2009 Banff World Television Festival

Banff, Alberta
June 7, 2009

Congratulations on 30 years of the Banff World Television Festival.

This is the world's foremost forum dedicated to content creation, development and production. And you certainly could not choose a better locale than here in beautiful Banff, Alberta.

The commitment to showcasing the innovation and vitality of Canadian creators, producers, broadcasters and communications companies is fantastic.

In the short time that I have to speak to you this evening, I want do two things:
give you an insight into my thinking about the industry, and what is ahead; and
talk a bit about one of our policy centre pieces - the Canada Media Fund.

First, the industry, and, the importance of the industry to Canada.

The Canadian broadcasting and television production industries employ well over 100,000 Canadians directly and generate revenues close to $20 Billion a year. Adding to this, the interactive and digital media sector adds another $5 Billion and 50,000 jobs.

I'll broaden it further, Canada's cultural sector contributed an estimated $46 Billion to Canada's GDP and directly employs an estimated 662,000 Canadians.

I mention all of this combined for a reason - because they are converged. They are not converging, the convergence is now, and Canada's new creative economy is here today.

The days of viewing Canadian media production in segments, as separate entities is fading. I know that this is an area of concern for your industry, and I hear Canadians who are uneasy about what lies ahead. This is natural, this is to be expected.

But I am not worried.

Not only am I not worried, I'm enthused about what lies ahead.


I am an optimist - always have been, always will be. And in my opinion, there simply has never been a greater time to be alive than today.

There has never been a greater set of choices for consumers, never have we seen more opportunities for producers, there has never been the diversity of technologies to embrace, we've never seen the vastness of the audience we have now to market our content and creations to, and there's never been a better time for us to look ahead, past through the short concerns, and to the great world that is standing right in our face to embrace.

We know the numbers and the analogies. We know what's going on.

The average Canadian watches 26 hours of television a week. Under the age of 25 it is 12 hours a week. BUT, teenagers are consuming MORE media content than ever.

Last month the University of Lethbridge released a study noting that 27% of Canadian teens use YouTube EVERY - SINGLE - DAY. 27%. And that number is growing as people like Susan Boyle, Paul Potts, that Bo Yo kid, and viral videos push people to connect.

I remember growing up, being home from school by 3:30 in the afternoon, playing street hockey until dinner, then waiting to watch the Cosby Show at 8pm on NBC with my family. "Prime Time". And we sat through the commercials.

This is not a big deal to think of now, but honestly, tell that to a 13 year old today. It's a bizarre concept to them. "Prime Time hours" doesn't mean anything to them.
They download the shows, or even the segments of the shows that they want, and watch it when and where they want it - on a bus, lying in bed, in class, on their laptops, on their iphone.

They load up a PVR with a week's worth of programs - like I do when I'm in Ottawa all week - and sit down at the time they choose, when they're comfortable and ready, and mow through days of programming in a few hours by fast forwarding through the commercials or the boring bits.

It is absolutely about choice..... and, most importantly, it is about the quality of the content.

Young people are not loyal to networks or stations or programming schedules. They're loyal to quality.
If it is good, they'll watch it.
If it is good and convenient, they'll keep watching.

So, it is about what is created, the quality of the content. AND, it is about making it available on multiple platforms.

Movies are NOT made ONLY for theatrical release. If they were, they would almost all, lose money. Movies HAVE to be made available on DVD to make money. Now they're available in theatre in focused or wide release AND on DVD, AND on Pay Per View, AND online, AND on iTunes.

The movie business has adapted to changing times.

Let's be blunt: TV has to do the same thing. Adaptation will happen. Those who don't, won't survive.

Audiences are seizing control. They are sophisticated, educated and quick to migrate if the content isn't made available how, where and when they want it.

If a production doesn't begin with a deliberate plan on maximizing distribution options, it won't work.

I know I'm sounding tough, but remember, the most important thing I've said here: young people are consuming MORE content than EVER before.

