DAILY NEWS Jul 16, 2008 11:14 AM - 0 comments

CFTPA Apppoints Free Trade Negotiator To Negotiate With Broadcasters

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The Canadian Film and Television
Production Association announced today that Gordon Ritchie, one of the principle architects of the Canada-US Free Trade Agreement, has joined its negotiating team to secure fairer deals for program rights from the major
private over-the-air television networks, as well as CBC.

"On the eve of commencing historic terms of trade negotiations, we are very pleased to announce that Gordon Ritchie has joined the CFTPA negotiating team," said CFTPA Chair Sandra Cunningham. "Gordon's wealth of experience and
sound judgment will be invaluable to us as we sit down with CTV, Canwest Global, Rogers and CBC to negotiate more equitable trading terms with our broadcaster partners that reflect the realities facing independent Canadian
producers."

Ritchie's appointment by the CFTPA signals the increasing importance that the Canadian Radio-television and Telecommunications Commission has placed on broadcasters and independent producers reaching agreement on so-called "terms of trade" - framework agreements aimed at defining and valuing program rights, including new media rights, for platforms such as
broadband and mobile. These framework agreements would apply to individual negotiations between broadcasters and producers for program rights - something that producers hope will alleviate the severe imbalances in negotiating power
caused by broadcaster consolidation.

"The viability of Canada's independent production sector is under tremendous strain in the face of unprecedented broadcaster consolidation," said Cunningham. "Independent producers regard terms of trade as essential in
ensuring that they can continue to provide high-quality programming to Canadians and to viewers around the world."

In his speech at the Banff World Television Festival in June 2008, CRTC Chairman Konrad von Finckenstein said that a key issue for the CRTC was how broadcasters and independent producers should split revenues generated by new
media. "Who pays what to whom, and for what rights? There is a lot of uncertainty about what these rights may be worth on the various platforms." Chairman von Finckenstein reiterated the Commission's expectation that terms
of trade agreements be filed with the licence renewal applications of the over-the-air broadcasters, with the deadline expected to be in late 2008 or early 2009.

Guy Mayson, President and CEO of the CFTPA, said he welcomed the CRTC's firm expectation that broadcasters and independent producers reach agreement on terms of trade.

"Consolidation has created a lopsided relationship between independent producers, who are largely small business people, and these mega-conglomerate media groups," said Mayson. "This concentrated broadcaster decision-making power is one of the main reasons why we're so thrilled that Gordon has agreed
to join our negotiating team. Anyone familiar with the history of the Free Trade Agreement knows that Gordon is used to representing the underdog in very high stakes negotiations. His record demonstrates that if you're
well-prepared, reasonable, practical and principled, you can reach a fair and
meaningful deal to the betterment of both sides."

Negotiations between the broadcasters and independent producers are slated to begin next week.
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