Bell wants local news requirements lifted. This is why

BCE Inc. has called for the local news requirements enshrined in federal broadcast rules to be removed for the company’s stations across the country, casting doubt on the future of local news coverage.

In a filing with the CRTC filed June 14, Bell Media requested the telecommunications regulator to review requirements for spending on local news and regarding the number of hours per week stations are required to broadcast local reflective news in major and minor markets, to delete.

The filing was filed on the same day Bell announced it would cut 1,300 jobs, close or sell nine radio stations and close two foreign bureaus amid plans to “substantially adjust” the way it delivers news in light of increasing financial pressure.

Many media companies across the country continue to struggle with widespread layoffs and financial headwinds. The news comes a day after a bill passed the Senate in Ottawa that the government hopes would financially level the playing field for advertising with big tech companies like Meta and Google.

In his filing, Bell noted that his 35 local television stations, branded as CTV, CTV Two and Noovo, plus three discretionary television news services — CP24, CTV News Channel and BNN Bloomberg — are under financial strain.

It called for the removal of the requirement for English-language television stations in metropolitan markets to broadcast at least 14 hours of local programming per week. In Quebec, Bell also asked the regulator to lift its obligation to broadcast at least five hours of local programming per week on its Montreal station.

It also requested that its stations in major markets – such as Toronto or Vancouver – no longer be required to broadcast at least six hours of local reflective news weekly. For non-major market stations, it wants the three-hour requirement reduced.

It also asked the regulator to waive the requirement for the company to spend 11 percent of the previous year’s gross revenue on acquiring or investing in local reflective news.

“The requested relief we seek would enable us to better manage our legal obligations in the evolving competitive landscape of the Canadian broadcast industry in the face of competition from digital media broadcasters,” the filing said.

Last week’s layoffs included a six percent cut at Bell Media.

Dwayne Winseck, a professor at Carleton University’s School of Journalism and Communications, said it was an “aggressive” move by Bell, and one that, if successful, could spell trouble for local journalism.

The question, coupled with last week’s budget cuts and in the context of the two new bills — Bill C-18, the Online News Act, and Bill C-11, the Online Streaming Act, two bills the government hopes will media companies in Canada will help — marks a “greedy Gretchen” move by the company, Winseck said.

“You might as well go for the moon and the stars and see what you get.”

Although the television channels in BCE Inc.’s business may not be profitable, Winseck noted, the company has very profitable parts, especially in telecommunications.

“They are elements that are the icing on the cake to make their case,” he said.

The filing noted that Bell Media’s average annual news business loss between 2016 and 2019 totaled $28.4 million, a figure that rose to $40 million last year as web giants conquered the Canadian advertising market.

“The reality is that the commercial news model has never been sustainable,” said Winseck.

“It always had to be subsidized or cross-subsidized by profits from another part of the media division or the company in general.”

In a second filing filed by Bell on June 14, the company also requested that the CRTC reduce its Canadian content spending obligation to English-language television stations from 30 percent of the prior year’s revenues to 20 percent.

It also asked for the amount its English-language television stations must spend annually on programs of national importance to be reduced from 7.5 percent of the previous year’s revenues to five percent.

Should Bell get all or part of what it’s asking for, Winseck thinks it won’t be good for local coverage.

“We’re seeing these stations become more and more detached from their local conditions,” he said.

Bell said the CRTC’s implementation of the Online Streaming Act has the potential to provide relief to media companies through compensation from online streaming giants, but it cannot afford to wait for the outcome of the regulator’s consultations on the law.

It echoed many of the concerns raised last week by Robert Malcolmson, Bell’s Chief Legal and Regulatory Officer, about the legislation, which received royal approval in April and is now in a consultation phase.

Malcolmson said the main problem for Bell is that popular US content is not available to Canadian broadcasters because US platforms offer it directly to consumers on their internal streaming services. He urged policymakers to enforce guarantees that would allow Canadian broadcasters to pay U.S. companies to broadcast that content.

“In particular, without this relief, we will be required to continue to operate these stations in an environment of significant regulatory uncertainty as the Commission works to implement the Bill C-11 policy guidelines,” the filing said.

With files from The Canadian Press

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