Programmers and distributors at odds on how to roll out digital TV across Canada

There is little industry consensus between distributors and programmers on how to convert to digital television, according to a new report prepared for the CRTC by an industry task force studying the issue. "We really didn’t agree on much. Whatever was agreed on, were small items," says David Saxe, who represented the Canadian Cable System Alliance on the working group. Also represented were the Canadian Association of Broadcasters, the former Specialty and Premium Television Association, the Canadian Cable Television Association, Chum Ltd, TVA, Pelmorex, Rogers and Vidéotron. The report, entitled The Distribution of Existing Analog Pay and Specialty Services on a Digital Basis, presents the views of both the programmers and cable industry. Filed Feb. 2, the report also looks at the issues facing small cable systems. The CRTC is expected to issue a public notice within three weeks that will outline the next steps, according to Claude Doucet, a CRTC observer on the working group. The report is part of a CRTC process aimed at designing a regulatory framework that will facilitate the transition to digital distribution (PN 2000-113, 2000-113-1). "We’ll look at the areas where they don’t agree and then determine whether we think there is further action needed," says Doucet. There is agreement on one point – that the conversion to digital will be neither smooth nor quick. Unwilling to give up lucrative revenues from analog tiers, the industry favors duplicating existing analog services on digital rather than a complete migration with the termination of analog delivery. Not everyone agrees, however, on how and when the channels should be duplicated. A key point of contention is whether a cableco can duplicate a programming service under an existing contract without consent prior to the duplication. Cablecos also want to be able to package the channels in a variety of ways on digital so that they can remain competitive with DTH satellite distributors. According to Saxe, gaining access to a signal is particularly an issue with small cable operators who are increasingly facing competition from satellite distributors. "The programmers are saying that if we don’t carry certain of their signals, they won’t give us the signals that we do want…," says Saxe. "Smaller systems can’t guarantee minimum penetration levels and still give the customers a full choice of what they want. Therefore, the programmer is basically saying if you can’t guarantee us a penetration level, we won’t let you put it on." Sean Kiely, CAB VP of specialty and pay services, says programmers support duplication, but disagree with cable on the process of carrying it out. "We’re more concerned about the unauthorized re-packaging on, for example, an à la carte basis without the programmer’s consent. We don’t want duplication unless there is express written consent (by programmers) prior to duplication," he says. If broadcasters can’t meet certain penetration levels, he adds they will have trouble meeting their Canadian programming obligations. Specialty channel owners support duplication as long as existing analog tiers are fully replicated in digital or repackaged by theme. They also want subscribers to continue to receive analog tiers while the same services on digital channels are offered at no extra charge. Some programmers suggested a limited market trial over the next 12 months to test subscriber demand for the distribution of existing analog programming services on a pick-a-pack and/or à la carte basis on digital. The cable industry, however, calls such a trial "unnecessary and unprecedented."

Programmers and distributors at odds on how to roll out digital TV across Canada

Broadcast | March 14, 2001

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