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A primer on the TV broadcasting debate at the CRTC.

A primer on the TV broadcasting debate at the CRTC

Jessica Wong CBC News Posted: Jun 05, 2009 1:38 PM EDT | Last Updated: June 8, 2009

Konrad von Finckenstein, chair of the Canadian Radio-television and Telecommunications Commission. ((Jonathan Hayward/Canadian Press))

For several years now, people have argued that Canada's TV broadcasting model is broken from the cable companies who (temporarily) withdrew their funding for domestic programming, to the creative community, which pleads for support of homegrown production.

"There has been a steady fragmentation of audiences and advertising revenues, which are now split between conventional, pay and specialty services, as well as the Internet. While conventional broadcasters were adjusting to this trend, along came the global recession." So said Konrad von Finckenstein, chair of the Canadian Radio-televisionand Telecommunications Commission, to the House of Commons committee on Canadian heritage in late May.

Debate at the CRTC has crescendoed, with the cast of characters embroiled in feuds and rivalries, bitter rebukes as well as the occasional bout of alliance-building. The drama at CRTC hearings and heritage committee meetings is almost as passionate as question period.

That said, the debate can often be convoluted. CBCNews.ca offers this primer on the main players and pressing issues.

KEY PLAYERS

Konrad von Finckenstein: the eminently quotable and blunt chair of the CRTC, who has chastised members of every faction.
Phil Lind and Jim Shaw: Lind, the vice-chairman of Rogers Communications, and Shaw, the CEO and vice-chair of Shaw Communications, are two of the most outspoken voices representing the broadcast distributing undertakings (or BDUs), a category that includes cable companies, as well as satellite providers like Bell ExpressVu.
Ivan Fecan: president and CEO of CTVglobemedia, one of Canada's main private broadcasters.
CBC: the national public broadcaster.
ACTRA/Writers Guild/Directors Guild/Canadian Film and Television Production Association: the passionate representatives of the creative community responsible for Canadian TV, movie and new media production.

MAJOR ISSUES ON THE TABLE

1. Transition from analog to digital

Canadian Heritage minister James Moore. ((Adrian Wyld/Canadian Press))

For the CRTC, Aug. 31, 2010, is the absolute deadline for Canada's switch from analog over-the-air (OTA) TV to digital OTA TV. The broadcasters, however, have united to say that the cost of upgrading every single transmission tower is financially unfeasible. Approximately nine per cent of Canadians now watching OTA TV could be left in the dark after the transition. The CRTC calls this unacceptable, and suggests some government assistance might be needed.

In May, the Canadian Media Guild proposed that broadcasters split the cost of upgrading and operatingdigital transmitters in small markets. According to the guild's proposal, a single transmitter's digital capacity could be shared among different broadcasters, a model used in Europe as well as in the U.S., Australia and New Zealand.

Complicating factor: Heritage Minister James Moore says the government won't open its wallet to fund the transition.

2. Fee-for-carriage

In this proposal, the CRTC would compel BDUs to pay broadcasters for the right to carry their signals, the way they already do for specialty channels. Currently, BDUs pick up broadcasters' OTA for free, but offer them automatic carriage, low positions on the TV dial and something called "simultaneous substitution,"which means airing the Canadian packaging of a U.S. broadcast (with Canadian ads).

Private and public broadcasters alike are ailing financially and say they need this new funding stream. The creative community wants to see fee-for-carriage funds earmarked for creating Canadian content. The BDUs reject the idea, as has the CRTC on several occasions. Ultimately, the regulator wants to see broadcasters and BDUs negotiate a fair market value for the signals themselves.

Complicating factor #1: While the conventional arms of broadcasters like CTV and Canwest have seen declining revenues of late, each company also owns specialty channels, a segment of the industry that is proving immensely profitable: 2008 revenue for specialty, pay, pay-per-view and video-on-demand services amounted to $2.9 billion.

Complicating factor #2: The CRTC has also proposed assessing private broadcasters' 2010 TV licence renewals by group, to reflect the current state of media consolidation and to account for ownership of both conventional and specialty channels.

3. Canadian and local content

Actor Colin Mochrie, right, talks with reporters after he and his colleagues made submissions to the CRTC in Gatineau, Quebec, on Feb. 17. Looking on, from right, are actor Charlotte Arnold; former ACTRA president Richard Hardacre; and actor Bruce Dinsmore. ((Canadian Press))

The creative community has long blasted the CRTC's 1999 Television Policy, which (among other things) eliminated broadcasters' spending requirements on Canadian drama production. It also expanded the definition of prime-time programming to include entertainment news magazines, game shows and reality TV. The private broadcasters argue that they buy U.S. programming ($775.2 million worth in 2008) in order to sell ad space and generate funds to pay for the creation of (pricier) Canadian programs. The CRTC feels that broadcasters should be focusing on Canadian news, drama, local content and programming of national interest rather than buying foreign shows. The regulator said it intends to consider new ways to fund local programming and to possibly establish a minimum spending level on Canadian content during hearings this fall.

Complicating factor #1: CTV recently launched a national "Save Local TV" campaign quickly drawing condemnation from the BDUs that calls for public support for the fee-for-carriage proposal. While making the pitch, private broadcasters have also asked the CRTC to reduce their requirements to carry homegrown content.

Complicating factor #2: BDUs fund local programming by paying five per cent of their revenues to the Canada Media Fund (formerly the Canadian Television Fund and the New Media Fund) and one per cent to the Local Programming Improvement Fund. However, both funding envelopes are still relatively new and untested.

Complicating factor #3: BDUs have frequently criticized the private broadcasters for overspending on foreign programming. But Rogers, having expanded its broadcasting operations with its purchase of Citytv stations, recently sparked protest for unveiling a fall 2009 lineup boasting more than "16 hours of U.S. network simulcasts in prime time."

Complicating factor #4: Canadian content has had some success stories including Flashpoint, Degrassi: The Next Generation, Little Mosque on the Prairie and the now-defunct Corner Gas but it might be difficult to change the viewing habits of Canadian audiences now accustomed to watching top-rated U.S. programming.

Jessica Wong is an arts news writer for CBCNews.ca.

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