Transitional licensing, genre protection tools to speed HD uptake

Drawing heavily on earlier policy documents, the CRTC released a framework on June 15 for the migration of Canadian television to high-definition standards. In the document, the commission expresses a preference to let market forces dictate the pace of transition to HD, unlike the Jan. 1, 2012 transition date it fixed for the changeover to digital signals. However, the document continues, the CRTC is prepared to step in with additional regulation to speed HD adoption if necessary. The consensus is that Canadian broadcasters are approximately four years behind their US counterparts in moving to HD. "That makes us nervous because we foresee the possibility that Canadian consumers who are investing heavily in HD sets are going to find minimal HD programs on Canadian channels, and their response will be to switch to US channels, and it may be hard to get them back," says Nick Ketchum, the CRTC’s senior director, television policy and applications. When would-be specialty channels come looking for licences in the future, HD compliance will play a big part in their success or failure. The CRTC has also decided to issue transitional licences during the run-up to HD rather than amending existing ones set up for analog services. To receive such a licence, an English-language broadcaster will have to commit to airing a minimum of 30% of the broadcast day and 50% of evening programming – the slot between 6 p.m. and midnight – in HD. French-language broadcasters are subject to a lower requirement of 20% of the broadcast day and 30% of the evening timeslot. In both instances, 50% of HD content must be Canadian by year six of the transitional licence. However, the CRTC is also examining other policy options and tools for shaping HD adoption including fee-for-carriage, an issue that will be discussed as part of the broader conventional television review taking place this fall. For example, if an over-the-air broadcaster were to provide a predominantly HD service, "it’s in effect a new service, and it would be whatever the appropriate percentage is – 50%, 75%, greater – that would trigger some kind of fee for carriage," Ketchum says. "That then would help defray the costs…involved in creating an HD service," as well as have flow-through benefits to HD producers, he adds. The CRTC is also prepared to use the vital importance of genre protection to push Canadian programmers towards HD. "We should give reasonable time, and three years was the choice, but after that time if you’re occupying a genre and you haven’t moved and another party comes up and says ‘I can provide good Canadian programming in that genre ,’ why should we say no?" Ketchum asks. But according to Norm Bolen, executive VP, content group, Alliance Atlantis Communications Inc., "genre protection is a fundamental cornerstone of the broadcasting system." He adds that other incentives to move more quickly to HD need to be found, rather than the threat of losing genre protection. "This is more of a stick, we also need carrots," he says, conceding that it will take some work on the commission’s part since "the transition to HD is very, very expensive, it’s complex, and…there’s really not much in the way of a revenue model associated with it." That’s a point that Ketchum is prepared to concede. "Advertisers don’t pay more for advertising in an HD show than they do in a regular show," he notes. "And, there’s no sign at the moment that audiences are dropping off when it’s a regular show as opposed to an HD show." Nevertheless, if Canada’s television industry is going to win the war to keep Canadians’ attention, it’s a battle that will have to be fought, whatever the cost. LINK: http://www.crtc.gc.ca/archive/ENG/Notices/2006/pb2006-74.htm

Transitional licensing, genre protection tools to speed HD uptake

News | 07/04/2006 4:00 am EDT

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