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Stop Protecting Broadcasters
Feds should end free ride for Canada's Big Media.
Homer: another CTV import.
Soon after taking over as chair of the Canadian Radio-television and Telecommunications Commission, Konrad von Finckenstein commissioned Laurence Dunbar and Christian Leblanc, two leading broadcasting lawyers, to conduct a comprehensive review of Canada's regulatory framework for broadcasting services.
Dunbar and Leblanc sparked a firestorm when they released their 337-page report earlier this month with the Canadian Association of Broadcasters characterizing their recommendations as an assault on the foundation of Canadian broadcasting. In this instance, the broadcasters are correct. The report is indeed an assault on the regulatory foundation of Canadian broadcasting -- one that is long overdue.
Canadian broadcast regulation was designed for a world of scarcity where broadcast spectrum and consumer choice was limited. This led to a highly regulated environment that used various policy levers to shelter Canadian broadcasters from external competition, limited new entrants, and imposed a long list of content requirements and advertising restrictions.
As a result, a dizzying array of regulations kept the entry of new broadcast competitors to a minimum, enshrined genre protection so that Canadians were treated to domestic versions of popular channels such as HBO and ESPN, and firmly supported simultaneous substitution, a policy that allows Canadian broadcasters to simulcast U.S. programming but substitute their own advertising.
Gorging on US content
Given that framework, it comes as no surprise to find incumbent broadcasters averse to significant change. Media consolidation has left the market with a handful of private Canadian broadcasters who fill their broadcast schedules with profitable U.S. programming, relegate most original Canadian content to undesirable timeslots, and generate an estimated $200 million annually from the simultaneous substitution rules alone.
Yet today's broadcasting environment is no longer one of scarcity, but rather one of near limitless abundance as satellite, digital channels, and the Internet now provide instant access to an unprecedented array of original content. Spectrum limits have given way to broadband pipes that carry everything from original television networks to YouTube videos. Fledgling broadcasters rely primarily on Internet distribution, while conventional broadcasters make their programming freely available online on multiple sources and give users the ability to embed clips of their shows anywhere they choose.
In this new environment, Dunbar and Leblanc rightly conclude that many broadcasting regulations should be re-considered. They recommend dropping domestic genre protections, freeing up consumer choice by creating greater flexibility in program bundling, and removing some advertising restrictions.
More controversially, they suggest re-thinking the simultaneous substitution rules, which they note results in Canadian broadcasters having their schedules largely dictated by the decisions south of the border. Although highly profitable, the rules have not generated the anticipated Canadian content benefits. Moreover, increasing costs for U.S. programming and the move toward online streaming threatens to further erode this cash cow.
New media to the rescue?
The report is at its most frank in discussing the Canadian new media environment. It notes that the influx of foreign content is only likely to increase as users access content "anytime, anywhere" whether by means of authorized or unauthorized services. In fact, the growing use of Internet streaming may soon mean that Canadian broadcasters will face competition from the very programs they purchase from U.S. distributors.
The authors remain optimistic, however, concluding that "the solutions to this issue lie not in imposing new regulatory restrictions on Canadian companies as some stakeholders have suggested -- but rather in encouraging them to stake out territory on the Internet ... to regulate Canadians, while the rest of the world competes in an open market, would in our view be counterproductive."
The message is clear -- broadcasters must adapt by shifting from their reliance on protective regulations and inexpensive U.S. content to instead competing on the unregulated global stage with their own, original Canadian content delivered to an international audience on conventional and Internet platforms. This should dramatically alter Canadian content production from one mandated by government regulation to one mandated by market survival.
The government can assist in this regard -- the report calls for the establishment of a national policy for digital media -- but its biggest contribution would be to follow the path outlined in the Dunbar and Leblanc report by launching their own assault on a regulatory environment designed for a bygone era of broadcast scarcity.
Related Tyee stories:
- Big Media's Big Showdown
Merger mania and the harm to media diversity. Hearings start today. - Torstar CEO Criticizes Tyee Story on 'Big Media'
Star's media critic left media beat on her own: Prichard. - The Self-Destruction of the CBC
New programming makes CBC look like an old person in a Fubu sweatsuit.




18
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RickW
4 years ago
When the Free Ride Ends For Big Oil....
...then it will end for big media. And that applies to Big Liberals as well as Big Cons.............
Jay Currie
4 years ago
Amen
The Dunbar and Leblanc report is a good first step - and an interesting one for those of us who are fairly convinced that the CRTC is a text book case of "regulatory capture".
The advent of effectively unlimited bandwidth and the rise of non-broadcast sources of cultural product - aided and abetted by von Finckenstein, J. as he was then's decision which effectively legalized P2P music sharing in Canada - has dramatically shifted the goalposts in Canadian broadcasting. Little wonder the CAB is crying; someone is suggesting that their candy be taken away and technology is making it possible.
