CRTC CRITICAL OF CANADA'S HD ADOPTION Dalfen worries technological gap with U.S. will grow Paul Brent – Financial Post The country's television industry is falling further behind U.S. broadcasters in providing next-generation, high-definition TV signals, Canada's top broadcast regulator warned yesterday.
"There is a growing technological gap between television service in Canada and the U.S.," Charles Dalfen, chairman of the Canadian Radio-television and Telecommunications Commission, told a meeting of broadcast executives.
"South of our border, we have seen the rapid and widespread introduction of digital and high-definition television, as well as HD programming in prime time," Mr. Dalfen said. "The top 30 markets in the U.S. are now fully served with network affiliates transmitting digitally over the air."
By comparison, Canada has 15 over-the-air digital stations and five HD pay and specialty services with "quite minimal" HD programming.
Broadcasters' slow adoption of high-quality digital signals, which also lags the purchase of HD sets by consumers, threatens domestic control of the airwaves and could prompt CRTC action, Mr. Dalfen said in an interview after his speech to the Broadcast Executives Society.
"It will be very difficult for the CRTC to require simulcasting (of U.S. programs) when one program is HD and the Canadians aren't offering an HD version," he said, noting broadcasters' high-definition broadcast plans will be scrutinized by the CRTC as they apply for licence renewals.
The speedy American transition to high-definition TV was spurred by the U.S. Federal Communications Commission, which staked out aggressive targets for broadcasters.
The CRTC is unlikely to set such targets but can pressure the industry in other ways.
"[Broadcasters] can expect that we and the government will continue to move in that direction and the exact degree and nature of pressure will depend. The less we have to put on the better. We don't want to fall behind and find that the viewing levels to foreign programming which are already high are going to increase" because of the HD format switch.
The CRTC will also embark on a sweeping review of commercial radio this year and will consider raising Canadian content minimums from 35% to 40% even as the regulator admits radio stations face such new competitors as satellite- and Internet-delivered music.
"We are in a state of flux and they face challenges," said Mr. Dalfen. "On the other hand ... when you look at their financials, they had as good a year in '04 as '03 and '03 was a great year.
"Whatever is happening, from a business point of view, it is working and that to us is always important because it is much harder to ask people whose businesses aren't healthy to do more Canadian content."
The CRTC chairman yesterday said the regulator would make a decision regarding subscription radio applications from three groups by the end of June. |