I first want to thank the committee for inviting me here today as part of the study on the future of television and broadcasting in Canada. Given the structural shift the broadcasting industry has been undergoing and the global economic situation, this study is very timely, and I welcome your efforts to examine this issue. The impact of the current situation on our television and broadcasting industry in general is high on my list of concerns, as it is on the list of concerns of Canadians.
The terms of reference for the study at hand speak to the tremendous complexity of the issue facing Canadian broadcasting. As everyone in this room knows, the Canadian broadcasting system is unique. The challenges of geography, language, and proximity to the largest cultural exporter in the world have shaped our system. We broadcast in Canada's two official languages, many minority languages, and we also provide programming that meets the needs of our diverse cultural population.
The English and French markets have distinct challenges and opportunities. Whereas Canadian English-language programming faces tough competition in the domestic market, it is more readily exportable. On the other hand, home-grown French-language programming is highly successful and has far fewer foreign competitors, but it also has fewer export opportunities.
Canada has a well-established broadcasting system that makes an important contribution both to our society and to this country's economy.
Nevertheless, this system is undergoing a period of significant transformation. And in recent years, the pace of change has intensified. Technology has forever changed the way we create, access, and use content. Digital technologies are offering Canadians an unprecedented abundance of choice in terms of how and when they obtain information and entertainment.
And as we have seen over the last few years while many of these new technologies bring the promise of new services and content, they sometimes also supplant existing products and services and cause disruption and instability in the traditional industries.
Consumers have adapted to the new environment. We've embraced our PVRs, on-demand programming, and the Internet. Canadians expect more from entertainment and are moving toward a more interactive experience. Experiences with content, creation, and access are becoming richer, more meaningful and relevant. New Canadians are using these new platforms to share their stories, engage fellow citizens, and facilitate cross-cultural understanding.
In essence, new technology is providing Canadians with new opportunities to participate in our society. Canadian companies are adapting to these changes. Traditional competitors are partnering, merging, and exploring new business lines and strategies. We've seen the development of converged media companies involved in a wide spectrum of telephone, cable, satellite, broadcasting, and Internet services. There are lower barriers to entry, and that means opportunity for competition from new entrants and better services for Canadians.
The current economic situation is clearly having an impact on the broadcasting industry. As your current study clearly indicates, conventional television broadcasters are facing challenges. However, other stakeholders, for example, pay and specialty services, continue to experience strong growth in revenues and profitability. In today's environment, consumers want what they want, when they want it, and how they want it.
And businesses are in the process of adapting to the changing consumer and business environments. And against this setting of unprecedented transformation within the broadcasting industry, our government has played and will continue to play a strong role in this changing industry. And as always, we will place Canadians at the centre, as citizens, as consumers, and as creators.
At this point, I would like to speak about our government's support for public broadcasting. As the Minister of Canadian Heritage, I have taken every opportunity to express my support for a strong national broadcaster that serves the interests of all Canadians.
And as the Minister of Official Languages, I am sensitive to the important role Radio-Canada plays for francophones in Canada. In fact, it operates the only French-language national radio and television networks that are offered to all francophone communities across the country.
I am proud to say that CBC/Radio-Canada is one of our government's biggest investments. By giving CBC/Radio-Canada more than $1 billion a year, I believe the Government of Canada provides adequate funding for our public broadcaster.
As well, since 2001, CBC has received an additional $60 million for Canadian programming, funding that has been renewed several times, including this fiscal year. Groups across the country, public and private, small businesses and individual families, have had difficult decisions to make during these tough economic times. The CBC is not immune to the realities of these economic times. It has been required to make some difficult decisions.
Last month the corporation's CEO and president, Hubert Lacroix, announced actions that would be taken to deal with the current situation. We will work closely with the CBC to ensure it remains a strong national broadcaster and reflects Canadian diversity, protects our official languages, and is a platform for Canadian content.
Our government supports broadcasters because we understand that they provide a public service to Canadians in the form of news and other content that informs, enlightens, and entertains. While the current situation poses challenges, it also brings opportunities for our broadcasting industry. That is particularly true for stakeholders who take an innovative approach to meet the needs of consumers and the conditions of the current economic environment. There is tremendous opportunity for Canadian broadcasters to harness these new trends in digital technology, to become more innovative and consequently more profitable.
The efficiency of digital technologies and the dropping prices should leave room for effective solutions.
In the meantime, our government has provided, and continues to provide, strong support for the industry. For example, last month I announced the creation of the Canada Media Fund. Our support of $134.7 million per year, along with the additional financial contribution that cable and satellite companies make to the fund, will bring the combined investment to more than $310 million by 2010. The new fund will support the industry, Canadian content, and official-language minority communities. It will help provide the content Canadians want to watch on their preferred platform, whether it's television, the Internet, or mobile devices.
This government also recognizes the benefits of a strong, vibrant, and successful film industry. That's why we invested more than $300 million in the audio-visual production industry through the Canada film or video production tax credit and the film or video production services tax credit.
As well, in 2007-08, we provided approximately $90 million through the Canada Feature Film Fund, which supports the development, production, distribution and marketing of Canadian feature films. Last year alone, more than 40 feature films were created thanks to this fund. And it triggered an additional $153 million in feature film financing from other public and private sector sources.
In conclusion, the Canadian broadcasting industry has played a critical role in telling Canadian stories and shaping our national identity, and it will continue to do so. The Government of Canada provides significant support to both our private and public broadcasters and will continue to be a strong supporter of the Canadian broadcasting system.
We believe there are opportunities for the Canadian broadcasting industry. And if we look at companies like RIM and Lionsgate productions, it is clear that Canadians have the capacity to lead the way with new technologies. Canadians deserve quality, choice, and access to services at fair prices. They need to continue to find deep value in a broadcasting system that has served them well throughout the years.
As for industry stakeholders, I have no doubt that meeting the needs of the public will drive them as they work at innovative ways to re-engage the market to deal with the longer-term transformation that is happening. Advancements in technologies have always been followed by an evolution in the way business works. These times are no different. Moving forward, the government will do what it has always done. We will put Canadians first as citizens, consumers, and as creators.
In closing, I want to again thank the committee for the work that you're doing. I think the wide-ranging scope of witnesses you heard from will only serve to help this committee as it examines this, because they certainly represent the complexity and the diversity of this industry. So I look forward to reading your report, hearing what you have to say, and now taking your questions.