WE DON’T WANT TO SUGGEST that over-the-top programming services aren’t a potential threat to the Canadian broadcasting system or that the matter shouldn’t be taken seriously.
Pelmorex is a passionate proponent of a strong Canadian system. We believe it is appropriate for the Commission to look into the matter and it is doing exactly that with its Broadcasting Notice of Consultation CRTC 2011-344 (with a deadline extension now).
But, (and there always is a “but’, isn’t there), as OTT becomes the “issue du jour”, caution must be taken to ensure that the OTT threat is not to be used as yet another bogey man by some to argue for a greater reliance on market forces at the expense of the objectives of the Broadcasting Act or to divert attention from other pressing issues. A case in point is the upcoming vertical integration hearing.
Vertical integration is a fait accompli. The Canadian broadcasting system needs strong, integrated companies to enhance productivity, stimulate investment and increase innovation and by golly we got ‘em in spades! Four such strong integrated companies spring to mind immediately. So there really is no need to spend time and energy at the hearing dealing with the OTT issue as justification for vertical integration.
Yet, we’re concerned the OTT issue threatens to become the life of the party during this proceeding, pre-empting other discussions on diversity and competition within the regulated system. One vertically integrated company’s filing referenced OTT or Netflix by name 44 times in half as many pages!
What we need to address are the negative aspects of vertical integration, and how to ensure that independent voices maintain their much-needed place in the broadcasting system despite industry consolidation. OTT is simply a red herring when it comes to the important vertical integration issues facing the Commission.
And one final thought on the matter. We know Rogers, Global and CTV would never accept ads promoting each other’s competitive programming services. We can’t image a TSN ad on Sportsnet or vice versa.
Funny though how many ads for Netflix are seen on most of the major broadcast and specialty networks. You have to ask yourself: Is the OTT threat really being taken so seriously, or just being conveniently used as it suits one’s purposes?
Paul Temple is senior vice-president, regulatory and strategic affairs at Pelmorex Media Inc.
