Media

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TV Wars aim to exploit

The debate, the confusing-ass commercials, the numbers, the CBC:  Canada’s TV industry's public squabble over money.

A debate between Canada’s TV networks and cable/satellite companies  that’s taken up an obscene amount of ad-space recently and left  viewers wading through waves of confusion is set to come to a head this month.

Both campaigns emerged over the past few months and target young and working-class Canadians who care about preserving culture and community. But whether you feel that “Local TV Matters” or we should “Stop the TV Tax,” you’re probably going to get screwed either way on an issue that has nothing directly to do with either.

Here are all the gory deets:

In one corner: Local TV Matters

The Networks: CTVglobemedia, Canwest, CBC, et al.

Supposedly still hurting from the recession, these media companies cried "no fair!" this summer because cable and satellite companies pick Canadian stations out of the air for free. So they proposed charging cable providers a fee, and threatened to cut local stations – essentially holding smaller, community stations hostage – if their demands weren't met.

In the other corner: Stop the TV Tax

The Providers: Rogers, Shaw, Bell, Telus, et al.

Responded with a succinct, “how about no?” They vow to pass on any additional costs incurred to you, the consumer.

And behind the score cards: The CRTC, the Harper Government and Heritage Canada.

They couldn’t care less either way but need to appear equally pro-free market and pro-people so they opened up the phone lines to your input last month. The CRTC has been tallying support for both sides in preparation for a hearing this month, at which both sides will make their case.

For one of the most uniquely convoluted ad campaigns in recent memory, it’s actually surprisingly simple: it's all about money. The confusion lies in a huge number of contradictions being thrown out there by both sides.

Canwest spokesperson John Douglas is great for that: “Ten years ago prime time TV was profitable enough to offset the cost of local TV,” he told me, in justification for his company's proposed fee. But now it's harder to do that because “Rogers and Shaw are bringing in US TV shows,” and less people are watching prime time on Canadian networks.

But doesn't Canwest air American television too?

In the same breath: “We’re not going to apologize for buying American programs because that’s how you remain competitive, that’s what Canadians want.”

And here's another: “. . . the economic downturn has had a catastrophic impact on us, we lost $60-million and 800 employees,” says CBC’s Jeff Keay. Which is true, well documented and – I dare say – downright valid.

Canwest, CBC's ally in the fight, disagrees. “It’s a myth that this was caused by the recession,” said Douglas. “We’ve gone to the CRTC twice at the height of the last economic boom, saying we were struggling to maintain our local stations.”

They've been merciful enough to let an army of young Canadians singing, dancing and dressed as cows talk for them in commercials.

But it's the same message: convince people this is a cultural issue rather than one of cold hard cashola.

Roger's operating profit is only up 15 per cent – which equates to just over $3 billion.

CTV announced a 30 per cent audience growth this year over last, lead by those tuning into The Daily Show, Dr. Oz and Jay Leno.

The Canadian networks know how much the providers are paying for American cable feeds because the information is public domain. But also because they’re buying a lot of the same rights for shows like House, Lie to Me, Lost, and basically anything that isn’t Canada's Next Top Model or Little Mosque on the Prairie.

Networks, as the Stop the TV Tax rightfully points out, are doing brisk business. 

Which isn’t to say that the providers are in any way innocent. They're basically hiding their unwillingness to participate in the most basic functions of commerce, paying for services rendered. 

They are labelling the proposed fee as a tax to attract public support, and to distance themselves as the one actually charging it.  

“From our standpoint, we say if it’s being imposed by the government, it’s a tax," argues Rogers vice chairman Philip Lind. "So why would the consumer want to pay it?” 

Lind then confirmed any fees assessed will be paid by subscribers.

“We don’t buy that as a threat,” says the CBC, though. “The cable companies shouldn’t (legally) be able to pass on fees to the consumer.”

But the public's general lack of interest in this clusterfuck is represented in the numbers.

At the beginning of the month CTVglobemedia VP Paul Sparkes announced support from 130,000 Canadians coast to coast who poured out their, “clear and unequivocal support for (broadcaster’s) position.”

For the public record, 130,000 votes isn’t overwhelming or unequivocal; it’s a band’s Myspace friend-count, or the population of Barrie.

The obvious alternative to upping the charges is that the private networks suck it up and cut salaries, or the cable companies eat the cost of additional broadcast fees. A combination of the two would be completely reasonable.

Both of those, while pleasant, will likely only come to fruition in a world where Big Macs burn calories and lap dances are complimentary.

The CRTC hearing is scheduled for Nov. 16, which will launch a recommendation process involving the Harper government and Heritage Canada that will extend at least into December, probably much, much further.

 

Nov 10, 2009 at 12:55 AM
Copyright 2010 NOW Communications
Comments
Posted by Mona on 11/10/2009, 10:51 AM
thanks for clearing things up - first time I have been able to make head or tail out of this issue- great article

Posted by Chuck on 11/10/2009, 11:07 AM
Canwest - Bankruptcy Protection CTVGlobemedia - Losses in Q3 (According to Torstar Corp. Losses of 13.6 million for a 20% stake in the Q3 quarter, its estimate CTVGlobemedia lost over 100million so far this year) CBC - $80 million lost, 600 employees let go

Yeah.. I can see why they would want Rogers/Bell to start paying for their signals...

Posted by Adam Gorley on 11/10/2009, 12:13 PM
Very good article. This is not at all a clear issue as the parties have portrayed it in the media.

Could somebody copy-edit these two sentences for me and the rest of your readers, please?

"Roger's operating profit is only up is is 15 per cent – which equates to just over $3 billion.

CTV announced a 30 per cent audience growth this year over last, lead by those tuning into The Daily Show, Dr. Oz and Jay Leno."

Posted by Latex Solar Beef on 11/10/2009, 04:15 PM
Another stupidity tax imo.

Posted by D Ives on 11/12/2009, 02:23 PM
The broadcaster cabal simply wants to get some welfare going before they lose even more of their market to the Internet. They know it's a lot easier to get a new tax approved than to repeal it later.

And I love how this TV cabal thinks that because their costs are going up, it's fair/noble/etc for them to pass that cost on to the distributors but if the distributors dare to pass the cost on to us, well, they're just being 'greedy'.

I want the CRTC to deregulate Basic cable so I'm not forced to support these bloodsuckers anymore...the most 'locally minded' channel on my dial is undoubtedly "Shaw Community Television"; I already get most of my local news from the Internet; and the tv shows I'm interested in are on dozens of channels already (or available online), so I really don't need Global AND CTV AND CBC.

We used to have multiple newspapers in every town. We used to have multiple radio stations. We don't anymore and TV broadcasters didn't get all community minded when that happened...they were the "new thing" stealing the marketshare at the time and they happily raked in the money.) When Canadian Airlines said they couldn't make a go of it, we let them die and in the end, WestJet stepped up...and you've got to admit, WestJet is waaayyyyy better than Canadian Airlines ever was.

We probably only need one national broadcaster (and I would probably choose CTV above the others). The Internet and free daily papers in larger urban areas have sucked up so much of the "local" market at this point that there's just no going back.

Like I said, the broadcasters see the writing on the wall and are disparately trying to entrench a new tax on us now, before they further slip off to irrelevancy.

Good riddance as far as I'm concerned.

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