Cable ownership of analog specialty services continues to meet resistance

Promises by cablecos that they won’t give preferential treatment to channels they own continues to be met with skepticism by producers, broadcasters, and specialty channel owners. As long as cable remains the dominant means of television distribution, content providers say the CRTC should uphold rules that prohibit or limit cable companies from owning analog specialty channels. As part of the commission’s proceeding to reconsider these rules (PN 2000-165-1), the Canadian Cable Television Association argues for a level playing field with BCE Inc, which is allowed to own satellite TV company Bell ExpressVu, CTV Inc and its affiliated analog specialty channels. "It would not be in the public interest to create a single entity that could dominate the broadcasting and communications market in Canada across all platforms…," the association writes in its Feb. 9 submission. "BCE ... will be in a unique position to offer and market services across a whole range of platforms, to the detriment of the competitive environment," it notes. But specialty channel owners and others argue that BCE is immune from such restrictions because it operates in digital, where there is a total customer base in Canada of less than 1.2 million. In comparison, cable currently serves 7.4 million analog subscribers, most of whom are served by Class 1 cable operators. The Canadian Film and Television Production Association, the Canadian Association of Broadcasters and Friends of Canadian Broadcasting argue this concentration of power allows companies like Rogers Communications Inc and Shaw Communications Inc to determine a channel’s placement, pricing and marketing. For example, says Friends’ spokesperson Ian Morrison, Rogers carries CTV Sportsnet on the basic service of its Ottawa system, but rival sports channel TSN on the first optional tier. "Why?" he asks, "because they have a 29 per cent interest in Sportsnet and no interest in the other." The CFTPA also points out that with the 1994 and 1996 specialty channel launches, cablecos had ownership in all of the services that got basic carriage. "Some dual status services with long tenure in particular channel positions were bumped to positions higher on the dial to make a place for a cable-affiliated service," it adds. But CCTA communications director Bill Allen says cablecos have offered guarantees that if they’re allowed to take out bigger stakes in analog services, they will not move any affiliated channels from existing spots without CRTC approval. "Every-thing that is analog already has a position on the dial and is already in packages," he adds. Critics aren’t convinced. They point out that the CCTA’s assurances do not safeguard against unfair treatment of non-affiliated channels. For example, it wouldn’t stop cable from moving a non-affiliated channel distributed on a high penetration tier to a scrambled analog tier,or off analog to digital, the CFPTA notes. Morrison says several specialty channels are afraid to speak out on this issue for fear of reprisals by cable operators. "I have quite an extensive amount of information about intimidation by the two largest cable companies — Rogers and Shaw. People have asked me not to elaborate because the intimidation is real," he adds. According to Morrison, individual producers are also reluctant to criticize cable out of fear their projects will not get greenlighted by cableco-controlled funds. Individual cablecos run such funds as the Maclean-Hunter Fund, Rogers Telefund and the Shaw Children’s Programming Initiative. Cablecos also contribute about 25 per cent of the $200 million Canadian Television Fund. Morrison says he’s spoken with high-ranking CRTC officials who are aware of cable’s practices, but are unable to act because no one is prepared to come forward with specific incidents. Interested parties have until March 12 to file further written responses as part of the CRTC proceeding. In the meantime, the CAB, the CFTPA and Friends, are pushing for a full public hearing before any policy changes are made.

Cable ownership of analog specialty services continues to meet resistance

News | 02/14/2001 5:00 am EST

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