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Speaking at the CRTC's licence renewal hearing, Canwest Global president Leonard Asper said that federal rules are to blame for the problems plaguing the TV sector, not the economic crisis or the staggering debt his company faces.
Asper explains, " 'currently, the system favours one sector over all others,' " referring to the cable industry. " 'Basic public policy principles would dictate that once you decide to regulate, it should be fair regulation.' " He adds, " 'we've continued to advocate the need for cable and satellite companies to compensate us for the carriage of our local signals as a matter of fairness, but it has now become a matter of survival.' "
Rogers Communications vice-chairman Phil Lind told the CRTC that his company's City-TV stations expect to make money after the economic downturn is over. He said other broadcasters have mounted a "scare campaign" with the government and MPs, threatening to close stations unless they get what they want.
Asper outlined several other regulatory areas where he sees broadcasters at a critical disadvantage. He said federal regulators made a mistake decades ago when they allowed cable companies to transmit the signals of American TV stations in Canada.
Now, Asper explained, Canadian broadcasters are buying U.S. programs but are still competing for viewers with American stations that are carried by the cable companies.
" 'The structure of the market has been fundamentally altered as a result of years of over-licensing and authorizing too many foreign signals into Canada,' " Asper said. " 'Our only source of revenue is advertising and the market is now saturated.' "
Broadcasters are also upset that cable companies are allowed to transmit one city's programs into other parts of Canada - often called "time shifting." They are currently in talks with the cable and satellite providers on compensation.
And the stations are also warning that they don't have the money to ensure that all Canadians have access to cable when all televisions signals are converted to digital in 2011.
Source: Broadcaster, 04/29/2009
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