SAVE FOR THE CONVENTIONAL broadcasters who wanted their new fee, many in the industry are, if not slapping the Commission heartily on the back, recognizing that coming up with new regulatory frameworks for BDUs and discretionary TV channels wasn’t likely an easy task and that the Regulator has done a decent job in addressing the myriad issues.
Click here for our summary of Thursday’s release.
Sure, cable, satellite and telco TV companies don’t want to divert another 1% of revenue to yet another programming fund, the broadcasters’ bet on fee-for-carriage didn’t come through and many wish advertising in VOD or on local avails weren’t going to be subject to yet another proceeding, but on the whole, reaction was along the lines of: "well, it could have been worse."
Leonard Asper, CEO Canwest Global
"We are disappointed the regulator did not address structural issues – specifically fee-for-carriage – that we clearly said were required to address the challenges facing conventional television… Canwest will continue to aggressively pursue change as we enter into the license renewal process in the coming months (paperwork is due in January), providing a business case for reducing license obligations that better reflects the competitive environment that we are in today.
Michael Hennessy, VP wireless, broadband & content policy, Telus
“We’re happy there’s no fee-for-carriage but this local improvement fund looks like a very complicated process and I heard some broadcasters (in Thursday’s industry lockup) worried that the paperwork associated with it is going to offset the value.
“It strikes me that now is not the time for new taxes or increased costs for the system, particularly for a company like ours whose job is to figure out how to invest in this business – and it’s still a long time before it becomes a growth opportunity for us.”
Phil Lind, vice-chairman, Rogers Communications
“It’s not real good, not real bad… Except for the distant signals (for which broadcasters can charge a fee) and the one percent (contribution to a new local programming fund), I think we’re slowly moving forward to evolving to a system the customers can relate to, but it sure is taking a lot of time.”
Bill Roberts, CEO S-Vox
"Nothing in this decision automatically kicked us out of the broadcasting ballpark. This is difficult material to assess – and we’ll need to see how the various moving pieces and follow-on CRTC processes develop as a game plan for the system. There does appear to be some yardage gains for everyone, with everyone also taking a bit of a hit – such as the loss of an all-Canadian basic.
“I’m proud of the small and independent broadcasters however, as we were able to push the ball back to at least mid-field in the end.
“At the outset of this BDU-driven game we were boxed in our own end at the 1 yard line and facing a stiff third down. That is not the case now – we may even be within field goal range if the 9.1.h. process succeeds for VisionTV.
“I do have some clarifying questions however, for example, does this decision amend the CRTC digital migration decision? And how aggressive will BDUs be allowed to be in predatory pricing of local avails? All-American TV packages is not my view of Section 3 fulfillment of the Act – but new audit rights, better dispute resolution mechanisms, access and genre protection – for now – are all positives.”
Lise Lareau, president, Canadian Media Guild
“Local TV programming has been in crisis for a number of years and a several broadcasters, including TQS in Quebec, have cut back drastically on local news. The new fund is a direct way to start lifting us out of this crisis and provide more, and better, local news to Canadians living in smaller cities.”
Cal Millar, VP and GM, Channel Zero
“The Commission has recognized the market dominance of the BDUs relative to unaffiliated programming undertakings, the importance of it’s role in requiring carriage under 9.1.h of the Act and continued access rights to the functioning of the system and the creation of Canadian programming (including genre exclusivity where warranted).
“Simple preponderance is a concept, while opposed by us, appears workable when measured by reception as proposed and packaging before a la carte offering simply recognizes market preference to value over ‘choice’.”
Peter Murdoch, VP, Communications, Energy Paperworkers union
"This fund is only as first step but does send a clear message to Canadian broadcasters about the need to meet their obligations to local viewers. The fact that the CRTC has made news a priority for this fund is recognition of the concerns both employees and Canadians expressed to the commission at a variety of hearings.
"We expect that the CRTC will emphasize to the broadcasters at license renewals next year the need to keep commitments to local news and programming at large and small markets."
Hubert Lacroix, president and CEO, CBC
“The CRTC missed this opportunity to correct a failing model for television broadcasting in Canada. All conventional broadcasters – public and private – need ad revenues to survive. They now make up over one third of CBC/Radio-Canada’s total funding. But those revenues are quickly declining, a situation that is being exacerbated by the current economic climate. Access to subscriber fees – already available to specialty services – would have addressed that decline. Now the very broadcasters who serve the most Canadians and produce the most original Canadian programming have the fewest options for financing those programs.”
John Levy, president and CEO, Score Media
"From our perspective we got everything we had hoped for. The Commission’s decision to retain its one-to-a-genre policy and guaranteed access ensures that independent voices like The Score will have the opportunity to continue to innovate and thrive in this new digital world."
(As a sports news service, The Score considers itself outside the mainstream sports deregulation of today’s release and is therefore still genre-protected.)
Glenn O’Farrell, president and CEO, CAB
“Today’s CRTC decision ensures that consumers will continue to have access to a rich diversity of Canadian pay and specialty services. However, the decision fails to recognize the severe structural problems affecting Canadian over-the-air (OTA) broadcasters.”
– Greg O’Brien
