that, the more obligations they should have in terms of transparency and reporting obligations.
17507 COMMISSIONER SIMPSON: The CBC, in coming into the music business with a free model, has sort of broken open the two existing models, which were pay-per-play, which was a download, and other services that were pretty much exclusively subscription-based. This new model has really caused everyone to scratch their head. And, again, they felt that they were going to be sustainable through advertising support, and that doesn't seem to be happening.
17508 In your opinion -- I mean, you are in the game big time -- is a free model going to work?
17509 MR. BOYKO: When you get to online music, the cost for a song is about .2 cents, and I think that Re:Sound is asking for .22 cents. An average listener will listen to 300 songs. So the cost to a subscriber for us is between -- I am talking on the private side -- is between $4 to $6 a month.
17510 So, unless you charge a subscription fee, like we do, at $9.95, or Astral and ZIK are charging $15, you can't make money.
17511 But to try to get $6 of advertising per subscriber right now is not possible, and the proof is Pandora, which has 150 million subscribers in the States and they are still losing $100 million.
17512 At least Pandora is shareholder money, and their model was to try to go from a free model and then to get the consumer to go to a premium, where they pay.
17513 In the case of CBC Music, they don't have a premium model where people pay, so the model doesn't work, because that's how you make your money on the Internet, by trying to upgrade your customers.
17514 COMMISSIONER SIMPSON: So, ostensibly, the more successful they become, the more money they risk to lose.
17515 MR. BOYKO: Absolutely. The more users you have --
17516 The difference with music is that you have to pay for it. Somebody has to pay for the music at the end of the day.
17517 So, in this case, the more that people are listening to songs, the more they pay.
17518 And, in this case, the more they listen to foreign songs, the more money escapes Canada.
17519 MR. ALBERT: A perfect example of that is that CBC publicly said that they had approximately 100,000 subscribers in June of last year to the streaming component of the CBC Music website. They also said publicly that it is going to cost them between $5 million and $6 million to operate the service. That is a lot of money to offer a streaming music service to 100,000 Canadians, which they could potentially get already from existing players in the industry.
17520 When we talk about trade-offs and choices -- CBC, for example, as part of their cost-reduction plans, had to terminate the transmission of analog transmitters, which cost them about $10 million. About 700,000 Canadians were affected by that decision. They claim that 2 percent of the Canadian population was affected by that decision. There is $10 million that is being saved there, but there is $6 million being reinvested in a service that is used currently by approximately 100,000 subscribers, or Canadian listeners.
17521 COMMISSIONER SIMPSON: In your oral testimony, Mr. Albert, you had said that what they are doing is not innovative to the extent that it's providing Canadians with anything that they are not already getting, other than that it's free.
17522 MR. ALBERT: From a technology and a feature standpoint it's very comparable to what is already being provided by us, by commercial broadcasters, by American broadcasters or broadcasting in Canada.
17523 If you look at the content that's made available on that service, from what we have been able to see -- because it is a pretty time-consuming process, but from what we have been able to see the level of Canadian content on the streaming stations is not higher than what you see on commercial broadcasters. So if you are not going to offer features that are not available through commercial broadcasters, if you are not going to offer a different type of content or more Cancon, if you will, then what is already being offered in the marketplace, then why would you use $6 million of taxpayers' money to fund that service.
17524 MR. BRAIDE: On a programming level the CBC does some very interesting things which we support which speak to their mandate. The singer-songwriter channel which is 100 percent Canadian, that's a great thing, we have those too at Galaxie.
17525 Another thing they do which we think is great is the concept of having users be able to upload content to the site. I mean if the CBC is looking at being experimental in the digital media space that's a great example, they should be doing more of that, that's what taxpayers are paying for.
17526 COMMISSIONER SIMPSON: And that goes to what you indicated in your written submission, that CBC should be -- as a non-profit or public entity, because it doesn't have a profit motivation -- I think they even said that -- that they should be leading the charge into going into areas where privates would fear to tread.
17527 So I'm trying to sort of square the two points in that they should be doing this, but they are not doing it, so by not doing it how do they pose a threat to you, particularly, too, when you have different business models. They are not in the subscription business.
17528 Are you fearful for Canadian taxpayers because they are going to -- they are biting into an area of business that's going to drain resources from other services or are you really fearful that they are going to be competing with you, which I don't understand because it seems like you have different business models.
17529 MR. BOYKO: I think no, the issue here is that if people, consumers can get music for free, the perception is that music is free and why would you then -- on a long-term basis why would you download music if you can get everything for free by the government. But at the end of the day, as we can see, somebody is paying, you know.
17530 I always make the example when I go in a and there's a band people say "I don't pay for it". Well, the bar owner is paying for the band. And when you listen to music in a restaurant you have to pay the rights.
17531 So the issue is the perception of music being free in the long term.
17532 And, secondly, how can we compete if we are charging $10 for service online and they are giving it for free? So we have nine players in Canada --
17533 THE CHAIRPERSON: I'm sorry, I think we are back into the very area I told you not to go into --
17534 MR. BOYKO: Okay.
17535 THE CHAIRPERSON: -- so let's move on
17536 MR. BOYKO: All right.
17537 COMMISSIONER SIMPSON: You indicated that a core issue of the music service under the free model is that they have the potential to lever other resources from other parts of their business, but also that this includes the ability to cross-promote, which is something that you can't do. You know, they have the ability to drive audience to their music service because they are a broadcaster in effect and you don't have that leverage.
17538 I'm curious as to whether this is problematic of all services, Pandora, Galaxie and others, where you are in a pipe and some stream, some are terrestrial distributed through cable, is this a problem with the industry that makes broadcasting a natural companion to digital service and is a limitation for an individual such as yourself where you are a pureplay?
17539 MR. ALBERT: I think the majority of the competitors that we have around the world are independent companies like Pandora, as you mentioned, or Spotify or Slacker or RDO. We have no issue in competing against those companies. We have actually been successful in competing with Spotify or with Pandora in the United States market.
17540 I don't think it's an issue so much as the visibility. I mean it is surprising at how much advertising is being put on this service and how, you know, somewhat relatively low the number of listeners are.
17541 It is also surprising -- and I don't know if that is accounted for in the $5 or $6 million that the public has said the service is going to cost, but when you see an advertisement during primetime hours of the newscast for example, is that a lost revenue opportunity to the CBC because they could have sold that add to somebody else? I have no idea if that's being accounted for.
17542 Clearly any vertically integrated entity -- and I don't consider CBC to be a vertically integrated entity, but anybody that has a multi-platform presence does have a lot of cross-promotional opportunities.
17543 To a certain extent we do that as well through our various services, whether it be Galaxie or Concert TV or Galaxie music videos or even Karaoke Channel, we can cross-promote across the various channels. Not to the extent that CBC does it obviously with CBC music, but we have that ability as well.
17544 COMMISSIONER SIMPSON: Following through on that line of questioning, which is, is broadcasting and digital distribution naturally compatible with each other, how would you feel if they found themselves or announced that at some point they might enter into a public/private relationship?
17545 Would that be good for the Corporation?
17546 MR. BOYKO: Again, if they get into the business of charging for their service we would be very -- you know, for us they would be a competitor just like RDO and with Zic TV with Quebecor, so that's fair competition.
17547 COMMISSIONER SIMPSON: So it will level the playing field.
17548 In your oral this morning I just would like a little clarification, I think it was on page 5. You had said that CBC recognizes -- sorry, that Stingray recognizes that CBC has a role to play in digital media and you have actually lauded them for getting into it and that they should be as innovative as possible without profit as a motivation.
17549 But you also said that CBC music service appears to ignore most of the principles that you illustrated. Would you one more time expand on how they are ignoring those principles and clarify where they should be focusing their digital attention?
17550 MR. BOYKO: I think for us -- and I will let Eric help me out with this -- a good example where we feel they are doing a fantastic job is Espace.mu, which is the Radio-Canada service which is 100 percent focused on French-Canadian Québecois, so very niche. And a lot of people like it in Québec because if you want to get that type of content and it's very well done, you have incredible diversity.
17551 So that is a good example of what they are doing on the French side.
17552 On the English side it's a bit different and I will let Eric go deeper.
17553 MR. ALBERT: Sure. Maybe just to return very quickly on your question about private/public partnerships, BBC in the U.K. has done that actually with services like Spotify or Deezer where they partner with them to offer digital music services. So it is something that there are precedents in the marketplace to that effect.
17554 To answer your question specifically, one of the points for example is to provide increased Canadian content, which is one of their objectives. Again, we don't know this to be a fact, it's just based on our observations based on what we have been able to see on the service today, but if a level of Canadian content on the service is comparable to what is available from commercial broadcasters, how is that meeting their objective of providing more Canadian content?
17555 COMMISSIONER SIMPSON: You stole my next question.
--- Laughter
17556 COMMISSIONER SIMPSON: But I have another.
17557 You had also expressed concern -- and this goes back to your insistence that CBC should be more forthcoming in reporting -- that there is a general concern as to where copyright payments end up. What is your concern? Is it not going into the general -- you know, will you be more illustrative as to what your concern is with respect to copyright payments?
17558 Is that to do with how they are being applied to future business or how they are being applied to Canadian content objectives? Where do you fall on that?
17559 MR. ALBERT: To keep this very simple, because I don't think we want to get into a copyright debate at this point, but the way that the collecting societies collect money essentially, and they redistribute it to their members and their artists, is that they enter into reciprocity agreements with collecting societies around the world. So if Bon Jovi, for example, plays in Canada, Re:Sound will collect monies on behalf of Bon Jovi and redistribute that money to the band which is based in the U.S. So if I play Bon Jovi on a CBC music service for example instead of playing Shania Twain, that money is going to go to an American artist instead of going to a Canadian artist. That's essentially the point of this argument.
17560 COMMISSIONER SIMPSON: Okay. Back into the business models and the distribution models, you are a streaming service that started with satellite and cable distribution and, from what you said this morning, you are vastly expanding that into digital delivery and mobile devices using apps and the like, and your economic model is firmly entrenched subscription model.
17561 If CBC is not innovating to the extent that you are and they are not in the subscription revenue grab part of your pie, what is the concern here?
17562 MR. ALBERT: Well, I always make a note if I have a doughnut shop and CBC is giving away their coffee and doughnuts, even if my doughnuts are better and I'm Tim Horton's, it's going to be difficult to compete, again, on a long-term basis. So that's the biggest issue. So we have to be competing with everybody else. And again, our model is subscription based and we are TV based, but it's not in a short term, I can't say in the short term that it's affecting us, it's more of a long-term affect on the market, and not only for us but for all the other operators.
17563 COMMISSIONER SIMPSON: Earlier I had asked another intervenor about economic principles having self-limiting effect and if CBC was more focused on, as they are in broadcasting with being more and more Canadian, if they were attempting to be different and unique, which was a criticism of yours, if they were to remain free but be more focused on Canadian content, showcasing Canadian content, would that go a long ways towards assuaging your concerns?
17564 MR. BOYKO: In our case, just like the service they do on the French side with Espace.mu, which is 100 percent French-Canadian and Québecois, and if they did the same thing on the English side there would be no issue, because it would be very niche. But their reasoning is, if they don't put American music then people don't come to the site so you don't have a chance to listen to Canadian music. That's the argument.
17565 But our position is this, we agree.
17566 COMMISSIONER SIMPSON: Excellent. Thank you.
17567 Those are my questions, Mr. Chair.
17568 THE CHAIRPERSON: Perhaps just before we finalize this I have a couple of questions.
17569 Your recommendations are mostly touching on more transparency and accountability, as I read it; right? This is your four recommendations on pages 11 and 12.
17570 Let's assume hypothetically that we agree that this information should be made public, what do we do with it? To what end, other than just having it there?
17571 MR. ALBERT: It's the same way that the rest of the information that's in CBC's annual report for example is dealt with. Canadians can take a look at it, they can judge by themselves if they're getting their money's worth. It's not just us looking at it at that point, it's the entire taxpayer population, if you will. They can look at it and they can judge by themselves if this type of service is the type of service they want to be funding.
17572 MR. BRAIDE: You know, the concept of being able to know how much Canadian content is being played on the service, having an idea of where those Canadian taxpayer dollars are going in terms of rights' expenditures, it's the kind of transparency that we believe the Canadian taxpayer deserves.
17573 THE CHAIRPERSON: You seem to -- well, do you agree that CBC should sometimes experiment on new platforms?
17574 MR. ALBERT: Absolutely.
17575 MR. BOYKO: I think, you know, again going back to Espace.mu, it's a great site and I do listen to it, and if I want to get specific French-Canadian songs and Québécois songs, there's not a library in the world that I can get besides that site. So they've done an incredible job, it's very focused on my needs, and I don't think they should be offering the same service that already exists by nine other companies.
17576 THE CHAIRPERSON: But you just said that you don't -- in terms of experimentation a lot of companies are doing their own experimentation, they don't publish their results. So how is CBC going to develop market intelligence and know-how if we prevent them from experimenting on new platforms?
17577 MR. BOYKO: When you say experiment, experimenting new technologies or offering new content?
17578 THE CHAIRPERSON: New technologies, new services, new marketing, and, frankly, even offering it for free.
17579 I mean Chris Anderson, the editor of "Wired," certainly is a big advocate that although you can't offer everything for free that there's a free element of a lot of offerings on the Web. I mean it's not an abnormal strategy. In his book he goes way back to Gillette razor blades where that's the way you did a marketing campaign. At one point you go into that. There are free goods everywhere in a society.
17580 MR. BRAIDE: Mr. Chair, eventually somebody pays. That's -- I've read Chris Anderson's book and eventually he does say that everything is free but at a certain point somebody has to pay for the service. The money has to come out of the pocket at some point. You still had to buy the razors -- you got the razor for free, you still had to buy the blades eventually. So the free is a come-on. Eventually the money has to come out, otherwise the economic system collapses.
17581 MR. BOYKO: And when --
17582 THE CHAIRPERSON: Absolutely, but the CBC with all of its services is part of the media landscape. Surely we can't keep them out of trying new things, which --
17583 MR. BOYKO: No. Again, if the service was paid for or at least if they had a free going to premium part, where here for free and then if you want to really use the service pay $10 a month. At least there would be a business model. But in this case there doesn't seem to be one.
17584 THE CHAIRPERSON: All right. Your position seems clear. Thank you. I don't think we have any other questions. Thank you.
17585 MR. BOYKO: Thank you.
17586 THE SECRETARY: Thank you.
17587 I would now ask the National Campus and Community Radio Association to come to the presentation table.
--- Pause
17588 THE SECRETARY: Please introduce yourself and you have 10 minutes. Thank you.
INTERVENTION
17589 MS ROBINSON: Okay. The introductions are part of the presentation.
17590 Good morning. We appreciate the opportunity to speak today. I'm Shelley Robinson, the Executive Director of the National Campus and Community Radio Association/l'Association nationale des radios étudiantes et communautaires, also known as NCRA/ANREC. With me is Alan Sovran, the NCRA's Bilingual Membership Coordinator.
17591 M. SOVRAN : Bonjour.
17592 L'ANREC est une association sans but lucratif qui appuie la radio communautaire axée sur le bénévolat dans toutes les régions du Canada.
17593 Notre association compte plus de 80 membres, de Norris Point à Terre-Neuve et Labrador, jusqu'à Smithers en Colombie-Britannique. Les objectifs de l'ANREC sont d'assurer la stabilité de chacune des stations, de leur offrir un soutien et de favoriser la croissance à long terme et l'épanouissement du secteur.
17594 Tout d'abord, nous reconnaissons que la CBC/Radio-Canada joue un rôle privilégié au sein du système canadien de radiodiffusion. Nous remercions la CBC/Radio-Canada du soutien qu'elle a offert à nos stations au cours des ans.
17595 Cela dit, si vous me permettez de faire une analogie, je comparerais le système de radiodiffusion à un tabouret à trois pattes : la radio commerciale, la radio publique et la radio communautaire. Nous soutenons que chacune de ces pattes du tabouret doit être mise en valeur et profiter d'occasions de croître et de réaliser son plein potentiel. Nous croyons qu'allonger une patte du tabouret au détriment d'une autre mettrait le tabouret en déséquilibre.
17596 Comme je viens de mentionner, la CBC/Radio-Canada a aidé nos membres dans plusieurs régions. En 2010, la CBC/Radio-Canada a donné son appui à la station CKGI-FM de l'Ile Gabriola en Colombie-Britannique, qui accueillait la conférence nationale de l'ANREC.
17597 D'ailleurs, des cadres et journalistes de la CBC/Radio-Canada ont présenté des ateliers lors de cette conférence et lors de plusieurs autres rencontres au fil des ans. Les représentants de CKGI espèrent pouvoir continuer à compter sur le soutien technique de la CBC/Radio-Canada lors de la reprise de leur diffusion.
17598 Je mentionnerais aussi que la CBC/Radio-Canada a récemment accordé à CKDU-FM à Halifax en Nouvelle-Écosse une diminution des tarifs pour l'utilisation de son antenne de radiodiffusion. La CBC/Radio-Canada est aussi intervenue pour trouver une solution lorsque sa station de Brockville en Ontario a été informée qu'une augmentation de sa puissance pourrait nuire au signal de CKVI-FM, une station communautaire établie dans une école secondaire à Kingston.
17599 Chaque année, des journalistes et réalisateurs de la CBC/Radio-Canada sont également membres du jury des prix de l'ANREC. De plus, comme nous l'avons souligné dans notre lettre, bon nombre d'employés de la CBC/Radio-Canada ont fait leurs débuts dans une station étudiante ou communautaire. Certains de ces professionnels sont aujourd'hui de retour dans notre secteur comme employés, bénévoles ou administrateurs.
17600 MS ROBINSON: We actually cut other examples this morning because we had too many of some of the back and forth. CIVL-FM in Abbotsford, B.C., got engineering support. CFRC-FM in Kingston is a kind of de facto studio for CBC when they have interviews that they want to broadcast in Kingston.
17601 That being said, of course, it is not the case that all local CBC affiliates are equally helpful to our members. Some of our members have felt that they are being charged unfairly high tower rental fees or that they are perceived as a nuisance, taking up space on the dial, rather than as a local partner -- another leg of the stool -- providing direct community access to the airwaves. But overall, our members feel the CBC is an important national resource for Canadians, even if they don't always feel as respected in return.
17602 We further understand that the CBC/Radio-Canada wants to maximize and diversify its sources of revenue to better serve Canadians. So do our members.
17603 Our concern is that if CBC Radio 2 and Espace musique start selling advertising, particularly with the power of a national government-funded network behind them, this will negatively affect the advertising revenues of many small but significant c/c stations, campus and community radio stations, particularly those community stations that have few other sources of revenue.
17604 Our members provide core services to their communities, including diverse local programming produced by volunteers of different skill levels, emergency broadcasting and community announcements, but as part of their mandate they also often target underrepresented communities in smaller numbers than public and commercial radio, including seniors, new Canadians and fans of music not heard anywhere else.
17605 This is important work but it's harder to market and sell to advertisers than the formatted programming of commercial radio on the one hand and now potentially also the national reputation and well-funded public affairs programming of CBC/Radio-Canada.
17606 In response to a specific question about the effect of CBC selling advertising, particularly government advertising, on c/c radio by Commissioner Duncan, the CBC argued that this detrimental effect won't happen and they will, in fact, grow the pie of advertising, suggesting that in fact this might even lead to a net benefit for campus and community radio stations. If that's true, we certainly look forward to seeing data to support those claims and plans for implementing it. But on the face of it, it's hard to imagine that a pie can be grown in such a way, particularly given current economic realities and the capacities of our members.
17607 We tried in our written submission to describe the lived realities of our stations. When talking about millions of dollars, it can be easy to forget that we have many members that earn less than $25,000 a year in revenue from all sources combined and that of all our members, no station currently makes more than $200,000 a year in advertising sales, and most make under $100,000. It's a very small amount, but it's also crucial to their survival and I would also say their success.
17608 M. SOVRAN : Je vous donne l'exemple de la station CJTR-FM à Regina en Saskatchewan. L'an dernier, ses revenus étaient de 186 000 dollars, dont environ 144 000 dollars provenaient de la publicité. Parmi les revenus publicitaires, 7 000 dollars étaient attribuables à la publicité nationale. La station a indiqué qu'elle aimerait obtenir plus de publicité nationale. CJTR-FM a bouclé son budget en recueillant des fonds dans sa communauté en tenant, par exemple, sa 14e vente-débarras de musique, qui lui a permis de récolter 7 500 dollars.
17609 CJTR compte 120 bénévoles et diffuse dans neuf langues, incluant l'ukrainien et l'érythréen. Une perte de 10 pour cent de ses revenus de publicité nationale couperait son budget de 700 dollars. Cette perte financière représente le montant investi par la station pour assurer sa présence en ligne et la diffusion de ses programmes sur Internet. De même, une telle perte financière ne permettrait pas à la station de développer des projets de modernisation de ses logiciels et de son matériel technique.
17610 Je vous donne aussi l'exemple de CFUV-FM, une station de Victoria en Colombie- Britannique. Les revenus étaient de 210 000 dollars l'an dernier. Cette station de campus obtient la majorité de son financement grâce à une cotisation étudiante. Elle a toutefois vendu 15 000 dollars de publicité l'an dernier, et il s'agit presque entièrement de publicité nationale. Les responsables nous ont indiqué que ces revenus publicitaires avaient permis à la station de boucler son budget plutôt que d'enregistrer un déficit l'année dernière.
17611 Si ses revenus publicitaires étaient réduits de 10 pour cent, ce qui représenterait environ 1 500 dollars, la station pourrait être amenée à supprimer un poste étudiant et à réduire la durée de ses camps d'été de découverte des médias pour les jeunes.
17612 Ces deux stations, CJTR-FM à Regina et CFUV-FM à Victoria, avaient prévu d'accroître leurs ventes de publicité nationale. Elles envisageaient de mener des projets d'expansion, comme le développement d'une application mobile, et d'améliorer leurs services en permettant, par exemple, aux gens handicapés d'avoir accès aux ondes FM. La concurrence de CBC Radio 2 éloignerait ces stations de leurs objectifs.
17613 MS ROBINSON: It is also worth noting that there are significant challenges to selling advertising at c/c stations beyond even the open/mixed-format/volunteer-driven programming and diverse/hard-to-categorize audiences.
17614 For example, in contrast to the sophisticated metrics that have been discussed so far in this hearing, currently less than five NCRA members can even afford to subscribe to BBM data at its most reduced rate. Very few have full-time staff dedicated to advertising sales and our internal surveys also show that none of our members make any money selling advertising on their websites, despite working hard to offer a range of online services. So their terrestrial broadcasts are currently the only product they offer from which they can make money.
17615 Finally, even members we have who aren't worried about the possibility of Radio 2 or Espace Musique selling advertising are worried about some of the related effects of local -- I'm sorry, I shouldn't say local ad sales -- of ad sales.
17616 For example, CBC might develop sponsorship deals with local music and cultural festivals and supplant campus and community stations' existing sponsorship ties to these events, which campus and community stations currently use to recruit new volunteers, promote the station, and cover the community they are mandated to reflect and serve.
17617 So for all these reasons, we believe that of the three sectors enshrined in the Broadcasting Act, campus and community radio stations are by far the most vulnerable to even very small changes in their economic conditions.
