Speech
Taking on Challenges... Building on Strengths
Address by Françoise Bertrand, Chairperson
Canadian Radio-television and Telecommunications Commission
to the Ontario Association of Broadcasters
Toronto, Ontario
March 7, 1997
Good morning, ladies and gentlemen. Thank you for inviting me and giving me
the opportunity to spend some time with you, to share ideas, and exchange views,
on how best we can work together to achieve our common objectives: vibrant,
diverse, financially strong, production, music, radio and television industries.
Although it was just a short seven months ago that I took up my new
responsibilities, already I feel that many of us have been colleagues for a long
time. Through an intense initiation of a rapid succession of public hearings I
have met and gotten to know many of you, and have also had the pleasure of
getting better acquainted with some of you in less formal gatherings.
Today is another opportunity to continue the dialogue which I started in my
first address last October to the Canadian Association of Broadcasters. Then, I
said that we will know if our efforts have produced tangible results, if we can
measure our success by a number of indicators.
- The number of hours of Canadian drama, children's and other entertainment
programs that are shown in peak viewing hours;
- The viewership to Canadian programs in underrepresented categories;
- The amount of distinctively Canadian programs broadcast;
- The use of Canadian talent in all aspects of production - writers, actors,
singers, musicians, producers, and technicians;
- The strength of the Canadian music industry here and around the world;
- The sales of Canadian programs internationally;
- The number of strong, high quality production companies exporting globally;
- The number of radio stations taking advantage of digital technology;
- The success of adapting to the convergence of Multi-media; and
- The return on your investment in the mid and long term.
We know indicators used by companies, and that includes government agencies,
help establish a performance line, which allows each of us to measure to what
extent we have used our strengths to meet new challenges.
And this is what I would like to talk about today. How the production, music,
radio and television industries, and the CRTC, can build on existing strengths to
meet the challenges of the future.
I have to tell you that I believe that the goal that was set for the
broadcasting industry in its infancy, has not changed. The goal, in its most
simple form, is that despite all odds against us, we will have distinctive
Canadian music, radio, television and film that reflects our realities. The goal
today - whether it is in the French or the English markets - is the same. The
only thing that may be different, today, are the methods used to make sure this
happens.
I know that we will succeed in attaining this objective. I know, not only
because I am by nature an optimist, but because, right from the very beginning,
we have proven to the world that it is possible to live next door to the largest,
most influential entertainment industry and nonetheless manage to maintain our
own industries.
Technology, entrepreneurial and trade pressures and other changes once again
present us with new opportunities and challenges. And I can tell you, our past
success is the guarantee of our future survival, and more than that, our will and
our ability to flourish.
It struck me recently that for the longest time we have been talking about
preparing for the future and developments in technology that will shape
broadcasting. It occurs to me now that events have moved so quickly that we are
past the stage of preparing for the future, because the future is here, it's now.
It's with us. I believe that we are at the point where we have to deal with the
existing "new" realities.
It is my conviction, and it is the message that I would like to leave with
you, that we have an unprecedented opportunity to affirm a strong Canadian
presence in music and broadcasting in this country, and internationally.
The consolidations, the mergers and partnerships that have been taking place,
are creating the organizational and financial conditions necessary to reach a
critical mass of viewers and listeners. This, combined with the proliferation of
distribution alternatives, I am convinced, gives the music, radio and television
industries unusual positions of strength to hold on to existing markets and to
greatly expand their reach.
I. Converging technologies, expanding opportunities
We know that digital technology and video compression are going to change the
landscape. What we don't know is how, in the end, all of the pieces will fall
into place. But we do know that the changes are taking place and definitely
leading to a mix of, and in some cases a convergence of cable TV, telephony,
terrestrial wireless, direct-to-home satellite distribution and further
sophistication of computer technology. This offers more distribution channels for
radio, TV, musicians, performers, creators and producers.
