The fee-for-carriage battle that has pitted conventional broadcasters and their Local TV Matters campaign against cable carriers and their Stop the TV Tax campaign has finally ended up in the hands of the television regulator, who is hearing arguments on the issue this week.
At the packed hearings CRTC chair Konrad von Finckenstein often seemed exasperated with the approach from both sides. He pressed officials repeatedly on why the carriers and broadcasters couldn’t solve this issue themselves. “Why is it so difficult for you to sit down and negotiate?” he asked a Rogers official.
Von Finckenstein said he was very frustrated by the messy, public battle between the conventional broadcasters and the cable and satellite carriers, the likes of he had never seen before. “I have trouble realizing why we are in this mess.” He said broadcasters and carriers are in a “symbiotic relationship. There should be a symbiotic solution.”
Nevertheless Von Finckenstein realized that the fee-for-carriage argument is contentious and long-running. He noted it was first discussed at the CRTC in 1971. Still Von Finkenstein is looking for a resolution of the issue, saying the debate is not “about enshrining old business models…” but “establishing a framework for group approach.”
Von Finckenstein said he didn’t want the CRTC to impose a solution, he said he wanted the two sides to come together and figure out a way to split the pie. “I don’t understand why you don’t realize it’s in your long-term interest to come to an agreement.”
“I think [the carriers] and the broadcasters are destroying each other and chasing viewers off the medium.”
CTV President, Ivan Fecan said the current problems affecting broadcasters are long-term and not caused by the recession. Adding that without a new system some conventional television broadcasters would not survive. Fecan proposed that CTV would black out popular programming if they can’t come to terms with the cable and satellite carriers.
After lunch, Canada’s largest cable company, Rogers, presented to the commission and took aim at the CTV proposal. Nadir Mohamed, CEO of Rogers, “Canada’s conventional television broadcasters are not in a state of crisis,” he said conventional broadcasters have been overspending on American programming and said broadcasters get about a billion dollars a year in subsidies, “they do not need a bailout.” Other members of the Rogers team said the CTV proposal was “simply fee-for-carriage under another name.”
Various reporters are covering the hearing on Twitter, you can follow along here, the hearings are also live on CPAC, you can watch online here.
The hearings in Gatineau, Quebec are expected to last 10 days. Transcripts will be posted online daily.
Other coverage:
CBC: Carriage fees dominate CRTC hearing
The Globe: CTV proposes TV shakeup and CRTC blasts both sides in TV dispute
The Star: Local programming dying, CTV tells CRTC hearing
And if you’re having trouble making sense of the whole issue, here’s a link to a YouTube video that explains it all.
Where do you stand on the issue? Do you agree with the broadcasters, the carriers, or neither?