CBC at ‘forefront’ of digital media: CRTC’s Hutton

OTTAWA — CBC/Radio-Canada has been at the vanguard of changes the broadcasting industry has faced due to the emergence of digital media in recent years, Scott Hutton, the CRTC’s executive director of broadcasting, told a Senate committee on Wednesday night. “They are trying and they are exploring, and they are actually putting some level of their own budgets behind developing content for all platforms and actually exploring new things on new platforms, so they certainly have been at the forefront of … digital media,” Hutton said. He made the comments in response to a question by Conservative Senator Leo Housakos, deputy chairman of the transport and communications committee, who asked Hutton how prepared the CBC was “for the challenges that have arisen over the past decade, in terms of platforms, in terms of the fact that their competition is vertically integrated.” "CBC/Radio-Canada has often been at the forefront of numerous developments,” Hutton said, adding that CBC was one of the first to test digital broadcasting, and that Radio-Canada was “at the forefront in offering online a significant portion ” with its Tou.tv service. “That service continues to be a leader around the world for francophone content online,” he added. Hutton said the broadcaster is “building out on all the platforms,” and gave the example of building websites that cover specific sections of cities such as Montreal and Vancouver. He said that while the CBC can’t develop the same level of vertical integration as its competitors, “they have to differentiate themselves and ensure they are on all platforms to survive into the future.” Housakos said: “I’ve heard rumors that it’s cost CBC close to $100 million . From a technological point of view, from a capacity to go out and get more audience, do you think it’s been a success and has it been profitable?” Hutton said that figure was in line with his understanding of what the CBC spends on research and development, and exploring digital media platforms. He added that digital media is still a developing market, and one where “the business models haven’t quite landed.” “People are garnering more and more revenue in this domain, but whether you are CBC/Radio-Canada, whether you’re CTV … I’d venture to say to say it’s only recently that even some of the large American corporations who do the same thing may be entering break-even territory,” he said. “It’s improving. Advertising, subscriptions to digital media services are growing, but for the moment, it’s hard to say, ‘Have you made a profit on this?’ ” Hutton said. He said while the CBC probably hasn’t made money from its online operations, neither have most other broadcasters. Hutton, who appeared at the committee along with Peter Foster, the CRTC’s director general of television policy and applications, made the comments as part of his testimony at the Senate committee’s study looking at the challenges faced by the CBC. His appearance followed those by CBC chief Hubert Lacroix and former CRTC chair Konrad von Finckenstein in recent weeks. The committee will next travel to areas such as Winnipeg, Yellowknife and Edmonton in order to get a local perspective on the CBC’s mandate, Housakos told the Wire Report after the committee meeting. “The environment in broadcasting has been changing rapidly, and will continue to change day-by-day almost, and a public broadcaster that receives well over a billion dollars in taxpayer funding I think merits to be looked at,” he said. He added that it’s been almost 14 years since the last time a parliamentary committee looked at the CBC in-depth, and that the CBC’s recent loss of NHL rights will have “huge impact in terms of revenues in their future.” “There was a lot of elements and we thought the timing was right,” he said. He added that the study will be “in-depth,” and that it will look at “the changing technologies, platforms, marketplace, governance.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

CBC at ‘forefront’ of digital media: CRTC’s Hutton

Broadcast | March 6, 2014

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CBC at ‘forefront’ of digital media: CRTC’s Hutton

Broadcast | March 6, 2014

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