17618 We encourage the Commission to renew the licences of CBC/Radio-Canada and we look forward to a continuing positive relationship between CBC/Radio-Canada and the campus and community radio sector. However we believe that to allow Radio 2/Espace Musique to sell advertising is to support one sector at the expense of another, creating a significant imbalance for all Canadians.
17619 Thank you and we are happy to answer your questions.
17620 THE CHAIRPERSON: Thank you very much.
17621 Commissioner Simpson will have some questions for you to start off.
17622 COMMISSIONER SIMPSON: Thank you.
17623 Good morning. Welcome.
17624 MS ROBINSON: Good morning.
17625 COMMISSIONER SIMPSON: Always great to see you.
17626 In your oral testimony this morning you were talking about CJTR and giving us a frame of reference as to how much they are deriving from national versus all other forms of ads and sponsorship, does this ratio sort of universally apply or is it different station-by-station with respect to the ratio of national to other advertising?
17627 MS ROBINSON: It's definitely different station-by-station.
17628 For instance, the other example we gave, CFUV, I think it's 90 to 95 percent of theirs is national, whereas the majority of CJTR is local.
17629 COMMISSIONER SIMPSON: And in the national segment of advertising how much -- this is again the universal question but you answer it any way you want -- how much is coming from government versus commercial advertisers in terms of the percentage between the two on a national level?
17630 MS ROBINSON: It's a good question. We tend not to have super fantastic metrics as a sector because we are underfunded and have reduced capacity. However, if I had to guess I would say it also depends station-by-station. So we have stations that have more restrictive advertising policies as part of their service to their community, they are going to have a higher percentage of national advertising from the government because those ads are less controversial.
17631 So there have been national campaigns for instance by like Western Union. Not all stations would carry those, but some might. But I would say a good chunk of the advertisers who want us and then in turn that our stations are comfortable running would be government ads, yes.
17632 COMMISSIONER SIMPSON: And that would be federal, provincial and I assume sometimes municipal as well?
17633 MS ROBINSON: I'm not sure about municipal, I haven't heard any cases of municipal. It's sometimes provincial.
17634 COMMISSIONER SIMPSON: Okay.
17635 MS ROBINSON: The bulk of it would be sort of Health Canada, those kinds of -- those ads, yes.
17636 COMMISSIONER SIMPSON: Yes. So because of that relative importance, that's the nub of your concern, that CBC may be inadvertently eating a big portion of the lunch of campus and community stations who get that revenue from national advertising?
17637 MS ROBINSON: Yes.
17638 COMMISSIONER SIMPSON: That's kind of the problem.
17639 MS ROBINSON: And that even if they ate -- so that's why we gave the 10 percent.
17640 COMMISSIONER SIMPSON: Yes.
17641 MS ROBINSON: So even if they only -- so let's say that they did grow the pie in some way that I can't foresee right now and they only cut into 10 percent, even that has a really big effect on our members.
17642 COMMISSIONER SIMPSON: Yes.
17643 MS ROBINSON: That is definitely the nub of our concern.
17644 COMMISSIONER SIMPSON: And I take your point regarding how few of your members can afford the BBM service, and yet national advertising of a non-government kind is preoccupied with ratings. You know, it's a metric exercise of making sure you get the best bang for your buck.
17645 Now, you had mentioned -- and I would like to really understand this. I was fascinated in your written submission, I think it was paragraph 15, you were drawing examples of how innovation in some of your sector has allowed for partnering or bundling some stations with commercial stations and being rep'd by --
17646 MS ROBINSON: Oh, okay.
17647 COMMISSIONER SIMPSON: Yes. I find that really innovative and very -- it excites the heck out of me because I like that kind of innovation and I would like you to tell me more about it.
17648 MS ROBINSON: Sure. It's not something that we do, it's something that the other two associations that appear before you.
17649 COMMISSIONER SIMPSON: Right.
17650 MS ROBINSON: We would love to do it, and so that is that there, in this case a company like a for-profit company --
17651 COMMISSIONER SIMPSON: Yes.
17652 MS ROBINSON: -- that we will bundle campus and community radio stations and then -- so for instance the station in Smithers, B.C. only makes right now -- so their annual budget is just over $10,000 and they sell $250 in advertising. So I didn't put them in here because it's not a super compelling example.
17653 However, they would love to have some national advertising. They are not a great market on their own to try and attract national advertising, but if, as the NCRA and as NCRA members, we could get representation, then they are more likely to take an ad there because they will also have placement in Regina and Halifax and all those other big centres.
17654 That is an idea we have long talked about. It takes us a while to get things together again because of capacity and resources, but it's almost certainly going to be dead in the water if advertising for CBC goes ahead.
17655 COMMISSIONER SIMPSON: I take your point.
17656 But it brings about the question to you that: Is there a natural opportunity to have a discussion with CBC, who I don't think want anything bad to happen particularly to community and campus radio stations as a result of their need to go after alternate forms of revenue.
17657 Is there room in your organization to consider discussion with the CBC, if they are similarly motivated, to perhaps look at that same kind of combination and representation in marketplaces?
17658 Because they will obviously, if they are successful in convincing us it's a good idea, would have -- they already have boots on the ground with respect to sales forces in other types of broadcasting, they also have a national representation and is there grounds and sufficient motivation on your part to consider combining forces with them so that you do not get inadvertently hurt but actually helped by what they are doing?
17659 MS ROBINSON: I think it's a great question. I definitely think it depends on motivation on both sides. And I would say that we are -- for big players in the media sector we are not always perceived as easy or worthwhile in terms of working with us because the numbers are so much smaller. On the face of it -- and I have mo than 80 members so I can't say for sure definitively on all of their behalf -- I know that some of them would be interested. I mean, they are interested in doing it with a commercial body, why wouldn't they in the case of CBC?
17660 COMMISSIONER SIMPSON: Yes.
17661 MS ROBINSON: Yes. I think that there is merit to the idea and it does mean that then should they grow he pie that presumably then we would be beneficiaries of the bigger pie, so I like that idea. I would be worried that in practice it might not work out very well, but I am certainly open to the idea.
17662 COMMISSIONER SIMPSON: Well, Radio's key attribute it seems is locality and relevancy in a local market. We have heard and seen this argument at work over the last few years as budgets have become challenged and overheads have become challenged and radio seems to survive like moss on a rock when it resorts to its best strength, which is local association with its marketplace.
17663 What CBC is doing -- what they are proposing is a national service, a network service with Radio 2 that doesn't play to the strength that you have. So to an advertiser there is always the desire to reach down better into a marketplace and it is a challenge always for national advertising rep houses and firms because they can only go so far with their budget.
17664 Yours is not a particularly expensive proposition when buying spots, so it's something that I think I will try and flush out tomorrow with CBC and if your organization is keen to pursue it, we will see if the other side of the equation is there.
17665 Last question for you: In your advertising pursuits, what percentage -- do you convert -- because -- I'm sorry, I will start over again.
17666 The typical format of a community station is to have very different programming to different target audiences, sometimes or often in languages of that audience.
17667 MS ROBINSON: Yes.
17668 COMMISSIONER SIMPSON: Is it a practice to convert advertising into different languages as a service to benefit the advertiser in doing a better job?
17669 MS ROBINSON: I would say it's done informally on a sort more sponsorship basis. I used to manage CKDU in Halifax so I know we had an Arabic program and so I could tell when they were sort of doing a sort of Arabic version of ads we have, because I would hear the phone number in English, but then all the other detail -- and the business name or whatever.
17670 So I think it happens informally, it doesn't, as far as I know, happen formally. There might be a couple of cases, but yes.
17671 COMMISSIONER SIMPSON: Okay. Thank you very much.
17672 MS ROBINSON: Okay.
17673 COMMISSIONER SIMPSON: Those are my question.
17674 THE CHAIRPERSON: I have a small question.
17675 MS ROBINSON: Yes.
17676 THE CHAIRPERSON: I have been asking this of others who are concerned about the impact of the commercial advertising on Radio 2 and Espace Musique.
17677 I take it your position is you would rather not have advertising, but an alternative would be to ramp it up over a longer period of time so that there is not a shockwave effect on you.
17678 Is that a credible, realizing it's an alternative approach to getting up more advertising in the marketplace for CBC and to give you a chance to perhaps react to that and adapt to it?
17679 MS ROBINSON: I think that we, as a sector, probably move a lot slower than a lot of other media players because again of a lack of resources, monetary and others, so our time in terms of like the amount of time it would take us to sort of get acclimated or have alternative ways of making up for the potential lost revenue tends to be longer. That being said, more time is always better than no time.
17680 THE CHAIRPERSON: Okay. Do you have a specific idea in terms of -- 50 years is not a good answer.
--- Laughter
17681 MS ROBINSON: You took away my first answer.
17682 I would say like three to five in terms of like that would then put us on notice as an association for instance that now would be the time to get those plans solidified in terms of if we were going to try and work with a commercial or start out own, whatever, but bundle services and try and increase national advertising that way.
17683 So yes, if I have to pick a number I would say three to five years.
17684 THE CHAIRPERSON: Okay. Great. Thank you. Very useful.
17685 MS ROBINSON: Okay.
17686 THE CHAIRPERSON: Those are all our questions.
17687 MS ROBINSON: Okay. Thanks.
17688 THE CHAIRPERSON: Thank you very much for participating in the hearing.
17689 I think -- it's just before noon -- we will come back at 1 o'clock. We will adjourn until 1 o'clock and finish. I believe we have about four intervenors this afternoon.
17690 Donc, la séance est levée jusqu'à 13 h 00. Merci.
--- Upon recessing at 1149
--- Upon resuming at 1305
17691 LE PRÉSIDENT : À l'ordre, s'il vous plaît.
17692 Madame la Secrétaire.
17693 LA SECRÉTAIRE : Merci.
17694 J'inviterais maintenant le panel des régions de Radio-Canada de faire sa présentation. Vous avez 10 minutes. Merci.
INTERVENTION
17695 M. GOBEIL : Merci.
17696 Alors, distingués membres du Conseil de la radiodiffusion et des télécommunications canadiennes, avant de commencer, permettez-moi de me présenter.
17697 Mon nom est André Gobeil. Je suis directeur du Service de la formation continue du Cégep de Rivière-du-Loup et membre du Panel des régions, et je serai accompagné aujourd'hui pour la présentation par monsieur Yves Doyon, qui est un spécialiste en développement organisationnel qui habite Sudbury.
17698 Nous vous remercions d'emblée de nous offrir cette opportunité de nous présenter devant vous aujourd'hui pour partager nos préoccupations à titre de membres du Panel des régions de Radio-Canada.
17699 Vous comprendrez que nous ne souhaitons pas nous étendre sur des discussions techniques, économiques, sociologiques et statistiques que d'autres avant nous ont pu couvrir amplement mais plutôt vous partager un cri du coeur de citoyen croyant à la présence essentielle d'un diffuseur public vibrant, pertinent, dynamique, identitaire et représentatif.
17700 À titre informatif, parce qu'on comprend que la question du Panel a été évoquée à l'occasion durant les audiences, le Panel est un comité citoyen composé de 14 représentants des régions canadiennes (un pour chaque province de l'Ouest, trois de l'Ontario, trois des régions du Québec, un pour chaque province de l'Atlantique).
17701 Son mandat consiste principalement à :
17702 - favoriser la communication entre le Comité de direction supérieur de Radio-Canada et les représentants des régions;
17703 - favoriser également les discussions et les échanges sur la présence des régions canadiennes sur les antennes de Radio-Canada, de même que sur les activités, les plans d'action et les stratégies de Radio-Canada qui concernent le reflet régional;
17704 - renseigner les représentants des régions sur le réseau de la radio et de la télévision publique francophone, ainsi que sur le site Internet de Radio-Canada, ses environnements, ses engagements et responsabilités; et
17705 - effectuer, au besoin, des sondages, recherches et consultations permettant de recueillir leurs opinions, commentaires et suggestions.
17706 Comme nous vous le mentionnions dans la lettre que nous vous avons acheminée, nous estimons que Radio-Canada a fait plus pour l'unité canadienne du pays que tous les discours politiques confondus et regroupés. Nous évoquions alors le but de Paul Anderson, qui avait rassemblé tous les Canadiens autour d'une télévision au dernier match de la série du siècle en 1972. Nous espérons que notre société d'État puisse conserver cette capacité de rassemblement dans la mesure où nous lui en donnons les moyens et la latitude, d'où notre support à titre de membre du Panel aux cinq demandes de renouvellement.
17707 Les membres du Panel, pour les avoir consultés, croient profondément en ce pouvoir de Radio-Canada de rassembler, de diversifier et de donner une voix à l'ensemble des francophones du pays.
17708 Nous sommes en quelque sorte, nous les membres du Panel, réunis par un objet commun, soit le désir de voir Radio-Canada continuer à oeuvrer en qualité, en efficacité et en intelligence.
17709 Il est certain que l'on aurait aimé vous parler d'un financement approprié pour un service public comme celui de Radio-Canada et également l'incompréhension en région de l'abrogation du FAPL, mais on comprend que l'objet premier de ces audiences consiste principalement aux demandes de renouvellement de licence.
17710 M. DOYON : Alors, dans l'ensemble des renouvellements de licence, les éléments qui nous importent sont principalement les suivants.
17711 Alors, le renouvellement de la licence de RDI. Par sa programmation et ses équipes régionales, Radio-Canada/RDI joue un rôle vital dans ce développement des communautés de langues officielles en milieu minoritaire et des régions du Québec.
17712 Dans cette ère de mondialisation et d'accès à l'information, il est facile d'oublier que l'information prend un sens tout à fait différent lorsqu'elle est mise en contexte, humanisée et adaptée aux réalités régionales, tout en demeurant exceptionnellement objective. Pour que la programmation soit bien comprise, analysée et intégrée, elle doit faire lien avec ce qui se passe dans la vie des gens et leur milieu, voire leur ressembler.
17713 La présence essentielle de Radio-Canada sur le plan canadien permet justement ça. Il est donc impératif que RDI puisse continuer de garantir que le tiers de ses contenus originaux proviendront de productions provenant des régions du Québec et hors Québec.
17714 M. DAIGLE : En ce qui concerne le renouvellement de la licence de Radio-Canada Télévision, depuis peu, la télévision de Radio-Canada garantit une couverture journalistique impeccable garantissant une couverture 7/7, et ce, tant pour les régions québécoises que les régions francophones du Canada. En respectant et en renforçant ces mêmes valeurs et principes dans le traitement d'information à RDI, l'information locale, régionale, nationale et internationale reflète les besoins et intérêts de la population.
17715 Également, pour le renouvellement de la Première Chaîne, nous avons confirmé entre nous que la Première Chaîne de Radio-canada offre une variété d'émissions permettant de saisir la réalité canadienne d'un océan à l'autre. Elle a, au cours des années, assuré une présence des différentes communautés canadiennes sur un réseau national, créant des liens importants et porteurs entre celles-ci. Elle a, de plus, favorisé l'ancrage dans les milieux de par ses bulletins jumelés et livrés par des lecteurs régionaux, qui a été, je dirais, une nouveauté au cours de la dernière année et qui fait du chemin dans les différentes stations du Québec et du reste de la francophonie canadienne. Cette présence journalistique, tout comme cette formule, se doivent d'être maintenues car elles garantissent une qualité de nouvelles locales et une ouverture sur ce qui se passe dans le monde, essentielles au développement des communautés.
17716 Dans le cadre également des opérations du Panel, lorsqu'on revient sur, je dirais, le dynamisme de ces communautés, on a pu assister à des activités qui ont permis d'assurer une intégration des informations, une intégration aussi de la culture de Radio-Canada auprès des communautés.
17717 À titre d'exemple, à l'automne 2011, Radio-Canada a organisé une activité qu'on a appelé le Sommet de Matane, qui était organisé dans le cadre de la mise en place d'une maison de production multimédia à Rimouski, qui regroupait une partie des activités des stations de Radio-Canada Sept-Iles, Radio-Canada Rimouski et Radio-Canada Matane.
17718 Pour s'assurer que cette nouvelle maison de production puisse recevoir l'aval de l'ensemble des citoyens, ils ont fait un forum où certains citoyens ont été appelés à collaborer avec les journalistes et les membres de l'équipe de Radio-Canada pour justement parler des appréhensions et puis des éléments que ces gens-là voulaient voir apparaître au sein de la programmation de Radio-Canada.
17719 Cet événement-là était prévu seulement pour une demi-journée avec les citoyens. Les journalistes étaient un peu, je dirais... avaient une certaine réserve de nous voir apparaître comme citoyens dans le portrait, et ce qui a été particulier, c'est que, à la fin de notre demi-journée de présence, les journalistes ont demandé... ont considéré que notre apport était capital à leur rôle à l'intérieur de leurs différentes stations et ils nous ont demandé de rester présents pour l'ensemble du Sommet de Matane, ce qui a amené vraiment des échanges intéressants et également, je dirais, une couleur locale que l'on voit toujours au sein de la maison de production de Radio-Canada à Rimouski.
17720 M. DOYON : Je pense que c'est important aussi non seulement de lister des arguments très quantitatifs par rapport au renouvellement des licences mais de tenter de peindre le portrait un peu de l'impact de la programmation dans les communautés de langues officielles en situation minoritaires. Je pense que c'est un des grands thèmes, une grande raison d'être de notre présence, notre engagement au niveau du Panel.
17721 À titre d'exemple, bien, comme individu qui vit, qui oeuvre dans une communauté comme celles-là, je vous donne un peu l'exemple d'un projet qu'on a produit dans la région du Grand Sudbury, soit les États généraux de la francophonie de la communauté de Sudbury.
17722 Dans ce cas-là, ce qui était vraiment intéressant, c'est que l'ensemble... la programmation de RDI, l'information, la programmation radio et télé ont permis non seulement de rapporter les faits par rapport à ce projet-là mais aussi d'offrir une plateforme pour les gens, les participants de ce projet-là, qui se poursuit toujours, pour vraiment une plateforme de débat, d'analyse et puis vraiment pour bien refléter les résultats puis les souhaits de la communauté.
17723 En autres mots, ce projet d'États généraux là, c'était vraiment un contexte de rassemblement où les gens étaient capables de se prendre en main, de se définir, puis décider où ils voulaient aller, même comme communauté, comme francophones minoritaires dans cette région-là.
17724 Ce qui est particulièrement intéressant, pour mettre un peu le point d'avantage sur l'impact de tout ça, c'est que depuis ce projet-là, ça l'a fait des petits en quelque sorte. Depuis, on a vu des initiatives semblables à North Bay, dans le comté de Renfrew, et puis on voit aussi le projet « Je rêve Ottawa », qui, si j'ose le dire, découle un peu de l'initiative Sudbury. Je pense qu'Ottawa suit Sudbury jusqu'à un certain point.
17725 Alors, il y a eu vraiment une prise en main, une prise en charge qui a été vraiment permise par la diffusion de l'information et de la plateforme que Radio-Canada a été capable de proposer ou d'offrir, tout en suivant ce processus-là. Ça fait que je pense que je veux vraiment, vraiment mettre beaucoup d'accent là-dessus.
17726 On poursuit avec le renouvellement de la licence pour Espace musique, puis ça, je ne lirai pas verbatim exactement ce qu'on a mentionné là non plus.
17727 Encore une fois, c'est vraiment d'humaniser un peu l'impact puis le résultat de ce qui change sur le terrain à cause de ça. Il va sans dire que l'argument premier, c'est vraiment de dire, O.K., on fait la promotion des artistes émergents, des artistes établis, puis ça, c'est d'une importance magistrale, mais ce qui est encore plus important, d'après moi, c'est vraiment... si on prend un petit recul, c'est que tout ce qui est artistique et culturel, surtout quand on est en situation minoritaire, c'est que ça crée un contexte de rassemblement et de ralliement dans ces communautés-là.
17728 Puis parce que Radio-Canada joue un rôle important à diffuser et faire connaître ces artistes-là, et puis de là en découle plein d'occasions de diffusion sur le terrain, bien, ça crée, encore une fois, un sentiment d'appartenance, ça aide à développer l'identité. On a une voix via nos artistes qui sont connus. On donne l'exemple de Lisa LeBlanc qui vient du Nouveau-Brunswick, comme Damien Robitaille qui vient de Lafontaine, et puis là, tout d'un coup, on a accès aux artistes qui viennent d'ailleurs. Donc, on a l'impression... non seulement l'impression, mais on fait partie de quelque chose de plus grand. Puis à cause de la diffusion puis l'appui de Radio-Canada, bien, ça, ça permet ça.
17729 M. GOBEIL : Également pour le dernier renouvellement de licence, celui d'ARTV, ce que Yves vient de vous livrer pourrait également servir à justifier le renouvellement de cette licence-là, celle d'ARTV, en élargissant le spectre culturel à d'autres médias, entre autres, le théâtre, le cinéma, la danse, l'opéra. À l'heure où les états partout défendent l'intégrité de leur politique culturelle afin d'éviter leur marginalisation au profit de grands joueurs de l'industrie, le Canada se doit d'emboîter le pas par une garantie de tribune télévisuelle diversifiée accessible au plus grand nombre de téléspectateurs. De plus, en assurant une intégration de productions indépendantes hors Québec, la présence d'ARTV permet de maintenir et de consolider des boîtes de production dont la présence dans ce milieu est essentielle.
17730 Nous croyons que le radiodiffuseur, Radio-Canada, est un joueur indispensable médiatique canadien, notamment pour la francophonie. Nous croyons que la SRC contribue au développement et au rayonnement des arts et de la culture de la francophonie canadienne et pourrait mieux le faire à l'avenir avec un appui et un financement adéquat.
17731 La réalité d'aujourd'hui n'est pas celle qui régnait lors du dernier renouvellement des licences de la SRC. Nous habitons désormais un monde beaucoup plus branché, où le potentiel de rayonnement des contenus dépasse toute frontière. Nous souhaitons qu'à l'avenir, la SRC dispose des moyens suffisants, tant sur le plan de son cadre réglementaire que de son crédit parlementaire, pour qu'elle puisse servir de véritable phare culturel, partout au pays, pour tous les Canadiens.
17732 Merci.
17733 LE PRÉSIDENT : Merci beaucoup.
17734 Je vais vous poser des questions, mais vous allez voir que je vais focusser surtout sur la façon que le Panel fonctionne plutôt que vos positions sur les divers renouvellements, parce que votre position est très claire dans votre présentation.
17735 M. GOBEIL : Ça va.
17736 LE PRÉSIDENT : Donc, premièrement, vous êtes arrivés ici à l'audience de votre propre chef? C'est vous qui avez décidé d'être présents?
17737 M. GOBEIL : Tout à fait!
17738 M. DOYON : Oui. Oui, à nos frais.
17739 LE PRÉSIDENT : Vos dépenses, est-ce que Radio-Canada...
17740 M. GOBEIL : Non, non, pas du tout. J'ai pris trois jours de congé. D'ailleurs, j'espère que mon patron me regarde parce que je lui avais dit que j'étais ici.
--- Laughter
17741 LE PRÉSIDENT : C'est la preuve. Tu n'es pas en train de jouer au golfe là.
17742 M. GOBEIL : Non, non, non, non, non, non.
17743 Mais j'ai pris trois jours de congé pour venir défendre ça parce que, même si on ne l'a pas dit dans le mémoire, je suis un fan fini, un aficionado de Radio-Canada. Je pense que je passe plus de temps avec leurs animateurs qu'avec ma blonde.
