So, it’s Saturday and I’m reading the morning paper – happy to be at the end of a week where it became clearer that not much is going to happen in the Canadian television business until this whole “carriage fees” issue gets settled and the Canadian Media Fund issues its new guidelines for funding programming here.
So – like April.
We’re basically in tread water mode until April.
Oh, there’ll still be some stuff getting made. And we’ve now got no excuse for not working on that script we’ve been meaning to write if we had time. But until everybody in broadcasting knows:
A) how much of somebody else’s money they have to spend
and
B) how many Americans they can have showrunning or writing or starring in or directing their “Canadian” shows
…nobody is committing to anything major.
For the next 6 months, the only people getting a regular pay check in the Canadian TV business will be the bureaucrats who oversee our operations. Why the government has to keep paying them when there is little or nothing to oversee is an argument for another day.
However, getting back to that morning paper. I found a story that not only offered a solution to our problems but might also help out tens of thousands of our fellow Canadians facing imminent unemployment.
The illustration above, comes from a story in the National Post, available free here and for $2 on your newsstand – most of which either goes to bankruptcy lawyers or Goldman-Sachs. So, if you could help them out by buying the hard copy, that might save a couple of jobs too.
The gist of this story is that the $787 Billion American stimulus bill signed into law by President Obama this summer is literally killing a lot of Canadian companies.
Across the USA, products marked “Made in Canada” are banned from import and use in projects using that stimulus money. Even if they’re the only version of the product available and especially if they’ve already been part of the work already done. To qualify for the cash to finish these projects, some cities and states are cancelling orders and even being forced to rip out the Canadian goods they’ve already installed.
The “Buy American” rule in the Stimulus package was a well meaning but not well considered one. Yes, it guaranteed that US Tax dollars were spent creating American jobs – except where companies like Goldman-Sachs, who got us into this mess, used it to pay off people in their foreign subsidiaries – but it also transferred the suffering both offshore and to American companies that had previously been managing to somehow keep the lights on.
One Canadian company, for example, is laying off workers because it can no longer sell into the US. But the American companies that once supplied it with raw materials are also laying off workers because the Canadian company is no longer buying.
Now, Canada could retaliate with its own “Buy Canadian” policy, but that would likely just make things worse.
Unless…
Unless we could find a way of hurting the Americans just enough to make them rethink their policies, while not hurting ourselves that much in return.
Now what industry that we both share could do that?
Show Business.
Right now, Canadian TV networks spend $700 million purchasing American programming. Virtually all of that programming is already available to us from the American networks delivered by Canadian cable and satellite. What if Canadian networks were told they couldn’t spend that money anymore?
That’s $700 Million pulled out of the US economy in the click of a remote button.
Would the American Industry retaliate – maybe.
But total sales of Canadian programming to US networks is a fraction of our spend. And a lot of it goes to US nets who are selling little into this country in the first place and really need the low priced programming we supply.
We might not get hurt at all.
And how badly would we feel any damage if even a small percentage of that $700 million was invested in new Canadian programming to fill up the now gaping holes in the Canadian networks Prime Time schedules?
The domestic production industry likely wouldn’t suffer. It might actually see a job creating boom in new production.
Would advertisers pull their sponsorship from Canadian networks?
Not likely. There are already rules prohibiting them from buying ads on cross border stations and they still need to get the message out about the goods and services their clients offer.
Would Canadian networks suffer?
Absolutely not.
Haven’t they been telling us for weeks how important local TV is to them and how it must be saved?
Here’s their chance to finally save Local as well as compete head to head with American networks instead of just rebroadcasting the same old shows. Here’s their golden opportunity to build future revenue streams through a library of original programming they’ll be able to sell on DVD and iTunes and market to countries with less stringent trade rules than the US.
And if Canadians have so warmly embraced “Flashpoint”, “Battle of the Blades”, “Corner Gas”, “Trailer Park Boys”, and countless clones of American reality shows – why wouldn’t they just as warmly embrace more of the same?
Meanwhile, let’s add a surcharge on American films coming into the country or even on movie tickets if the film is American. Practically every other country in the world has done that without worrying about choppers of Marines massing on their borders. We almost did it a couple of times.
Will it reduce the number of people going to see American movies in Canadian theatres? Of course not.
Will it cause studios to pull their films from distribution here?
Are you nuts? Have you seen how much money they make in non-domestic markets that already ding them on every imported film or for a few cents on every ticket dollar – or both?
And in the world of theatre and concerts – are the promoters not going to be willing to pay a little more to get those money machines over the border? Are the people regularly paying $100 or more to see “Jersey Boys” and “U2” going to flinch at another buck or two that’s then rerouted to support Canadian theatres and bands?
Nope.
Suddenly, by limiting our “trade war” to just one small industry, we’ve potentially created a job boom here.
And how does that help the Canadians who now make sewer pipes and industrial pumps who are losing theirs?
Well, a little bit might get spent on some infrastructure projects here. But more importantly, you don’t take almost a Billion dollars out of Hollywood without somebody picking up the phone to call the guy whose campaign they helped to finance.
And then the guy who needs to get re-elected puts down his basketball and calls his Canadian counterpart and says, “What’re you doing to me?”
And then the Canadian guy makes sure his hair’s in place and answers, “What’re you doing to me?”
And then they figure something out.
And then Canadian companies start selling their pipe and pumps to California and California companies get to bid on projects here.
And maybe that means that us guys in Canadian Show Business who won this little skirmish don’t get to keep all we’ve gained and Global gets “House” back and CTV has some cop show with initials for a title every other night.
But us show biz types would still be far better off than we are now.
And some of those people whose jobs we helped save might have realized we’re their neighbors and work for a living just like them and they might decide to sample what we have to offer instead of the same old stuff.
Couldn’t that work?
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