CRTC likely to make quick, favourable decision on FOX News, NFL Network: CCTA

The head of Canada’s cable association believes that the CRTC will make a "quick decision" and agree to allow FOX News and NFL Network to be distributed in Canada (CCR, April 22/04). Canadian Cable Television Association (CCTA) president Michael Hennessy sees little problem with getting the NFL channel admitted because it is "so niche" and there are other similar digital channels, such as the NHL Channel and Raptors TV, already on air. "I can’t see any problem with NFL Football. It’s really not significantly competitive with anything that exists today," he said. "Even the opposition to it was limp." The Canadian Association of Broadcasters (CAB) expressed concerns that NFL Football might eventually decide to broadcast live football games - something that it currently doesn’t propose doing. "Any departure from this commitment (not to air live NFL games) would render the proposed service competitive with Canadian broadcasters, including specialty and pay services, that hold the rights to broadcast NFL games in Canada," reads the CAB’s August 9 comments to the commission. The CAB also states that the NFL’s commitment to not carry NFL games should be extended to any football games originating in Canada, such as CFL games. It adds that the continuing eligibility of the NFL Network for distribution in Canada should also be subject to it not holding, obtaining or exercising preferential or exclusive programming rights in relation to the distribution of programming in Canada. In a letter dated August 23, the NFL assures the CRTC that it will not hold, nor obtain or exercise any preferential or exclusive programming rights in relation to the distribution of programming in Canada. "In fact, NFL International is in the final stages of completing a four-year renewal agreement with TSN and a three-year renewal agreement with Global for the continued broadcast of NFL game packages in Canada," it states. In its September 2 reply comments, the CCTA notes that the NFL Network has agreed to black out the broadcast of a live football game in Canada, if there was already a Canadian rights holder. The CAB also contends that it is premature to consider the inclusion of more non-Canadian channels, such as NFL Football and FOX News, on the list of services eligible for carriage in Canada "at a time when the policy respecting the use of local availabilities on such services is under review." But Hennessy sees that request as a smokescreen. "There was some attempt to connect to the local avails proceeding but when you look at the amount of advertising revenue that is generated by all digital channels in total, (it) is so minimal that it’s inconsequential in terms of that proceeding," he says. He tells Canadian Communications Reports that he is also optimistic about FOX News getting carriage since there appears to be a loosening up with the regard to news channels. "There are only really a couple of issues. Should there be limitations on news? And two, if there are, is it because it is better to partner with a Canadian?" he adds. "The answer to the first should logically be, ‘No, there shouldn’t be limitations on news.’ I think we are going to see more flexibility in news. I think that’s what the CTV Newsnet application is all about. . It doesn’t make sense in the kind of open Internet world that we live in, in an environment where Senate committees are trying to figure how you get less concentration in the way news is delivered or where it comes from. I think that the commission wants to show it has an openness to ideas that they think on balance contribute to the broadcasting system, and I think this is clearly all right in terms of diversity. I think for a variety of reasons - political and just good policy - that we may see a quick decision. And it would certainly be great for our customers. Because FOX showed they were the number one network during the political conventions and with the election coming up, I think it will provide an interesting perspective." The CAB opposes the FOX News application, stating that "approval of the current request by the CCTA for the addition of FOX News would create a precedent that encourages non-Canadian broadcasters to forgo partnerships with Canadian broadcasters, in favour of direct market entry by way of inclusion on the lists of eligible satellite services." Wayne Charman, senior VP of television, specialty and pay services, and new technologies at the CAB, adds in a submission to the CRTC, "The CAB maintains that the best way of bringing increased choice of foreign programming to the Canadian system is to encourage partnerships between non-Canadian services and Canadian broadcasters, to ensure that such services make the greatest possible contribution to the system. To that end, the CAB submits that the commission should not reward a non-Canadian programming service that has forgone its joint venture with a Canadian broadaster, in favour of pursuing a direct market entry approach in which it would carry no Canadian content and provide no tangible benefits to the system." But Hennessy doesn’t think that it makes sense to try to add Canadian content to a news channel. "I think you radically alter the concept of a foreign news service if you have to Canadianize it," he notes. "The partnership between FOX News and the Canadian partner just didn’t work out. I think it didn’t work out for the same reason that MSNBC Canada didn’t work out, in that you end up trying to merge Canadian production from somewhere else that doesn’t reflect the flavour of the channel to begin with. If you remember in the case of MSNBC there was a lot of CPAC programming on it, and it was kind of jarring because there was two totally different styles there." (CCR Update, Dec. 19/03). Hennessy disagrees with the CRTC decision on the Arab news channel Al Jazeera, which essentially granted the channel carriage in Canada but required distributors to block out any derogatory comments (CCR, July 30/04). Hennessy hints that the CCTA could take that CRTC decision to court. "We find the decision of the commission on that unacceptable," he said. "We’re still strongly concerned about that. I haven’t talked to anyone in our industry who would be willing to take on that kind of role as a censor. In our opinion, it’s not appropriate, and we think it raises some legal and unconstitutional issues that if there is no resolution may have to be addressed." Hennessy says that the CCTA will apply for authorization to carry yet more foreign channels. "Yes, we have a few ideas cooking (about other applications)," adds Hennessy, who would not provide specific channel names. "But you can guarantee that you will probably see us do more in the news area. You’ll see us do more in the foreign services category, and the other - the more general popular programming - we’ll assess in a way that we can push things forward in a manageable way. But we’re going to discuss that internally on how we’re going to proceed."

CRTC likely to make quick, favourable decision on FOX News, NFL Network: CCTA

Broadcast | September 10, 2004

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