17744 Alors, c'est pour ça vraiment que lorsqu'on a vu apparaître cette demande de renouvellement de licence, tout de suite, j'ai pris l'initiative de contacter les autres membres du Panel, et j'ai demandé à Yves également de travailler avec moi pour la rédaction de la lettre qu'on vous a fait parvenir.
17745 LE PRÉSIDENT : D'accord.
17746 M. DOYON : Moi aussi, c'est le même investissement. Je travaille à mon compte, puis c'est vraiment... au niveau des frais de déplacement, comme le temps, c'est vraiment de notre choix là, de mon choix.
17747 LE PRÉSIDENT : O.K. Merci pour ça.
17748 Et si je comprends bien, le mandat touche à la fois la notion des régions dans l'ensemble, y compris la réalité des communautés de langues officielles? C'est ça. Donc, vous avez le double mandat.
17749 Mais la communauté anglophone du Québec ne fait pas partie des gens représentés sur...
17750 M. GOBEIL : Le Panel des régions, non.
17751 LE PRÉSIDENT : Parce que c'est principalement pour le service francophone?
17752 M. DOYON : Pour le service francophone, oui.
17753 M. GOBEIL : Oui.
17754 LE PRÉSIDENT : Comment êtes-vous choisi pour être membre du Panel? Est-ce que c'est de l'auto-identification, vous dites que vous êtes intéressé ou est-ce qu'il y a quelqu'un qui vous approche?
17755 M. GOBEIL : Bien, dans mon cas, c'était via l'interaction que j'avais dans mon milieu. J'étais à Matane avant, avant de m'en aller à Rivière-du-Loup, et puis j'étais souvent présent dans les tribunes ou encore impliqué de façon assez importante dans le développement régional et local, et lorsque le poste a été à combler pour justement l'Est du Québec, ça été le directeur régional qui m'a contacté, me demandant si j'étais intéressé à participer au Panel des régions, donc, aux travaux du Panel. J'ai accepté avec grand plaisir.
17756 Et puis c'est un peu, je pense, une nomination comme celle-là qui est faite pour l'ensemble des autres participants au sein du Panel.
17757 LE PRÉSIDENT : Donc, c'est pas mal la pratique que les...
17758 M. DOYON : La présence, le leadership, j'imagine, sans prétention, assumés dans nos communautés respectives.
17759 LE PRÉSIDENT : D'accord. Mais c'est Radio-Canada, quelqu'un dans la région probablement assez haut placé, qui vous approche parce qu'ils vous ont vu vous impliquer dans la communauté et puis...
17760 M. DOYON : Oui. Il y a le lien aussi avec les gens qui occupaient le poste avant. Dans mon cas, j'étais au courant de qui était là, puis la personne que j'ai remplacée me connaissait assez bien aussi...
17761 LE PRÉSIDENT : D'accord.
17762 M. DOYON : ...à savoir dans un champ d'action professionnel comme communautaire au niveau bénévolat aussi.
17763 LE PRÉSIDENT : Est-ce que votre situation démontre la situation des autres, c'est-à-dire que les...
17764 M. DOYON : Ça ressemble beaucoup. Moi, c'est au niveau...
17765 LE PRÉSIDENT : ...membres sortants ont un peu une responsabilité pour aider à identifier des nouveaux membres?
17766 M. GOBEIL : Non. En tout cas, dans mon cas, non, pas du tout. Moi, c'était vraiment... Je n'avais même pas aucune idée qui était la personne qui était là auparavant dans la région pour l'Est du Québec.
17767 LE PRÉSIDENT : Donc, est-ce que c'est un processus... C'est un processus, je dirais, qui semble être un petit peu plus privé. Il n'y a pas d'annonces qui sont mises dans des journaux ou d'autres moyens de communiquer plus largement que Radio-Canada est à la recherche de gens pour être sur ce Panel-là?
17768 M. GOBEIL : Non. Non.
17769 LE PRÉSIDENT : C'est vraiment un réseautage à travers des contacts dans les régions?
17770 M. GOBEIL : Oui. Puis également, dans la composition aussi, ce qui est intéressant, c'est les profils variés des personnes qui sont là, donc, une représentativité homme/femme, et puis des gens qui proviennent de différents types de milieu.
17771 Donc, on a des milieux des affaires de l'Ouest. On a des gens qui sont dans le secteur culturel. Évidemment aussi, pour le Québec, on a une représentante autochtone des communautés autochtones, donc, une personne qui vient de Mashteuiatsh. Il y a également des gens qui oeuvrent dans le secteur communautaire aussi au sein du Panel.
17772 LE PRÉSIDENT : Qui assure cet équilibre?
17773 M. GOBEIL : Bien, j'imagine que dans la façon... parce que, évidemment, on n'est pas au courant. Nous, on est là, on participe aux événements, mais toute la gestion et la logistique du Panel, c'est Radio-Canada qui le fait. Donc, peut-être les questions pourraient être adressées à eux.
17774 Mais moi, c'est l'élément qui m'a surpris en premier, c'est de voir justement cet équilibre-là au sein du Panel, et ça amène des discussions qui sont drôlement intéressantes à ce niveau-là.
17775 LE PRÉSIDENT : Est-ce qu'il y a parfois des tensions? Parce que dans un domaine où il y a moins d'argent, parfois, il y a des choix difficiles à faire. Est-ce qu'il y a de la tension entre diverses régions?
17776 M. DOYON : Bien, je pense que ce qui est important à souligner, c'est qu'on ne représente pas nécessairement. On est là comme individus, comme amateurs, comme consommateurs de Radio-Canada puis de tous ses services, sa programmation, à prime abord, et puis on... Comment je dirais ça? On est là pour un peu refléter la réalité des régions puis s'assurer que ces réalités-là sont reflétées dans la programmation de Radio-Canada...
17777 LE PRÉSIDENT : Donc, vous...
17778 M. DOYON : ...par des personnes ressources. Il n'y a pas de décision de prise. Ce n'est pas une structure de gouvernance en aucune sorte. C'est vraiment de la discussion, du dialogue pour être capable d'outiller...
17779 LE PRÉSIDENT : Mais sachant qu'il y a une rencontre qui s'en vient, est-ce que vous parlez à vos collègues...
17780 M. GOBEIL : Oui.
17781 M. DOYON : Absolument.
17782 LE PRÉSIDENT : ...dans votre réseau?
17783 M. GOBEIL : Oui.
17784 LE PRÉSIDENT : Votre réseau va chercher les points de vue?
17785 M. GOBEIL : Oui.
17786 M. DOYON : Puis dans mon cas, c'est un réseau provincial, étant donné que dans mon travail, moi, je me promène du sud de l'Ontario tout à fait au nord, à Hearst, même dans le nord-ouest, puis d'avoir une idée des réalités dans mon cas. Puis c'est peut-être le cas pour d'autres aussi.
17787 Je travaille dans une multitude de secteurs. Ça fait que ce n'est pas vraiment... Il n'y a pas un groupe d'intérêts. Je ne représente pas un groupe en particulier. C'est vraiment de donner un son de cloche par rapport aux réalités, aux enjeux qui se passent sur le terrain dans ces communautés minoritaires là.
17788 LE PRÉSIDENT : À votre connaissance... évidemment, vous, vous êtes des auditeurs, vous faites partie du public de Radio-Canada. Mais à votre connaissance, récemment, est-ce qu'il y a eu des membres sur le Panel des régions qui étaient des ex-employés de Radio-Canada ou des animateurs ou...
17789 M. GOBEIL : Non. Il n'y a aucun... En tout cas, à ma connaissance, il n'y a aucun ex-employé de Radio-Canada.
17790 LE PRÉSIDENT : C'est vraiment des gens issus des communautés...
17791 M. GOBEIL : C'est vraiment des individus.
17792 LE PRÉSIDENT : ...des régions?
17793 M. GOBEIL : Je pourrais vous sortir leur pedigree pour tous et chacun là. C'est des gens qui sont vraiment impliqués dans leur communauté, puis d'aucun provienne des officines de Radio-Canada.
17794 LE PRÉSIDENT : D'accord. Il y a combien de rencontres par année?
17795 M. GOBEIL : Bien...
17796 LE PRÉSIDENT : Vous vous rencontrez tous ensemble; c'est ça?
17797 M. GOBEIL : Oui.
17798 M. DOYON : Oui.
17799 LE PRÉSIDENT : C'est à quelle fréquence?
17800 M. DOYON : Deux fois par année.
17801 LE PRÉSIDENT : D'accord.
17802 M. DOYON : Je pense que c'est réduit à une fois par année.
17803 M. GOBEIL : C'est réduit à une fois par année, puis il y a une autre communication qui se fait par voie de téléphone conférence pour, justement, pour échanger sur des points plus précis, là.
17804 LE PRÉSIDENT : Donc, une...
17805 M. GOBEIL : Une présencielle puis une autre virtuelle.
17806 LE PRÉSIDENT : Virtuelle. Donc, deux fois puis il n'y a pas d'autres rencontres que ça...
17807 M. GOBEIL : Non.
17808 LE PRÉSIDENT : ... qui soient virtuelles ou réelles?
17809 M. GOBEIL : Mais, comme je vous disais tout à l'heure dans la lecture du document aussi, il peut y avoir des événements pour lesquels...
17810 M. LE PRÉSIDENT : Des événements spéciaux.
17811 M. GOBEIL : ...on va être appelés à participer puis à collaborer, là, pour les réflexions plus régionales, par exemple, dans le cas échéant.
17812 LE PRÉSIDENT : Lorsque vous avez des rencontres, ces rencontres-là ont lieu à quel endroit?
17813 M. GOBEIL : Elles ont lieu à Montréal.
17814 LE PRÉSIDENT : Montréal. Donc, tout le monde s'en vient à Montréal.
17815 M. GOBEIL : Un point de foyer, tout à fait, un point de chute, oui.
17816 LE PRÉSIDENT : Puis les frais de déplacement puis d'hébergement sont remboursés par la Société.
17817 M. GOBEIL : Oui.
17818 LE PRÉSIDENT : Puis ça dure combien de temps?
17819 M. GOBEIL : Une journée, une journée et demie à peu près, approximativement.
17820 LE PRÉSIDENT : D'accord. Puis est-ce que vous savez d'avance le sujet de la discussion ou est-ce qu'il y a un ordre du jour, est-ce que les gens de Radio-Canada sont là pour guider les discussions ou...
17821 M. GOBEIL : Bien, oui, il y a un ordre du jour. Autrement dit, on a une présentation de l'ensemble des directions, des grandes directions de Radio-Canada. Donc, nouveaux médias, direction radio, direction nouvelles, direction télévision. Et, après ça, une présentation des différentes directions régionales également de l'ensemble du Canada, donc la Direction francophone de l'Ouest, Direction francophone de l'Ontario, du Québec et autres.
17822 Puis, tout à l'heure, on parlait des échanges. Évidemment, on n'est pas un comité de gouvernance, mais ça amène des éléments extrêmement intéressants en termes de visibilité. Donc, moi, je donnais un exemple probant. J'ai vu dans la présentation de la Direction de l'Ouest un programme qui a été mis en place pour intégrer les jeunes au milieu journalistique.
17823 Et puis c'était quelque chose qui n'était pas offert au Québec puis je trouvais ça extrêmement pertinent de le faire entre autres pour les régions du Québec. Et j'ai avisé, parce qu'il était présent également sur place, celui qui est directeur des régions du Québec pour dire : « Regarde, ce serait peut-être quelque chose qu'on pourrait faire chez nous aussi. »
17824 Donc, ça assure cette visibilité-là puis cette possibilité-là d'échanges sur les types de produits qui sont faits un peu partout dans notre...
17825 M. DOYON : Les pistes d'action et les contacts même de suggérer quand c'est le cas, quand il y a des nouveautés, des choses qui se passent sur le terrain quand il y a des... J'ai donné l'exemple de mobilisation communautaire parce que les gens se prennent en mains, sont obligés en milieu minoritaire. Si on est capables d'un peu nourrir cette réflexion-là aussi, voir les sujets de l'heure, surtout en région, puis de faire connaître les autres régions aux autres régions. Puis, ça, c'est bien important.
17826 LE PRÉSIDENT : Lors de ces rencontres, qu'elles soient au téléphone ou à Montréal, est-ce que les vice-présidents... Monsieur Lalonde, est-ce qu'il est...
17827 M. GOBEIL : Monsieur Lacroix.
17828 LE PRÉSIDENT : ...est là ou monsieur...
17829 M. GOBEIL : Ah, monsieur Lalande? Oui, oui.
17830 LE PRÉSIDENT : Oui?
17831 M. GOBEIL : Bien, il vient à l'occasion. Mais, évidemment...
17832 LE PRÉSIDENT : Monsieur Lacroix aussi?
17833 M. GOBEIL : Monsieur Lacroix, non. Je l'ai rencontré quand il est venu à Rimouski, là, lors de l'annonce officielle du Centre de production. Mais monsieur Lalande est venu. Monsieur Lacroix, je pense qu'il est venu une fois nous saluer brièvement pour nous donner un peu les grandes lignes, les grands projets de Radio-Canada.
17834 LE PRÉSIDENT : Votre mandat sur les comités est de quelle durée normalement selon votre expérience?
17835 M. DOYON : Pas de mandat précis à ce que je sache, là.
17836 LE PRÉSIDENT : Est-ce que la tendance, est-ce que les gens participent pendant un an, deux ans, trois ans ou est-ce que c'est une rencontre à la fois, combien de temps êtes-vous là?
17837 M. DOYON : Il n'y a pas vraiment de formule. Je pense que ça dépend des disponibilités, de la capacité d'engagement des gens qui sont là. Il y en a qui sont là depuis un certain moment, mais il y en a d'autres... dans notre, cas, on est les derniers arrivés presque, peu importe...
17838 LE PRÉSIDENT : Selon votre connaissance, les gens en moyenne restent là combien de temps?
17839 M. DOYON : Peut-être un deux, trois ans.
17840 M. GOBEIL : Deux, trois ans.
17841 LE PRÉSIDENT : Deux, trois ans?
17842 M. GOBEIL : Deux, trois ans, oui.
17843 M. DOYON : C'est arbitraire, ça, là, sans avoir de méthode de mesure.
17844 LE PRÉSIDENT : Il y a une certaine rotation qui est plutôt organique, parce que...
17845 M. DOYON : Oui.
17846 LE PRÉSIDENT : ...comme vous disiez, il n'y a pas de structure formelle...
17847 M. DOYON : Oui, exactement.
17848 LE PRÉSIDENT : ...de gouvernance. Quand la Société Radio-Canada était à élaborer son plan stratégique 2015, est-ce que vous avez été consultés d'une façon sur l'élaboration de ce plan?
17849 M. DOYON : On nous tient au courant de ce qui se passe à l'interne. Et puis on nous consulte. C'est plus par rapport à la programmation, s'assurer que...
17850 LE PRÉSIDENT : Donc, on vous informe plutôt que...
17851 M. DOYON : Oui.
17852 LE PRÉSIDENT : ...de vous demander votre point de vue pour formuler le plan stratégique.
17853 M. DOYON : Oui, oui. Puis c'est important de spécifier le fait que, nous, on est le maillage, on représente un peu le maillage avec la communauté à cause du travail puis des liens qu'on a déjà. Ça fait que c'est très organique, comme vous venez de dire, mais, le feedback, ça va des deux côtés.
17854 LE PRÉSIDENT : O.K.
17855 M. DOYON : Donc, tu sais, on est capables de donner des nouveautés, nous autres aussi, sur le terrain.
17856 LE PRÉSIDENT : Suite au budget 2012, le budget fédéral, Radio-Canada a eu à prendre des décisions difficiles à cause d'une réduction du financement. Est-ce que vous avez été consultés ou est-ce qu'il y a eu des conversations concernant les priorités que Radio-Canada devait...
17857 M. DOYON : Bien, il y a le FAPL, je veux dire, ça, ça fait partie de nos discussions puis de l'impact de ces coupures-là comme exemple concret sur le terrain au niveau de la programmation.
17858 LE PRÉSIDENT : Mais, sur le, je comprends, là, sur le FAPL...
17859 M. DOYON : Oui, oui.
17860 LE PRÉSIDENT : ...j'ai bien lu vos commentaires. Mais sur le budget fédéral qui a eu un impact, une coupure d'à peu près 10 pour cent.
17861 M. GOBEIL : Bien, moi, je me rappelle que ça avait été évoqué. Autrement dit, ce qu'ils nous avaient donné comme information à l'époque des coupures, c'était de dire : « On continue à maintenir le cap sur les grandes orientations stratégiques -- qui nous avaient été partagées aussi -- malgré le fait des coupures, on veut essayer de maintenir les orientations qui avaient été déterminées puis d'aller dans cette direction-là. »
17862 Mais, évidemment, les gens des différentes directions tant nationales que régionales nous ont donné comme information que ça a amené évidemment une certaine restructuration à l'interne, mais que les objectifs demeuraient les mêmes.
17863 LE PRÉSIDENT : Lorsqu'on vous consulte, mettons qu'il y a des points de vue que vous allez faire valoir lors de ces conversations-là, à un moment donné, la direction a peut-être choisi d'aller dans une autre direction, est-ce qu'on vous revient pour vous expliquer pourquoi que vos recommandations n'ont pas été retenues?
17864 M. GOBEIL : Bien, je dirais, c'est un forum d'échanges. Donc, on comprend que, même si on donne des recommandations ou si on partage des points de vue de nos régions, que ces commentaires-là qu'on formule, la Direction de Radio-Canada a la liberté complète en regard des décisions qu'elle devra prendre. Donc, dans ce contexte-là, c'est sûr qu'on peut toujours amener des... Puis, les commentaires, des fois, ça amène des discussions viriles sur certains points. Mais une chose est certaine, au moins, on a le sentiment que notre...
17865 M. DOYON : Mettons qu'on est verbal, nous autres.
17866 M. GOBEIL : Oui, oui, oui, on est tous des verbaux.
--- Laughter
17867 M. GOBEIL : Mais, je veux dire, on réussit quand même à amener nos commentaires. Puis, si jamais effectivement, malgré nos commentaires, on s'aperçoit que les choses demeurent quand même comme ça, on a toujours la latitude... C'est vraiment un forum ouvert. Donc, les discussions sont franches, animées. Puis on peut toujours donner notre point de vue là-dessus.
17868 LE PRÉSIDENT : La raison que je vous pose la question, c'est qu'on a eu des échanges plus tôt cette semaine avec des membres des communautés de langues officielles en situation...
17869 M. GOBEIL : Oui.
17870 LE PRÉSIDENT : ...minoritaire. Et certains d'entre eux ont partagé une certaine frustration, c'est-à-dire qu'ils voulaient être plus engagés pour avoir un dialogue plus riche comme celui que vous semblez avoir. Et, souvent, ce qui arrivait, c'est qu'on les informait de faits accomplis -- selon eux, là, c'est leur perception -- et puis même lorsque des propositions qu'ils avaient mises de l'avant n'ont pas été retenues, ils ne recevaient pas de rétroaction du pourquoi. Est-ce que votre expérience est autre au sein du panel?
17871 M. GOBEIL : Je vais te laisser parler, c'est toi le...
17872 M. DOYON : Bien oui. Je pense que les communications sont assez fluides. On ne peut pas parler, moi, je ne peux pas parler, en tout cas, pour ces groupes-là. Je connais beaucoup de ces joueurs-là. Mais il y a une différence vraiment, vraiment importante à faire, une distinction à faire entre le panel puis les autres mécanismes de maillage avec la communauté qu'il peut y avoir. Nous autres, on ne représente pas, oui, on siège... Bon, dans mon cas, je représente l'Ontario, mais je ne représente pas de groupe.
17873 Et puis, moi, ce qui se passe à Rivière-du-Loup dans l'Est du pays est aussi important -- je tiens cap là-dessus, moi -- que ce qui se passe chez nous. Je ne suis pas en train de défendre, je suis capable de partager ce qui se passe chez nous, mais c'est vraiment une vue d'ensemble de l'intérêt national qu'on a comme groupe de discussion.
17874 Puis on maintient vraiment cette saveur-là dans les discussions, plutôt que de dire : « Ah oui, mais les artistes; oui, la diffusion ou... la diffusion artistique ou... puis tel secteur, tel secteur. » Ce n'est pas du tout comme ça que ça se passe.
17875 Ça fait que je ne sais pas si ça répond un petit peu, là. C'est un peu qualitatif, la façon que je vous présente ça, mais c'est très important à souligner d'après moi, là, que c'est un peu les... ça fait partie des principes puis du point de vue puis de la nature de la réflexion qu'on tente d'avoir comme groupe, là.
17876 LE PRÉSIDENT : Donc, c'est une conversation qui est plus large, peut-être plus équilibrée de...
17877 M. DOYON : Oui, oui, par rapport aux résultats, puis à l'impact, puis la présence, puis l'effet de la programmation. Pas nécessairement de dicter ou de suggérer comment faire la programmation, mais que Radio-Canada soit conscient de la place que ça occupe puis l'effet, l'impact que ses programmes, sa diffusion a sur ces communautés minoritaires-là.
17878 LE PRÉSIDENT : O.K. Comme vous savez, on a discuté plus tôt cette semaine -- peut-être que vous avez pu suivre l'audience -- sur la réduction à Windsor, sur la radio francophone de Windsor, le nombre d'heures locales.
17879 M. DOYON : Um-hum.
17880 LE PRÉSIDENT : Est-ce que, ça, ça a été un sujet qui a été abordé au panel des régions?
17881 M. DOYON : Oui, à plusieurs reprises.
17882 LE PRÉSIDENT : Quelle était la nature de la conversation, de l'échange?
17883 M. DOYON : Bien, là, je n'ai pas de procès-verbal nécessairement ou de faits à vous partager, mais c'est vraiment de l'importance puis de voir, d'essayer de trouver des solutions intégrées du point de vue maillage avec la communauté, les impressions, qu'est-ce qui se passe sur le terrain puis d'être capable d'un peu refléter ces réalités-là puis de nourrir la réflexion des décideurs au niveau de Radio-Canada puis de... pas d'encourager, mais de nourrir cette sensibilité-là puis de s'assurer de bien comprendre l'ensemble des enjeux. On est un morceau de plusieurs enjeux, plusieurs facteurs desquels tenir compte pour ces décisions-là à l'interne, j'imagine.
17884 LE PRÉSIDENT : Qui a amené la question de Windsor en premier sur la table? Est-ce que c'est Radio-Canada qui vous a approchés pour voir votre point de vue ou est-ce que c'est le panel qui a soulevé...
17885 M. DOYON : On a une des membres qui vient de Windsor. Dans le cas de l'Ontario, étant donné qu'on est plusieurs puis c'est assez étendu, on a une représentante de Windsor, qui...
17886 LE PRÉSIDENT : Donc, c'est...
17887 M. DOYON : ...qui tient bien ce drapeau-là, là, je vous assure.
17888 LE PRÉSIDENT : D'accord. C'est quelqu'un du panel qui a soulevé, ce n'est pas Radio-Canada...
17889 M. DOYON : Absolument.
17890 LE PRÉSIDENT : ... qui a approché le panel pour voir qu'est-ce qui en était.
17891 M. DOYON : C'est ça. Bien, les deux. Puis, là, ça occasionne une belle discussion. Puis, en même temps, il y a un rapport sur les nouveautés puis qu'est-ce qui se passe avec ce dossier-là. Puis, en même temps, bien, ça part vraiment de la dame qui représente ou qui vient de cette région-là.
