WHAT A DIFFERENCE a day makes.
Or so they say in politics. Perhaps in the broadcast and cable regulatory environment it takes a little longer than a day, but the world has most definitely changed since last spring’s broadcast distribution undertaking and specialty & pay policy framework hearing in Ottawa. A quick look today at the headlines tells us in no uncertain terms that “Canada heading for recession, say economists” (CBC.ca), and that “Investors panic, markets plunge as crisis spreads in Europe, Asia” (Globe and Mail).
As the credit crunch deepens and consumers begin to rein in their spending, what’s ahead for the Canadian broadcasting system and Canada’s specialty services in particular? It’s probably an understatement to say that advertising revenues will take a hit. We don’t want to panic here, but does anyone out there disagree?
Smaller, independent specialty services needing to borrow funds are in for a real tough time. In this economic environment would you lend them money? It is probably not a good time to try and raise money for that new Category-2 specialty service you were thinking of launching either. Larger corporate groups are sure to feel the pinch as well, more so if they are highly leveraged.
All of which makes me wonder how different the BDU/S&P Framework Review proceeding might have been if the hearing was starting next week. Would we have the same calls by many of the BDUs for greater reliance on the marketplace and near elimination of regulatory oversight? Would anyone be taking them seriously?
It seems to me, and many others far more expert than I, that much of the economic crisis we face today stems from a relaxation of regulatory oversight and an unbridled reliance on the marketplace. The pundits insist that the crisis in the U.S. banking sector will not be as great in Canada because of our greater regulatory oversight in the financial sector.
I wonder if we’ll be able to say the same about the Canadian broadcasting system? Will it survive because of prudent regulatory oversight and safeguards? Is this a good time for the Canadian broadcasting system to get rid of access rules, genre protection, preponderance and throw open the door to competitive foreign services? Is this a good time to introduce further volatility into the broadcasting market place? Hardly. What programmers really need now is predictability and stability.
As governments around the world pour money into the financial sector to correct the sins of the past, you can be sure it’s too little too late. You can’t roll back history. Are we headed for the same crisis in Canadian broadcasting? Will we be making the same mistakes; rely too heavily on the marketplace, eliminate regulatory safeguards that promote Canadian programming and end up trying to fix the system three or five years from now when it’s too late?
All of this boils down to the simple but critical question: Will the CRTC decisions – apparently scheduled for later this month – reflect the new reality or was the mold cast in a world that no longer exists six months later? Are we destined to repeat history’s mistakes and rely on market forces as a matter of faith?
Hopefully, we have learned from the lessons of today and recognized that regulatory oversight is not just beneficial to the Canadian broadcasting system, it’s essential. Hopefully, the Commission is busy reviewing its regulatory framework decision in light of what’s happening right now in Canada’s economy.
Hopefully.
Paul Temple is senior vice-president of Pelmorex Media Inc., the parent company of The Weather Network and MétéoMédia.
To comment on this or any other story on Cartt.ca – or if you want to contribute your own commentary piece on any industry topic – please contact us at editorial@cartt.ca.