You see the signature white ear buds dangling from ears everywhere.
You see laptops open at Starbucks, connected via WiFi to watch The Daily Beast, Flashpoint, or YouTube.
You see people handing friends memory sticks loaded with video clips.
You see people being choosy between blue ray and DVD.
Movies and pay per view are available on xbox live.

People listen to music on their phones, watch TV on their computers, do computing on their TV, watch movies in their cars, listen to radio through their cable box, and so on.

Everything is everywhere, when and where we want it - it is a truly remarkable time we live in.

Choice is everywhere. As I said, never a better time to be alive.

As the Minister of Canadian Heritage, as an admitted first adapter to new technology, we examined what the role is for Government in this dynamic.

Is it to prop up the old way of doing things? No.

Is it to try to influence consumer behaviour in one direction or another? No.

Is it to assume the outcome of the changes that are occurring? No.
I can tell you, if any politician had decided that, we may today be the only people still clinging to 8 tracks, laser disks, reel-to-reels, and HD DVDs.

So what is our role?

Content.
To support the creation of Canadian content

And this leads me to the second thing I wanted to mention tonight: The Canada Media Fund.

In merging together the Canadian Television Fund and the Canada New Media Fund - we've taken an important step towards supporting a truly modern, multi-platform industry.

We have renewed our Government contributions, which when added to private sector contributions, would amounts to about $310M for multi-platform projects appropriate for the digital world over 2 years.

The new fund will be fully implemented and in place by April 1, 2010.
This will provide the time needed to work with industry stakeholders to define the fund's guidelines and principles.

Those consultations will be key, to ensuring we get your best ideas, and to ensure a smooth transition to the CMF.

Let me take this opportunity to clarify and expand on some points about the CMF.

We have two governance priorities.

First, as you know, we are taking steps to address Auditor Generals' concerns by establishing a fully independent board for the CMF. This is an important - and necessary - change. It reflects our Government's commitment to good governance and accountability to Canadians.

The Board will oversee the management of the Fund at a strategic level-- and will be accountable for the Corporation's obligations under the Contribution Agreement with the Government of Canada.
The directors will have the knowledge and experience required to enable the Board to carry out its duties and responsibilities effectively.

Second, a consultation mechanism will be established by the new Board. Consultations will be formal, ongoing, meaningful and inclusive. This will be a particularly busy year - over the coming months the CMF will be conducting consultations that will form the basis of the guidelines for - and implementation of - the Canada Media Fund.

We will be announcing the board membership soon, and I can tell you, that I have every confidence in the ability of the CMF staff and board to conduct these consultations and manage the process in a way that will ensure that the new Canada Media Fund will be governed and operated under sound principles - principles that will ensure its transparency and accountability.

Our Government believes in Canadian content and in the talent of those who create and produce it.

Audience success and innovation matter in an era where interactive digital media is changing the face of communications.

To meet the goals that I described, applicants to the funding envelope will be required to demonstrate how projects can be delivered across a minimum of two distribution platforms, including television (i.e. television show, interactive games linked to the show, webisodes, podcasts and so on).

We also want to foster development of cutting-edge applications and content to drive innovation back into the mainstream forms of content. That is why the CMF will also fund, on a project basis, experimental, interactive content and applications created exclusively for the Internet, wireless and emerging platforms and devices.

In announcing the CMF, our Government has reaffirmed the importance of content, including drama, comedies, children's programming, documentaries, and variety and performing arts, because this is the Canadian content Canadians want.

The CMF will support Canadian creative talent, including writers, directors and performers, and we will do so in both official languages, with continued locked-in support for Aboriginal and French-language minority productions, and support programs in third languages where demand and funding are present.

In conclusion, I want to return to where I began.

These are great times we are living in. I know at times it doesn't seem that way. And I know that the challenges the industry faces aren't easy.

But I am absolutely convinced, without the slightest doubt, that Canada will be a world leader in quality programming.

And, that we will be a world leader in seeing and seizing the unparalleled opportunities that exist in new technologies, growing choices and a content-driven industry.

Thank you for your attention, I wish you all only the best.