17892 LE PRÉSIDENT : Vous ne trouvez pas que c'est un peu aléatoire? On aurait pu être dans une situation qu'il n'y avait personne sur le panel des régions qui venait de la région de Windsor.
17893 M. DOYON : Il reste qu'on... moi, je demeure à l'affût de ce qui se passe. Je veux dire, je fais mes devoirs, question de diligence aussi, là. On se tient au courant de ce qui se passe un peu partout. J'ai quand même une relation assez privilégiée avec l'ensemble des journalistes qui sont à Sudbury. Il y a des discussions, la Direction régionale, et puis un peu de voir qu'est-ce qui se passe. Mais on est consommateurs de ce qui se passe à Radio-Canada aussi, là. Ça fait que...
17894 M. GOBEIL : Puis je me permettrais d'ajouter aussi : ce qui se passe à Windsor, le même scénario pourrait se répéter à d'autres endroits. Donc, évidemment, s'il n'y a pas de représentant de Windsor au sein du panel des régions, ça peut quand même amener du questionnement. Je peux vous parler de mon ancienne vie qui était à Matane. Et, évidemment, bien, les gens sont préoccupés de la station de radio de CBGA Matane. Il y a déjà eu des barricades à Matane justement pour protéger des services de télévision.
17895 Donc, on voit ce qui se peut se passer à Windsor. Donc, ça peut amener des échanges aussi. Donc, nous, même si je viens du Bas-Saint-Laurent, je peux appuyer les revendications puis également les demandes qui peuvent être apportées par les autres communautés francophones.
17896 LE PRÉSIDENT : Oui, je comprends bien que vous avez une affinité par votre réalité régionale avec les gens...
17897 M. DOYON : Absolument. Puis c'est la raison d'être du panel, c'est d'être la voix, un peu le sounding board, comme on dit en bon français, là.
17898 LE PRÉSIDENT : Mais, étant donné qu'il n'y a pas de gouvernance formelle autour de ça, j'imagine que, votre nom, le fait que vous êtes sur le panel, ce n'est pas affiché, mettons, sur le site Web de Radio-Canada...
17899 M. DOYON : Ça, je ne le sais pas.
17900 LE PRÉSIDENT : ...les gens qui chercheraient à vous contacter devraient se débrouiller un peu tout seuls pour vous retracer.
17901 M. DOYON : J'imagine, je ne le sais pas. Je ne peux pas répondre, moi.
17902 LE PRÉSIDENT : Donc, c'est plutôt en réseau informel qui fait en sorte que quelqu'un pourrait...
17903 M. GOBEIL : Tout à fait.
17904 LE PRÉSIDENT : ...soulever... C'est très informel comme situation. Je comprends bien, là, que la gouvernance est un peu floue. C'est une initiative du radiodiffuseur, mais vous l'avez vécue pour une période de temps. Je me demandais si vous aviez à améliorer la façon que le panel fonctionne sur plusieurs points, est-ce qu'il y a des recommandations que vous avez faites peut-être même...
17905 M. DOYON : Bien, ça, on en a parlé à quelques reprises à l'interne, c'est certain. « À l'interne », je dis « À l'interne », mais au niveau du panel.
--- Laughter
17906 LE PRÉSIDENT : Je comprends.
17907 M. DOYON : Mais je pense que c'est bien important. Ce qu'on a suggéré, moi, ce que j'ai suggéré, entre autres -- puis on en a discuté pas mal -- c'est plus de temps de dialogue et non seulement d'apprendre les nouveautés puis qu'on ait des rapports sur ce qui se passe, parce qu'on est limités en temps. Je veux dire, je pense qu'il n'y a pas beaucoup de ressources pour ça non plus, mais qu'on adresse des problématiques. Si Radio-Canada a ce groupe-là de ressources, de compétence de représentation, c'est qu'on soit capables de se pencher, de nourrir un peu une réflexion plus approfondie sur certains défis ou certaines occasions qui se présentent aussi.
17908 M. GOBEIL : Puis d'ailleurs, la dernière rencontre -- à laquelle tu étais absent d'ailleurs -- ...
17909 M. DOYON : Oui.
--- Laughter
17910 M. GOBEIL : ...on a commencé à travailler sur, justement, les modes de partage et puis de, je dirais, de cocréation sur, ou de cosuggestion sur des grands éléments. On a commencé à discuter de quelle façon à la prochaine rencontre du panel on pourrait amener justement pas seulement qu'un sounding board, mais également un espace dans lequel on pourrait échanger et puis apporter aussi des idées qui pourraient contribuer aux programmations des autres directions régionales du Canada.
17911 LE PRÉSIDENT : Est-ce que les membres du panel se rencontrent seulement les membres du panel entre vous ou est-ce qu'il y a toujours quelqu'un de Radio-Canada avec vous?
17912 M. GOBEIL : Bien, pas dans notre chambre d'hôtel, en tout cas, ils ne nous suivent pas, là.
--- Laughter
17913 LE PRÉSIDENT : Non, mais je veux dire, en groupe, là, en...
17914 M. DOYON : Oui, oui.
17915 M. GOBEIL : Oui, en groupe, ils sont là, mais, ce qui est intéressant, cependant, c'est qu'il y a quand même une communauté qui se développe. C'est-à-dire que, Yves et moi, on a communiqué sur d'autres projets, tu sais, d'autres éléments de discussion qu'on a eus entre nous, tu sais. Des échanges qui ont été faits également avec Clarence LeBreton, qui est en Acadie, j'ai discuté avec lui sur d'autres éléments. Également Louise qui est à Québec.
17916 Donc, ces échanges-là, tu sais, cette rencontre-là d'individus qui ont déjà un point commun -- qui est, je dirais, une affection particulière pour le service public de télédiffusion puis de radiodiffusion -- fait que, effectivement, bien, on trouve d'autres points communs, d'autres points de discussion. Puis, des fois, ça peut nous permettre d'arriver à un prochain panel avec des éléments de discussion qu'on aura échangés entre nous sans nécessairement les avoir apportés en priorité à Radio-Canada.
17917 M. DOYON : Les directions régionales sont là aussi. À prime abord, ils écoutent, ils observent, mais ils posent des questions aussi plutôt que juste nous nourrir de l'information. Ça fait que, nous, on a les discussions, on donne du feedback sur les programmes puis tout le reste. Puis, là, on nous pose des questions, puis on creuse pour voir, O.K., essayer de comprendre le sens dans les questions, les défis qu'ils ont puis les pistes d'action et tout le reste pour être capable de nourrir leurs équipes respectives. Moi, c'est comme ça que je le comprends, en tout cas.
17918 LE PRÉSIDENT : Donc, les rencontres en personne à Montréal, j'imagine, vous trouvez ça très utile, mais il y a toujours... ça coûte plus cher. Est-ce que vous trouvez les appels conférences, ou peut-être c'est des vidéoconférences, je l'ignore...
17919 M. GOBEIL : C'est des appels conférences.
17920 LE PRÉSIDENT : C'est des appels conférences. Est-ce que vous les trouvez aussi efficaces qu'une rencontre en personne?
17921 M. GOBEIL : Bien, évidemment, ce n'est pas la même teneur dans la qualité du rapport humain, le fait de voir des gens puis pouvoir aussi avoir des rencontres individuelles, donc de prendre telle ou telle personne à partie puis de discuter d'un autre sujet à part qui peut avoir en lien entre autres Radio-Canada. C'est le genre de disposition qui est impossible avec une forme virtuelle, avec une conférence téléphonique.
17922 LE PRÉSIDENT : Est-ce que, deux rencontres par année, à votre point de vue, c'est suffisant?
17923 M. DOYON : Bien, ça va dépendre du format qu'on va prendre, les discussions commencées par rapport à la façon d'échanger puis l'espace qu'on crée, la cocréation, comme André vient de mentionner. Ça sera à voir. C'est certain que, deux rencontres en personne, ça porte fruit. On voit...
17924 LE PRÉSIDENT : Évidemment, il y a des coûts associés à ça, là, je...
17925 M. DOYON : Oui, ça, c'est... oui, exactement.
17926 LE PRÉSIDENT : Et, même, nous, dans l'appareil fédéral, on tente dans la mesure du possible d'utiliser des moyens de télécommunication plutôt que des déplacements pour nous sensibiliser aux coûts.
17927 Quatorze, est-ce qu'il y a beaucoup de poids sur vos épaules, n'étant que 14? Est-ce que c'est suffisant?
17928 M. GOBEIL : Bien, je vous dirais...
17929 M. DOYON : Je pense que les personnes qui sont présentes sont les bonnes personnes. Puis il faut s'en tenir à ça, comme principe. Je veux dire, il pourrait y en avoir 30 comme il pourrait y en avait 5 puis...
17930 LE PRÉSIDENT : A votre connaissance, est-ce qu'il y a du monde qui cogne à la porte qui voudrait participer qui, malheureusement, ne peut pas parce qu'il y a un nombre limité?
17931 M. DOYON : Pas à ma connaissance.
17932 M. GOBEIL : Pas à ma connaissance non plus.
17933 LE PRÉSIDENT : Je pense que j'ai fait le tour d'essayer de mieux comprendre, là, comment ça fonctionnait, ce truc.
17934 M. DOYON : Oui.
17935 LE PRÉSIDENT : Madame Poirier, je crois, aura des questions.
17936 CONSEILLÈRE POIRIER : Oui. Bonjour messieurs.
17937 M. GOBEIL : Bonjour.
17938 CONSEILLÈRE POIRIER : Est-ce que vous avez écouté un peu les audiences depuis le début des audiences il y a déjà une dizaine de jours ou hier? Est-ce que vous étiez là quand les groupes franco ont parlé? Avez-vous entendu les commentaires, lu les journaux?
17939 M. DOYON : Envoie fort.
17940 M. GOBEIL : Non, vas-y.
17941 M. DOYON : Moi, je me suis tenu au courant. Je ne pouvais pas physiquement trouver le temps de faire ça, mais, dans la préparation des mémoires de ces groupes-là, moi, on m'a gardé au courant par exprès, là.
17942 CONSEILLÈRE POIRIER : Oui. Alors, qu'est-ce que vous pensez de ce que vous avez entendu? Qu'est-ce que vous pensez de ce que vous avez lu qui touche plus particulièrement le comité des régions?
17943 M. DOYON : C'est un peu difficile de se prononcer là-dessus, là, parce que j'ai vraiment lu en diagonale puis écouté, puis je suis allé chercher ce que je pouvais. Je pense qu'il y a une différence -- puis je reviens à ce que j'ai mentionné tantôt -- il y a une différence entre la représentation... parce que, dans le cas des besoins comme je les lis de ces groupes-là, c'est de faire partie de la prise de décision puis avoir des recommandations puis qu'elles soient tenues et qu'on passe à l'action avec ces recommandations-là.
17944 Mais je pense qu'au niveau de gouvernance, comme principe, quand il y a de la représentation, les gens qui siègent alentour de cette table-là voient aux intérêts de leur groupe respectif. Mais je vois difficilement comment les gens peuvent voir au gros portrait puis aux intérêts plus globaux. C'est certain que c'est par secteur dans ce cas-là.
17945 Mais, au niveau de gouvernance authentique -- si je peux me permettre de dire ça comme ça -- une des grandes valeurs du panel, d'après moi -- puis je ne serais pas là, je ne resterais pas là si ce n'était pas le cas ou je ne ressentais pas un impact ou un potentiel dans tout ça -- c'est qu'on voit à l'ensemble dans nos discussions comme principe.
17946 Je sais que c'est qualitatif, ce que je dis là, mais je trouve que c'est très, très, très important. Je pense qu'il y a une valeur aux requêtes puis au besoin de se faire entendre puis que Radio-Canada reflète les intérêts puis les préoccupations de ces groupes-là. Il n'y a pas de mauvaise réponse, là. C'est certain que les argumentaires sont solides.
17947 Mais je ne sais pas si le lien est à faire avec le panel des régions parce que je sais que Radio-Canada a d'autres mécanismes de maillage avec la communauté. Je pense qu'on s'en tient au panel, puis la définition du panel, puis sa raison d'être et tout le reste.
17948 Mais, moi, ce que je souhaiterais voir, c'est plus d'accent sur l'impact de ces programmes-là puis des renouvellements de licence, l'impact sur les communautés minoritaires. Mais on n'est pas en train de parler de ça. Je sais que c'est le processus. Moi, mon souhait, ce serait ça, qu'on parle de l'impact et non de la prise de décision nécessairement.
17949 CONSEILLÈRE POIRIER : Um-hum.
17950 M. DOYON : Parce que... En tout cas, c'est ça.
17951 CONSEILLÈRE POIRIER : Oui. Je vais vous résumer quelques-uns des éléments...
17952 M. DOYON : Um-hum. Oui.
17953 CONSEILLÈRE POIRIER : ... que j'ai beaucoup entendus hier entre autres. Les gens disaient : « On devrait faire un appel de propositions public pour que les gens puissent appliquer officiellement à ce poste-là. » Les gens nous disaient qu'il devrait y avoir un ordre du jour connu de ces réunions-là pour qu'on sache de quoi il va être parlé et que nos représentants puissent nous représenter.
17954 Ils nous ont dit que les minutes de ces rencontres-là devraient être publiées pour qu'ils puissent les connaître. Et, bien sûr, il devrait y avoir directement un moyen d'évaluation d'impact, c'est-à-dire une rétroaction après ces rencontres-là pour voir de quelle façon ce qui est discuté a réellement un impact. Je vous résume les quatre principales que j'ai entendues.
17955 M. DOYON : Um-hum.
17956 CONSEILLÈRE POIRIER : Comment réagissez-vous à ces recommandations-là?
17957 M. GOBEIL : Je vous dirais, évidemment, tout le monde est pour la vertu puis de s'assurer qu'il y ait une plus grande transparence, une plus grande diffusion. C'est sûr et certain que, nous, on n'est pas décisionnels en regard de la composition du panel, de la façon qu'il est composé, de la façon qu'il doit rendre compte aussi à la population.
17958 Mais, jusqu'à présent, j'ai la conviction que c'est un forum qui est utile, qui est pratique et qui permet aussi une interaction dans sa flexibilité. Si on décide d'en arriver à dire : « Bon, bien, on fait des comités de sélection. On rajoute des cadres. On rajoute d'autres cadres. » Peut-être que les mécanismes vont être tellement plus lourds puis que, après ça, les gens vont vouloir demander une gouvernance ou encore une façon de diriger et que, finalement, on va perdre un peu l'essence même de ce que Yves évoquait tout à l'heure, l'échange entre tout le monde. Puis l'autre...
17959 M. DOYON : L'émergence d'idées, l'émergence de besoins. Puis ce forum, l'échange, là...
17960 M. GOBEIL : Oui. Puis, l'autre élément aussi qui est non négligeable... Je ne sais pas s'il y a eu beaucoup d'associations d'auditeurs des régions du Québec; est-ce qu'il y en a? Je ne sais pas, je n'ai pas suivi tous les débats. Parce que...
17961 CONSEILLÈRE POIRIER : Ce n'est pas des associations d'auditeurs. C'étaient des représentants de communautés, des associations...
17962 M. GOBEIL : Oui, des communautés francophones du Canada.
17963 CONSEILLÈRE POIRIER : C'est ça.
17964 M. GOBEIL : Mais il y a une réalité aussi qui est non négligeable et qui a également sa place au sein du forum, puis c'est un peu pour ça que j'y suis présent aussi, en étant de l'Est du Québec. Nous aussi, comme région, on a des préoccupations du Montréal-oriented, là -- si on peut le dire ainsi, là. C'est-à-dire, nous aussi, on veut que notre voix soit entendue. Nous aussi, on veut avoir accès à des nouvelles qui sont objectives. Et, si on ne peut pas être présents dans un panel comme celui-là, le fait d'être sans voix nous fait un peu peur. Et cette occasion-là, bien, je la trouve précieuse de pouvoir être là-bas et de pouvoir partager ces éléments-là.
17965 CONSEILLÈRE POIRIER : Vous dites que c'est un forum utile, O.K. Est-ce que vous êtes à même de mesurer concrètement de quelle façon vous êtes utiles? Est-ce que vous avez des exemples à donner de résultats qu'il y a eu suite à vos interventions, que vous avez vu un changement direct ou une orientation qui a été prise?
17966 M. GOBEIL : Bien, là-dessus, moi, c'est ma première année. Mais, comme je vous disais tout à l'heure, il y a des rencontres de prévues en janvier avec la Direction régionale à Rimouski pour parler justement de la possibilité de développer un projet comme celui qui a été fait dans l'Ouest avec les jeunes auditeurs pour leur donner accès à une salle de nouvelles et à une production de nouvelles.
17967 Il y a une émission qui a été produite dans l'Ouest canadien avec des jeunes francophones. Puis on travaille à ce que ce projet-là que j'aurais... Je n'aurais jamais connu ce projet-là si je n'avais pas été membre du panel des régions. J'ai peu de temps dans ma vie pour pouvoir me brancher sur TOU.TV puis écouter des émissions de l'Ouest canadien le soir.
17968 Et, lors de cet événement-là, j'ai pu voir ces choses-là et dire aux personnes qui étaient en place : « Eille, ce serait quelque chose qui serait drôlement intéressant de dupliquer au Québec. » Et, là, on travaille là-dessus. Donc, ça, c'est un exemple concret qui est finalement sur une base d'échange et, ça, je trouve ça intéressant.
17969 M. DOYON : Moi, si je peux me permettre un des impacts, parce que ça a été souligné à plusieurs reprises, surtout en lien avec Espace Musique, c'est qu'il y ait une présence régionale Espace Musique au niveau des animatrices dans notre cas.
17970 Et puis dans la communauté je pense que c'est très important qu'on s'entende nous-mêmes en ondes parce que « Qui se ressemble s'assemble » puis si on ne se reconnaît pas dans la diffusion, dans la programmation, elle a moins d'impact.
17971 C'est certain qu'au niveau de la diffusion, de l'information, ça, ça marche, mais s'il n'y a pas de contenu qui nous ressemble ou qu'il n'y a pas de livraison qui nous ressemble, ça, on en a parlé à quelques panels et puis ça s'est réalisé.
17972 Ça adonnait peut-être juste comme ça, mais j'ai pour mon dire que l'opinion que j'ai eue qui est assez verbale dans les deux, trois, quatre panels auxquels j'ai participé, j'ose croire que ça a eu un impact, que ça a validé un peu les décisions qui se prenaient à l'interne.
17973 M. DOYON : Puis on avait la chance également -- mon Dieu, les exemples nous viennent -- on avait la chance aussi de voir les productions qui étaient... vu que ce n'est pas quand même l'objet de la présentation d'aujourd'hui, mais du FAPL, des projets qui avaient été développés du programme FAPL, la mesure, et puis, moi, ça m'a permis d'allumer des gens dans mon milieu pour dire, ah! il y a telle opportunité, telle opportunité, avec des boîtes de production vidéo de la région du Bas Saint-Laurent avec l'information que j'avais pu me procurer à partir du panel.
17974 CONSEILLÈRE POIRIER : Alors, j'aurais une dernière question, monsieur le Président.
17975 Est-ce que... vous avez parlé qu'il existe d'autres mécanismes et vous avez dit le mot de « maillage » pour que la SRC puisse consulter la population. Quels sont les autres...
17976 M. DOYON : Il faudrait demander à Radio-Canada.
17977 CONSEILLÈRE POIRIER : O.k. Vous, vous ne les connaissez pas?
17978 M. DOYON : Pas concrètement pour les nommer ou rendre justice ou les décrire, non.
17979 M. GOBEIL : Mais à tout le moins, lors du panel, on nous partage des événements comme celui-là. Donc, moi, j'étais au courant de ce qui s'était fait à Sudbury puis on a parlé également du « Sommet de Matane » qui avait eu lieu à Matane.
17980 Donc, lorsqu'il y a eu des éléments comme ça de maillages comme ça qui ont été faits, on nous les évoque si jamais on n'a pas participé.
17981 M. DOYON : Mais il y a un exemple qui me vient en tête. Il y a peut-être un mois, la nouvelle direction provinciale, le nouveau directeur est allé à Sudbury puis il y a eu une rencontre communautaire là.
17982 Ça fait que c'était très informel, mais il reste qu'il y a d'autres mécanismes, d'autres rencontres qui se passent là, puis des discussions qui se passent à ce niveau-là pour que les "leaders", les décideurs aient un peu un contact direct avec les communautés respectives.
17983 M. GOBEIL : Bien, là, j'en ai un autre. Lors du Centre de production aussi, l'ouverture du Centre de production de Rimouski dans l'est, il y a eu deux journées « Portes Ouvertes » où les gens étaient sur place et la population était invitée à venir et ont pu échanger aussi avec les artisans de Radio-Canada qui étaient présents.
17984 Donc, c'est des mécanismes qui sont évidemment plus informels, mais qui permettent quand même d'avoir une entrée sur la population.
17985 CONSEILLÈRE POIRIER : Alors, vous, de votre côté, vous n'avez pas de compte à rendre à qui que ce soit, si ce n'est tout simplement dans votre propre milieu, de questionner les gens, de leur dire ce dont vous avez parlé.
17986 M. DOYON : Hum.
17987 CONSEILLÈRE POIRIER : Mais il n'y a pas de mécanisme de reddition de compte à votre communauté d'aucune façon.
17988 M. DOYON : Des mesures comme telles.
17989 M. GOBEIL : De publications, de communiqués de presse ou des choses du genre, non, rien.
17990 CONSEILLÈRE POIRIER : Il n'y a jamais ça. Ça n'a jamais fait... il n'y a jamais eu de communiqué de presse disant, c'est untel qui est le représentant régional, si vous avez des questions, des choses. Vous n'avez pas de blog à ce sujet-là. Vous n'êtes pas sur Facebook pour dire aux gens, si vous avez à me donner un "input" vous pourriez le faire, je suis votre représentant?
17991 M. GOBEIL : Vous n'êtes pas mon amie, mais...
17992 CONSEILLÈRE POIRIER : Bien, pas encore, mais je vais peut-être le devenir.
17993 M. GOBEIL : ... effectivement sur Facebook à l'occasion, effectivement, je lance des... à l'aube d'une rencontre du panel des fois je me permets de lancer une question comme ça à la volée pour demander aux gens de mon milieu s'ils n'ont pas des choses à me partager avant que j'aille justement rencontrer les directions de Radio-Canada.
17994 M. DOYON : Moi, j'ai lancé... j'ai lancé l'appel de façon informelle, verbale, avec des gens que je connaissais, mais aussi sur Facebook en annonçant le fait qu'on préparait notre mémoire puis j'ai eu plein plein de feed-back à ce niveau-là: Est-ce que tu as besoin de l'aide? Puis voici ce que je pense, et tout le reste puis dans la préparation du Mémoire, ça a servi.
17995 Il faut s'assurer qu'on n'est pas à côté de la "track" non plus par rapport à ce que les gens pensent puis, évidemment, c'est des consommateurs, c'est des convaincus, là, qui sont critiques aussi, mais qui tiennent Radio-Canada à coeur.
17996 CONSEILLÈRE POIRIER : Mais vraiment je vous remercie d'être venus parce qu'on aura eu beaucoup d'information sur le Comité régional grâce à vous deux. Merci, messieurs.
17997 M. GOBEIL : Il n'y a pas de quoi.
17998 M. DOYON : Au plaisir.
17999 LE PRÉSIDENT : Et, effectivement, on était très curieux, on nous a posé plusieurs questions. Je sais que vous êtes...
