Von Finckenstein warns lag in digital TV transition will turn Canadian eyeballs to US channels

CRTC chairman Konrad von Finckenstein warned Monday that a delay in the transition to over-the-air digital television broadcasting risks turning Canadian eyeballs toward American television. “The whole world is going digital. Our neighbour to the south, who also happens to be the largest producer of entertainment programming, is already there,” von Finckenstein said during a speech at the Banff World Television Festival, according to his speaking notes. “I want to make sure you have the broadcasting infrastructure that you need to reach your audiences. The longer we wait, the more tempting foreign HD content will become.” Von Finckenstein’s warning suggested that if Canadians can’t get conventional HD digital television broadcasts in Canada, they’ll increasingly turn to American broadcasters like ABC, NBC, CBS, and Fox, which have already transitioned to over-the-air digital signals—with programming in high-definition (HD). The United States completed its transition to digital in June 2009, and several European countries have made the move. More than three years ago, the CRTC set a transition deadline of Aug. 31, 2011 to end analogue television broadcasts on channels 52 to 69. The commission could ultimately refuse to renew the licences of stations that don’t make the transition deadline. The commission has said the deadline is firm and mandatory for broadcasters operating in provincial and territorial capital cities; markets with populations of over 300,000; and markets where there is more than one local television station. In large markets, many broadcasters are already broadcasting in digital. But many broadcasters say they may not be able to meet the deadline. Canwest Television wrote in a recent submission to the CRTC that stations are struggling to find enough digital equipment and qualified engineers. Paul Sparkes, CTVglobemedia’s executive vice-president of corporate affairs, told The Wire Report in an interview that the problem is largely one of funding. He said it costs upwards of $1 million for a digital transmitter. “We’re being expropriated from the spectrum and we’re being asked to spend millions of dollars that we don’t have,” he said. Sparkes said broadcasters could afford to make the transition with government assistance or with the implementation of a value-for-signal regime between broadcasters and the cable and satellite distributors. “I think they’re going to have to look at the deadline. It’s going to be very difficult to meet,” Sparkes added. “I think the chairman’s remarks this morning were a reiteration of frustration, that they’ve done everything they can in moving the file, and now it’s sort of up to government to do something.” CBC spokesman Marco Dubé told The Wire Report in an email that the "vast majority" of Canadians will make the transition to digital and HD through their television provider, not through over the air. Dubé echoed Sparkes' view that the broadcasters need assistance. "Given recent economic challenges we do not have capital funding available to meet the CRTC's plan by 2011. We will, nonetheless, be rolling out our over-the-air digital capability at as rapid a rate as possible. If policy makers think it is important that the full plan be met on time, we'll need a leg up to get there," he wrote. The commission has proposed a digital transition implementation plan, but the Conservative government has said it’s up to broadcasters to meet the deadline. Heritage Minister James Moore has also said many Canadians—especially youth in urban areas—won’t choose to be part of the transition to digital broadcasting because they can now get so much content online. In his speech Monday, von Finckenstein reaffirmed that the deadline is fixed. “Here in Canada, the transition is 14 months away. I’m worried that broadcasters have not taken the issue as seriously as we expected them to,” the chairman said. “This date is fixed in stone as far as the CRTC is concerned. It will not be altered. And both Industry Minister Tony Clement and Heritage Minister James Moore have publicly stated that the government has no intention of extending the deadline.” Gregory Taylor, an expert in broadcasting policy at McGill University who is writing a book on digital television in Canada, said in an interview Monday that consumers in areas like Windsor, Ont., are already watching over-the-air American signals because they can’t get them in Canada. “They’re almost all watching American broadcasts. This is already happening in a lot of border areas,” Taylor said. “If we don’t build it here, people are going to get their signals elsewhere.” With high-powered antennas, many Canadians can get over-the-air, digital, and in many cases HD, American signals. Taylor said the highest percentage of Canadians who consume over-the-air television are in Quebec. Von Finckenstein also said Monday that, to ensure Canadians have access to local television after the deadline, the commission is prepared to change its regulatory framework and require distributors to provide free, local basic service. If implemented, distributors should not be permitted to force consumers into purchasing other services with the free local packages, he said. "The free local package option could ensure that Canadians continue to have access to the local and regional television stations that they currently receive over-the-air," von Finckenstein said. Von Finckenstein said it is important for stations to meet the deadline because digital technology improves broadcast quality and creates opportunities for broadcasters to offer mobile television services. He added that spectrum use must be coordinated with the United States and that “when they wake up on Sept. 1, 2011, the Americans will expect Canadian broadcasters to have vacated channels 52 to 69. It has been agreed that some of these channels will be repurposed on both sides of the border for public safety services.” Industry Canada has also identified a portion of the television broadcasting spectrum—which will be freed up by the phase-out of analogue—for mobile wireless services. “We will need to move quickly to auction the spectrum if we want to have the capacity meet this growth. Mobile broadband will be a key element of our economy going forward, and I expect that it will feature prominently in the government’s national digital strategy,” von Finckenstein said. The CRTC has granted some flexibility to television stations in smaller markets. Broadcasters in these markets—which serve approximately 17 per cent of the Canadian population—are permitted to continue broadcasting in analog so long as they are not using channels 52 to 69. Still, the CRTC is encouraging all stations to make the transition by Aug. 31, 2011 or earlier. We have asked stakeholders their views on these terms and conditions, as well as which cable and satellite companies plan to offer such a package. sdoyle@thewirereport.ca

Von Finckenstein warns lag in digital TV transition will turn Canadian eyeballs to US channels

Broadcast | June 14, 2010

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