Future of Canadian new media depends on more support of traditional broadcasters: CBC

Conventional broadcasters need more funding, as well as tax changes that give advertisers an incentive to advertise on Canadian websites, if Canada hopes to have a thriving and sustainable industry for new media, the CBC tells the CRTC.The CBC contends that traditional broadcasters provide the lion’s share of domestic video content on the web, but faced with declining audience shares and advertising revenues, this will become increasingly difficult."Indeed, nearly all of the video content being offered by new media producers such as iTunes and hulu, is being drawn from traditional television. Television programming from traditional broadcasters markets is being redistributed on the Internet in a reformatted state,” the CBC states.The CBC made the comments in response to the CRTC call for input for the new media hearing scheduled to begin Feb.17. In its response, the CBC argues that it makes no sense to shift funding away from companies that don’t produce Canadian content and that any new funding should only be availed to entities that “meet either the existing Canadian content requirements or some suitably modified set of criteria for new media.”The CBC also recommends that scarce subsidies be used for programming that will likely reach the biggest audiences. The public broadcaster reminded the commission that funding for the Canadian Television Fund would not be feasible without major monetary contributions from the traditional broadcast sector, which ensures that only serious projects get funding and that such projects are made available only when it has been determined that they will reach large audiences.“The Internet does not impose this discipline on new media services since anyone can upload a program on a web site with minimal expense. Without adequate safeguards and attendant promotion, there is no guarantee that a stand-alone program of high quality will be produced or that anyone will even know it is available on-line,” argues the CBC.However, the CBC notes that it has had success with its new media offerings. For instance, it claims that cbc.ca and radio-canada.ca reach an average of 5.8 million Canadians each month, which is about 24% of the online population and 18% of the total Canadian population. In addition, the CBC says cbc.ca is the most popular site in Canada, registering an average of 4.1 million unique visitors per month. But it also concedes that new media has significantly eroded advertising revenues for traditional broadcast media. Despite its success with new media, the CBC notes that challenges remain in converting audience success into revenue windfalls.As the country ponders the future of new media, the CBC says the CRTC is not the only governmental agency that can help strengthen the sector. Legislation, such as Bill C-58, can be effectively used to provide an incentive for Canadian companies to advertise on Canadian websites, and the government should consider amending the Tax Act to facilitate this, the CBC states.In the next five years, the CBC says traditional broadcasters will continue losing advertising revenue to new media platforms and the government should adopt incentives to ensure that the role of traditional broadcasting remains financially viable. The CBC supports the suggestion for a CRTC-mandated ISP levy, similar to the type BDUs pay.“The reality for broadcasters is that today and at least for the next 5 years, will continue to lose far more in advertising on the traditional side of the business than they are making on the new media side of the business. This trend is working against conventional broadcasters and is threatening their ability to continue to finance high quality Canadian content in the longer term.”In a move that can be considered self-serving, the CBC warned the Commission that it is administratively difficult to deliver new media funding unless it is directed to broadcasters that use both traditional and new media platforms to reach Canadians. In a period where producers claim that nearly 50% of broadcast content carried on the Internet emanates from traditional media, the CBC reiterates that traditional broadcasting is the “cornerstone” of Canadian broadcasting. New technologies, it argues, “are not ends in themselves” but other modes of gaining access to content.

Future of Canadian new media depends on more support of traditional broadcasters: CBC

News | 12/22/2008 8:44 pm EST

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