18000 M. DOYON : Est-ce que ça vous éclaire?
18001 LE PRÉSIDENT : Oui, ça nous éclaire beaucoup puis je sais, en plus, que vous faites ça sur votre propre temps et, donc, je tiens à vous remercier d'avoir participé à nos audiences, mais aussi de participer au mandat indirectement de service public de Radio-Canada par vos heures de bénévolat dans ce processus-là.
18002 M. GOBEIL : Ça fait plaisir.
18003 LE PRÉSIDENT : Merci beaucoup.
18004 M. GOBEIL : Bonne chance.
18005 LE PRÉSIDENT : Madame la secrétaire.
18006 LA SECRÉTAIRE : Nous connecterons maintenant avec Montréal. Bonjour.
18007 Nous entendrons maintenant la présentation du Conseil de la culture des régions de Québec et de Chaudière-Appalaches. S'il vous plaît vous présenter et vous avez dix minutes pour votre présentation.
INTERVENTION
18008 M. GOURDEAU : Alors, bonjour. Marc Gourdeau, Président du Conseil de la culture des régions de Québec Chaudière-Appalaches; Suzanne Mercier, Agent de recherche au même Conseil.
18009 On ne reviendra pas de façon exhaustive sur le Mémoire, sur l'aide-mémoire au complet; peut-être souligner les points fondamentaux.
18010 Tout d'abord rappeler que le Conseil de la culture des régions de Québec, Chaudière-Appalaches représente 200 organismes lesquels représentent à peu près 2 500 travailleurs culturels, artistes de tous les secteurs de l'activité artistique et culturelle et patrimoniale de ces deux grandes régions administratives de la Capitale nationale du Québec.
18011 Tout d'abord, le Conseil réaffirme sa croyance en le rôle fondamental de la Société Radio-Canada par ses antennes télévision et radio dans le développement d'une culture, d'une activité culturelle diversifiée, plurielle et dynamique dans toutes les régions du Canada.
18012 Le Conseil est aussi conscient de l'environnement économique dans lequel évolue la station Radio-Canada... l'ensemble du réseau de Radio-Canada depuis quelques années, des contraintes que l'on déplore énormément et qui nous font quand même comprendre que la Société a été forcée de faire certains choix.
18013 Tout en comprenant ça, on ne peut s'empêcher dans notre région et parce que notre mémoire vise vraiment ce qui se passe dans la région de la Capitale nationale du Québec, d'être plutôt critique à l'égard du travail fait par Radio-Canada, notamment la télévision, relativement à l'activité culturelle de notre région au cours des dernières années.
18014 Cette critique-là, elle s'appuie sur une analyse de contenus qu'on a fait « monitorer » des émissions à l'automne 2011 et à l'hiver-printemps 2012 qui ont montré une évolution plutôt inquiétante du type de couverture. Il y a la fleur et quelques pots; on va commencer par la fleur.
18015 À une certaine époque, Radio-Canada avait réduit la durée de son Téléjournal local de 18 heures à 30 minutes, ce qui laissait à peu près deux minutes pour parler d'art et de culture. Le retour à un format de 60 minutes qui a amené à peu près 20 pour cent du contenu rédactionnel soit à peu près 10 minutes par jour en couverture artistique et culturelle. Ça, ça n'a pas bougé et, ça, c'est quelque chose dont on est très content et on félicite Radio-Canada pour ça et on souhaite que ça se poursuive.
18016 Là où il y a un peu plus de problème, c'est par rapport à cette couverture-là est-elle représentative de la richesse de la diversité de l'activité artistique et culturelle dans notre région car -- parenthèses -- nous croyons qu'il est du mandat de la Société Radio-Canada autant qu'on lui demande de rendre compte de toutes les différences régionales sur l'ensemble du territoire canadien, il me semble que c'est de son ressort aussi d'être le miroir de la pluralité, de la diversité culturelle dans l'ensemble des régions dans un univers où on parle de plus en plus à l'échelle du Québec à tout le moins, d'une réelle montréalisation de la culture.
18017 La couverture de Radio-Canada rend assez bien compte du volume de l'activité culturelle dans notre région.
18018 Là où il y a un sérieux problème, c'est si on considère que plus de la moitié de l'offre culturelle à Québec est le fait de compagnies, d'artistes de la région de Québec, ceux-ci représentent à peine le tiers de la couverture artistique et culturelle faite par la station de télévision locale de Radio-Canada.
18019 Et si on parle de couverture qui ont, selon nous, un poids encore plus important, on parle de grands reportages et on parle de reportages longs et, entre autres, d'entrevues, ce pourcentage-là descend de façon encore plus importante.
18020 On constate aussi énormément de disparités disciplinaires. Il y a depuis quelques années un virage qui a été pris par Radio-Canada vers les disciplines que l'on présume étant très populaires, beaucoup liées à l'industrie culturelle, au détriment de certaines activités culturelles qui sont pourtant fortement présentes à Québec, notamment la danse et la chanson et la musique classique, pour ne nommer que quelques-unes.
18021 Donc, on se rend compte que ce sont beaucoup les grandes vedettes nationales qui sont... qui bénéficient de la plus large couverture faite par le Téléjournal local de Québec et dans des secteurs disciplinaires, j'oserais dire qu'on se demande si on n'est pas à la recherche du plus petit dénominateur commun et si le contexte économique dans lequel évolue Radio-Canada et la concurrence de cote d'écoute qu'elle semble vouloir livrer, entre autres, à son concurrent privé, TVA, ne justifient pas pour elle ses choix éditoriaux.
18022 On a comparé la couverture de Radio-Canada à celle de TVA et sur le volume, Radio-Canada fait un bien meilleur travail. Par contre, la répartition disciplinaire ressemble énormément à celle que l'on retrouve chez le concurrent privé alors qu'il nous semble qu'il serait du mandat de la Société d'État de favoriser davantage le développement d'une culture diversifiée et plurielle.
18023 Autre fait aussi à noter; là, on tombe dans le qualitatif plus que le quantitatif, moins évident à décrire, mais c'est aussi la vigueur et la façon de faire, Radio-Canada a toujours été considéré dans moult domaines comme étant une référence en excellence journalistique.
18024 On est malheureusement en mesure de constater qu'en ce qui a trait à la couverture artistique et culturelle dans notre région, ce n'est pas nécessairement le cas.
18025 On a l'impression par moment que la chronique culturelle et artistique est un peu la porte d'entrée en journalisme, que le travail ne se fait pas avec la même rigueur qu'on peut retrouver dans d'autres secteurs, que ce soit la politique, l'économie ou encore même le sports.
18026 On a vu à une certaine époque la même personne faire la couverture culturelle et la Météo, alors...
18027 Ça, c'est pour la télévision. Au niveau de la radio, de la première chaîne, c'est davantage rigoureux et la couverture ressemble beaucoup plus à ce qu'est l'offre culturelle dans notre région. Ce qu'on déplore, cependant, c'est que les grandes émissions nationales, culturelles que l'on retrouve à la première chaîne de la radio sont des émissions essentiellement montréalaises, très très rarement rendra-t-on compte de ce qui se passe dans la Capitale nationale où il y a quand même un volume important.
18028 C'est important de rappeler que c'est le deuxième pôle de production de création et de diffusion culturelle au Québec où le nombre d'activités et le nombre d'artistes professionnels, le nombre de compagnies au pro rata de la population est même légèrement supérieur à ce qu'on retrouve à Montréal.
18029 Donc, il nous apparaît... c'est décevant pour nous de voir que les grandes émissions nationales francophones soient strictement montréalaises et concernent très peu ce qui se fait à Québec et dans les autres régions.
18030 Notre Conseil de la culture couvre deux régions administratives, donc ce n'est pas uniquement la Ville de Québec; c'est vraiment la région de la Capitale Nationale. Et dès qu'on sort du territoire immédiat de la Ville de Québec, ce que nos membres nous disent, c'est que c'est encore pire. On va couvrir un fait divers sordide à Sainte-Marie-de-Beauce, mais rarement couvre-t-on une activité culturelle d'importance dans cette ville-là.
18031 Alors, voilà, c'est les constats qu'on a faits. Ce qui nous amène aux recommandations que vous trouvez dans notre lettre-mémoire.
18032 Évidemment, on souhaite que la licence de Radio-Canada, tant radio que télévision de CBVT a Québec soit renouvelée et qu'elle soit sortie quand même de la demande à ce que le Téléjournal local conserve une durée de 60 minutes, que les dix minutes consacrés aux activités artistiques et culturelles restent consacrées à ça.
18033 Petite parenthèse; on retrouve aussi dans le Mémoire que dans la section Arts et Culture, de plus en plus... ça devient de plus en plus un fourre-tout où on va couvrir le Salon Chasse et Pêche, l'ouverture de l'Hôtel de Glace et autres activités commerciales qui n'ont strictement rien à voir avec les arts et la culture.
18034 Donc, de re-centrer la couverture culturelle vraiment sur les arts et la culture, de le faire avec davantage de rigueur et de voir aussi à ce que les émissions culturelles dites nationales se soucient davantage de ce qui se passe à l'extérieur de Montréal et, notamment, dans la région de la Capitale Nationale.
18035 Ça résume les... et une dernière chose aussi; pendant cinq ou six ans, la télévision locale de Radio-Canada mettait à la disposition des organismes culturels sans but lucratif du temps d'antenne gratuit sous forme de messages institutionnels où il n'était ni mention de date, de numéro de téléphone ou quoi que ce soit, temps d'antenne, offre qui a été mise entre parenthèses ce temps d'antenne-là, Radio-Canada voulant le reprendre pour toute l'auto-promotion reliée à son anniversaire, ce qui était compréhensible.
18036 Cette année-là étant terminée, on a tenté de savoir qu'est-ce qui arrivait, ce que cette forme-là d'appui à la culture à Québec était pour revenir et on n'a pas été en mesure d'avoir réponse à nos questions et ce qu'on constate c'est que cette initiative-là qui a donc couru pendant six ans à peu près ne semble pas être renouvelée par la station locale de Radio-Canada.
18037 Alors, merci beaucoup. C'est ce qu'on avait à vous présenter sommairement.
18038 LE PRÉSIDENT : Merci beaucoup pour votre présentation. Monsieur le Vice-Président va commencer avec des questions.
18039 CONSEILLER PENTEFOUNTAS : Alors, bonjour, bon après-midi.
18040 D'abord vous remercier de n'avoir pas fait lecture de votre document; c'est toujours agréable par quelqu'un qui parle de mémoire et avec son coeur et de toute évidence vous avez pensé et vous avez réfléchi profondément à ces questions-là.
18041 Bon, on a entendu beaucoup parler de cette montréalisation des ondes au sein de la Société. On le voit ici, vous avez une impression que la station locale ne se concentre pas assez sur les questions culturelles locales.
18042 D'abord, vous avez mentionné certains chiffres ici, pourcentage de l'ensemble des nouvelles. Est-ce que vous voulez proposer si on peut mettre quelque chose de concret derrière vos revendications et vos observations, vous arrivez à un chiffre.
18043 Est-ce qu'on doit exiger un certain pourcentage du Téléjournal qui doit être dédié à la scène culturelle locale?
18044 M. GOURDEAU : Bien, c'est que déjà il y a un pourcentage qui est dédié à la scène culturelle locale, mais qui est largement le fait de grands artistes nationaux qui viennent chez nous. C'est normal qu'on en parle.
18045 Comment rééquilibrer de rendre la couverture plus éclectique par des noms parce que ça a déjà été beaucoup plus éclectique que ça au moniteur régulièrement ce que fait la Société Radio-Canada, et tant sur le plan disciplinaire que sur le plan du temps et du regard posé sur les artistes et les compagnies de notre région, la Société Radio-Canada a déjà fait beaucoup mieux.
18046 L'impression qu'on a, c'est qu'il y a vraiment un glissement vers une forme plus populiste de couverture culturelle, de la recherche d'attirer le plus grand nombre en vraiment misant sur les grandes vedettes et, évidemment, au détriment.
18047 Comment le quantifier? C'est difficile à dire autrement que d'essayer d'être un reflet plus juste de ce qu'est l'offre réelle culturelle à Québec.
18048 CONSEILLER PENTEFOUNTAS : Non, mais c'est ça. J'essayais de trouver une façon de... une formule par laquelle on peut réglementer, mettre dans quelque chose qui a l'air d'être des conditions réglementaires pour refléter vos observations de ce qui se passe avec la station de Québec.
18049 Vous avez soulevé également ce désir de suivre ou de présenter des nouvelles culturelles hyper populaires et populistes dans le but de concurrencer avec les privés, surtout un privé, tout ça dans le but de chercher les cotes d'écoute qui vont se refléter dans une augmentation des revenus.
18050 J'ai l'impression que c'est central à votre thèse.
18051 M. GOURDEAU : Oui, effectivement. Bien, c'est le constat. Évidemment, ça peut être pris comme un jugement de valeur, ça peut être pris comme quelque chose qu'on présume. Il n'y a personne qui va le dire ouvertement, mais c'est partagé par mes collègues.
18052 Je suis, évidemment, je vais le rappeler, un porte-parole d'une communauté de travailleurs et d'artistes, de travailleurs culturels. C'est la perception que les gens ont et on voit très bien le contexte économique dans lequel évolue la Société Radio-Canada. On sait quelles coupures ils ont dû subir au fil des ans. Les coûts de production augmentent, et caetera, donc deux et deux font quatre, là.
18053 CONSEILLER PENTEFOUNTAS : Mais je ne sais pas par, et on est ouvert à des idées, par quelle voie on peut pousser la Société, la SRC, de couvrir des activités culturelles qui ne sont pas couvertes par le privé. C'est en quelque sorte ce que vous demandez de la SRC.
18054 Quand vous dites « plus éclectique », vous avez parlé, ils font une couverture de la musique populaire et du cinéma populaire et vous aimeriez ça qu'ils se concentrent plus sur la musique classique, les arts visuels qui ne sont pas hyper populaires. Je pense au « Blockbuster » américain et autres, le jazz, le théâtre, la danse, des activités culturelles qui sont de nos jours moins populaires, mais qui doivent faire partie du mandat d'un diffuseur public?
18055 M. GOURDEAU : Absolument. Comme on dit dans notre mémoire, si le diffuseur public ne le fait pas, qui, je veux dire, va le faire?
18056 CONSEILLER PENTEFOUNTAS : Qui le fera. O.k. Et pour... oui?
18057 M. GOURDEAU : Évidement, on n'était pas allé jusque là dans notre réflexion. Ceci étant dit, on peut retourner à Québec et plancher un peu là-dessus et vous communiquer ultérieurement peut-être des pistes de solutions, si vous le souhaitez.
18058 Ici et maintenant, cet après-midi, je n'ai pas le détail de comment on serait en mesure de mettre ça nommément dans une... dans un renouvellement de licence.
18059 CONSEILLER PENTEFOUNTAS : Mais c'est un petit peu tard dans le processus pour ajouter des éléments au dossier.
18060 Vous avez apporté certains chiffres et, vous, vous faites du monitoring, comme vous avez dit tantôt. Vous faites ça par quel... par quel moyen, là? Comment faites-vous pour y arriver à ces chiffres-là? Est-ce qu'il y a un comité qui... Oui?
18061 M. GOURDEAU : En fait, deux choses. Première des choses, on a avec nous, on peut laisser au bureau, si ça vous intéresse, le Rapport d'analyse le plus récent, on en a quelques copies, on peut le laisser au bureau de Montréal.
18062 Sinon, bien nous, on demande à une firme de monitoring média tout simplement de monitorer telle telle telle semaine, ils nous font les rapports avec les durées et les sujets. J'ai moi-même une formation en communication et analyse des médias.
18063 J'ai appris à faire de l'analyse de contenu, donc je me bâtis une grille et on rentre tous les sujets avec les pourcentages, les durées. On met un poids relatif à chacune des interventions selon que c'est une brève... une entrevue, un reportage de fond pour être capable de bien quantifier l'ensemble de tout ça et on produit une analyse.
18064 On met ça dans un chiffrier Excel puis quelque part ça nous sort des pourcentages et voilà. Donc, c'est une méthode scientifique.
18065 CONSEILLER PENTEFOUNTAS : Et, ça, c'est une boîte de monitoring indépendante que vous engagez pour...
18066 M. GOURDEAU : Oui, absolument. Souvent. Soit verbatim; en fait c'est des boîtes qui sont spécialisées dans l'écoute et ils nous fournissent tout simplement un rapport minute par minute du Téléjournal, tous les sujets, la durée de chaque sujet, est-ce que c'était un direct d'un endroit ou fait en studio.
18067 Ça fait que tous les détails sont là. C'est des firmes professionnelles spécialisées en monitoring médias.
18068 CONSEILLER PENTEFOUNTAS : O.k.
18069 M. GOURDEAU : Et, nous, on analyse les résultats par la suite.
18070 CONSEILLER PENTEFOUNTAS : O.k. Vous avez également soulevé une question...
18071 M. GOURDEAU : Selon une méthode de... pardon? Allez-y.
18072 CONSEILLER PENTEFOUNTAS : Allez-y.
18073 M. GOURDEAU : En fait, selon une méthode d'analyse de contenu tel qu'enseigné dans les grandes universités de communications. Moi, c'est comme ça qu'on m'a appris à les faire, donc je présume que c'est bien fait.
18074 CONSEILLER PENTEFOUNTAS : Parfait. Vous avez également soulevé certaines questions quant à la formation de ceux et celles qui font du reportage sur les activités culturelles. Vous avez même parlé de quelqu'un qui lit la Météo et par la suite s'engage à nous livrer des détails sur les activités culturelles.
18075 Bon, tu peux être intéressé par la Météo et en même temps être cultivé et intéressé par la scène culturelle locale.
18076 Mais trouver une façon de juger cet élément-là, c'est une... c'est quelque chose d'assez subjectif, vous ne pensez pas?
18077 M. GOURDEAU : Absolument. C'est clair qu'on rentre là dans un élément qui est beaucoup plus flou et beaucoup plus subjectif que l'analyse quantitative des sujets traités et tout. En même temps, je rappelle, je me fais le porte-parole d'un milieu.
18078 Ce que j'entends des gens, on soulève à plusieurs reprises que la rigueur que l'on reconnaît aux journalistes de Radio-Canada qui vont faire la couverture de ce qui se passe à l'Assemblée nationale, qui vont faire des topos économique qui vont parler d'autres sujets est beaucoup plus affirmée que celle qu'on peut trouver quand vient le temps de parler d'art et de culture.
18079 CONSEILLER PENTEFOUNTAS : Oui.
18080 M. GOURDEAU : Et je vous dirais que par moment on entend certains reportages et on se demande si on a affaire à des journalistes ou à des "groupies". C'est sévère, mais c'est... et ce n'est pas uniquement moi qui le dis, c'est beaucoup de gens dans le milieu, les plus sévères comme les plus indulgents.
18081 CONSEILLER PENTEFOUNTAS : Oui. En tout cas, comme vous dites, c'est plus flou et exiger à ce que les gens sont diplômés en critique de film ou autres, c'est peut-être un petit peu plus délicat étant donné que c'est une question de goût, là. Vous parlez de "groupies" par rapport à des reportages et des gens qui sont plus indépendants de leur point de vue. Ce n'est pas toujours facile.
18082 Moi, je me souviens à l'époque où René Homier-Roy il faisait... il était critique des films et, là, il s'occupe de l'émission matinale à Montréal.
18083 Alors, une formation dans un domaine n'exclut pas une capacité dans une autre et ça aussi il faut se fier au bon jugement des dirigeants de CBVT à Québec.
18084 Est-ce que vous avez quelque chose à rajouter quant à la formation, à l'expérience ou au curriculum vitae des gens qui font des reportages sur les activités culturelles?
18085 M. GOURDEAU : Bien, évidemment qu'on a une université à Québec qui forme énormément de gens qui ne sont pas formés nécessairement pour être des artistes, mais qui font des études dans des champs artistiques qui sont d'excellents communicateurs. On en retrouve dans d'autres médias, les médias communautaires, entre autres, il y a une pépinière là peut-être pour aller chercher des gens.
18086 Puis il y a une chose que je voudrais noter, que la chronique et la critique culturelle, oui, tiens en partie d'une question de goûts personnels, mais il reste malgré tout une rigueur et une capacité d'analyse d'une oeuvre artistique et d'un travail culturel qui dépasse largement les goûts personnels.
18087 J'en ai déjà fait dans une autre vie, être capable de dire que tel type de pièce de théâtre m'intéresse moins, mais elle a été montée avec rigueur et excellente, mais ce n'est pas dans mes goûts, c'est toujours quelque chose qui est possible... qu'il est possible de faire.
18088 Dans le fond, nous, ce qu'on souhaite, c'est que ce travail-là se fasse avec plus de... plus de rigueur, quitte à ce que les spectacles que l'on présente soient par moment critiqués plus sévèrement.
18089 CONSEILLER PENTEFOUNTAS : Oui.
18090 M. GOURDEAU : Je ne demande pas la complaisance.
18091 CONSEILLER PENTEFOUNTAS : En tout cas, écoute, c'était une discussion fort intéressante. Ça nous a permis, mis à part la recherche des cotes d'écoute et la montréalisation, de toucher à d'autres sujets, sujets dont on n'a pas l'opportunité d'en parler depuis presque deux semaines maintenant et pour ça, on vous remercie et d'avoir pris le temps d'être parmi nous aujourd'hui également.
18092 Monsieur le Président, ça complète pour moi.
18093 LE PRÉSIDENT : Merci beaucoup, madame, monsieur, d'avoir participé à nos audiences. Ça a vraiment enrichi notre point de vue et de vous être déplacés à nos bureaux de Montréal pour pouvoir participer par lien conférence vidéo. Merci beaucoup.
18094 M. GOURDEAU : Ça a été un plaisir. On vous en remercie infiniment.
18095 LE PRÉSIDENT : Je vous en pris. On va prendre une courte pause, jusqu'à 1430 puis il nous reste, je crois bien, deux intervenants pour aujourd'hui, donc jusqu'à 1430.
--- Upon recessing at 1417
--- Upon resuming at 1432
18096 THE CHAIRPERSON: Madam Secretary...
18097 THE SECRETARY: Thank you.
18098 We will now proceed with the presentation by MZ Media Inc.
18099 Please introduce yourself and your colleagues. You have ten minutes for your presentation.
INTERVENTION
18100 MR. GRANT: Mr. Chair, Vice-Chair, Members of the Commission, and Commission Staff, my name is George Grant. I am the President and CEO of MZ Media Inc., a subsidiary of Zoomer Media Ltd. I am also General Manager of our radio stations.
18101 To my left is Dan Hamilton, our Vice-President of Sales, and to my right is Mark Lewis, our legal counsel.
18102 We appreciate the opportunity to appear at today's hearing as an intervenor, but before I begin, I would ask Mr. Lewis to clarify one matter.
18103 MR. LEWIS: During the break we were asked about some of the appendices that are part of our presentation today, and I just wanted to clarify that the appendices relate to particular information and data that was contained in our intervention. I can name the paragraphs, but to cite an example, at paragraph 19 we referred to the CRTC "Radio Revenue and Trends" document, and this is the actual document. We have brought it with us today. We have reproduced it in whole.
18104 The other thing that we have done is, because of the intervention filing date relative to the end of the fiscal year, we have brought today the TRAM data, accurate TRAM data through to August 31, 2012, which was not available at the time we filed the intervention. That document is provided at Appendix No. 5.
