CCTA makes moves to get more U.S. channels approved for carriage in Canada

The Canadian Cable Television Association (CCTA) is asking the CRTC to allow the U.S. channel FOX News to be distributed in Canada on a digital-only basis, and further applications for the digital carriage of foreign channels are expected this summer. The CCTA vowed last November to continue efforts to get more foreign channels into the country after the CRTC rejected an application for the mass approval of 17 U.S. channels (CCR, Nov. 14/03). Now, the CCTA’s approach is to apply on a channel-by-channel basis. The application for FOX News follows the CCTA’s bid in February to win carriage authorization in Canada for the NFL Network (CCR, Feb. 27/04). "(The NFL Network) is another example of taking slow incremental steps that make it easier for the regulatory process to digest and approve," says CCTA acting president Michael Hennessy. "We think perhaps taking an incremental approach in the future to adding new services to the (eligibility) list that makes it easier to address the commission’s criteria is probably a better, easier, less frictional way to approach the matter." Although FOX News was on the list of U.S. services already turned down by the CRTC, Hennessy says that the channel qualifies under current terms for carriage in Canada. The Canadian Association of Broadcasters came out swinging over the CCTA’s mass application last year, calling the proposal a "thinly disguised cash grab" (CCR, June 30/03). "With our omnibus application - movies, news, sports, children - the commission was concerned. The thing they addressed primarily in their decision turning down the application - or really they sent it back to us - was their concern about rights and the consequence on the broadcasting system," he notes. "Their decision was very general; they didn’t go through each service on a case-by-case basis. …So by coming back with a service like FOX News, we found a very popular service that has no rights that are encumbered in terms of the Canadian market, or no exclusive rights that it is withholding from the Canadian market. So, the fundamental issue that the commission raised doesn’t arise with respect to this particular service." Hennessy tells Canadian Communications Reports that FOX News has a better chance than some of the other channels - such as HBO and others in the original 17 - of gaining approval for several reasons. First, the CRTC has already allowed foreign news services, such as CNN, EuroNews and BBC World, to be carried in Canada. Second, the application is for carriage on a digital-only basis so the addition of FOX News would help boost digital subscriber rates. "You don’t want to limit the supply of news services in a country like Canada. The more diverse views and opinions we can get, the healthier it is from a social democratic perspective," he points out. The CCTA’s April 14 application to the CRTC also notes, "…FOX News meets the commission’s requirement that an authorized service be neither totally nor partially competitive with a licensed Canadian specialty or pay television service. CCTA believes that this service will complement the news currently aired by Canadian broadcasters. By allowing distribution of this service in Canada, Canadian viewers will have the benefit of increased choice of appealing programming. Moreover, this increased choice will be an effective tool in combating the appeal of the black market." FOX News is the U.S. partner in a Category 2 digital specialty TV licence and could enter Canada’s digital space using that licence, but it would have to alter its programming to include Canadian content. However, the CCTA’s application states that FOX News doesn’t intend to implement this service. A letter accompanying the application that has been signed by FOX News VP Doug Murphy indicates that FOX News Canada will not meet the extended deadline of Nov. 24, 2004 for launching. Hennessy says that among the channels that the CCTA would look at applying to have made eligible for carriage in Canada are other news channels from around the world and multicultural or third-language services. The CCTA currently has an application before the CRTC for approval to carry five foreign TV channels (CCR, April 25/03). "I think we’d like to look generally at less restriction on third-language services from around the world, whether they are news or more general because clearly, there is certainly a demand for that and it’s a political issue," he notes. "And I think the one service per ethnic category is another strange construct. But we will approach things progressively, following the commission’s directive that we take the issue of rights into consideration and that will be a critical driver. And, we will be looking at things that ultimately people will be able to accept that it’s at least reasonable to debate, even if they can’t accept that the channel contributes to the broadcasting system."

CCTA makes moves to get more U.S. channels approved for carriage in Canada

Broadcast | April 22, 2004

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