CABLE, SATELLITE FIRMS UNDER FIRE AT CRTC HEARINGS Broadcasters say cable, satellite distributors a threat to diversity on TV, since they wield control over which channels get on air Grant Robertson – Globe and Mail The debate over media consolidation in Canada is turning into a fight over who controls access to the millions of television sets across the country.
A day after Canada's biggest broadcasters faced questions from regulators over a series of takeovers that critics argue gives them too much influence over TV and radio markets, cable and satellite companies came under fire. Several broadcasters turned the debate around, telling regulatory hearings on media consolidation that cable and satellite distributors are also a threat to diversity on TV, since they wield control over which channels get on air.
Montreal-based Astral Media Inc., a major player in French language TV in Quebec, said cable operators pose "the greatest threat to diversity." They can pick and choose which specialty channels are carried, and which ones get broader distribution and flourish financially, Astral chairman André Bureau said.
The comments came at hearings held by the Canadian Radio-television and Telecommunications Commission, which is trying to determine if new rules should be written to govern future mergers after a series of takeovers in the sector.
Broadcasters like CTVglobemedia, parent company of CTV and The Globe and Mail, CanWest Global Communications Corp. and Astral face criticism from industry groups and media guilds for the amount of broadcasting assets they own in several markets. While CTV and Global executives argued on Monday that they must consolidate to compete in an increasingly fragmented and global media world being reshaped by the Internet, several broadcasters yesterday told the hearings that any rule changes contemplated by the CRTC should be aimed at cable companies.
Mr. Bureau said there is ample diversity in the number and types of TV channels available in Canada today, but their ability to get on air relies almost entirely on the cable and satellite services as gatekeepers to homes. "The greatest threat to diversity of voices in general is that [cable and satellite services] will not be forced to give access."
His comments were echoed in testimony by the owners of the Weather Network, an independent cable channel that said it relies on revenues it gets from mass distribution. John Bitove, who launched the XM satellite radio service in Canada in 2005 and is now seeks to create a new high-definition TV network, said the CRTC must ensure that distributors don't hold too much power over new channels wanting into the industry.
"If you look at what's happening here and elsewhere, the [distributors] are becoming a crucial player in content providing," he said. "The issue you have to watch for is dominance ... you need to then make sure that there's opportunities for up and comers." That argument has not been received warmly by the cable and satellite industry. Cable companies don't have to carry all specialty channels that are granted licences, and often make their decisions based on audience appetite for specific formats.
However, Jim Shaw chief executive office of Calgary-based Shaw Communications Inc., Canada's second biggest cable operator, told the hearings Monday that it's in the best commercial interests of cable operators to carry as many channels as possible. Shaw has dropped only one channel, he said, one that drew only 42 subscribers. "Well, if you've only got 42 subscribers, you're going under anyway."
Executives with Toronto-based Rogers Communications Inc., Canada's largest cable company, also took issue with the argument put forward by Astral and others, saying bandwidth constraints on cable are opening up, allowing for more channels all the time.
Mr. Bitove said he would like to see some assurances from regulators that channels aren't frozen out, ensuring competition in broadcasting. |