Speech
STRIPES SHINING BRIGHTLY - THE CANADIAN TRANSITION FROM ANALOGUE TO DIGITAL
TELEVISION
Notes for an address
by Andrée Wylie
Vice-Chairperson, Broadcasting
Canadian Radio-television and Telecommunications Commission
to the Canadian Digital Television Executives Conference
Toronto, Ontario
September 19th, 2002
(CHECK AGAINST DELIVERY)
Introduction
Thank you very much, Jim. I am indeed honoured that you have accepted me as a
substitute for our Chair. Charles has been in the office every day since last
week but, unfortunately for you, he has been advised to stay close to home for a
while yet.
Good evening everyone.
Being here in the CBC Broadcast Centre on this occasion has put me in mind of
Wayne and Shuster's zebra.
For those of you who don't remember, the zebra used to prance across the
screen at the beginning of Wayne and Shuster's comedy specials in the early '70s.
a none-too-subtle reminder that - while American programming had been broadcast
in 'living colour' for a decade - the CBC's premier variety show was still only
available in black-and-white.
Any one of us can point to Canadian programs like This Hour Has Seven Days
or Le Pain du jour that captured the essence and imagination of our
country in the '60s, but it is undeniable that many of us who were watching that
black and white zebra were secretly longing for the bright feathers of the "in
living colour" peacock.
It's a situation that I'm sure no one in this room wants to see repeated as we
approach the introduction of the A/53 standard - the next significant change in
television technology. We cannot afford to be last in this transition.
Let me date myself by saying that I was the proud owner of a black and white
TV set at the time of the zebra. Our two sons caused my husband and I great
concern about their development as, whenever the peacock appeared, they would
excitedly report that they would be watching the next program in living colour.
Moving forward with the introduction of digital TV in Canada is a must. It
will help to develop our unique, shared cultural vision. and it will advance the
Canadian television industry and its various components and make sure that this
time, our stripes shine brightly and early.
There are public policy issues to be managed in this transition. They need to
be recognized as such and resolved in a time frame and manner that are
appropriate for us as Canadians. The template must be of our own making. I will
outline some of these issues and discuss how we, as the Regulator, are addressing
them:
- Although digital is a replacement technology, there is a need to ensure
that Canadians can upgrade their analogue equipment to digital at their own
pace and convenience, without loss of service.
- There is a need to strike a balance between a market-driven approach, based
on solid business cases, and incentives for innovation and the early
exploitation of the advantages of digital technology.
- There is a need to ensure the continued availability of quality Canadian
programming that reflects and speaks to Canadians.
- There is a need to keep regulatory intervention at a minimum and the
promotion of early adoption at a maximum.
Transition to digital-licensing and distribution
The CRTC has already provided a licensing framework to help guide the
transition from analogue to digital over-the-air television.
At the same time, it issued a call for comments on a proposed framework for
the distribution of over-the-air digital television services.
The deadline for filing a response has just passed, and we thank all of you
who have made submissions.
It would, of course, be premature for me to comment on distribution issues
this evening, except to say that the subject is one of the Commission's top
priorities. All of you know the important role that the distribution
undertakings-cable, satellite and MDS-play in the Canadian broadcasting system,
since close to 80% of Canadians, more in some areas of the country, receive their
television services through a distributor.
It is also important to note, at the outset, that the CRTC is a creature of
Statute. While making every effort to provide the Canadian television industry
with the necessary regulatory freedom to make a smooth, efficient transition to
digital broadcasting, the CRTC must keep a close eye on its continued
responsibility to further the objectives for the Canadian broadcasting system
found in its empowering legislation, the Broadcasting Act.
Licensing framework objectives
In establishing its market-driven regulatory framework for the licensing
transition to digital TV, the Commission reaffirmed the five policy objectives it
had initially set out in Public Notice 2001-62. They are:
- To provide regulatory guidance to broadcasters, distributors and producers
as they adopt the new technology.
- To foster the strength and growth of the Canadian broadcasting industry and
help maintain its cultural objectives.
- To encourage the production, broadcast and distribution of high-quality
Canadian programming in the A/53 format.
- To ensure that the Canadian viewer is the primary beneficiary of these
technological advances.
- And, finally, to ensure that the orderly and timely migration to digital TV
is not impeded by unnecessary regulation.
We were encouraged that these policy principles received the general support
of those who filed comments with the Commission regarding the transition
framework proposed. Your comments have reaffirmed our commitment to a
market-driven approach that also manages to accommodate the objectives of the
Act.
1. Apply now for licensing
As you are aware, Industry Canada has designated a comparable digital channel
for every analogue channel.
The Commission moved quickly to invite applications by incumbent broadcasters
for a licence to use this allotted digital channel to simulcast, with some
flexibility, their analogue broadcasts. However, it did not impose a timetable
for this transition from analogue to digital.
