Distributors, CBC quarrel over efficacy of partial, ‘omnibus’ channel solutions

GATINEAU—Offering local programming on partial or “omnibus” satellite channels could serve as an interim solution to capacity shortages, Bell Canada and Shaw Communications Inc. told the CRTC Thursday. “We certainly recognize it’s imperfect. Unfortunately it’s the only we have up until such time when we’re able to invest in further capacity,” Heather Tulk, Bell’s senior vice-president of residential products, said. Thursday was the final day of the commission’s hearing to review its direct-to-home (DTH) satellite television distribution policy. During the hearings, broadcasters CBC and Rogers Communications Inc. told the commission that distributors should carry the maximum amount of local stations possible. Several communities currently do not have access to their local television stations on satellite TV. Bell and Shaw, which offer satellite services through Bell TV and Shaw Direct, told the commission this week that their satellites are at maximum capacity and they can only offer more stations by dropping others or increasing their satellite capacity through costly investments in new compression technology. But Mirko Bibic, Bell’s senior vice-president of regulatory and government affairs, told the commission Thursday that the partial or “omnibus carriage” of local stations could be an interim solution. Partial channels, which are now in use on satellite for some local stations, offer local programming from several different stations and broadcasting groups. For example, a partial channel could air a CBC newscast followed by one from CTV. Omnibus channels are a compilation of local programming from several different channels of a same broadcasting group. For example, an omnibus channel may be branded as a CBC channel and carry programs chosen from several CBC stations. The content may be live or time-shifted. “We appreciate the differences—between full carriage and partial or omnibus carriage—that concern OTA broadcasters,” Bibic said. “While not a perfect solution, this is a positive interim step towards full carriage, and would deliver all unique local programming from all LPIF-eligible stations to our customers in those communities.” Stations defined as local produce local content and meet the criteria for funding under the CRTC’s Local Programming Imrovement Fund (LPIF). Heather Tulk, Bell’s senior vice-president of residential products, said Thursday that omnibus channels present a better solution than partial channels, because these collect content from different broadcasting groups, which could result in disagreements between the groups for high-profile time slots. “The problem we have with it is we would have to be able to navigate contention across broadcasting groups for a very limited space for the partial channels we have,” she said. Tulk added that Bell would have to create about five new partial channels to carry the requisite amount of local content. But the CBC says either approach would be an “unacceptable alternative” for broadcasters. Fred Mattocks, CBC’s general manager of media operations and technology for English services, said partial channels don’t offer programming around the clock. Instead, programs are interrupted by a graphic informing the viewer of the next show. “All that appears on the partial channel is the selected local programming. No one wants to tune to channel 196 and be told by a graphic to wait because they are two minutes early for the five o’clock news. And no one wants to be jettisoned back into a black screen at 6:31,” he said. Mattocks said partial channels don’t offer a viewer-friendly experience and are the subject of numerous complaints from viewers. He added that the channels don’t allow broadcasters to build a local brand in the community or carry local advertising or news promos. “A partial channel that flickers on and off in the darkness of DTH satellite space can never become that type of entity … It can never become a home for viewers or a forum for a community,” he said. “That is why partial channels are an unacceptable alternative. People simply do not watch TV that way.” But Bibic said Thursday the viewing experience is as “simple and straightforward” on partial channels as on normal channels. He added that viewers can see the programming schedule in advance on their electronic programming guides. New satellite television entrant FreeHD Canada Inc. also said Thursday it does not support omnibus or partial channels as a solution to satellite capacity issues, adding that they would be a “temporary band-aid on a gaping wound.” Shaw suggested Thursday that the commission authorize “virtual channels” to help it improve its capacity to carry local channels. Virtual channels pair local content between the closest affiliated channels of the same broadcasting group carried by the distributor. For example, a virtual channel could offer CBC Saskatoon programming in Regina, except for the local newscast, which could be taken from Regina. Virtual channels are also identified in the programming guide as local stations. Shaw also proposed that it broadcast local programming on omnibus channels in addition to the virtual channels. Gary Pizante, Shaw Direct’s vice-president of business development, said virtual stations would have their own number and “identity” on the programming guide. “When you introduce it this way, you have a much better chance of having higher visibility because you are right in the middle of all the other … channels we have,” he said. But Rita Cugini, CRTC regional commissioner for the Ontario region, questioned Shaw’s plans, noting that broadcasters oppose to the idea. “We heard from the broadcasters that virtual, omnibus and partial channels are not acceptable, and yet you have chosen to continue to go down this road,” she said. Pizante said broadcasters are aiming for full carriage. “To date, there has been little appetite from the broadcasters because I think they’re holding out for carriage,” he said. Parties have until Nov. 25 to submit final comments for the hearing. kfournier@thewirereport.ca

Distributors, CBC quarrel over efficacy of partial, ‘omnibus’ channel solutions

Broadcast | November 18, 2010

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