OTTAWA – CTVglobemedia Inc. says that it stands to lose up to $6.5 million in advertising revenue just by airing two public service announcements (PSAs) about the impact of the upcoming digital transition on over-the-air TV viewers.
According to the CRTC’s proposed regulations for the digital TV transition, broadcasters must begin airing the two PSAs no later than March 31, 2011. The first, which must will air six times per day to start and eight times daily beginning one month prior to the shut off, will inform viewers that analog OTA signals will cease on August 31, 2011. At least 25% of the PSAs must run in prime time (7:00 p.m. to 11:00 p.m.) The second spot, which must air at least once per day, and three times per week in prime time, will let viewers know that they may experience service loss.
CTV says this means that its 23 conventional stations combined would have to air nine hours and 23 minutes of PSAs per week in the beginning, and up to 12 hours and four minutes come July, the month prior to the transition. In prime time, the spots would account for up to three hours and 15 minutes per broadcast week.
“Requiring conventional broadcasters to air the PSAs during prime time represents a loss of valuable commercial airtime that would otherwise be used to generate advertising revenue at a time when such revenue is desperately needed by conventional television broadcasters,” CTV told the CRTC in its comments on the proposed regulations which were filed on January 11.
CTV recommended that the two PSAs be combined into one, which “would have the effect of simplifying the message to consumers and making more efficient use of the valuable commercial time dedicated by broadcasters to the airing of the PSA.”
The national broadcaster isn’t alone in its concern over potential lost advertising revenue. Shaw Media concurred that airing the PSAs in prime time will take away valuable revenue opportunities.
“A mandated communications plan will involve the production of PSAs, training of customer service staff, and most importantly the use of limited airtime (particularly during peak viewing periods) which represents our only source of revenue – and therefore, represents both a real cost and an opportunity cost through lost and unrecoverable revenues,” it said in its comments to the Commission.
Quebec broadcaster V Interactions Inc. also flagged the potential revenue loss. It described the cost to broadcast the PSAs as substantial, noting that it will be forced to assume them at a time when broadcasters are still suffering from the results of the recent economic crisis.
Regulations around digital transition PSAs shouldn’t compromise advertising revenue, V Interaction said in its submission, noting that this will only serve to increase broadcasters digital transition costs.
CRTC’s proposal unnecessarily confusing
Aside from the cost issues, broadcasters said that they are also concerned that the Commission’s dual PSA proposal will serve to confuse TV viewers, not clarify the issues around the digital transition. They say that the CRTC is asking for too many details to be included in the PSA, which could cause viewers to either tune out or disregard the information altogether. There are better, simpler, and more effective ways to communicate the issues to viewers, the ‘casters contend.
CBC/Radio-Canada argues that the current proposal to air 30-second PSAs with detailed information isn’t practical. Instead, it recommends replacing them with 15-second PSAs containing the most basic information and driving viewers to websites and toll-free services. These supplementary services would then be able “to provide detailed information to the small percentage of consumers who will actually be affected by the digital television transition,” it said in its comments.
The Corp. also said that the shorter, simplified spots will also mean fewer airings are required per day. CBC/Radio-Canada said that under its model, four PSAs broadcast throughout the day with at least two airing after 5:00 p.m. would suffice.
Running contrary to the broadcasters’ opinions are groups who say that the CRTC needs to impose even more rules around the transition to digital.
Consumer group OpenMedia.ca told the Commission that having broadcasters air PSAs only in mandatory markets isn’t adequate. Instead, it suggested the creation of a national working group made up of government, public and private OTA broadcasters; consumer groups; community television organizations; and other industry stakeholders to oversee a national DTV transition public awareness campaign. It proposed that such a campaign could be funded through additional benefits resulting from BCE’s acquisition of CTV.
“We need a central body capable of explaining the transition, market by market, from an individual viewer’s perspective,” OpenMedia.ca’s submission reads. “In addition, it is inappropriate to leave it solely to commercial broadcasters to communicate the changes given that their corporate parents have an interest in shifting over-the-air viewers to BDU subscriptions. An arm’s-length body, such as the working group we recommend, is needed to ensure unbiased, uniform and accurate information is reaching TV viewers.”
