REWRITE RULES, CRTC TOLD Landmark report seeks laissez-faire shakeup of domestic airwaves Grant Robertson – Globe and Mail Canada's broadcast regulator has been asked to reconsider some of the most cherished protections afforded to the television industry, including changes to simulcast rights that generate more than $200-million a year for the private networks.
In a report commissioned by Canadian Radio-television and Telecommunications Commission that chairman Konrad von Finckenstein made public yesterday, the regulator has been told to let market forces play a larger role in guiding the industry.
However, the study also suggests certain pillars of the industry - such as simulcast rules that let networks like CTV and Global insert ads into shows running at the same time on U.S. networks - are hurting Canadian programming.
In the report's most controversial finding, communications lawyers Laurence Dunbar and Christian Leblanc say Canada's simulcast rights have created a huge financial incentive for the networks to stack their prime-time lineups with top U.S. shows, leaving Canadian programming marginalized.
But since the top U.S. programs draw much higher ratings than even the most popular domestic programming, the networks argue simulcast revenue helps pay for the production of Canadian news, drama and comedies. Industry estimates peg the value of simulcast rights at "no less than $200-million," according to the Canadian Association of Broadcasters.
While Mr. Dunbar said the study doesn't recommend scrapping simulcasts, it does consider whether Canadian content requirements should be placed in prime time.
Networks could be asked to air a minimum number of hours of Canadian shows on weeknights.
The report has directed the CRTC to find ways to "break the very strong economic incentives for Canadian broadcasters to schedule American television programs in peak viewing periods."
The mere mention of changing simulcast rules sent a chill through the industry.
Speaking on behalf of the big networks, Glenn O'Farrell, president of the Canadian Association of Broadcasters, called the report's findings "absolutely irresponsible."
"It would be a fundamental rewrite of the regulatory model for Canadian television," he added.
The 337-page report was commissioned by Mr. von Finckenstein in April in an attempt to determine which regulations need to be reworked or scrapped as the CRTC updates its broadcast rules.
While the CRTC is not obliged to adopt any of the suggestions, the paper will be used in upcoming hearings on the cable and satellite TV sector, and a separate process dealing with new rules for specialty cable channels.
Mr. Dunbar and Mr. Leblanc, both lawyers with Fasken Martineau DuMoulin LLP, made several other suggestions, including getting rid of genre protections for cable networks.
Those rules were put in place when specialty channels began and needed help getting off the ground. Canadian rules prevent new networks from encroaching on an existing channel's format.
However, the study argues those restrictions have hindered competition on the TV dial. Such changes would make it easier for new broadcasters to enter the market at a time when the CRTC is grappling with increasing media consolidation.
The report also calls for cable channels to be unbundled so that consumers can pick and choose which ones they want to buy. However, to prevent Canadian channels from being marginalized, the authors suggest domestic networks should be given better placement, lower on the dial.
Though Mr. Dunbar said most of the changes could be implemented within the existing Broadcasting Act that requires the TV sector to promote Canadian interests, it calls for one change that would need government approval. The report wants the CRTC to be given the power to fine broadcasters who step out of line.
Unlike U.S. regulators, the CRTC lacks punitive power over broadcasters who break the rules, beyond revoking their licence, which is seen as a last resort.
The paper also calls for the regulator to develop a digital media policy to deal with emerging technologies, but avoid regulating Internet broadcasting.
The CRTC would not comment on the report.
During a speech in B.C. this spring, Mr. von Finckenstein said the regulator would consider a "lighter approach to regulation," as long as support for Canadian programming is upheld.
However, observers doubted the regulator's influence over the industry would loosen if the report was adopted.
"I don't see this as a plan for deregulation," said Marc Raboy, a professor of media policy at McGill University in Montreal.
Mr. Raboy was surprised to see the simulcast issue put up for debate.
"That's really been a sacred cow for decades," he said. "That's been one of the key sources of revenue for the private broadcasters." |