Hearing starts today: Competitors oppose new channels for CBC, High Fidelity

Launching a new television channel, it seems, is far more contentious than starting a new cable company. Or so it would seem by the opposition to applications by CBC and High Fidelity for new specialty channels.An agenda-packed CRTC hearing gets underway today in Gatineau QC that could result in the arrival of new television channels as well as new broadcast distributors in Thunder Bay and Toronto.But it appears to be the proposed new channels that face the stiffest opposition. Not surprising since Category 2 services must convince the regulator that they won't directly compete with any existing pay, specialty or Category 1 service.In comparison, TBayTel's application to launch a BDU in Thunder Bay later this year received only two interventions - both from local residents and both positive. (see related article). Meanwhile, Ravinder Singh Pannu's bid to launch a cable TV service in Toronto is facing only one opponent - from Rogers Cable Communications Inc. If private broadcasters have their way, CBC will have to offer some tangible concessions before launching CBC SportsPlus, a national, English-language Category 2 specialty channel dedicated to covering Canadian athletes. Its assurances that "CBC SportsPlus would have a different programming format than The Score, a different programming focus than TSN, a different function than SportsNet and a different purpose than all of them" hasn't placated other broadcasters.CTVglobemedia Inc. (CTVgm) contends that SportsPlus' programming would compete with existing channels, in violation of CRTC rules requiring that CBC services be unique and distinct from the private sector."A professional sports service in amateur sports clothing"In a June 13 intervention, Kevin Goldstein, CTVgm's VP regulatory affairs, says despite CBC's contention that programs will emphasize amateur athletes, "CBC has not proposed any limit on the amount of professional sports programming that SportsPlus will be providing." Its concern, shared by Rogers Media Inc. and the Canadian Association of Broadcasters, is that there would be nothing stopping CBC from committing 75% of its programming to professional sports, which is a major revenue generator for private broadcasters."In CTVgm's view, the categorical refusal to limit the percentage of category 6(b) programming on the service raises the question: what are the CBC's true plans for this service, and is SportsPlus simply a professional sports service in amateur sports clothing designed to directly compete with existing services in this genre?", writes Goldstein.CBC is proposing that 30% of its total broadcast time be set aside for professional sports, including baseball, basketball, football, tennis, golf and hockey. In comparison, Canadian amateur athletes and sporting events would comprise 25% of the schedule. Overall, 80% of its programming would be Canadian.If the CRTC does approve the application, at a minimum CTVgm says SportsPlus should be prohibited from covering men's hockey, basketball, basement and football.CBC could also be facing an uphill battle for mandatory carriage. In a separate proceeding, (BDU/Specialty and Pay Review), the CBC contends that all of its services, including discretionary services, are entitled to mandatory distribution on all licnesed BUDs under the Broadcasting Act. Rogers Media disagrees with this interpretation, saying if it were upheld, then CBC Sportsplus would have the carriage status of a Category 1, but without the obligations (e.g. contributions to Canadian programming)."The carriage status of CBC's discretionary services is not yet determined therefore consideration of this application should be delayed until after the Commission releases its determinations in relation to Notice of Public Hearing 2007-10," writes Susan Wheeler, VP regulatory affairs at Rogers Media.Broadcasters line up against High FidelityEven more opponents have lined up against Canadian all-HD broadcaster, High Fidelity, which has applied to add two more HD programming services to its line-up.Diversion HD will feature primarily post-pay exhibition window, non-independent feature films spanning all genres, as well as related content including interviews, analysis and ‘behind the scenes' programs. Canada HD Network, meanwhile, proposes to be general interest service providing programming from a variety of genres, but all in true HD. In a third application High Fidelity stepped away from its all-HD heritage by seeking approval to launch Diversion in standard definition as well.Astral Television Networks says High Fidelity is stepping on its toes by offering "general interest movie-based services that are directly competitive with Mpix". Its intervention makes the same argument against Canada HD Network, claiming it would compete against both Mpix and The Move Network.It's a position shared by CanWest Media Inc., which claims High Fidelity has failed to demonstrate how it would not compete with existing services. Broadcasting in HD - which is almost non-existent in Canada - is not enough of a differentiator, CanWest contends."We wish to re-state our position that "HD" - in and of itself - does not constitute a separate genre. For a variety of valid reasons, it is the programming content, and not the technology behind the signal, that is the focus of the "directly competitive" test," writes Tina-Marie Tatto, CanWest's manager, regulatory affairs.Score Media Inc. says it would drop its opposition to High Fidelity if the company agrees not to broadcasting any professional sports, and if it makes more of an effort to differentiate itself from other general interest channels.No applicants or interveners have been asked to appear at today's hearing.

Hearing starts today: Competitors oppose new channels for CBC, High Fidelity

Broadcast | July 7, 2008

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