18105 We referred to the TRAM data and the numbers in the intervention itself, but we have reproduced the TRAM data, updated, and during the course of our presentation today, we can give you an update on the first nine weeks of the new broadcast year, because we have obtained that TRAM data as well.
18106 The other information that was in the intervention at paragraphs 12 and 17 -- these are the charts. These are the actual reproductions of the ranking of the Toronto stations that we refer to in the intervention, as is this chart, which refers to paragraphs 17 and 12 data that we cited, as well as paragraph 18. We have now reproduced that data in a chart form for easy reading.
18107 Finally, we are providing a number of pie charts of the Toronto market, because there seems to be some discussion, which has been ongoing for the last ten days, as to local agency, national, and local direct revenue.
18108 You have this station's financial returns, of course, and we will be referring to the financial performance of Toronto radio with information that is already on the record with the Commission.
18109 THE CHAIRPERSON: Right. So, in most instances, it is just a representation of information already on the record --
18110 MR. LEWIS: Absolutely.
18111 THE CHAIRPERSON: -- and in one case it is information that wasn't available when you filed your intervention.
18112 MR. LEWIS: That's correct.
18113 THE CHAIRPERSON: All right. So, for that one, we will take it under advisement right now, and we will see what we do with it. We are also concerned about fairness to other parties.
18114 Will CBC have a copy of the new information?
18115 MR. LEWIS: Yes, we could provide that.
18116 THE CHAIRPERSON: Yes, please.
18117 MR. LEWIS: Absolutely.
18118 THE CHAIRPERSON: That would be great.
18119 We are not quite accepting it yet, but we will take it under advisement for now.
18120 MR. LEWIS: Yes, you may have -- coming back to it another way, after you hear our presentation, you are likely to have some questions on the information, as we interpret it.
18121 THE CHAIRPERSON: That's fine. Thank you for that.
18122 Let's start the clock back at the beginning. You will have ten minutes.
18123 MR. LEWIS: Thank you.
18124 MR. GRANT: Thank you, Mr. Blais.
18125 MZ Media, licensee of Classical 96.3 and 103.1 FM and AM 740, is absolutely opposed to allowing this public broadcaster to start selling advertising. To be allowed to be funded by taxpayers while competing for advertising with commercial radio broadcasters, who must earn their own way via the proceeds of advertising, is, in our opinion, unconscionable.
18126 We believe that our specialty radio operations would be severely impacted if Radio 2 were to be granted a licence amendment to allow it to broadcast advertising.
18127 We have no doubt that our stations would bear the brunt of advertising migration to Radio 2.
18128 Both Radio 2 and our radio stations cater to an older, less desirable demographic to advertisers. We accept that Radio 2 already has an existing audience, so it would not be cannibalizing our audience.
18129 However, this should not be confused with the cannibalization of our base of advertisers, which would be extensive if you permit Radio 2 to become a commercial broadcaster.
18130 Radio 2 is hanging its hat on the desirability of its format to potential advertisers, especially new advertisers. In this economy, and in the foreseeable future, there is no long line of new national advertisers waiting to spend new dollars on radio.
18131 Although there are some advertisers who look at qualitative audience data from time to time, the majority of radio advertising placed by advertising agencies is purely based on quantitative age demographics.
18132 Over 75 percent of agency-placed radio advertising is purchased against 18 to 54 and 25 to 54 age groups. The bulk of this audience is in the 25 to 54 demographic. That is not the core demographic of Radio 2, nor is it of our stations.
18133 Specialty stations with an older target audience, like Classical 96.3 FM, struggle to get even a small percentage of the all-important 25 to 54 revenue. In order to access that pool of national dollars, our stations are bundled with one or more other stations in Toronto that have a significant 25 to 54 audience, that are also sold by our national advertising rep shop.
18134 Even with the bundling approach, which is only successful a portion of the time, our results are modest against the 25 to 54 demo because major national advertisers normally buy only the top five or six stations within their specified demographic.
18135 Staying with the 25 to 54 female demographic as an illustration, Radio 2 consistently ranks at the bottom of the pack, no higher than fourteenth in the Toronto radio market. We invite you to see Appendix No. 1, which Mr. Lewis will hold up.
18136 This is where CBC's claims are built upon a severely flawed premise. In Toronto, for example, the bigger stations will get a larger share of revenue than their market share would suggest. Smaller specialty stations, like Classical 96.3 FM, or Jazz FM, will get a smaller percentage of the ad revenue than their market share would suggest.
18137 That is precisely why CBC would cannibalize our rather meagre share of national advertising dollars. We invite you to see Appendix No. 2.
18138 To illustrate our point, a Toronto station with a 7 share would likely get about 12 percent of the total radio dollars, which CBC estimates to be around $272 million, while a station with a 4 share would likely only get 2 percent to 3 percent of the radio revenue.
18139 In other words, share is not symmetrical with the percentage of advertising dollars that a station receives.
18140 Therefore, the real story here is in the 45-plus audience demographic and the propensity for harm to our revenue base.
18141 Classical 96.3 FM is Toronto's only all-classical radio station. Radio 2, however, is a direct competitor to our FM station, as 30 to 35 hours per week, or about 30 percent of their programming, is in the classical genre.
18142 Forty-five-plus is the demographic thrust of our radio stations. Radio 2 and Jazz FM are much the same. Only approximately 5 percent of advertising revenue is spent against the older demographics. We would ask you to look at Appendix No. 3.
18143 Radio 2 revenue projections in Toronto will come at the expense of our stations, because Radio 2 will be delivering the same older demo that we covet. We will both be competing for this very small portion of the advertising pie. Again we refer to Appendix No. 3.
18144 The definition of "national advertising" is not a simple exercise, and Radio 2 suggesting that they will only go after national clients is misleading. Using a national rep shop for sales will allow the national rep shop to pitch on all business that falls in the national category, but also the local agency category. When combined, the pool that they are chasing -- and we refer to it as a pool -- is actually 73 percent of advertising revenue, not just the 33 percent defined as national. We would ask you to see Appendix No. 4.
18145 In fact, last week CBC admitted that any advertising that is booked by an agency would be available for Radio 2.
18146 Examples of some accounts that would be considered local agency include Tim Hortons, Swiss Chalet, Rexall Drugs, Sleep Country Canada, and Walmart. They are all multi-outlet retailers.
18147 These multi-outlet retailers would be handled at MZ Media and at many other stations by a local sales team. So when you look at our national and local advertising revenues, as filed with the Commission in our annual returns, a significant amount of local advertising revenue is sold by our reps, but to multiple outlet retailers. And those sales made by our in-house sales reps are advertising dollars that are also at risk based on an ambiguous definition of national advertising.
18148 Based on CBC's definition in their application, Radio 2 would be in a position to sell to advertisers who provide the basis of both our national and local retail advertising revenue, if their application were approved.
18149 CBC also claims that they would bring new advertisers to radio. We find this proposition difficult, as they suggest that they will use a national radio rep shop for sales. National rep shops are brokers, trading and bidding on existing radio business.
18150 National rep shops historically have done no new business development. That is normally generated by local or specialized new business development teams.
18151 CBC claims that it would not harm MZ Media or other market incumbents because it falsely claims that the advertising market is growing.
18152 With the U.S. standing at the precipice of the fiscal cliff and Finance Minister Flaherty's warnings that Canada would be dragged into recession by the U.S., advertising growth is far from certain. In fact, the radio advertising market is, at best, flat. Even mighty Astral Radio recently reported a 1 percent decline for its most recent year.
18153 Corus reported that its cumulative radio revenues rose by only $100,000 in the fourth quarter, compared with the previous year.
18154 Now, let me be clear, that is a difference of only $100,000 on Corus revenues of well over $47 million, which, according to my calculator, is only about two-tenths of 1 percent.
18155 We respectfully suggest that you carefully review the radio revenues in the Toronto market for the year just past and the current broadcast year, because CBC's claims regarding the Toronto market aren't accurate.
18156 Our analysis through the Toronto Radio Advertising Market, what we refer to as TRAM reports that come in to us, shows no growth since Broadcast Year 2006-07. We would ask you to see Appendix No. 5.
18157 And the CRTC commercial radio financial summaries, both national and Toronto, show likewise, as shown to you here in Appendix No. 6.
18158 CBC and its researcher's, PricewaterhouseCoopers, claims of buoyant growth are not based on the reality of the Toronto radio market. In the broadcast year that ended on August 31st, 2012, the advertising revenue in Toronto was more than $1 million less than it was in 2006-07. Our own revenues were down in the year just past, relative to previous years, by a higher percentage than the average.
18159 Another concern is that CBC could also package radio at their existing over-the-air and specialty television forces, and we would bear the brunt of this, as we are one of the smallest independent companies that own specialty television and radio stations.
18160 There is one other element that was not foreseen by CBC when it applied to amend its Radio 2 licence. An alternative Rock FM station, licensed in September in Toronto, is projecting at least $4 million in national revenue during the term of its licence.
18161 Our last comment concerns what appears to be a trade-off that was discussed last week with the Commission. As we understand the offer, if Radio 2 accepts a condition of licence that would require it to add emerging Canadian artists to its playlist, it would be allowed to broadcast advertising.
18162 CBC's role to provide exposure for Canadian talent is clearly defined in the Broadcasting Act. We fail to see how or why the broadcast of recorded music has any relevance to the issue of advertising.
18163 To conclude, we believe it is in the public interest for the Commission to ensure that independent specialty format broadcasters remain viable and are able to provide a high level of service to Canadians, especially those that covet a much more unique demographic than the mainstream broadcast entities.
18164 We therefore ask you to deny CBC's request to broadcast advertising.
18165 We welcome your questions. Mr. Lewis will be quarterbacking that part of our presentation.
18166 Thank you very much.
18167 THE CHAIRPERSON: That's great. I'm not sure if you want a quarterback as much as a catcher, because we are throwing the passes here.
18168 MR. GRANT: That's true. Catcher is probably a better term, sir.
--- Laughter
18169 THE CHAIRPERSON: All right.
18170 Commissioner Duncan will ask you some questions.
18171 COMMISSIONER DUNCAN: Okay. Thank you for your remarks.
18172 I think the first thing I would like to mention, Mr. Grant, is just near the end of your paper you say "as we understand the offer".
18173 I think I was doing the questioning, it was not an offer, it was just throwing out possible alternatives.
18174 MR. GRANT: I will rephrase that, Madam.
18175 COMMISSIONER DUNCAN: Thank you.
18176 I have gone through your presentation or submission and of course I'm very interested in what you had to say today. I wished I had had some of these sheets a little bit longer to look at earlier, but nevertheless maybe we might have a chance to look at them more closely.
18177 I was curious and I'm just sort of going to go through your written submission in the order and ask my questions in the order of that.
18178 You referred to it here again today, about the fact that you had had a significant drop in revenues in the 2011-'12 year and you say your revenues declined 20 percent on your 96.3 station in one year.
18179 MR. GRANT: Actually the percentage decrease was around 15 percent. Now that we have the final results compiled I can be more accurate.
18180 COMMISSIONER DUNCAN: Okay.
18181 Was there a specific reason or is it just attributable to the economy?
18182 MR. GRANT: I think there are a number of reasons. Certainly the economy is very relevant to it.
18183 As we pointed out, there has not been growth, in fact there has been shrinkage since the '06-'07 year looking at the overall.
18184 When we look at our position in the market, we are down toward the bottom of the market, so when advertising budgets are cut, which they have been in a lot of cases, the bottom end of the ladder bears more of that brunt than the top end does.
18185 COMMISSIONER DUNCAN: Okay.
18186 MR. GRANT: But even the big people, the Corus' and Rogers, and so forth, are all pretty much in harmony that we are in a difficult advertising economy and that they don't see much of a turnaround.
18187 MR. HAMILTON: If I could add. Could I add to that, Commissioner Duncan?
18188 COMMISSIONER DUNCAN: Certainly.
18189 MR. HAMILTON: Because we covet such a unique demo -- and you have heard us speak before about targeting boomers and zoomers and we are after this 45-plus audience -- and mainstream agencies don't really covet that. Again, as we allude to, 75 percent of the business is again 25 to 54, so the agency business is very difficult for us to get a portion of.
18190 We have made our headway, or a lot of our revenue comes from what we call local-direct. If you look at the TRAM report, which is Appendix 5, in '11-'12 local-direct was off about 7 percent in the marketplace. So local-direct was particularly a low -- although radio spend was flat or down 1 percent or whatever, local-direct was off way more than that, just the nature of the economy and whatever. These are direct clients that you have one-to-one relationships with.
18191 So when you see that kind of a downturn we are kind of affected more than the stations that would get a larger proportion of their money against the 25 to 54 demo.
18192 COMMISSIONER DUNCAN: So just looking at this report, then, what this report is saying, just at a quick glance here, that as for national revenues they took a huge drop from 21.5 percent to 4.7 percent. Is that correct? The growth not being as significant as the previous year.
18193 MR. HAMILTON: Yes. What that is saying is from '10-'11 to '11-'12 --
18194 COMMISSIONER DUNCAN: Yes.
18195 MR. HAMILTON: -- national revenues were up 4.7 percent.
18196 COMMISSIONER DUNCAN: But their growth, their rate of growth was down I guess. Is that -- growth versus previous year?
18197 MR. HAMILTON: No, their growth was from $74.2 million to $77.7, which is an increase of 4.7 percent.
18198 COMMISSIONER DUNCAN: Yes. But the previous year they went up 20 --
18199 MR. HAMILTON: Local-direct was down from $68.6 to $64.
18200 COMMISSIONER DUNCAN: Yes. No, I was just trying to understand the whole chart.
18201 MR. HAMILTON: Yes.
18202 COMMISSIONER DUNCAN: But previous year it would look that national revenues in that market went up 21 percent.
18203 MR. HAMILTON: Correct. From $61 to $74 million, yes.
18204 COMMISSIONER DUNCAN: Yes. So then in the next year they only went up 4.7.
18205 MR. HAMILTON: Correct.
18206 COMMISSIONER DUNCAN: Whereas I can see that your local-direct, as you call it, is not getting as big an increase the previous year and this current year, most recent year, it actually had a decrease.
18207 MR. HAMILTON: Correct.
18208 And then I would actually -- just to put on the record, I would estimate that some of that growth in '09-'10 to '10-'11 was redefinition of accounts by stations.
18209 A lot of stations have moved accounts from what they called local or local agency to national because it helps in their cost to sale to have it handled by the national rep shop versus locally, so you get some redefinition of where the dollars go in that regard.
18210 COMMISSIONER DUNCAN: So if I was a radio station and wanted my ads to be handled by a national rep, would I do that because possibly it would be more cost effective than having in-house staff?
18211 MR. HAMILTON: No, you would probably use -- national would mean you are dealing with an advertising agency, so, you know, any major retailer who is buying multiple markets would put the hands -- put his advertising budget in the hands of a sophisticated media buying agency to execute versus your one-on-one relationships in a market with an individual store who does their business direct.
18212 MR. GRANT: When you are dealing with an advertising agency, whether the account is a multi-outlet retailer or a national account, the buying patterns are virtually the same. Again, it's driven by cost per point and it's driven by demographics.
18213 COMMISSIONER DUNCAN: Okay.
18214 MR. LEWIS: If I could add one other element, following up on your question, Commissioner Duncan, what happens quite frequently is when there is a contraction of the amount of dollars that. let's say an automobile company might spend overall, they will still try and preserve as much as they can on the 25 to 54 demographic, so they would be buying typically Astral, Rogers, Corus stations and Bell stations in the Toronto market, and then that money that may have been in the previous year's budget that would trickle down to MZ Media or JAZZ 91 wouldn't be there.
18215 COMMISSIONER DUNCAN: Okay.
18216 MR. LEWIS: That's what we are seeing.
18217 I just have one other update, because we were able to pull this morning, because we thought you might be interested, the TRAM numbers for the first nine weeks of the 2012-'13 broadcast year and we are seeing again a flat market. 2012-2013 is --
18218 COMMISSIONER DUNCAN: Excuse me, did you say that was in a chart as well?
18219 MR. LEWIS: No, we haven't produced it.
18220 COMMISSIONER DUNCAN: You're just telling me, okay.
18221 MR. LEWIS: We just got it today because we have just closed out October.
18222 COMMISSIONER DUNCAN: Yes.
18223 MR. LEWIS: But for the period September-October 2012, which is nine broadcast weeks, the Toronto revenue, the TRAM revenue is $45.536 million, a year ago in the same period of time it was $44.7 million, but if you go back to a better year, which was 2010, comparing apples to apples, it was $45.567 million.
18224 So doing the math it's a loss of $30,000 so it's a very flat market going back two years ago. So the market is just not growing in terms of the advertising revenue.
18225 COMMISSIONER DUNCAN: Okay.
18226 MR. LEWIS: And those are the best numbers we could bring you today. Obviously November isn't closed yet.
18227 COMMISSIONER DUNCAN: I think that's very helpful and I think something else you said was helpful there in your written presentation, that your audience share does not necessarily means you have that much of the revenue.
18228 MR. GRANT: That is correct.
18229 COMMISSIONER DUNCAN: Yes.
18230 MR. GRANT: In other words, there is not a direct correlationship between your market share and your advertising revenue share. So the bigger stations will get a larger percentage, the smaller stations will get a smaller percentage and, as I said earlier, if budgets are cut its those that are toward the bottom of the list that will be cut from the number of stations purchased.
18231 COMMISSIONER DUNCAN: Okay. Thank you.
18232 In your written submission you indicate that CBC's Radio 2 market share is showing as more than doubling over the seven years from 1.5 percent to 3.65 percent, but then in another point you make that they would have the added advantage of being able to package their advertising and selling it with their specialty services and their television service, and I was just wondering, in your view, if you think that percentage increase in their market share has taken into consideration that packaging, the benefit of being able to package like that?
18233 MR. GRANT: We are not party to how they arrived at that.
18234 COMMISSIONER DUNCAN: Of course not.
18235 MR. GRANT: So it would be speculation on my part.
18236 I think at the end of the day that is less of a concern to us than the idea that they would be dipping into the same pool of advertisers that we are dependent on for our revenues. And as to whether that number is a reasonable one or not, we still know it's going to be significant and our concern is that it could be quite a major problem for us, not just us, but I'm sure Mr. Porter, who is sitting behind us, would tell you the same thing as it applies to JAZZ.FM.
18237 COMMISSIONER DUNCAN: Okay. Thank you.
--- Pause
18238 COMMISSIONER DUNCAN: I wanted to talk about the definition because you take issue with the definition and I had some questions about the definition the other day and I'm sure you probably noted that as well.
18239 But I'm just wondering if you had suggestions on how that definition might be approved -- improved. Not approved -- improved?
18240 MR. GRANT: I think the problem becomes anything that is coming through an advertising agency is going to be fair game if Radio 2 is licensed to be commercial. So from that standpoint the percentage of revenue that is represented there is, as we pointed out, in excess of 70 percent of the total revenue.
18241 I don't think that there is a nice simple answer as to how to, let's say, make us as commercial broadcasters who have to sell advertising to survive comfortable with the scenario. I just don't think it exists.
18242 The only thing that we have been able to even come up with, if at the end of the day the decision is that CBC Radio 2 has to be allowed to do something to bring in the equivalent of advertising revenue, our thought is why not approach it like the American NPR model and allow them to sell sponsorships of hours, and this would be "Mr. and Mrs. Mark Lewis and their foundation presenting this hour of Radio 2", or whatever, because that at least might come closer to being creation of new revenue as opposed to a diversion of existing revenue which is what we know is going to happen with it the way that it's laid out.
18243 MR. LEWIS: If I could just jump in, we studied the transcript in preparation to attend today because we knew this was a question that would be coming. When we looked at CBC's response in the last days of last week, we were very confused because they talked about not taking advertising from a single car dealer, but our concern, and we wasted in our brief, original filing, was the Toronto area -- for example, the Toronto area Ford dealers are bought as a group of Ford dealers, but it's not really a national ad. That is the lifeblood of many of the radio stations in Toronto.
18244 It's not regional, it's national, it's placed there because if you buy Toronto radio and you are Ford dealers, you are reaching almost 25 percent of the Canadian English-speaking population. And that worries us, because it's not strictly national when that ad that's a special offer for Toronto of 2.9 percent financing, it may not be -- that offer may not be available in Vancouver, but I think CBC would consider it to be national advertising because it's a Ford.
18245 COMMISSIONER DUNCAN: Okay.
18246 MR. HAMILTON: I would only add to that, as Mark alluded to, that buy that is being done for the Toronto or Ontario Ford dealers is probably being also offered in four or five other markets across Canada, like Montréal, Vancouver, Calgary, Edmonton, those are kind of top -- Ottawa -- top five or six markets on a medium buying criteria.
18247 So radio was very much a local medium in terms of how it's planned, bought and purchased versus television where, you know, many executions are national, national specialty executions, national network executions in TV, but radio is very local but they plan and by multiple markets.
18248 So Mark's scenario that execution of Toronto Ford dealers, there is probably also a campaign that that same agency would do for the Vancouver Ford dealers and the Calgary Ford dealers and the Edmonton Ford dealers.
18249 So you will get five or six markets being bought out of one advertising agency. Is that local? Is that regional? Is that national? Some stations have that handled by their local sales teams, others have it handled by national.
18250 CBC 2 are saying they won't have local sales forces, they will only sell national, so they will be going after all those dollars that are coming out of agencies under those kinds of definitions. Really the only business they wouldn't be going after that we see is local-direct business right in the market, which only represents about 33 percent of overall radio spending.
18251 COMMISSIONER DUNCAN: So I understand clearly you are not happy with the definition, but equally you don't have a suggestion of what that definition might look like that would make you feel more comfortable?
18252 MR. GRANT: Well, I think I did when I talked about the NPR model. We think that that would be one way it could be handled, that if we were to look at that and say would we be comfortable with that, certainly a heck of a lot more comfortable then we would be with them selling anything out of an agency and at least it's consistent with something that is currently running rather well, which is the NPR model.
18253 So that would be our suggestion as to how to do it.
18254 COMMISSIONER DUNCAN: When we did ask Mr. Lacroix about sponsorship-type advertising I think his response was that it wouldn't generate the results that they needed, but I take your point.
18255 MR. LEWIS: Again, just to reiterate our point, it's the same demographic, the 55-plus that Radio 2 reaches. It's not becoming younger, it's not at all a 25 to 54, so the money that's going to be spent is the money that we and JAZZ 91 and a few other stations are getting and when you take that money out of the equation of a market that's not growing, we can't give a definition that would work --
18256 MR. GRANT: Yes, good point.
18257 MR. LEWIS: -- that would retain those dollars in the hands of the commercial radio stations.
18258 That's our difficulty. We are not trying to be evasive, we have debated that in preparation to come here today and there is no middle ground that we see.
18259 COMMISSIONER DUNCAN: One thing I guess I hear from what you are saying is that there probably are not many radio stations across the country that would be affected by Radio 2 selling ads that are in the format and appealing solely to the demographic you are.
18260 Would you agree with that?
18261 MR. GRANT: That would be correct. I do think, however, that all radio stations potentially can be impacted by it, but we feel that we are demographically more likely to be impacted than most.
18262 COMMISSIONER DUNCAN: They are going to deliver -- or could potentially I guess deliver 2.5 million subscribers or listeners on day one and so what type of a format you think those national ad buyers would go after?