In fact, to move things along even more quickly, staff is now diligently
working on a new application form for transitional digital television
undertakings, which should be out soon.
The Commission, at the same time, declared itself willing to consider
applications by prospective new entrants if digital spectrum remains unclaimed
once normal licensing processes are completed.
Advice to the timid! The Commission received an application from Craig even
before it issued its new policy. The new policy has only been out for a couple of
months and already, we're getting queries and requests for application forms.
Moreover, we already have an application from CHUM.
2. Balancing act
The licensing framework seeks to find an appropriate balance between easing
the transition for broadcasters and consumers, and providing incentives for early
adoption.
There is flexibility to help keep the costs of conversion as low as possible
for broadcasters. While they are required to display and broadcast already
produced high definition programming in that format, they need not reformat
programming that was originally produced for analogue.
We also announced our predisposition to licensing new and innovative multicast
services, on a case-by-case basis, over those that duplicate existing
over-the-air services, pay or specialty services.
3. Keeping the "C" in Canadian
The continuation of the same percentage of Canadian content during the
transition will mean that Canadian viewers continue to have their own stories,
concerns and lifestyles reflected in the digital programming that is available to
them.
14 hours per week of original high definition digital programming was
permitted on the digital channel, of which, at least 50% must be Canadian. It
will provide Canadian viewers with a broader range of options in their viewing
day, and encourage the production of new digital content in this country.
I understand that sports and drama programming showcase this new technology
best. This offers fantastic new possibilities for both producers and
broadcasters. The transition to digital might stimulate an increase in quality
Canadian drama, while my perhaps less intellectually-inclined colleagues have
indicated their hopes for more and better golf coverage. Canadian golf, of
course.
4. Promoting early adoption of the new technology
Some observers of the marketplace for consumer electronic goods have expressed
concern about a technology 'burnout' - with consumers growing weary of continuing
waves of new technology. Without sufficient incentive, they might be inclined to
say: "Who needs it?"
We are, for example, acutely aware of the rather disappointing pace of the
replacement of analogue radio receiving equipment for digital, even though
digital radio broadcasting has been implemented for some years.
On the other hand, a view of the DVD market would suggest that consumers, far
from being burnt out on technology, are in fact clamouring for digital video
products faster than anyone could have imagined.
DVD rentals increased 116 percent in the first half of 2002, compared to the
same period in 2001. Not surprisingly, there has been a rapid drop in the price
of DVD players.
I realize that you can't necessarily draw a direct correlation between what
has occurred in the DVD market and what might happen with DTV. after all, the
surge of interest in a new technology is partially driven by factors which vary
in each case.
However, if exact parallels cannot be drawn between the rate of adoption of
one new technology and another, what is true in all cases is that early adoption
is influenced by promotion, exposure and skillful marketing.
As broadcasters and producers, you will have the task of convincing your
potential market, of selling consumers on the benefits of the new technology, and
of exploiting DTV in a manner that achieves your respective business goals.
This underscores the need for broadcasters and producers to exploit the
innovative possibilities the new technology offers, to take advantage of hot new
features such as dolby-stereo quality sound, over-the-air interactivity, and
crisper visuals-to cite just a few.
Consumer acceptance is to a large extent in your own hands. You are the ones
who will show the product.
Conclusion
In conclusion, the Commission recognizes that the path to the implementation
of digital will not be an easy one, given the very rapid rate of technological
change, the uncertainty regarding consumer acceptance, the cost of available
receiving equipment and the perceived value of the service offered.
We also know that this transition will occur in the context of the bigger
picture, namely the conditions of the marketplace and the business framework in
which you are operating.
The CRTC, for its part, has to keep an eye on its regulatory objectives. But,
it is intent on putting in place the regulatory environment that will allow you
to make your best case to Canadian consumers
You have an exciting product.
You have what would appear to be a willing audience.
And we have opened the way for you to get your product to market as quickly as
it makes sense for you to do so.
We will stand by our commitment to process qualified licence applications as
expeditiously as we can.
All of which we feel will allow the television industry to take the steps
necessary to ensure that the stripes of the 21st century equivalent of
Wayne and Shuster's zebra shine brightly for all to see.
By the way, both our sons are now lawyers, which may lead some of you to
comment that my husband and I still have good reasons to be worried about their
development.
Thank you.
- 30 -
Contact: Denis Carmel, Ottawa, Ontario K1A 0N2
Tel.: (819)
997-9403, TDD: (819) 994-0423, Fax: (819) 997-4245
e-Mail:
denis.carmel@crtc.gc.ca
Toll-free #
1-877-249-CRTC (2782)
TDD -
Toll-free # 1-877-909-2782
This document is available in alternative format upon request.
Date Modified: 2002-09-19 |
