Independents table their fixes for the broadcasting system

A motley panel of four independent broadcasters presented the CRTC with four very different viewpoints on how to fix the broadcasting system at the BDU and specialty hearing yesterday. While the commission grouped Channel Zero Inc., The Fight Network, High Fidelity HDTV and Maple Leafs Sports & Entertainment Ltd. to reduce the number of overall interveners, the result was an enlightening lesson in the diversity of independent broadcasters. Channel Zero Key Message: A consumer choice-driven market only truly exists when the consumers have the option to choose from all the available channels. "Canadians don't say to themselves, ‘I want to spend money on cable or satellite.' They say, ‘I want to watch TV.' Without programming services, cable and satellite have no television to sell to Canadians," said president Cal Millar. Illustrative Story: Although Channel Zero launched its old movies channel, Silver Screen Classics, on Rogers Cable and Bell ExpressVu to much success in 2003, Shaw Communications Inc. declined to launch it on digital cable because it didn't believe there was an audience and claimed it didn't have the channel capacity. However, in 2005 Shaw launched American old movie channel Turner Classic Movies on analog cable, which uses as much capacity as 12 digital channels. Key Recommendation: All programming services displaying 50% Cancon overall, 50% Cancon in primetime and contributing 50% of the previous year's revenues to Canadian programming should receive mandatory carriage by all BDUs. Other Suggestions: Maintain genre protection; no fee for carriage; allow advertising by BDUs on local avails; place a moratorium on the addition of new foreign satellite services to the eligible list; and institute a 2/3 preponderance rule. The Fight Network Key Message: Less regulation forces innovation and competition. "Had this market been less regulated, had the entrepreneurs who obtained valuable broadcasting licences in this country been less protected, and less secure in the belief that those protections would assure them of all the growth they can ever aspire to, I doubt the Fight Network would be the first original genre developed in Canada and exported to the UK and other markets," said president and CEO George Burger. Illustrative Story: The Fight Network was developed around the idea of targeting an un-served niche and is the only channel in the world providing 24-hour-a-day coverage of the sport of fighting. As a result, the channel could be the first unique specialty genre developed solely in Canada to become a global sports media brand similar to the Golf Channel. Key Recommendation: Remove genre protection. "What if history on TV offered more than World War 2 newsreels, endless repeats of JAG, and of course that historical chronicle, CSI:New York?" Other Suggestions: Remove guaranteed access, but monitor BDUs to ensure they don't give preference to their own stations; No fee for carriage. High Fidelity HDTV Key Message: Current rules favour US services over Canadian services. "We are more than willing to compete against any broadcasters, big or small, Canadian or non-Canadian, regulated or unregulated, provided that the playing field is level and fair. But at this time, and for many years now, the playing field has been tilted against Hi Fi and other new entrant Canadian broadcasters," said senior VP David Patterson. Illustrative Story: While Hi Fi is carried nationally on Bell ExpressVu and enjoys double-digital monthly growth on SaskTel's IPTV service, it cannot negotiate access with Shaw, Videotron ltee or Cogeco Cable Inc. As a result, more viewers in the US and Asia receive Hi Fi's original programming than in Canada. Key Recommendation: Stop regulating new entrant, independent HD specialty broadcasters except to ensure a reasonable contribution to the Canadian broadcasting system. Other Suggestions: A moratorium on new foreign satellite services; require all players, including foreign, to spend a minimum percentage of the previous year's revenues on Canadian content; remove genre protection. Maple Leafs Sports & Entertainment Ltd. Key Message: Looser regulations will allow broadcasters to respond to view erosion due to the Internet. "The singular nature of our services makes the impact of the Internet particularly acute. We want the ability to compete, to invest and to contribute more. However, the commission's application of the genre exclusivity policy leaves us with such a narrowly defined niche it gives us no options for growth within the sports broadcasting industry," senior VP or broadcast and content Chris Hebb. Illustrative Story: Despite investing close to $34 million dollars on two channels, representing almost 17% of all Canadian programming expenditures by Category 2 services in 2006, and launching HD services, growth in MLSE's broadcast business has stalled. Key Recommendation: Allow parties the opportunity to persuade the CRTC to make exceptions to the one-to-a-genre rule for sports, either through allowing a new general interest sports service, allowing amendments to licences, or a combination of both. Other Suggestions: none.

Independents table their fixes for the broadcasting system

Broadcast | April 24, 2008

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