18263 MR. GRANT: Well, first off, they don't go after a format, they go after an age demographic. So that's where I think there has to be a clarification.
18264 So they really are not concerned about the format of a station, they are concerned about the audience delivery and they buy on a cost per point against a particularly targeted demographic. So the format is really -- I can't say it's totally irrelevant, but I think you understand what I'm saying.
18265 COMMISSIONER DUNCAN: Yes.
18266 MR. LEWIS: I'm going to use the gray in my hair just to put on the record, I have been in the radio business one way or the other for 44 years, worked many years with Mr. Grant, worked many years with Mr. Hamilton and again in discussing for preparing to come here we have seen no change in the last -- George has been in the Toronto market for almost 50 years -- a change in the way that media buys are made in radio, other than cost per point in 50 years. It hasn't changed in a half a century, it's not changing with new media either.
18267 When we see some of the statements that were made last week and in the reply that was delivered to us in October, we just don't believe that there is another way that advertisers are going to buy the CBC's station. They are not going to buy because it's in a variety of formats, they are going to buy on a cost per point, on rating points.
18268 COMMISSIONER DUNCAN: They are already in your market.
18269 MR. LEWIS: They are already here.
18270 COMMISSIONER DUNCAN: They are not going to buy your age group because they are going to buy these younger age groups that you --
18271 MR. LEWIS: No, they are not going to buy the younger age group, that's the fallacy. They don't have a younger audience. And even though they are four years -- they are now four years into this AAA format, because they launched it in, I believe, October 2008, in the Toronto market -- and we looked at other markets -- they have barely been able to inch up the ratings to above .08 in that 25 to 49 demographic. They are still almost totally in the 50-plus age demographic.
18272 MR. GRANT: And if I may just add to what Mark has mentioned, CBC Radio 2 is a radio station operation that has elements of block programming within it. In other words, you get different programs at different times. Most radio stations today have a format that is consistently one genre of music. Whether it is mixed with more than one particular type it still comes down to a very specific sound.
18273 In the case of CBC 2, about a third of their programming is still in the classical genre and then you have that mixed together with AAA in certain day parts, so it is a different animal than most of what's on radio in Canada and everywhere else and, as such, it does, as Mark points out, skew older, just like we do, just like JAZZ.FM does, and so we are the ones that are going to be hit the hardest because that pool of advertising is going to be diminished if they come into the pool.
18274 MR. HAMILTON: Commissioner Duncan, if you look at Appendix 1, Toronto Radio Tuning Shares, it's a nice representation against two key demos, adults 25 to 54 and adults 55-plus. You will see of all the stations in Toronto CBC Radio 2 ranks number 18th at a .9 share of tuning against adults 25 to 54. Classical was 2.4, our other station AM 740 is a .4.
18275 But then if you look at 55-plus you see that our shares jump substantially, which is where we want to be. That's what we are about, so we jump to and 8.7 share and a 7.3 share for our two stations and that's what we really covet and try and sell is against that demo.
18276 But CBC Radio 2 jump up to a 2.9. So, you know, they have a significant share against -- they have a much larger share against 55-plus then they do against 25 to 54. So that's our concern, that they are going to covet the same types of clients and media buying agencies would look at them against that older demo purchase just as they do us, where they wouldn't be as much of a factor obviously against the 25 to 54 purchases based on their share of tuning.
18277 COMMISSIONER DUNCAN: So just I guess from reading your submission I was kind of under the impression that you would take all of the hit, but looking at this some other stations would share in that as well.
18278 Is that correct to say?
18279 MR. HAMILTON: Yes. We believe we would take the majority.
18280 MR. GRANT: We did mention JAZZ.FM.
18281 COMMISSIONER DUNCAN: Yes. But the others --
18282 MR. GRANT: We believe they would take some of the hit as well.
18283 COMMISSIONER DUNCAN: Yes.
18284 MR. GRANT: So those stations that tend to skew to an older audience will be the most impacted.
18285 MR. LEWIS: But if I could just add just a clarification, if you look at the Appendix 1 on the right side, CHFI 98.1, which is a Rogers station, has a tremendous rating share in 55-plus, but that's not their target audience because that is an unintended audience. If you look at CHFI -- and this is again one of the peculiarities, CHFI is number one in 25 to 54 with a 13.3 share. So when the media buyers make their buy in Toronto they have to buy CHFI because it has the largest audience share of the coveted, the most valuable 25 to 54.
18286 Now, some dollars, obviously if somebody has a product that's skewing older in terms of the potential client, they are going to buy CHFI as well, but CHFI, which is a very successful radio station, has made its profits and its reputation on catering to 25 to 54. So they wouldn't be impacted in that 55-plus buy, advertising buy, significantly. It would be probably CFRB News Talk, possibly 640 because it has a bit of an older audience and when you compare the right and left columns you'll see that some of the stations rank very low in 25 to 54 but fairly high in 55-plus.
18287 COMMISSIONER DUNCAN: So, would they --
18288 MR. LEWIS: I hope I didn't confuse you too much with that.
18289 COMMISSIONER DUNCAN: Yeah, I'm trying to absorb it all.
18290 MR. LEWIS: Yeah.
18291 COMMISSIONER DUNCAN: The talk -- not likely buy a talk show for -- a talk radio station for this format. You tell me they're not buying format though.
18292 MR. LEWIS: Well, they don't buy formats.
18293 COMMISSIONER DUNCAN: They're not buying formats, they're only buying age?
18294 MR. LEWIS: No. And that was something that came up only a few days ago and I'll just -- I don't want to go where you don't want to go -- if you go back to your transcript and on the first day of the hearings, at 1698 of the transcript, there's a discussion that occurred about the audiences for Radio 2 and the fact that CBC said that they had a unique audience that didn't listen to other radio stations and, therefore -- and I'll paraphrase, but I have a quote in front of me:
"...when I have talked to advertisers where they are going to get those people..."
18295 -- who don't listen to other radio stations --
"...they are going online, they are going into magazine, they are going into outdoor, and unless you provide a vehicle for people to get to them, which Radio 2 does, that money won't come back to the system."
18296 MR. LEWIS: So, we went back after we heard this and we said, well, how many unique radio listeners does Radio 2 have in Toronto, what is this number? Because a bunch of numbers were given on the transcript and it's very confusing.
18297 So, when you actually go to the BBM data, they have one-half of one percent of their audience, that's 0.5, is unique to Radio 2. That is -- I'll give you the actual number, it's 15,000 listeners, 12+ in a market of about 7 million who only listen to that radio station.
18298 So, we can't see how advertisers are going to suddenly flock to Radio 2 to get access to 15,000 listeners when they buy on a cost per point basis, it just doesn't make any sense to us in terms of how the market operates, how the advertising market operates.
18299 And that was one of the things that distressed us when we read the transcript because it just doesn't work that way.
18300 And we thought we were unique because we're the only 24-hour a day classical music station, but when we went back to the same BBM database, we have no listeners who only listen to Classical 96.3, there's not a single listener in the Toronto or southern Ontario market that just listens to this radio station.
18301 People tune around, and that's why the agencies buy on the basis of gross rating points.
18302 COMMISSIONER DUNCAN: So, again in the -- you probably have -- in the amount of revenue that they're going to earn in the Toronto market, so looking at your schedules -- perhaps we could look at that.
18303 In the Toronto market they're projecting -- your table on page 8 of your submission, that they would have $70 million in year one and 90 million in year seven.
18304 And I'm just wondering then what percentage of that is going to be taken from Zoomer Media? You know, I mean, I know you don't have the --
18305 MR. LEWIS: I'm sorry, page 8 was their table. I'm sorry, it was their table.
18306 COMMISSIONER DUNCAN: Yes.
18307 MR. LEWIS: And that was based on retail sales growth projections which is --
18308 COMMISSIONER DUNCAN: I'm sorry, I should look at the next one, page 9.
18309 MR. LEWIS: Yes. And that was problematic. I can explain why it's problematic.
18310 COMMISSIONER DUNCAN: Okay.
18311 MR. LEWIS: In their national sales projections of, I guess it's $1,940,000 in year one.
18312 COMMISSIONER DUNCAN: Yes.
18313 MR. LEWIS: I think Dan Hamilton has done some mathematical calculations, so he could answer that.
18314 Dan.
18315 MR. HAMILTON: In terms of the $1,940,000 --
18316 COMMISSIONER DUNCAN: And growing to 4 million.
18317 MR. HAMILTON: Yeah. Our concern is the fact that they'll be targeting the same clients as us, the same demo as us, so we didn't go into too much analysis of their overall revenue and whether we thought it made sense or not.
18318 COMMISSIONER DUNCAN: Yes, but I'm not really asking if it makes sense, but --
18319 MR. HAMILTON: But their growth rates seem incredibly high. So, that 1.92; what is it, 4.3 over the seven-year term is a growth rate of over 20 percent per year.
18320 And as we've talked about the history of radio in Toronto and what we've seen of late, going back as far as '05, '06 and whatever, I don't know how you could entertain that kind of growth in your revenue per year to get to that kind of a number.
18321 MR. GRANT: Mark, I think you had something to add there.
18322 MR. LEWIS: We know -- just again, Dan has run the numbers as well in terms of the rating points, you know, the way that radio is conventionally bought by the ad agencies, and that number of $1,940,000 would be achieved almost exclusively out of the 55-plus pool.
18323 So, I know that the Vice-Chair was talking about, you know, are there pools within pools. No, there's just a pool and it's a sliver of a pool and that's where the money would come out of.
18324 So, we would be -- we would bear the brunt of that, there's no question.
18325 COMMISSIONER DUNCAN: That was my question.
18326 MR. LEWIS: We would bear the brunt because it can't come out of the 18-25 -- sorry, 25 to 49 or 25 to 54.
18327 COMMISSIONER DUNCAN: So, Zoomer Media would lose the 4.7 million in 2019?
18328 MR. GRANT: If that were where they ended up at that time.
18329 COMMISSIONER DUNCAN: Yeah.
18330 MR. HAMILTON: But if we start with their first year's projection --
18331 MR. GRANT: We don't find fault with their year one projection, we think it's probably realistic.
18332 COMMISSIONER DUNCAN: Okay.
18333 MR. GRANT: But, yes, we believe that we'll be the ones that will bear the brunt of it and that a very significant amount of that will come directly out of our share of an already small pool as it relates to us in a market that's not growing.
18334 COMMISSIONER DUNCAN: And what would be the solution for Zoomer Media, given the statement in your document that your PBIT dropped 92 percent in the past year as compared to the previous year?
18335 I mean, what impact would that have on your business?
18336 MR. GRANT: Well, bearing in mind that we, as I said early on, dropped about 15 percent in revenue, if you drop 15 percent in revenue, virtually all of that is EBITDA --
18337 COMMISSIONER DUNCAN: Right.
18338 MR. GRANT: -- assuming that your station is profitable. So, that represented a fairly significant decrease in our EBITDA number.
18339 I can tell you that, based on that kind of decrease, we still had a modest profit on FM, we lost money on AM and, overall, it was not a particularly attractive year.
18340 COMMISSIONER DUNCAN: So, if you were to lose the $2 million, though, it would be a significant impact on your business.
18341 MR. GRANT: Oh, it would be devastating.
18342 COMMISSIONER DUNCAN: I think you might use that word somewhere, or a word similar in here.
18343 MR. GRANT: Yeah.
18344 COMMISSIONER DUNCAN: I'm just going to ask you, you have this discussion in your paragraph 32 about agreeing not to solicit local and regional ads.
18345 And I did ask them as well if they'd be willing to accept that as a COL and, as well, if they'd be willing to agree as a COL not to accept or solicit ads, local or regional.
18346 And I'm just interested in your --
18347 MR. GRANT: Well, as I said -- and I don't want to sound like a broken record, I know we don't use records much anymore, but broken CD -- we don't feel that they should be advertising -- be allowed, rather, to sell advertising, period. That is our position. Therefore --
18348 COMMISSIONER DUNCAN: That's clear to me.
18349 MR. GRANT: Yeah. Therefore, any departure from that, from our standpoint, doesn't solve the problem for us.
18350 COMMISSIONER DUNCAN: Okay. Okay. So, exploring any other options, you don't want to go down that road about what alternatives might be, fewer minutes per hour allowed in advertising or restricted to sponsorship ads or require --
18351 MR. GRANT: Well, we did mention the NPR approach.
18352 COMMISSIONER DUNCAN: Mm-hmm.
18353 MR. GRANT: And we still think that that is one that we could live with and would have at least a chance of creating new revenues as opposed to diverting existing. So that one, you know, we don't have an issue with.
18354 At the end of the day, obviously you're going to have to rule on this. Our hope is that you'll rule out the way that we've suggested, but if your decision is not to rule that way, we can only hope that as little as possible in terms of latitude is given to them and that the smallest possible amount of advertising be considered.
18355 COMMISSIONER DUNCAN: I appreciate that. And I think it's important that you have an opportunity to say how you feel. So, we want to make sure that you get the opportunity to do that.
18356 I notice at the end of your document you say that:
"The CBC does not need this authorization to fulfil its public service mandate."
18357 COMMISSIONER DUNCAN: And, so, I'm curious, given the -- I'm sure you realize we're not able to affect our government appropriation. So, what advice would you have for CBC, how would you go about looking for that amount of money that they're trying to replace?
18358 MR. GRANT: Well, I would suggest to them that they take a page out of how we do it in the private commercial sector which is, if you're spending too much, you reduce your expenditures.
18359 In other words, if we found ourselves in a position where we couldn't meet our obligations based on our advertising revenue, we would have to find ways to cut costs.
18360 So, I would suggest they should do the same.
18361 COMMISSIONER DUNCAN: Now, they did say that, well, if they don't get this approval they'll cut back on the -- I don't know, I don't want to use the word quality of programming, they didn't say quality -- what they said was, they wouldn't be able to do as many, as I understood it, live on-locations outside of the main centre, that was the impression they had, they'd have to cut back on that type of thing.
18362 MR. GRANT: Well, I couldn't --
18363 COMMISSIONER DUNCAN: So, that would affect the consumer.
18364 MR. GRANT: Well, I find that an interesting comment because Classical 96.3 had over a hundred live studio concerts last year and, to the best of my knowledge, CBC didn't come close to that.
18365 So, we managed to do that as an independent depending on advertising revenue and, frankly, I would consider that the result of good management. I'm fortunate to have a very good management team.
18366 We also know how to maintain quality while, at the same time, not wasting any money in terms of how we spend it and we make sure that we get good value for everything we do spend.
18367 And I think that's, you know, that's a model that really can be used anywhere, not just with a commercial enterprise and I would suggest that probably it's time for CBC to have a look at that.
18368 COMMISSIONER DUNCAN: Okay. Thank you very much for your comments. I appreciate that.
18369 Mr. Chair.
18370 THE CHAIRPERSON: Mr. Vice-Chair.
18371 COMMISSIONER PENTEFOUNTAS: Thank you, Mr. Chair.
18372 LE PRÉSIDENT: Ton micro?
18373 COMMISSIONER PENTEFOUNTAS: I'm sorry, it's late in the day, it's late in the two weeks. People are a little burnt, a little spent.
18374 I want to try and get away from charts and get things clearly set out on the record.
18375 If we buy the argument, and I think it's pretty much a fait notoire, I think it's a well-known fact that the revenues that you can get out of the market are disproportionate to your market share, and you mentioned that in your brief. If you have a seven market share, you'll probably do a 14 percent of revenue, if you have a four market share, you'll probably do a two and a half, somewhere in that ballpark.
18376 Okay. Given the fact that on the 55-plus CFZM does 8.7 share -- are you with me so far, it's right here in your document.
18377 MR. GRANT: Mm-hmm.
18378 COMMISSIONER PENTEFOUNTAS: And your AM station does a 7.3 share, so that would allow you to get a disproportionate percentage of the revenue that is available from the 55-plus audience. You agree with me there?
18379 MR. GRANT: Mm-hmm.
18380 COMMISSIONER PENTEFOUNTAS: Okay. And given the fact that the 55-plus Radio 2 does a 2.9 share, they would have a disproportionately smaller chunk of the pool, the pie, call it what you wish. Would you agree with that?
18381 MR. GRANT: We would expect that if their share is smaller than ours in the same demographic --
18382 COMMISSIONER PENTEFOUNTAS: It is, here. It is, yeah.
18383 MR. GRANT: -- it would follow suit that they would indeed get less revenue from the agency-based accounts.
18384 MR. LEWIS: But, and this is a caveat, this is just Toronto. So, if they're selling nationally they may get a Toronto buy because of the fact that the ad may run on Edmonton, Calgary, etc., the agency may not be paying for or wanting to buy those cities but is prepared to buy Toronto.
18385 So, they may get more of the buys even though their audience isn't proportionately the same as ours in Toronto.
18386 COMMISSIONER PENTEFOUNTAS: So, they would get a greater percentage of the Toronto ad revenue than the 2.9 market share would indicate?
18387 MR. LEWIS: That's what it seems. And when you look at some of the information they've put in, it seems to be disproportionately high for Toronto relative to other markets that they projected revenue from.
18388 COMMISSIONER PENTEFOUNTAS: Right. Their revenue for Toronto is much higher --
18389 MR. LEWIS: Much higher.
18390 COMMISSIONER PENTEFOUNTAS: -- than their market share in Toronto, strictly speaking, would suggest?
18391 MR. LEWIS: That's right, yes.
18392 COMMISSIONER PENTEFOUNTAS: Under the model we've known for decades now.
18393 MR. LEWIS: But they can deliver an audience outside of Toronto and some of those advertisers may wish to take advantage of that.
18394 MR. HAMILTON: What you might do in a media buy is negotiate multiple markets at the same time.
18395 So, to your example, somebody's buying the 45-55-plus demo, we have a higher share than them against that demo, but they are a strong competitor in that demo that they might leverage a negotiation against four or five or six markets that are being purchased at the same time.
18396 We're only in Toronto, so we're only negotiating one market. So, that might give them some leverage to get a larger than normal share than what you see here.
18397 COMMISSIONER PENTEFOUNTAS: Right.
18398 So, that's one advantage that they have. The other advantage would be the fact that they also have a relationship with advertisers on other platforms in other media.
18399 MR. HAMILTON: Correct.
18400 MR. GRANT: Particularly television.
18401 COMMISSIONER PENTEFOUNTAS: Well, obviously television. And that would also help them pick up a much bigger chunk of the 55-plus audience than would be indicated by their market share?
18402 MR. HAMILTON: Correct. We did talk about -- earlier we talked about that, you know, media buying and planning hasn't changed much over the last 20 or 30 years for radio.
18403 One of the things we have seen change moderately is broadcasters offering integrated marketing opportunities.
18404 COMMISSIONER PENTEFOUNTAS: Right.
18405 MR. HAMILTON: So, going to your agencies and clients and saying, hey, I've got a magazine --
18406 COMMISSIONER PENTEFOUNTAS: Yeah.
18407 MR. HAMILTON: -- I've got radio, I've got TV, I've got online, I want to bundle it all together to you. They would have a great advantage in doing that, bundling their radio with their CBC network television and online offerings and whatever.
18408 COMMISSIONER PENTEFOUNTAS: Yeah.
18409 MR. HAMILTON: I don't know if they have plans to do that, but I don't know why they wouldn't if they got the ability to be able to sell CBC Radio 2 inventory.
18410 COMMISSIONER PENTEFOUNTAS: Yeah. I don't think they disagree with you that their demo is an older demo, I don't think they disagree with you on that, but they did raise the possibility -- and my colleague raised it -- of increasing the scale of the overall pie.
18411 And you have made your arguments pretty clear on that. And even if your other argument, I think that's interesting, is that even if they would not get that substantial a chunk of your pie, if I can express myself in that manner, the chunk that they would get would be coming out of EBITDA, almost pound for pound.
18412 MR. GRANT: Yes.
18413 COMMISSIONER PENTEFOUNTAS: Okay. Okay. Thank you so much, Mr. Chair.
18414 MR. GRANT: If I may add just one thing --
18415 COMMISSIONER PENTEFOUNTAS: Yeah.
18416 MR. GRANT: -- Mr. Pentefountas. We're talking about a 55-plus audience here in terms of our selling and we did mention early on that we do bundle with other Toronto radio stations to sell 25 to 54.
18417 What we get from that is not huge, but it's also kind of important to us because it represents a not insignificant percentage of our total.
18418 So, that also could be impacted, it's not just the 55-plus dollars.
18419 COMMISSIONER PENTEFOUNTAS: Thank you for that.
18420 THE CHAIRPERSON: We asked you, Commissioner Duncan, Commissioner Pentefountas asked you a lot of questions about revenues.
18421 I want to come back to the point you raised about costs and cost reductions.
18422 I'm a lawyer, I've never run a business, right. So, I'm looking at how you would go about it to analyze whether their cost structure to run these stations -- well take Radio 2 -- are at the right level.
18423 Would I be correct that I should take a comparable -- a comparison to similar radio stations, so I should focus probably on private sector stations that play predominantly music because a talk format would be more expensive. Is that correct?
18424 MR. GRANT: I would agree.
18425 THE CHAIRPERSON: And can I take any private sector station, or is it more like yours that I should look at in terms of cost comparison to, I don't know, a more younger demographic music station?
18426 MR. GRANT: We probably would be a better comparison to use because we are not a jukebox, we're a radio station operation that has substantive programming. We are a radio station operation that tries to deliver all aspects of radio, not just music with very little else. So, our cost of operating would be higher than if we just ran a jukebox.
18427 If I were given a mandate to run a jukebox, I could run our operation for less than it currently costs us, but the mandate I've been given is to make it a full service operation and that's what we do.
18428 So, I think we'd be a better comparison, Mr. Blais.
18429 THE CHAIRPERSON: So, it's a bit like the old programming type formats --
18430 MR. GRANT: Yes.
18431 THE CHAIRPERSON: -- prior to the mid-90s. So, there's an enriched programming aspect, that you're not just spinning records.
18432 MR. GRANT: That is correct.
18433 THE CHAIRPERSON: Other than yourselves, who else would be a good comparison?
18434 MR. GRANT: I think JAZZ FM, CJRT would be.
18435 THE CHAIRPERSON: All right. And so we should take, because we have access to some of that information, and take your and compare it to the CBC Radio 2.
18436 You think that would be a valid methodological -- if I can say that word correctly.
18437 MR. GRANT: I do. And I don't want to cause us any harm in my comment here, but at the same time, CBC will be a more expensive operation than the private radio stations will be because they have more substantive programming than the private operators do.
18438 So, from that standpoint, I'd be inclined to cut them a little bit of slack on the percentage because of that and I think that would be fair to the Canadian Broadcasting System.
18439 But I do think using the comparison against us, against perhaps JAZZ FM would be a very legitimate way to approach it.
18440 MR. LEWIS: And many of the fixed costs that we have are identical in Toronto.
18441 MR. GRANT: Yes.
18442 MR. LEWIS: Tower site, electrical power, things of that nature are very similar, I would think.
18443 MR. GRANT: Mm-hmm.
18444 MR. LEWIS: Cost of sales.
18445 THE CHAIRPERSON: So, in terms of cutting them a little bit of slack, collective agreements --
18446 MR. GRANT: Yes.
18447 THE CHAIRPERSON: --is something as well that we should take into consideration --
18448 MR. GRANT: Yes, because --
18449 THE CHAIRPERSON: We can provide the operator perhaps a little less flexibility.
18450 MR. GRANT: Yes, because they do have some unusual circumstances and I think in comparison with anybody else, those have got to be taken into account. It's only fair.