In fact, the value of licenses in major Canadian markets is being artificially maintained by the CRTC with next to no significant return to Canadians as a whole. (The Aspers do rather well, but the rest of us don't.)
Notionally the trade off for CAB members is that they can show cheap US programming in exchange for funding the relatively less attractive Canadian programming. This is supposed to promote Canadian culture. With many Canadian television shows slotted out of prime time and many more not made at all because it is too expensive relative to US material, the system has broken down.
At the moment the CRTC operates on the basis that the holders of a broadcast licence have tenure - all of one broadcast licence has been revoked in the CRTC's history and that was a political rather than cultural decision.
Personally, I think it is folly to regulate content in broadcasting in a big pipe universe. Instead, in my view, it makes sense to put licences - including the CBC's - out to auction every six or seven years and get out of the content regulation business all together.
If we really want Canadian culture we should subsidize it directly by way of grants and stop pretending that either the CBC or the private broadcasters are any good at delivering it.
Grumpy
4 years ago
It will never happen
This country is so so corrupt that there will be no change. Did anyone see that pathetic interview with Mulrooney on CTV? it was embarrassing and would never happen on American TV.
I rather watch BBC anytime. That's right folks BBC not CBC.
Jeffrey J.
4 years ago
Who Controls the Media
These are criically important issues facing Canadians. Who owns the media? Who controls the media? We certainly don't want media owners controlling its content. We would be treated to a convergence similar to the US model in no time flat. Then we could all watch Survivor twenty four hours a day. Media monopolies (olilgarchies) result in the same sad consequences: reduced choice, little competition, decrease in quality, increase in profit. If the CRTC can do anything to reduce this trend, I'm all for it. I suspect it will be very, very difficult under Harper's regime. BTW, having turned off our TV five years ago, our family has become far more informed and far better read ever since! Great article Mr. Geist and Tyee.
Working Memory
4 years ago
Transitional period
Canada is currently in a very complex transitional period where a train running on a local schedule, which is the CRTC, is slowing down to pick up more passengers from a local station, and another vehicle, which is more like a jumbo jet, the internet, is gaining speed and pulling away from a global platform.
Jay and Jeffrey, and the author of this article, Michael, all make good points, and I agree.
Is it even important any longer to be more than mildly concerned about the machinations or survival of the CRTC?
In another recent Tyee article about big media, respected media writer Antonia Zerbisias, who works for TorStar, wrote that we should all "Get on the bus or get off the soapbox." http://thetyee.ca/Mediacheck/2007/09/20/Torstar/
She recommends that we support www.democraticmedia.ca, and I agree, it's good advice to let your voice be heard through this organization, but keep in mind that it is just a very small step.
You can talk about this for another twenty years while companies like TorStar and CanWest continue to reap huge rewards, but unless you actually do something about it and impact big media's money stream nothing will change.
No one in their right mind would attack companies like Microsoft or NBC head on. It would be foolish and suicidal. Instead, small smart companies extend these brands by doing what they can't or won't do. In effect, and it's not their direct intent, but they make Microsoft better by writing applications that add to the experience. Linux is just one good example.
Why would I want to continue to talk about the CRTC train wreck when I can actually create solutions that kill two birds with one stone - which are, make a profit, and weaken the media behemoths.
Canadians are finally starting to figure out that we are competitive on a global front, and that there is a market for our work if we extend our reach beyond our national borders.
Wasting breath over Canadian broadcasting is ridiculous. As you all implied above, who cares except for the big companies?
While Canadians talk, Torstar and CanWest make money off their backs. Keep talking and they'll have something to talk about for another two decades.
Create a work-around and go for it one small fractured piece at a time. If a large enough group pursue it in this manner big media will have no choice but to change and government intervention will be moot.
You have to speak big media's language. They don't understand environment, community, or what is fair. They speak fluent money quite well though.
Find a sensitive area that attracts local, national and global interest, like the 2010 Olympics for example, and keep sticking a needle into it until it bleeds a drop of green. When you hit an artery you will have big media's attention, and a hell of a lot of green that was at one time destined for their blood bank.
Maurice Cardinal
Editor: www.OlyBLOG.com
Stump
4 years ago
Questioning a comparison
While I'm no fan of media concentration, it must be mentioned Maurice, that there's a difference between the internet and television that you're not addressing. Namely, that of bandwidth. The CRTC administrates a fixed number of viable frequencies (channels) that can be used. The Internet can have infinite channels. I would suggest the scarcity of radio frequency channels makes it difficult to "add to the experience" in the same way as Linux does with Microsoft.
