Speech
Notes for an address
by Andrée Wylie
Vice-Chairperson, Broadcasting
Canadian Radio-television and Telecommunications Commission
to the Western Association of Broadcasters Annual Conference
Kananaskis, Alberta
June 7th, 2003
(CHECK AGAINST DELIVERY)
Introduction
Thank you, Dennis.
Good morning, everyone.
It is a pleasure to join you for breakfast in these glorious
surroundings. I can think of few places in Canada that match the beauty and
serenity of Kananaskis, and I would not be surprised if it were the WAB’s
annual trips here that feed your creativity.
Certainly, this is an inspiring place in which to contemplate the theme
of this year’s conference: Broadcasting – The Next Generation.
The panel that will discuss that topic later this morning is an
impressive one... featuring some of the brightest minds in your industry...
and I am sure that what comes out of that discussion will renew your
creativity and your resolve to participate fully in the next generation of
Canadian broadcasting.
You have asked me to talk to you, on behalf of the Commission, about (1)
how the CRTC views the challenges and opportunities that will face
broadcasters as they consider how to serve their audiences in the future and
(2) what role the CRTC could play in helping you to meet them. Not an easy
subject this early in the morning and in such a majestic setting that calls
for inspired musings, not regulatory ones. But, I know none of you would
have the courage to fall asleep when your regulator speaks.
Goals for the Future
Although the CRTC has to keep an eye on its regulatory objectives, it is
intent on putting in place the regulatory environment that will allow you to
provide the technologies and services that Canadian consumers will want in
the next generation of broadcasting.
Not since the advent of television as a viable commercial medium have
there been as many important choices to make, as many changes to manage, and
so many options to weigh for the future of broadcasting.
Let me address a few of them.
The Commission relies heavily on input from all of its stakeholders...
from informal sessions like this weekend’s to more formal hearings … to hone
its understanding of what is happening “out there” and how best to ensure
that it helps in harnessing changes to the advantage of the Canadian
broadcasting system. That is why I am grateful for your invitation.
Your views and your experience are critical to the Commission.
While we might approach issues from different directions, we share common
goals, including a healthy, profitable, broadcasting industry, able to
deliver high quality, popular Canadian programming that viewers and
listeners want to see and hear.
Television
Last year, at this venue, the Commission’s Chair, Charles Dalfen, told
you how committed he was to the development and support of truly Canadian,
original television programming.
We have since, in conjunction with Telefilm Canada, commissioned a report
from veteran TV executive Trina McQueen to explore how the industry can work
toward putting more Canadian drama on Canadian television.
As you know, Ms. McQueen submitted her report on May 23rd, and I hope
that those of you in television have had a chance to read it.
A number of her recommendations are addressed to the CRTC, and we are
reviewing them with great interest before pondering, with your
participation, any next steps.
Of course, the provision of high quality dramatic programming that
reflects the unique character and voices of Canadians – programming that
tells our stories – is just one challenge facing the Canadian television
industry.
Another is how to keep the balance between local, regional and national
television programming, as new technologies are forcing us to re-examine
that balance and develop new ways of keeping it… in balance.
Today, direct-to-home services beam hundreds of channels down to viewers’
satellite dishes, offering a wide range of programming from local, national
and international sources.
This presents a problem for local broadcasters, particularly in small
market areas. To them, DTH represents out-of-market competition that can
siphon off local viewership and deny them the protection of their
programming rights, their very valuable property in their local markets. We
are currently examining how to alleviate this problem.
Broadcasters are also faced with another concern... and that is the
serious problem of signal theft.
Far from being a “victimless crime”, as some view it, satellite signal
theft – along with the unauthorized use of cable access – has extremely
detrimental effects on the Canadian broadcasting system... depriving
distributors, television broadcasters, producers and program rights holders
of hundreds of millions of dollars in revenues each year.
If left unchecked, this practice will pose a serious threat to the
financial health and future of the Canadian broadcasting system, and in turn
to the achievement of the objectives of the Broadcasting Act. We know how
your industry has recently deployed tremendous energy to stem this illegal
flow of viewing from which you cannot gain your just rewards.
The RCMP has made some significant progress in prosecuting the groups who
import illegal equipment or distribute software that defeats security
systems. There is also an important role that broadcasters can continue to
play, at the community level, by spreading the word about the real cost of
this so-called “free programming”.
Cable and satellite delivery have meant greater choice than ever before
for consumers of specialized programming, but it has also meant that general
interest broadcasters have been forced to compete for shrinking returns,
even from legal viewing.
In large part as a result, local music, variety, drama and sports
coverage have all declined. Only local news and information seem to have
continued to thrive.
But, as has been the case throughout the history of Canadian
broadcasting, broadcasters will find new ways to compete effectively and to
differentiate themselves in their markets. I, for one, cannot believe that
you will not.
And, of course, the regulatory framework must provide optimum flexibility
for broadcasters to use emerging technologies and renewed marketing
strategies.
One example is the Commission’s flexible approach to the potential of
digital television which stands to revolutionize the industry like nothing
since the coming of colour TV in the 1960s.
DTV technology brings with it some challenges... technical challenges...
marketing challenges... financial challenges… and, for the Commission,
regulatory challenges.
To be sure, there are public policy issues to be managed in this
transition. They need to be recognized as such but resolved in a time frame
and manner that are appropriate for us as Canadians.
Therefore, in its published framework for the introduction of
over-the-air DTV, the Commission did not impose a timetable for the
transition from analogue to digital, although it encouraged broadcasters to
move quickly to take advantage of the bandwidth made available.
