Foreign specialty TV channels make ‘no tangible contribution’ to Canadian system

Speaking before the Broadcast Executives Society on March 25, Canadian Association of Broadcasters (CAB) president and CEO Glenn O’Farrell noted that foreign specialty channels distributed in Canada made absolutely no tangible contribution to the homegrown broadcasting system. The speech provoked the Canadian Cable Television Association (CCTA) to respond that the foreign services do contribute because 5% of the subscriber fees received from those channels go to the Canadian Television Fund and that packaging popular U.S. services, such as A&E and CNN, with Canadian specialty channels have helped the domestic services (CCR Update, April 1/04). In a world without borders, a world of accelerated change, this is a challenge with a level of difficulty that increases exponentially, year after year, with no respite in sight. In such a world we need to be constantly rethinking the role of government to ensure that policy remains relevant and effective. The trick is getting the right balance between things that government needs to control and things that are best left to work themselves out on their own. Canadians accept the need for governments to play a role in regulating our environment to encourage prosperity... We understand that in regulating our environment the government is - in a sense - adjusting the temperature - to permit Canadian industry to develop and thrive. In fact, they are putting Canadians first. We are constantly reminded that we compete with the greatest entertainment powerhouse that the world has to offer. The best creative talent that Hollywood can buy comes over Canada’s borders hunting for viewers and listeners and market share. In spite of this, the story of the Canadian private broadcasting industry is a story of unparalleled success. Thanks in part to the creative collaboration between industry and government, Canada has been exceptionally successful in developing a broadcasting industry that we can be proud of - and more importantly - that Canadians are proud of. Canada has twice as many indigenous programming services per capita as the U.S. This is diversity of voice and choice… While we’re talking about diversity in our broadcasting system, let’s focus for a second on the current debate over Canadian versus non-Canadian services. There has been significant discussion of late about the supposed demand for non-Canadian services. In fact, recently some Canadians have argued that their need for foreign services justifies the illegal practice of stealing television services with pirate satellite equipment. Let’s make one thing extremely clear. The Canadian broadcasting system already offers one of the most diverse viewing menus in the world. Look at other countries: rarely can you find so many foreign services available. Canadian broadcasters face enormous competitive challenges - competition for audiences as well as advertising dollars. They’re also facing the need to make substantial investments in HDTV (high-definition television) and digital broadcasting that viewers will soon be demanding. Now, Canada’s private broadcasters believe in Canadian programming and are investing major dollars in it. However, they must compete with foreign services brought into Canada that benefit from access to our market; fragment our audiences, with all the revenue impact that implies; and make absolutely no tangible contribution to the system. None. Zero. In essence, these foreign services are ‘getting a free ride.’ The time has come to put an end to the free ride. It’s time to consider how foreign services can best contribute to the Canadian broadcasting system. We are not looking for a trade war here. We are not looking to withdraw TV services from Canadian audiences. We are looking for equity to once again put Canadians first. Balance. A necessary adjustment to the environment so that the Canadian broadcasting system continues to flourish against great odds. ...we will continue to have a strong cultural identity as a nation only as long as we are able to control our own environment, to keep the temperatures right, to ensure a level playing field, and to keep putting Canadians first.

Foreign specialty TV channels make ‘no tangible contribution’ to Canadian system

Broadcast | April 8, 2004

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