I don't know how one can avoid regulating content (Mr. Currie's comment). I'd like to see a return to the days of the community access channel. I think it's an idea that's been waiting for technology to catch up. But the media companies are unlikely to want to return to giving up bandwidth for free to local interest groups.
Frank
4 years ago
Linux
Actually Linux is attacking Microsoft head on. The goal is "world domination" after all.
Linux is a complete replacement for Windows, it doesn't add anything to Windows.
And in my opinion Linix is just as good.
Working Memory
4 years ago
Frank
You're right Frank. The point I was trying to make was that Torvalds recognized a problem and offered an alternative solution to extend the experience, and not specifically the brand as I described.
He went after a small sector first.
Using some of the security software companies would have been a better example.
Stump
4 years ago
still a bad comparison
It doesn't matter which software or company you choose, comparing mediums like TV and the Internet and saying that the successful techniques for leveraging the latter can apply to the former is to miss a huge logistical difference between the two forms with regard to gaining access to their respective audiences.
ov
4 years ago
Just say No to corporations
I finally made the move to linux a couple of weeks ago when I clicked into www.TheRealNews.com and it locked up my laptop running Windows XP pro so bad that it wouldn't reboot. Good folks down at www.FreeGeekVancouver.org did it for free, and they also had really really cheap prices on all sorts of second hand computer goodies.
Why news is still good news on the internet is an article from the latest Georgia Straight. Scary thought that the younger generations have been so successfully programmed that they consider NEWS to be irrelevant. Maybe it's like Geist's article that doesn't even mention news but instead gives the impression that broadcast is only for entertainment.
If it's nothing but pap and propaganda why don't we just make it illegal and do us and future generations a big favor.
Working Memory
4 years ago
Stump re Bandwidth
Age has a lot to do with the perception of CRTC relevance.
I often find myself siding with younger users who genuinely feel television no longer serves a central "communication" purpose. They regard TV simply as entertainment or an auxiliary news tool. And now that broadcasters have actually turned news into entertainment it pretty well seals the deal.
I've been in the promotion side of the communication business most of my life. In early 2006 I used Facebook to almost exclusively promote the inaugural run of Queens Players Theatre in Vancouver. We sold out every performance in about two weeks, and didn't use one traditional form of media. No TV, radio ... and very little print (postcards, no newspapers). No Ticketmaster or box office sales either. It was "direct sales" through the website only. The really extraordinary thing here is that we did it from cradle to grave in just over one month. The demographic is primarily 19-34, although we attracted people in their fifties too.
Every time I accomplish something like this it makes me think, "is the CRTC even relevant respective of where the market is currently looking and going?"
We USED TO manage campaigns using TV, radio and print, and still do occasionally, but in the last five years most of our clients want to develop campaigns based on an internet centric platform, and work outwards. Usually though, it never radiates past print.
Even my boomer generation uses the internet more and more to gather news information and for entertainment. My mother, at 78 also dabbles in it, and almost everyone in the 5-34 demographic uses it as their primary source.
While your point about bandwidth has merit in a traditional sense, it isn’t as relevant respective of the younger market that is driving the change.
In my business we have to look where the market is going, and not where it's been.
I no longer see the social relevance in what is considered traditional communication platforms. The CRTC still wants to build walls around a local community that already communicates across a global landscape.
I'm not arguing that I like this rapid change. It's incredibly challenging to keep up.
Would I like things to stay the same or at least level out? In a way yes, but it's not my choice.
Either I follow the money or change professions.
Regarding your comment about a community access channel. I think we have them, but instead of on television it's inherent in every well-produced specialty website. It's possible the CRTC could make recommendations in this regard similar to how movies are rated, but not regulate it.
Jay nailed it precisely when he wrote above, "The advent of effectively unlimited bandwidth" and "the value of licenses in major Canadian markets is being artificially maintained by the CRTC."
Working Memory
4 years ago
News is entertainment
That's the problem ov, news companies tossed journalistic integrity out the window and turned news into entertainment for the sake of ratings while the CRTC sat like dead weight and didn't to anything about it.
Is it any wonder that youth abandoned mainstream news media? Youth today don't think news is any more irrelevant than they did twenty years ago, but they do think how it's delivered is irrelevant.
If you think back to when you first started developing an interest in news you'll recall that it probably wasn't until you were about thirty that you started to cultivate a real interest. At least it was for most people, and that's what the CRTC is concerned with - the masses.
Youth vote with their money and it confounds broadcasters to no end.
In some respects I see little difference between the RIAA and the CRTC. Both protect bygone eras and slow change in an effort to protect oligopolies.
Working Memory
4 years ago
stump re comparison
An audience is an audience.
The difference is how you reach them.
If I want to reach the over 60 demographic TV is still a big hitter, but it's very expensive, which means many companies are choosing the internet and settling for a smaller 60ish demographic.
The profit margin is better.
