Are Canadian Broadcasters BS'ing the CRTC?

For all the talk about the death of media, there seems to be no shortage of it. HDTV is surging, the Internet is growing, even print media is expanding to a certain extent even if its future is no longer on paper. However, we kept getting told that advertising revenues are down and threaten to destroy Canadian television/newspapers/radio as we know it. Tell that to the fifty commercials they make you sit through during the average half hour TV show. Now, Canadian broadcasters are up in front of the CRTC trying to drastically hike your cable and satellite fees or else pull over-the-air television from the airwaves in some markets. I don't buy the argument that the death of conventional media is imminent. Even if it is, a lot of it has to do with how the media industry is operating rather than how people are consuming content. Take CTV for example who just accomplished a hostile take-over of the CHUM network and auctioned off former CITY stations to Rogers Television since they couldn't hold more than two network stations in the same market by law. Canada went from four major networks to three (soon to be two as some claim) as CHUM went the way of DuMont. Legendary rock station 1050 CHUM in Toronto was closed down and replaced by CP24 radio, an all news station owned by CTV, and most CITY shows were liquidated or replaced with new personalities. Arguably, the content on CTV controlled networks has gotten worse, not better since the takeover. They currently now own half the channels in the country including flagship CTV stations, the Comedy Network, Space, Bravo, the A Channel network, the Much Music network, MTV Canada, CP24 News, CTV Newsnet, TSN, and the Discovery Channel. That's not the mention the fact that they already owned Canada's largest direct-to-home pay satellite provider as well. CTV, owned by Bell Canada, spent hundreds of millions on the deals to buy up Canadian media and now has nothing to show for it except mountains of debt. Talk about a case of their eyes being bigger than their bellies.

Of course, CTV is not the only network in trouble. We've been hearing for a while now that Canwest Global is on the verge of bankruptcy and cannot even pay employee salaries. However, they have continued to operate as normal so I can only assume that what we've been hearing is not the whole truth. CBC is threatening cuts despite their executives being caught with their fingers in the cookie jar, abusing their expense accounts to the tune of $60,000 on frivolous things. We are in a recession but I just cannot accept that it is the only reason they are in trouble. Nor can I accept that Internet sites like Youtube are stealing business away from them. Just as it is with the auto industry, most of the problems seem to stem from a long string of poor business decisions. Also like the auto industry, the networks are trying to put the government up against the ropes (read blackmailing) by threatening to take down over-the-air television unless they either get a bailout or get additional fees from cable companies to carry network stations. If there's one thing CTV is good at doing, it's tooting their own horn. After the CRTC denied the increases last week, they've launched an advertising campaign to argue that cable fees should be hiked. CFTO in Toronto is even hosting an "open house" where they will brainwash... er, inform the public on their side of the issue.

The reason there are no cable fees for network stations is because they are seen as a vital link between the state and their citizens as a tool for informing the electorate and providing information on disasters. Television networks are obligated to offer their network stations for free regardless of whether it is by antenna or cable. The same is true within the United States. It's also worth noting that it is unfair to make people pay for a service that is already available for free to everyone. Despite the government having a vested interest in keeping network TV available for free, television stations are under no obligation to keep over-the-air facilities operational. As Canada approaches the DTV switch-over date in 2011, certain networks may refuse to upgrade their equipment in less profitable markets, leaving many in the dark. A large number of these less profitable markets do not have cable access and the costs of satellite TV are prohibitive for many. (Basic satellite is roughly double the price of basic cable, not including taxes and box rental.) Large swaths of the country, namely in markets such as the Prairies, the Maritimes, and the Far North in particular may see themselves without access to television. To many, it seems unfathomable that TV would simply disappear.

One has to question CTV's true motives, given they are the only network that has really been openly trying to win public support for the fees. They are owned by Bell, who also owns Canada's largest satellite provider. Increasing cable costs to make it more comparable to their satellite service would certainly be beneficial to them. It would potentially solidify Bell's monopoly over information utilities within Canada. A monopoly that the CRTC has all but openly endorsed. BCE and its various utility subsidiaries have been facing slipping sales and growing consumer dissatisfaction in recent years. Regardless of their motives, blackmail is not exactly the best tactic to win political support and CTV's gamble borders on being outright shameful. If CTV wants to save some cash, they should instead sell off some of the assets they foolhardily bought in their attempt to build a media monopoly. They are the ones who are being greedy and anti-competitive. All the hikes would do is punish consumers. Unfortunately, that's just situation normal when it comes to Canadian politics. If media is dying, it's media monopolies that are doing it. Not the cable companies and certainly not consumers. Of course now that HDTV is available for free over the air, what would happen if people ditched cable and satellite all together. Don't laugh, I've seen more and more antennas going up in my neighbourhood. More people switching to free alternatives would effectively wipe out all the money CTV gets from their speciality stations and Bell ExpressVu. Maybe they'll be demanding we ban antennas next and lable people who use them as pirates.