By John Bugailiskis
TORONTO – While the industry is still digesting the CRTC killing Bell’s takeover of Astral, the decision does not signal a dramatic change in policy at the Commission. Instead it continues to work to strike the right balance between the best interests of consumers and industry, said Tom Pentefountas, vice-chairman, broadcasting for the CRTC.
Pentefountas was the keynote speaker Tuesday at the Ontario Association of Broadcasters Connections 2012 luncheon at the Westin Bristol Place Hotel. However, he appeared to contradict his business as usual stance somewhat when he went off script and joked to the packed room of broadcasters that “in case you haven’t noticed there is a new focus on consumers” and later that “public interest reigns supreme.”
He also commented that the Bell/Astral decision is still “ongoing” and needs to “let it play itself out.”
The vice-chair did reaffirm that the CRTC’s renewed focus to place the interests of viewers first will have implications for all broadcasters, not just Bell. Going forward, when broadcasters are filing future applications or looking for a change in the condition of a licence, they will need to show how their plans align with the public interest, he said.
He noted that one of Jean-Pierre Blais’ first acts as CRTC Chair was to create the position of Chief Consumer Officer and appoint veteran public servant Barbara Motzney to the role and maintained that the CRTC’s new focus on consumers should not come as a surprise since it’s always been a key element of the Broadcasting Act. “The Canadian broadcasting system should through its programming and employment opportunities serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children," he quoted from the Act.
Pentefountas also made it clear the CRTC will “let market forces play out” and that the Commission has “no business in your daily affairs” as long as broadcasters are meeting their license requirements. He added statistics show Canadians remain passionate about content and with the average Canadian family spending more than $2,100 a year on communication services, it’s only natural that they are “demanding.”
Going forward the creation of content that promotes Canadian identity and culture will be crucial to the survival of all broadcasters said Pentefountas. “Canadian content is a prime opportunity to demonstrate your sector’s leadership. Radio stations, particularly, play a vital role in supporting Canadian culture and identity. Every time you help to launch the careers of new artists, you contribute to our Canadian identity and instil a feeling of pride in being Canadian.”
THE VICE-CHAIR ALSO WARNED that the “sun is setting on the regulatory framework that protected Canadian broadcasters” with policies such as simultaneous substitution.The end of days is coming where you could rent U.S. content and sell it here.” With the rise of OTT services and multi-screen platforms he said the “cliff is closer than we imagine.”
For that reason he urged broadcasters not to view Canadian content regulations as a “burden” but an opportunity to grow Canada’s content and star system to compete internationally. He added that because of consolidation in the industry and the resulting tangible benefits funds “there is more money than ever to develop new content.
“For radio why is 35% [CanCon] seen as the floor? Why not build it up? Everyone comes out winners,” he added.
He suggested broadcasters apply the same sense of urgency Canada did at the last Olympic Winter Games to “own the podium” when they create content.
Pentefountas further explained the CRTC’s tradition of dividing up its activities between broadcasting and telecommunications makes less sense because of the blurring of the lines between the two. To reflect that change he said the CRTC’s activities are now grouped under the pillars of create, connect and protect.
Under the create pillar that regulator wants Canadians to have access to compelling creative content, from a variety of sources, on an array of platforms because “We have entered a new age in Canadian broadcasting.” He argued that it’s time to get truly passionate about the creation and successful promotion of Canadian content because in the “new world order, creative content creates economic opportunity.”
To support his point he mentioned in Banff this year the international buzz centred on Canadian content and its attractiveness to foreign buyers. “Shows like Heartland, Republic of Doyle and Flashpoint are sold in over 100 countries," he said.
Under the pillar of connecting he emphasized that the Commission is serious about facilitating access to communications by Canadians with disabilities. “We are always looking for ways to improve access, and are investigating different technologies, such as video relay service and the accessibility features of cellphones.”
Under the protection pillar he noted that Pelmorex Communications, which owns the Weather Network and MétéoMédia, will make emergency alerts available to broadcasters across the country. It has installed its system and signed agreements with the appropriate federal and provincial organizations, including Environment Canada. “The system is ready, but we still need to get alert messages to the public. While Amber alerts have largely been embraced, not all broadcasters and broadcasting distributors are participating in the project. This is a Commission priority.”
In 2013–2014, the Commission will also be launching targeted reviews of the commercial radio policy. “We will start by looking at the French-language market. Once that’s completed, we will move to the English-language market.” It also plans to conduct reviews of the policies for ethnic radio and television services.
In closing Pentefountas said the CRTC is introducing a more enlightened approach to regulation by ensuring the players in the broadcasting industry have all the space they need to make the system flourish. He emphasized that you don’t need to be big to make a difference, but that if you are not moving forward, you’re moving backward.
In illustrating his point the vice-chair quoted from a recent Cartt.ca interview with Peter and Tony Viner on their success and how Peter recalled “We were both very lucky. Lucky to work with the people we did. Lucky to be in the kind of golden era of broadcasting. Now, it’s a commodity business run by accountants. How fun is that?” Unfortunately, he said that appears to be the direction the industry is heading.
“Too often, decisions are being made by people without a creative bone in their body,” (which elicited a large applause from the audience) and an industry intent on protecting the status quo. He said that creating Canadian content that can “conquer the world” will come in part from the people in the room. “You represent a sector with incredible creative potential and economic clout. Broadcasting and telecommunications make a tremendous contribution to Canada's gross domestic product. Our country needs you to prosper and continue contributing to this nation’s economic growth.
“So I would encourage you to focus your attention on the creative side of the scale – as opposed to the bean counting side of the ledger – and for a purely self-interested reason. It makes sense for your shareholders.”
