I FIND CARTT.CA AN EXCELLENT source of timely information about the exciting communications industry in Canada and occasionally we subscribers are treated to one of your humorous diversions, or at least that is what Thursday’s Commentary seems to be. It focuses on what can only be described as the old saying “rearranging the deck chairs on the Titanic,” Global style.
Last November I learned through your service that the CEO of Global, Mr. Leonard Asper announced, among other things, that “There is a battle coming.” He was also quoted as saying “We know the Commission has some sympathy but there’s incredible push-back from all constituents.”
There sure is Mr. Asper and here’s why this well-taxed Canadian subscriber will oppose your regressive plan to collect money from me through my BDU. Since that autumn day when first I heard of the plan I’ve come to think of it as the Asper Tax, or as I prefer, the AST.
Scrape it all away and he would have BDU subscribers taxed further so that his revenue base could be pumped up. Everyday, business people must ask themselves what value the marketplace assigns to their enterprise. For example how upset would Canadians be if Global shut off all their stations today, except one. Then deliver the one remaining signal to the BDUs. Would most Canadians care which one they choose to leave on for the test?
Focus, clearly on what people would miss across Canada and for how long? Let’s be honest, local news and the time shifting that stations offer is about the extent of it these days. Time shifting is really a non-issue thanks to a rapidly increasing number of Canadians receiving news and entertainment content through a variety of digital technologies including the Internet and PVRs. How long will it be before Rogers and Shaw offer the ability for subscribers to centrally store hundreds of hours of programming at a very attractive price to be viewed whenever and wherever their subscribers want it?
Mr. Asper, on my way to the office this morning I heard a radio spot for two Global stalwarts; My Name is Earl and Survivor. They will anchor your network tonight in the sweetest spot available in prime time. I’ve never seen those shows but I’m sure some Canadians will be watching in real time. But here’s the problem, increasingly most episodic television is not that great and not getting better. Most producers and networks seem locked in a self-destructive downward spiral of steadily lowered standards, morally and intellectually. The AST would simply go toward a new model of buggy whip.
When business models change as television and especially newspapers have, you must re-tool, be creative, invent new products and services and deliver them when your customer wants them at a fair price, or you’re gone. Taxpayers have no obligation to prop up a “cracking” model.
Lobbying a few politicians and bureaucrats is a lot easier than the alternative I suppose, but it just isn’t on. Canadians will strongly oppose the idea of another tax no matter how well you “editorialize” the scheme.
The talents of your excellent staff are far better spent being creative and inventive. Global has the ability to be an exciting programmer, be bold, cause innovation and change for the better. The reality is that video games are now bigger than Hollywood, the Internet is attracting rapidly increasing audiences and ad revenues, brands are quickly moving closer to the point of the purchase through digital signage and place-based media. We have completed numerous point-of-purchase digital signage projects in North America that are showing excellent results in retail. An AST will only make your problem worse, sooner.
It would be interesting to hear your views on a Pick and Pay programming model some time. How would your services do in that sort of environment? Cartt.ca would be a great industry forum for you to contribute to.
We all have to get up earlier, work harder and smarter and above all be bold and creative like every other business if we are to prosper.
You will find little support for the Asper Tax beyond your boardroom.
Sincerely,
Bil Trainor
President
Capital Networks Limited
www.capitalnetworks.com