As well, this will provide new distribution alternatives for traditional
broadcasting and also lead to a proliferation of new types of services. And
whether tuning in to traditional broadcasting or making use of new services, the
crucial and overriding fact is that the consumer will have alternatives, and
because of that, will be discriminating and demand quality, variety and
originality.
Responding to these pressures, the Commission has so far licensed 54
specialty, pay and pay-per-view services, and we've said we'll consider any
future applications that are submitted. Also, later this month we will hold a
public hearing for video on demand.
As I said, we are no longer talking about what might be. The Government issued
its Convergence Policy Statement last August. The Department of Industry has
awarded licences to three companies to operate Local Multipoint Communications
Systems (LMCS) in 66 larger markets across Canada, as well as in 127 rural
communities. The Commission has approved Multipoint Distribution Systems (MDS) in
Manitoba and Saskatchewan. In May, we will hold a public hearing for additional
MDS applications covering most of southern Ontario.
We have, as you know, licensed five direct-to-home satellite services - and
now after many false starts, it does look as if two or more of these services
will go into operation this year, perhaps as early as this summer. Telesat has
just announced that in the first quarter of next year, it will launch a Canadian
DBS satellite - this is a significant development.
And we have just completed a public hearing into applications for broadcasting
trials by Bell and Telus. We have launched the consultation on advanced
substitution, and next week, barring any unforeseen last minute glitches, we will
be making public our proposed policy on distribution regulations, a new
regulatory framework that takes into account the developments I've just been
talking about.
II. The evolution of radio and television
Many of you in this room are in radio. I know that while the last few years
have shown a turnaround in your business, radio is still under pressure,
particularly AM, although FM is doing better. But, you have survived the
recession, you have turned the corner, and it's obvious that you know your
markets well. Although ad revenues are not growing by quantum leaps, you are
maintaining your share of these revenues. You have gotten your costs under
control. And the emergence of digital radio will certainly open up new
opportunities.
It does look like we are leading the way on the transition to digital
broadcasting, thanks to the unique public and private partnerships of DRRI and
the Task Force on Digital Radio. We should all be pleased that the Toronto Master
FM consortium has publicly stated it will launch transitional digital stations
this year.
What's more, in your 1995 Action Plan for radio, you identified the roll-out
of digital radio as a key strategy to help your industry attain profitability by
1998. I know that your efforts will produce success, and I encourage you to
intensify them. I'm very interested in your vision of how local radio stations
can provide, through digital data signals, on-demand information about weather or
traffic conditions, schedules of community events, and titles of new works by
Canadian creators and performers.
The Commission has given you the means to retain Canada's technological lead
in digital radio, while taking advantage of the new business opportunities that
technology offers.
It is quite obvious that radio broadcasters are more than eager to fully
exploit their potential and that they see a healthy market, and new markets out
there. There was more than enough interest at the hearing we just completed for
the FM frequency in Montreal. The hearing next month into the FM frequency in
Toronto, as you know, has generated the same significant interest. The arrival of
pay audio and audio services on the Internet will open new markets for you and a
huge potential for exposure of Canadian music.
I would like to remind you that at the CAB convention in Edmonton, I said that
we would be undertaking a review of radio. I want to confirm today that that work
will go ahead, we hope, by the Fall, and certainly by the end of this year.
Our objectives for radio have been constant and will continue to guide us.
These include: the provision of locally relevant news and other programming;
diversity of programming; the exposure of Canadian musical and other creative
talent; and a contribution to Canadian talent. What might differ, after
consultation with the radio industry, the music industry, listeners and other
interested parties, are the methods of reaching these objectives.
All of this, I don't have any doubt, will lead us to the realization of the
dream of the American scientist, Dr. Lee de Forest, "the father of broadcasting"
who said in the 1930's, "We look to you in Canada, to lead radio in North
America. May Canada fulfill my early dream."
