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Speaking at a special hearing of the CRTC, CTVglobemedia Inc. president Ivan Fecan said that Canadian broadcasters need to find new ways to make money if they are to continue to offer popular, quality programming as well as local and national news.
Fecan said that competition for advertising revenue has intensified, imperilling broadcasters' ability to produce programming. "If we can't make money, we have no reason to exist," he explained. " 'If using our best business judgment we determine that some of our services can never make money, we must exit those services.' "
Canadian broadcasters are at odds with the CRTC over their ability to develop new revenue streams, in particular a fee-for-carriage. It is estimated that fee-for-carriage would boost broadcasters' revenues by about $300 million.
Broadcasters also say other changes to the Broadcasting Act are necessary to ensure their viability. Fecan pointed out that the Broadcasting Act directs private networks to meet the demands of the Canadian audience, consistent with the "financial resources available."
" 'No one else in the broadcasting system is instructed to be responsive to the audience,' " Fecan said. " 'It means we're supposed to run popular programs and it's clear that our contributions are governed by our ability to pay for them.' "
In late March, CRTC head Konrad von Finckenstein said his agency was willing to temporarily lower Canadian content and local programming requirements for private broadcasters. He also said that broadcasters would be able to charge cable and satellite companies for time-shifted local television.
Fecan argued that distributors are raking in millions of dollars in profits while conventional broadcasters are losing money. " 'Over the years, there has been a series of decisions that have had the effect of compromising the underpinnings of conventional television while favouring the distributors (cable and satellite carriers),' " he said.
Fecan adds, " 'what I am saying is that things are seriously out of balance when, for five years running, the system produces continuous growth for one sector and continuous decline for another.' "
In addition to fee-for-carriage, Fecan called for a three per cent increase in the Local Programming Improvement Fund, and asked the CRTC to compel satellite providers to carry local stations.
Fecan called conventional broadcasting " 'the best mass-audience vehicle ever invented,' " pointing to the fact that book and CD sales increase after broadcasts of the Giller and Juno Awards.
" 'While it is difficult to pinpoint why conventional television still works as well in attracting audiences, serving local communities and nation building, the fact of the matter is, it does and therefore, is worth fighting for,' " Fecan said.
Source: Broadcaster, 04/27/2009
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