Not only is the "target group" becoming increasingly fractured, the demographic within it is being sliced and diced too.
I can watch well produced short films on the internet all night every night and walk away with the same satisfaction as if I watched broadcast TV, so you're right, there is no comparison.
The internet is a completely different animal that brings viewers "vertical" satisfaction that broadcast could never deliver.
The overall audience is still the same except now you can target a senior that prefers blue rinse over purple rinse.
The brain
4 years ago
Man, some of you are missing it... completely
Its about economic takeover, sector by sector. Insurance. Healthcare. Banking. Agriculture. Police. Military. And yes, media and broadcasting.
And this country has had a long... long... long history of protectionism because its been needed. Just below the 49th parellel, in case so many of us have forgotten, is a superpower. Maybe not so powerful as it once was, but a superpower just the same... imploding on its own corporate greed, with an entirely deregulated banking industry that has created a sub prime mess and is about to create the next U.S. recession, its that bad.
And they have no health care regulations, pretty much anything goes... and very little regulation with insurance, and as a result, about half of the population goes without adequate healthcare. Just stay healthy, some say? Assuming there was food manufacturing regulations, they just might, but pretty much anything goes. They call poison nutritious these days.
The bottom line is this. Without regulations, corporations emplode on their own greed. GWB senior and junior? Nothing more than corporate lobbiests. Harper? Mulroney? O'connor? Flarhety? David Emerson? Nothing more than corporate lobbiests. And when they cry to deregulate, including and especially so, the media or CRTC, who benefits? The consumer? Or corporations... Canadian corps? Or U.S. born multinationals... must I spell out the obvious?
Any Con can run the CBC into the ground. But it won't be some Con corporate lobbiest or yes man that will bring it back to respectability. Or have we forgotten what we watched when we were kids, and the news was real.
Imagine what kind of dumbed down media we'll have without regulations. Cause thats what's coming if Canadians and Americans wish to continue to elect corporate lobbiests and believe their lies. And I can't say I'm impressed with this story and many of the comments for not having catched on to these facts.
Lorne Mccuaig
Revelstoke, BC
Stump
4 years ago
community channel
With slightly less than half of Canadian households still not connected (2003 StatsCan statistic) I think there's a very strong need to keep using television, with its greater penetration, as a outlet for news. Esp. as it's lower income homes that often don't have online access. Hence the need for regulation and the CRTC.
Chris H
4 years ago
Dumbed Down Media?
"Imagine what kind of dumbed down media we'll have without regulations."
It is hard to imagine how our media could get any more dumb-downed than it is now! I don't think we are benefitting much from the protectionist policies that allow certain corporations to hold a monopoly on the press and mainstream media. With a few exceptions, The Americam media has become more responsive, more proactive, with much more choice available to the consumer when it comes to media. Canada sits back and allows a very few corporations to make tons of cash without any responsibility to the consumer. Something has to change. And ... don't get me started with telecommunications! When can we expect to see the iphone in use in Canada? The CRTC is much more a problem in allowing me the freedom to get the information I want, when I want, then any other player out there. Time to welcome Canada to the 21st century.
Working Memory
4 years ago
Hidden costs
I contracted my services to a large Canadian entertainment company for almost two decades.
The corporate officers of this company spent an inordinate amount of time figuring out how to leverage CRTC regulations to direct more Canadian tax dollars towards their very wealthy company.
They knew exactly how to play the system, legally I might add, so that tax funds and "placement advantages" were directed to them, which resulted in less support for "new and burgeoning" Canadian enterprises, which is what the regulations are primarily intended to do.
Rhetorically speaking, I could never understand why the CRTC allowed this to happen, and this is one more reason I think their time has come.
The CRTC simply doesn't deliver in the manner it was intended, and it hasn't done so for as long as I can remember.
I haven't been directly involved in the entertainment industry since 1994, and maybe things have changed at the CRTC respective of Canadian entertainment companies, but I doubt it, because if it had, I would have heard the howl from corporate entertainment boardrooms across Canada.
Come to think of it, I think I hear the first vestiges of a "yip" now.
abc123
4 years ago
Jane Chalmers (vice pres. of
Jane Chalmers (vice pres. of CBC) mentions the 4 specific qualities of public broadcasting and it is the second one which CBC seems unable to answer:
"independence from commercial or political influence"
If CBC were an independent news media, we would have had the 9-11 fiasco thoroughly examined; we would know about the NAU takeover; we would be reminded of the NAFTA lawsuits against Canada; TILMA would be a common conversation across the country; the president of the Canadian Medical Association would be thoroughly questioned regarding our healthcare system & his part in tearing it apart; and our citizens would be more informed and anxious to partake in our dwindling democracy.
As it is, we have corporations giving us fake "news" and dummied-down topics - even the Tyee has succumbed.