BANFF – Fire up the consultants, it’s going to be a hot summer of TV policythink.
As expected, CRTC chair Charles Dalfen announced a review of the TV broadcasting industry today at the Banff World Television Festival this morning.
In light of narrowing profit margins for conventional broadcasters by two percent since 2001, not the kind of showing seen by the growing revenue line of pay and specialty networks, and the limited spending on Canadian drama, among many other issues presented by new and emerging technology, the CRTC has decided to take a step back and re-evaluate the entire system.
“We’re asking ourselves whether we have the entirely right regulatory environment to usher conventional broadcasters through the opening decade of the 21st century,” said Dalfen.
The public hearing will begin Monday, November 27th. The deadline for written comments is Wednesday September 27. In between is the Canadian Association of Broadcasters’ annual conference – so look for some good sessions there on the topic as the CAB celebrates its 80th anniversary.
“Recent developments in the broadcasting sector have made such reviews essential in order to modernize the existing regulatory framework, and to ensure our domestic television business model can continue to work and grow to the benefit of all Canadians,” said CAB president and CEO Glenn O’Farrell, in welcoming the review.
Technological change is “the key factor affecting broadcasting executives’ decisions about spending on production and infrastructure that will shape Canadian programming for years to come,” added Dalfen in his speech.
Underscoring the change, Dalfen notes increased consumer demand of high-definition television, the lost distinction between conventional and pay-and-specialty television, the decreased relevancy of time slots, PVRs, multiplatform initiatives and new ways to advertise on television are all reasons behind the review.
The review also comes at a time when licenses of all the major conventional broadcasting groups coming up for renewal (in 2007). The CBC’s license was due for a hearing this summer but has been put off for 12 months.
“In view of all this, it seemed to us that rather than handle the regulatory response to these issues on a licensee-by-licensee basis, it would make more sense to treat them on an industry-wide basis, so that we will have prepared the ground for a fruitful discussion with each licensee at renewal time.”
The CRTC approach is to examine efficiencies in Canadian programming that attracts increasing number of viewers; give greater clarity to regulations that affect cost and revenues; and identify ways of delivering HD television to Canadians promptly.
In 2007, the Commission plans to launch a similar review for pay and specialty services.
Below are the three objectives the Commission seeks to satisfy with the policy review.
Objective A: To ensure that over-the-air television licensees contribute, in the most effective manner possible, to the production, acquisition and broadcast of high quality Canadian programming that attracts increasing numbers of viewers.
Objective B: To provide Canadian OTA television licensees with greater clarity regarding regulations that affect certain costs and revenues so that they are in a position to propose maximum contributions to the production, acquisition and broadcast of high quality Canadian programming.
Objective C: To examine options for the most effective means of delivering Canadian digital/HD television to Canadians.
Objective D: To examine the current and future economic status of small market television stations.
For the full call for comments, click here.
