GATINEAU – There are currently no viable business models for broadcasting in the digital world, both the CBC and Corus Entertainment, two broadcasters who have taken extensive forays into the new media environment, told the CRTC on Thursday.
“We have a long way to go to securing a broadcasting model for new media,” Steve Billinger, executive director of digital programming at the CBC, said during the CRTC’s ongoing new media hearings. “What we’ve lost on the traditional broadcasting side is not being made up on the digital side.”
Steve Guiton, CBC chief regulatory officer, noted that some revenue being generated through such things as Google ad words, banner ads and classified advertising isn’t connected to the broadcaster.
While the CBC is generating some revenues from banner ads on its web site, these ads are not related to the streamed video content, he added.
Billinger also noted that the public broadcaster had begun selling integrated packages of advertising that includes an online component.
Corus chief technology officer Scott Dyer also said there were few viable business models.
However, the solutions being advocated by the two broadcasters to sustain new media were dramatically different.
Since there is no way to cover the costs of the digital product, the CBC for the first time on Thursday added its voice to the large creative community asking for ISPs and WSPs to pay a portion of their revenues into a new media fund.
This is the first time the Corp. has supported the levy, said Guiton. He stated the CBC was moving away from its earlier position that called for regulation of the digital world because it would be too complicated and confusing to implement.
Prior to its appearance at the hearings, the CBC had supported money being set aside for new media broadcasting, but no particular funding model was supported.
“When it’s all done, the proposed ISP levy appears to be the most effective way,” said Guiton. “We didn’t start with the levy, but we’ve looked at the system and have decided that our (earlier) suggestion that the CRTC regulation take to the online world would be impossible to implement.”
Although they are finding it hard to financially support their digital endeavours, CBC executives noted that new media is enabling “engagement between the public and CBC” and helping to build brand loyalty. If viewers miss a show, for example, they can watch it online, and then will tune into the TV for the next episode.
Billinger said the CBC has about 75 shows available online, web interviews, online music channels, and plans to introduce six new online jazz stations this March.
On the other hand, Corus Entertainment wants the CRTC to maintain its two media exemption orders, and not force contributions to a new media fund.
Corus is also asking for more flexibility in the way it can use the existing Cancon expenditures it is required to make under its TV licences. It also supports applying tax credits that exist for traditional broadcasting to new media.