In its licensing framework, the Commission sought to find an appropriate
balance between easing the transition for broadcasters and consumers, and
providing incentives for early adoption, all the while keeping its eye on
its legislative mandate.
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.
However, we have announced our pre-disposition to licensing new and
innovative multicast services, on a case-by-case basis, over those that
duplicate existing over-the-air, pay or specialty services. We have also
allowed broadcasters to devote to new innovative programming a number of
hours a week broadcast on the DTV duplication of an analog transmitter.
Together, we are all entering a time of significant change in television
broadcasting, and the Commission will be monitoring developments during this
period, and moving to adjust the system, where possible and when needed, and
with your advice and help.
Radio
Needless to say, television is not unique in facing radical technological
evolution and new challenges.
Although the Commission embraced the early licensing of digital audio
broadcasting --DAB-- continues to be in its early stages and the world’s
largest radio market to our south has yet to settle on its future course,
probably slowing the penetration of DAB in Canada.
That said, the Commission remains hopeful that Canadians will eventually
turn to the digital radio transmissions already available in most large
Canadian cities.
The Commission has also recently granted a licence for Canada’s first
standalone digital radio station to serve the South Asian community in
Toronto.
In granting this licence in March, the Commission noted the financial
risks associated with being a digital pioneer, but it was satisfied that the
applicant was willing and able to assume those risks in the market
concerned.
Again, this reflects the Commission’s overarching belief that the
marketplace must determine the pace of technological evolution, matched by
the desire of entrepreneurs to serve that marketplace with a business case
that makes sense for them.
Here in the West, and particularly for broadcasters who may serve large
rural areas, the business case may be different.
What we know is that radio continues to be a vital link that binds
Canadians together – both within their immediate community and across the
breadth of the entire country.
Not surprisingly, both on a local and regional basis, commercial radio is
doing very well.
As the Commission stated in March, when it released the five-year
financials of the industry, there has been a steady increase in both
revenues and spending for Canadian radio stations since 1998.
Here in the West, the picture is particularly rosy, with new stations in
Manitoba and Saskatchewan and applications pending for Edmonton and Red
Deer.
The 15 new stations we have licensed across the country in the past year
represent quite a diversity, from CanWest Global’s first venture into the
market with their all-jazz station in their home base of Winnipeg, to
stations that are serving the needs of ethnic communities.
Far beyond its own success, radio in Canada also has cause to celebrate
the significant role it has played in helping this country become the second
largest exporter of musical talent in the world.
From Céline Dion to Avril Lavigne, from Bryan Adams to Nickelback...
Canada has taken on the world and established itself as a musical force to
be reckoned with, helped in no small part by radio and, at the risk of being
denied a second cup of coffee, in no small measure by the Commission’s
CanCon requirements.
Combined with the commitment that Canada’s private radio broadcasters
have made, CanCon has worked to seed a fertile talent pool and provide a
strong domestic market for new talent and established stars.
As I am sure you are aware, the Commission will begin reviewing its
Commercial Radio Policy later this year, and while it's too early for me to
provide details, it is safe to assume that issues such as CanCon and
ownership structure will be included in this review.
The CRTC Chair is also on record as saying recently that it would be
worthwhile to look at the role of the so-called “independent” radio
operations in the system. Together, these independents hold 54% of Canada’s
radio licences, while six broadcasters hold the rest.
What has been the impact of greater consolidation in that context?
If radio broadcasters centralize some of their operations, do local
listeners lose, or does this allow for higher quality service in smaller
communities?
What is the role of the independents in the Canadian broadcasting
system... now and in the future?
Given the importance we attach to reflecting local communities, these
questions might well play an important part in the forthcoming review.
The Senator
On the topic of independent broadcasters and the importance of reflecting
local markets, I am honoured to have the opportunity to recognize the
contribution of one of the WAB’s senior radio members.
They call Elmer Hildebrandt “The Senator”, but it’s as an ambassador for
Canada’s strong, independent, community-based radio sector that Elmer has
made his mark. He is not ready for the Senate yet. We need his continued
participation in the radio industry.
Wisely, the WAB chose to recognize Elmer twice as Broadcaster of the
Year, and name him Broadcaster of the Decade in 1994. Elmer has also won
well-deserved accolades from the national broadcasting community, winning
the CAB’s Gold Ribbon in 1991 and being inducted into the CAB Broadcast Hall
of Fame in 1996.
Tellingly, The Senator is one of those selected to debate the future of
Canadian broadcasting at your session later this morning.
Given his mastery of the business – from copywriter at Altona’s CFAM to
President and CEO of Golden West Broadcasting – and his devotion to the
local audience, you would be hard-pressed to find wiser counsel.
Elmer is also well known for asking pointed questions at the end of
speeches by Commission representatives, so let me say a few words in
conclusion before Elmer raises his hand.
Conclusion
One thing Elmer’s 45 years of success in this business shows us is the
importance of keeping sight of the past as we move into the future.
It is indeed essential to remember, as you examine ways of adopting new
technologies, finding new methods of reaching audiences and remaining
viable, that maintaining the link with your viewers and listeners has been a
key ingredient of your success.
For its part, the CRTC is committed to establishing a framework that will
enable Canada’s broadcasters to face the challenges of the next generation
of broadcasting in a way that meets their needs and the needs of their
audiences.
By working together, we can improve the odds so that everyone wins...
your industry, artists and producers, your audiences, and Canadian culture
writ large… not only Elmer.
Thank you.
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This document is available in alternative format upon request.
Date Modified: 2003-09-02 |