Television also has tremendous opportunities in an increasingly competitive
market. Referring to the ever growing number of services I mentioned a moment
ago, it's also obvious that television people are in the game with gusto. While
there are changes taking place right across the country, I have to say that the
evolution of the TV market in Ontario is extremely interesting now that the
Commission has opened the doors to province wide competition by allowing
rebroadcast facilities in a number of markets.
In addition, on the national level, when the government does, as it said it
will, request that we examine the possibility of a third national television
network, we look forward to your participation in this process given the
importance of the Ontario television market.
III. The challenges for broadcasters
I want today to pay tribute to the broadcasters in Ontario, and everywhere in
Canada, for the contribution they have made in sports, news, information and
current affairs programming. In the French and English speaking markets, this
country is very well served by both radio and television broadcasters.
Information programming is an obvious jewel of Canadian broadcasting. We all
know that the industry can show the same strength in other areas of programming
as well. And so, what is the imperative for your industry at this juncture? I
believe that the imperative is to continue to do what you do best ... provide
Canadian programming that will ensure a rich, diversified cultural experience for
Canadians.
You have identified that the key to success in the future is programming - as
your Canadian Programming Initiative makes clear. In an address last month,
Michael McCabe stressed the need for strong programming that has both domestic
and international appeal.
This is not merely an ideal to strive for, it is a successful reality on which
to build. Next to the U.S. this country is the largest exporter of television
programming. We have in place the rules, the mechanisms, to ensure that this
success continues. The financial contributions made by the Government, and the
industry, to the Canadian Television and Cable Production Fund, is but one of the
levers that allow you to grow domestically and export abroad. This is a case of
building on a solid base to go on to greater strength, so that all of your
Canadian programs contribute to your strategic advantage.
The Commission has, and will continue to work with you so you can provide all
Canadians, and the international market, with more popular drama, more quality
children's shows and more entertainment and variety programming that showcases
Canadian talent. And it's obvious that everyone in this room is doing it and can
do it. In the music, film and video industries, we just have to look at the
nominations for Junos, Geminis and Grammies. Canada is clearly showing its
successes. You are demonstrating your successes.
IV. Challenges for the CRTC
You have what it takes - in radio, music and television - to expand solidly
based industries. Your experience, entrepreneurial spirit and the mature
recording and production industries provide you with the expertise to produce
world-class products.
To go further, a coordinated broadcasting industrial strategy based on a
partnership of broadcasters, producers, creative and technical talent and
government, is vital.
I believe that you know that I am committed to this partnership.
I recognize that we need government policies and a regulatory framework that
offer direction to the broadcast industry. That is why, at the Commission, we are
currently conducting a vision exercise - an internal examination of our systems
and procedures - so we can best help the industries we regulate, achieve public
policy objectives, and fulfill Parliament's mandate to us.
I consider this vision exercise crucial. All organizations must periodically,
and these days I might say, must consistently re-examine themselves to ensure
they adapt and are well positioned to advance the benefits of partnership.
The review of our vision, which will translate into specific changes to the
operations of both our broadcasting and telecommunications responsibilities, will
be aimed, I can assure you, at maintaining the course set out in the legislation,
and where necessary, changing the methods used to attain their objectives so that
we can together arrive at the same goal.
If we move forward with a shared vision, we will have a Canadian broadcasting
industry that continues to inspire others. It will be an industry that sees the
power of Canadian content. That celebrates the wonderful rich culture and deep,
humane values we as a nation have. It will be an industry that takes advantage of
commercial opportunities through a strategic alliance of broadcasters, producers,
and creative and technical talent. This coordinated partnership will maximize the
benefits from superb Canadian content and the emerging world of Multi-media. All
of this will have a multiplier effect, spreading economic returns to the wide
range of businesses which serve and benefit from broadcasting.
I have faith in the talent and entrepreneurial spirit of Canadian broadcasting
artists and the industries that support them. I am committed to our partnership
and I have faith in our ability to succeed.
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Contact: CRTC Public Affairs, Ottawa, Ontario K1A 0N2
Tel.:
(819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
Date Modified: 1997-03-07 |