18451 THE CHAIRPERSON: Let's say hypothetically we do that and, you know, there's always a risk as well in terms of large media groups as to where costs are accounted, right.
18452 MR. GRANT: Mm-hmm.
18453 THE CHAIRPERSON: There's always a bit of unclarity there because you have to do some allocation of costs; right?
18454 MR. GRANT: Yeah.
18455 THE CHAIRPERSON: Again, I'm just a lawyer, I'm not an accountant, but I understand that that happens.
18456 And let's say we come to the conclusion that the costs are comparable to yours, would that surprise you?
18457 MR. GRANT: Very much so.
18458 THE CHAIRPERSON: Because your view is that it's a more expensive operation.
18459 MR. GRANT: I would believe, and I don't obviously have access to their books, but I would believe if I were to go in there and be asked to find the savings, I'm sure I could find them.
18460 It wouldn't be the first time I've done it, and I'll be 49 years in this business come January.
18461 And I do believe that there's very little chance that using a comparison you'd find that they're comparable to us. I just do not believe that would be the case.
18462 THE CHAIRPERSON: Hypothetically speaking, I understand you think that they're higher, but let's say we come to the conclusion that it's about comparable, with giving a little bit of slack perhaps, let's say it's comparable broadly speaking, and we can demonstrate that, what's your view on, they've done what they can to reduce their costs; would you be more open to accepting some advertising from them, or is that -- even that would not be --
18463 MR. GRANT: Well, I still have a fundamental problem with the fact they want to suck and blow. Basically they're getting already tax revenues that are being utilized to run the Corporation, now they want to add advertising to the mix.
18464 Wouldn't we in the private sector love to have the same deal.
18465 So, that's fundamentally where we have a problem. We just think that they should not be getting it from two areas. Either become a broadcaster and don't take the government revenue or continue taking the government revenue and don't run commercials.
18466 THE CHAIRPERSON: All right. Well, you're clear and consistent, which is a pleasure to hear at hearings. So, thank you very much, gentlemen. Those are our questions.
18467 MR. GRANT: Thank you very much.
18468 LE PRÉSIDENT : Madame la secrétaire.
18469 LA SECRÉTAIRE : Merci. I'll now ask JAZZ-FM 91 to come to presentation table.
--- Pause
18470 THE SECRETARY: Please introduce yourself and you have ten minutes. Thank you.
INTERVENTION
18471 MR. PORTER: Good evening or good afternoon, Mr. Chairman, Vice-Chairman, Commissioners. My name is Ross Porter and I'm the President and CEO of JAZZ-FM 91 in Toronto. I have been fortunate to work in both the private and public sectors of TV and radio in Canada.
18472 I have made documentaries, I've worked on CBC-TV The National and Newsworld, I programmed Galaxy and for ten years I was to the popular show heard across Canada on Radio 2. In 2000, a determined Izzy Asper persuaded me to leave the CBC and work closely with him at Canwest as one of his Vice-Presidents and I have been the CEO of JASS-FM 91 now for eight years.
18473 As we stated in our written intervention, JAZZ-FM 91 supports the renewal of CBC's licences to a full licence term, but we do oppose CBC's proposed amendment to its Radio 2 licence to include commercial advertising.
18474 Mr. Chairman, as this is almost the end of a two-week hearing and you've heard all of the economic arguments as to how approval of this amendment will negatively impact incumbent broadcasters and to that end JAZZ-FM 91 supports the intervention filed by the CAB Counsel as well as those filed by the commercial broadcasters such as MZ Media.
18475 I'm here today to offer a complementary perspective, the perspective of Canada not only for profit radio station dedicated to jazz and all its communities of interest. So, let's put the argument argument aside for just a moment and allow me to tell you a little more about us.
18476 JAZZ-FM 91 is Canada premier jazz station, jazz times magazine wrote: "JAZZ-FM 91 is one of the most vibrant and versatile jazz stations on the planet."
18477 Business Week declared us one of the best radio stations in the world and as of last week over 400,000 listeners have downloaded our iPhone nap. We are proud and honoured to occupy this base in the Canadian broadcasting landscape.
18478 JAZZ-FM 91's mission statement is quite simple: 1, bring the world of jazz to our listeners; 2, Showcase canadian jazz, partner with him support those who teach, train and develop talent and students of the genres and 4, develop jazz in Canada through information, education and entertainment.
18479 How do we do this? Bring the world of jazz to our listeners goes beyond hearing music on the station and online. For example, our listeners can participate in over 400 -- rather over 40 jazz safaris per year in and around the GTA, by private bus live music lovers are escorted to four or five jazz clubs in one night to listen to some of the best Canadian and international jazz artists and listen to them live.
18480 In the last fiscal, the safari took almost 500 listeners to hear cumutively 1,500 musicians perform.
18481 As a specialty broadcaster, we are sometimes, dare I say, forgotten when it comes to the competitive landscape. As such we were somewhat dismayed to hear CBC Radio on day one of this hearing say: "CBC is the only broadcaster left in the country that still invests in live music."
18482 JAZZ-FM 91 airs almost 70 hours of live music per year in addition to 52 hours of documentaries dedicated to music.
18483 We take showcasing Canadian talent very seriously. On average JAZZ-FM 91 broadcasts only 23 percent Canadian content and approximately 20 per cent of the music on JAZZ-FM 91 comes from emerging artists.
18484 These emerging artists are showcased not only on-air, but on the jazz safaris, the live broadcasts and in the documentaries.
18485 Our partnerships in the development of Canadian talent include York and University of Toronto, and Humber and Mohawk Colleges, our weekly radio show "Jazzology" is an accredited part of the curriculum at those institutions.
18486 Our expanded educational mandate also helps and offer a dynamic range of internship opportunities and underwriting annual music scholarships for students in music programs at these educational institutions.
18487 Finally, how do we develop jazz in Canada? Through information, education and entertainment, this is one of the most robust areas in which JAZZ-FM 91 fosters, encourages and promotes Canadian talent. We did outline these initiatives in our written intervention and they are detailed on our websitejazz.fm and it bears repeating here.
18488 There is jam, our junior artists music mentorship education program allows thousands of enthusiastic young students and emerging artists to gain experience in music and broadcasting through programs such as our "Jazz for kids" concert series that takes place in our 70 seat performance Hall of JAZZ-FM 91. The kid series provides a fine unique cultural opportunity for junior and middle school students, children enjoy interactive concerts by professional musicians that encourage and inspire creativity through music to foster an appreciation for musical arts. and we currently have a waiting list of 20 schools.
18489 The JAZZ-FM 91 Big Band, since 2008, the Big Band has presented excellence and music education for talented and enthusiastic high school students in addition to providing students the experience of being part of this unique ensemble, the Big Band provides a cultural asset to our community.
18490 The Band has also played with Bucky Pizzerelli and Lew Tabackin and has played at the TD Jazz Festival in Toronto, Massey Hall, the Rochester Jazz Festival at our annual fund raising concert jazz lives.
18491 The Canadian Jazz Archive online, it began as an effort to restore and preserve 30 years of recordings from our sounded jazz concert series, including performances, recordings and interviews and even much larger initiative, making that information available to the public via canadianjazzarchive.org.
18492 This amazing site includes additional audio, visual and textual materials among about artists and key figures who have shaved the Canadian jazz landscape. The site also offers educators curriculum relevant teaching tools for classrooms to customize for grades 5 through to 12 and a wealth and engaging oral, visual and textual material that will appeal to artist educators, students and jazz enthusiasts.
18493 These are just about a few of the initiatives in which JAZZ-FM continues to support not only the jazz genres, but more importantly, the Canadian artists who have dedicated their artistry to this music.
18494 But all of this takes money and as we have stated in our written intervention, our revenue model is unique among Canadian radio stations; 50 percent comes in the form of advertising, of which almost 40 percent is national and approximately 60 percent local, and 50 percent comes from donors.
18495 We are limited to four minutes per hour of advertising. Our condition of licence includes the yearly allocation of direct cost budget of $20,000.00 to Canadian Talent Development and it's important to know that this $20,000.00 yearly allocation is a fixed cost and not based on a percentage of revenues as is common with CCD commitments.
18496 As the Commission knows, we operate in the most competitive market in Canada and the introduction of more competition for national advertising dollars in this market is of grave concern to JAZZ-FM.
18497 If Radio 2 is granted the amendment for national advertising, JAZZ-FM will be severely impaired from meeting its projected revenues, fulfilling its mandate and continuing with the unique programs I have already mentioned.
18498 While it's true that Radio 2 is not exclusively a jazz station and its ability to attract national ad dollars to its station which is available coast to coast, which will mean advertisers not only have another door to knock on.
18499 We would be faced with the risk of those advertised decreasing or eliminating a one market station, any station such as JAZZ-FM 91 from their media buys. It's tough out there, particularly for us. We kill in a time when so much is on by so few JAZZ-FM is one of the few remaining independent stand-alone radio broadcasters in this country.
18500 We do not have other assets as does the CBC with which we cross from our efforts, we do not have the money of this country's public broadcaster to defend off the deleterious impact of national advertising that Radio 2 would have on a radio station such as JAZZ-FM 91.
18501 I am here to ask you to maintain the status quo, deny Radio 2 amendment so that JAZZ-FM may continue to inform, educate and entertain music enthusiasts with the quality service we worked so hard to provide.
18502 Mr. Chairman and members of the Commission, I thank you for your time, wish you the best of luck in your deliberations and I am happy to answer almost any questions that you have.
18503 THE CHAIRPERSON: Almost any; that's almost a challenge. We will take you on and find one until you can't answer it.
18504 Commissioner Simpson, please.
18505 COMMISSIONER SIMPSON: Mr. Porter, it was a pleasure when you were -- weekends were great when you were on-the-air at midnight and doing your show. You are missed.
18506 MR. PORTER: Thanks.
18507 COMMISSIONER SIMPSON: But you're filling much bigger boots and it's a pleasure to be given the assignment to talk to you.
18508 MR. PORTER: Well, I miss the days when I didn't have to worry about payroll.
18509 COMMISSIONER SIMPSON: Me too. Boy, I am just going to get right into it. You're sitting in probably the toughest most competitive market in the country. You're 12 out of 24 in the ratings in --
18510 MR. PORTER: Thanks for reminding me.
18511 COMMISSIONER SIMPSON: Which is not bad. You're 17 out of 24 in ages 25 to 54 and it's just has got to be asked. You've got one hand tied behind your back with four hours -- or four minutes per hour and you're picking up the other half of the $4,000,000 annual nut by listeners' support.
18512 So, my question is this: If you were running Radio 2, would you be looking at the combination of the advertising model you've got, which is what they are trying to do or would you be looking at perhaps taking the ballot question of asking for more listeners' support because they do already have an appropriation and see if they can find another way to make money than to go into the advertising market?
18513 MR. PORTER: Well, thankfully I am not running it. Since I have started working on the business side of it and was mentored by Izzy Asper, I have taken a pretty hard line about these things and if you deal -- you know, you play the cards you're dealt.
18514 I have got a lot of difficulty getting my head around an organization that can't work on a million or a billion dollar plus budget. I have got a wish list that's approximately 80 items long in terms of the things that I want to do with this radio station and based on the business plan that I prepare every year and present to my Board of Directors, I determine what the priorities are, based on the projections that I am expecting. That's the hard reality.
18515 There is already a gift here of a billion plus, they've got one of the most cherished commercial properties in North America on Saturday nights with Hockey. They have shown us a great deal of resourcefulness in terms of I don't know what "Galaxy" was sold for, 80 million$? That was a constant revenue stream for them. They have sold real estate property, real estate holdings and leased them back, there was a top with series and excelent merge. There was, you know, a substantial amount of money that came back because of that.
18516 I am hard pressed here to provide you with any other solution, other than this is the way the world works and you have already gotten an advantage because you are getting a billion dollars from Canadian taxpayers. I have got a hard problem in terms of then going out there and double dipping and asking for donations from the Canadian public.
18517 First of all, are they going to become -- are they going to have charitable status too when it comes to that? Are they going to be offering tax receipts? I mean that could be devastating to radio stations such as JAZZ-FM 91. And just, you know, some of those hearings, you know I enjoyed listening to what MZ Media had to say, but this concept of the NPR model in terms of underwriting?
18518 That won't work first of all because you are fishing from the same pound. You are going to TD and asking them to underwrite a show or, you know, programming day it still comes from the same marketing budget. So, they are still taking from the -- from the advertising budget. That's where the point of origin is for this. Anyway, I don't -- a long winded response, but --
18519 COMMISSIONER SIMPSON: No. I am very very happy to hear what you have to say.
18520 Is it too simple for me to just say to you that in terms of their head-on-head programming against your station, that all they are doing is two hours a day, so essentially, you know, what you should be doing or what we should be doing is taking their revenue projections of 1,9 million $ and your 7,47 million $ and dividing that by 12.
18521 MR. PORTER: First of all, I mean in terms of their projections, I don't have all of the data in front of me, but their projections, I want to know what colour this guy is in that part of the world because I want to move my radio station there because I understand you meet your goals, if you don't gain weight and your kids come home for Christmas every year because I would love to live in that world.
18522 COMMISSIONER SIMPSON: Okay. It was said earlier --
18523 MR. PORTER: I'm sorry, going back to the two hours a day.
18524 COMMISSIONER SIMPSON: Sorry.
18525 MR. PORTER: The two hours a day I mean, we are after audiences and it's important to remember here in terms of the -- I felt their response to our intervention was somewhat dismissive in terms of -- well, we only broadcast two hours of jazz a day. We are still, I believe, after the same audience and I have got this.
18526 I have to also say that when you look at music fans and I think you look at music fans that listen to the CBC and that listen to us, if you go and look on their iPads, they -- it's not limited to one musical genre. I am sure if I look through your collection or yours or whatever, there would be a wide range of styles of music.
18527 But it's also interesting because when that came up in terms of there was not the commitment to jazz and it was not that prevalent in terms of what they were doing when the CBC radio was asked about cuts, one of the first things they referred to was the Oscar Peterson Tribute for the 50th Anniversary of Night Tray or for a broadcaster that is not all that interested in the musical genres and it's interesting that that was the first, that was the top of mind.
18528 COMMISSIONER SIMPSON: Um-hm. We've heard throughout the two weeks and just now with MZ that when you innovate as a broadcaster and you start going after a market segment, whether it's an age segment or it's a taste segment like jazz, you are walking down a more select road that is going to be more difficult. And you do have to do a lot more than just program to that target group to get them in and they have to be loyal.
18529 But from the media buying standpoint we have heard a lot about how media buyers will take the easy road, you know. They will buy and they'll try and find the easiest way to reach a market segment and they often run out of money before they can get to more specialized offerings, like yourself for or Zoomer or any more select broadcaster.
18530 Aside from the pure conviction that this is going to be damaging to your business, is it going to be -- to make it a lot easier for the media buyers to just tune you out and go for an easier buy because they are going to get a jazz audience support or buy a Radio 2 that will get them a whole range of audience?
18531 MR. PORTER: Well, they are going to get the demographic.
18532 COMMISSIONER SIMPSON: Yes.
18533 MR. PORTER: And they buy from the top down.
18534 COMMISSIONER SIMPSON: Yes.
18535 MR. PORTER: So, yes.
18536 COMMISSIONER SIMPSON: Yes. Do you feel -- I have heard from two sources last week, I think it was last week somewhat together, we had a couple of rep house people in and they -- of course the numbers pretty well because their job is to rep broadcasters to the agencies and they've got to know their market. And we have heard that CBC's calculations to their seller rates and more particularly their potential projections are understated. Have you had a chance to look at the numbers?
18537 MR. PORTER: No.
18538 COMMISSIONER SIMPSON: Do you have an opinion?
18539 MR. PORTER: But I will ask you a question in this regard. How many times have broadcasters been overly optimistic with their projections and had to come back and ask you to change the playing field for them?
18540 How many licences this Category 3 licences have you, you know, pushed the buttom for and they have come back and said: This wasn't working for us.
18541 COMMISSIONER SIMPSON: I'll let that theoretical question, you've made your point.
18542 Your position -- what you carve up for yourself? The station's legacy going back and what I am trying to get into here is how you are able to abstract your revenue from listeners' support and it wasn't that long ago when, you know, in 1996 I think the station was basically hitting the bottom of the barrel. Provincial funding elapsed and a new business model had to come about.
18543 What was it that made the decision-makers in those days decide that this format was the way to go. And is there anything unique about this format that heightens the desire of the listeners to participate as a partner in your revenue?
18544 MR. PORTER: Some of this preceded mind was involved in the radio station. To the best of my knowledge, a fair amount of research was done into the marketplace and where there were voids and where they felt that advertising dollars could be acquired and it was also done on the basis of some research with the audience in terms of a format that they would like to see in the city.
18545 COMMISSIONER SIMPSON: Huh-huh. But what made the listener a JAZZ-FM, a patron and cross the line to the level that they are putting their money where their ears are?
18546 MR. PORTER: Well, there is a whole, you know, remember letting how the sausages are made here, there is a great deal of psychology that goes into this which is finished in a 10-day fund raising campaign on Sunday. But a lot of the heavy lifting is done in the weeks, in the months leading up to it.
18547 It's about making donors feel that they are part of the family. You talk about the community outrage that you do, you know, the youth band and the jazz for kids series. These are non negotiable. I know when we sit down and to crunch numbers into, you know, making my presentation to the Board, there are certain things that we put out there that are non negotiable, that this is just the business that we're in and this is what we have to do to make the world a better place. And I think that we are pretty clear about that when we talk about it during our fund raising campaigns and in the days leading up to it. We have a real sense of community. I think there is a transparency in terms of how the dollars are spent, a huge accountability on our part. We -- it's a unique situation that we have with 10,000 donors and, you know, the heavy lifting never stops in terms of --
18548 COMMISSIONER SIMPSON: And as you have indicated in some of the material I read that universe of 10,000 donors is really only three percent of our listening audience. You've got a lot more that you can mind, but then it becomes the issue of are you a professional fund raiser or a professional programmer and now, which is another whole program.
18549 MR. PORTER: Both.
18550 COMMISSIONER SIMPSON: Yes, exactly. When I look at what CBC is planning on doing in terms of commitment to audience, I am talking live programming interactivity with the marketplace, by year seven, I think 2018, they are going to be topping out at just about $700,000 more than you are generating in revenue right now and that can be doing anywhere near the -- on a market per market basis, the inter-activity, the recording, the commitment, the audience participation, the live bands, the recording commitments and so on. Tell us why we should be concerned about that?
18551 MR. PORTER: About?
18552 COMMISSIONER SIMPSON: About the fact that on a revenue basis they are going to be doing as much as you are doing in revenue, but nowhere near what you are doing in market participation?
18553 MR. PORTER: I wouldn't be that blunt.
18554 COMMISSIONER SIMPSON: But does -- where I am going with this is, given what you know about your overheads, to be able to do what you are doing, should we be thinking about a different formula?
18555 Right now I think their whole business plan is built around 9 spots an hour, 9 minutes an hour of commercial activity. And there are two questions that I have there. Is 9 too much, given the commitments they are making, given what you know you can do with the same amount of money?
18556 And should we be thinking of less minutes per hour?
18557 MR. PORTER: I don't think you should be thinking of any. I think, if you are living in that world, if you are saying, you know, maybe 1 minute, it's like saying that you are a little bit pregnant, right? You are in the game. You are still fishing from the pond.
18558 I think there is a distinct unfair advantage here. This is not fair competition.
18559 If I were running CBC Radio, I would be talking to the people in television, finding out when they are not 100 percent sold out, and I would be doing spots to drive traffic to Radio 2. I would be promoting the daylights out of Radio 2 on Radio One, which historically performs in the top tier in markets across Canada. So I would be driving more traffic to Radio 2. I would be moving some of the more popular programs from Radio One over to Radio 2.
18560 It's not a level playing field. This is just -- it's unethical.
18561 COMMISSIONER SIMPSON: The other part of this question is, I have some concern that this is not a new station that will be coming into the market, firing up a new transmitter, and slowly building audience, and slowly becoming a competitor to existing commercial stations. It will be a factor immediately because it has been in the market, doing what it is doing, and all of a sudden it flips a switch and becomes commercial, with an existing sales force in place.
18562 My point here is, the impact, while we have done our best to ascertain what that impact will be on a competitive basis, will be immediate, and not give you, in my estimation -- and I am interested in your comment on this. Does it take away your opportunity to slowly conform and change and compete with this new competitor because the effects are immediate?
18563 Do you have a comment on that, or a position?
18564 I know that you already believe they shouldn't be doing it at all, but if they were to, should we be looking at creating a condition so that they ramp up, rather than have the effects become immediate?
18565 MR. PORTER: As I said, it's like saying you are a little bit pregnant. So, no is my answer, no they should not be in this business.
18566 COMMISSIONER SIMPSON: Do you think, having been in the public broadcast environment, that there are negative impacts that CBC hasn't really calculated in terms of going commercial?
18567 We have heard from a lot of people that they believe they shouldn't, but as a programmer, as a guy that has been in the business, are they taking risks with their audience by going commercial?
18568 MR. PORTER: Yes, I think they are taking risks with that, I think they are taking risks in asking for -- in terms of Category 3, for no conditions attached. In that regard, I think that it's the thin edge of a wedge.
18569 COMMISSIONER SIMPSON: My last question. In what they are doing, because it's a financial necessity, are they, in your mind --
18570 MR. PORTER: It's a financial necessity as they have deemed, okay?
18571 They have established their priorities, so --
18572 COMMISSIONER SIMPSON: Out of some necessity -- it has been deemed by the management that this is a necessity, based on the way they choose to run their operation. But I asked this question the other day. They are a public broadcaster, with a private industry expectation, it seems, to run it as a business, but still fulfil itself as a public broadcaster with a defined mandate.
18573 Do you feel that this move -- because it takes, I think, 14 -- they have 14 different expressions of what they do, from digital to television, and this move would take them up to perhaps 10 out of 14 that would be of some commercial content.
18574 In your mind, is this the right move for a public broadcaster?
18575 Given what you said earlier, which is that it's a tough world out there and you do what you have to do, are they just not doing that, in your mind?
18576 MR. PORTER: I think there is a pre-existing pattern when it comes to television and them being able to seek revenue from those properties. There is not a pre-existing pattern here with radio.
18577 COMMISSIONER SIMPSON: Okay. Thank you very much.
18578 THE CHAIRPERSON: I believe that those are our questions. Thank you very much for participating. You get to close our day today, so thank you for that.
18579 MR. PORTER: Thank you.
18580 THE CHAIRPERSON: We will adjourn now, but before we do that, I have two things. First of all, I am going to say that we are going to reconvene at 8:30 tomorrow morning.
18581 I am seeing at least one representative from CBC in the room, I believe. I am not sure if there are other people listening. Apparently they are not sitting in the hearing room, but I trust that they are listening elsewhere.
18582 Just to put them on notice, we will do the intervenors in the morning, take a lunch break, and we will have a number of questions for them in the afternoon, so they shouldn't book their flights too early to get home.
18583 Thank you. We will adjourn until 8:30 tomorrow morning.
--- Whereupon the hearing adjourned at 1606, to resume on Friday, November 30, 2012, at 0830
REPORTERS
Lynda Johansson
Monique Mahoney
Jean Desaulniers
Madeleine Matte
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