TORONTO – Today is the deadline for final written submissions to the CRTC’s policy review on broadcast distribution undertakings and specialty services.
(Ed Note: Cartt.ca will publish a recap of these submissions from several stakeholders tomorrow, Friday, May 9.)
Rogers’ final filing recapped the company’s position presented on the first day of the hearings. The company of course, remains opposed to fee-for-carriage “as the broadcasters have failed to justify the need for, or fairness of it,” says an RCI press release this afternoon. “The over-the-air broadcasting sector is profitable, revenues continue to grow and local programming is not in jeopardy”
“In fact, according to the Canadian Association of Broadcasters’ (CAB) own evidence, broadcasters have a PBIT (Profit Before Interest and Taxes) of 15% and cable distributors have a PBIT of 18%," said Phil Lind, vice-chairman of RCI and the industry’s lead no-FFC voice.
"Our research further shows that the majority of Canadian consumers are not prepared to pay a fee when there is no added value associated with that fee. To add a hefty monthly viewing tax will only alienate consumers and cause them to abandon the regulated television system in favour of Internet or grey and black market options."
Rogers also noted that there is no other jurisdiction in the world which has a fee-for-carriage arrangement combined with mandatory carriage of over-the-air television signals. As the regs now stand, local broadcasters must be carried by BDUs and those same carriers also perform simultaneous substitution of the signal so that Canadian viewers see Canadian ads.
Rogers – and many others – say the proposal would irreparably alter the fundamental balance between broadcasters and distributors.
"The issue is that consumers would be forced to pay an extra $5 – $10 a month on their cable or satellite bill and receive nothing new for this increase," added Lind.
Turning his sights towards VOD, a topic which many presenters said needed its own hearing, Lind wants to see any new video on demand and subscription video on demand framework be a flexible one, not burdened with new rules, and instead opened up for advertising. Canadian broadcasters can earn additional revenues by making their programming available for viewing on-demand, if the CRTC allows advertising on VOD and SVOD.
"Rogers’ filing emphasizes the consumer," added Lind. "We urge the CRTC to look forward not back, to untie the hands of broadcasters and distributors alike so that they can roll up their sleeves and get to work making the Canadian broadcasting system the envy of the world."
