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RCO





Joined: 02 Mar 2009
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PostPosted: Thu Oct 22, 2009 9:17 am    Post subject: CTV stations face the axe if cable doesn't pay Reply with quote

CTV stations face the axe
Cable firms must fork over cash, TV exec says

By BRETT CLARKSON, SUN MEDIA

Last Updated: 22nd October 2009, 4:43am

Ten local CTV-owned stations in Ontario face closure if cable companies aren't told to start paying to use the signals of the big broadcasters like CTV, Global and CBC, broadcast brass say.

Calling it "the fight of our lives," executives from Canada's three big television networks yesterday told a Sun editorial board meeting that money-losing local stations across the country likely would be closed if the CRTC rules in favour of the cable companies this winter.

"There is an absolute real risk 10 stations in Ontario (could be shut down)," said Paul Sparkes, an executive vice-president at CTVglobemedia.

Of the 11 CTV-owned stations in Ontario, Toronto's CFTO is the only one that makes money, Sparkes said.

He painted a grim picture of the future of local TV in Canada and argued its survival hinges on whether the Canadian Radio-Television and Telecommunications Commission will order firms like Rogers to enter into so-called "negotiation for value" talks with the broadcasters, who want the cable firms to start paying to carry their signals.

"It's a complex industry but it's fairly simple," said Canwest senior vice-president Charlotte Bell. "They take our signals. They resell them to consumers. They make a profit off it and we don't get a cent of that."

The issue has embroiled the two sides in a heated public-relations war, with the cable companies accusing the broadcasters of trying to impose a "TV tax" on consumers.

Currently, Rogers and other cable and satellite firms -- despite a $2-billion profit last year -- pay nothing to carry the signals of conventional, over-the-air broadcasters like CBC, CTV and Global.

The broadcasters say it's time to end the free ride for the cable companies because local stations can't survive solely on advertising revenue anymore.

Cable firms say they shouldn't have to pay because they poured the money into building the cable networks that provide for higher TV ad revenues.

BIGGER BILL

What's at stake for the consumer is obviously a higher cable bill, although it's unclear exactly what price would be downloaded to consumers, if any.

The CRTC will decide on the issue, but final say belongs to Heritage Minister James Moore.

Rogers officials say if cable firms are forced to pay the broadcasters to carry their channels, the fee will be passed on to the consumer.

http://www.torontosun.com/news.....1-sun.html
RCO





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PostPosted: Thu Oct 22, 2009 9:25 am    Post subject: Reply with quote

this obvivously has something to do with those rediclous ads were seeing on tv about this subject , now i don't think ctv is exactly being honest about things as clearly these tv stations have made money in the past and as the economy recovers there likely to see more ads being bought . the ide aof simply closing them all is a little extreme
Hasdrubal





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PostPosted: Thu Oct 22, 2009 11:42 am    Post subject: Reply with quote

Is there any more information on this because the impression I got was that it would shut down all the local stations in favour of Toronto centric culture & news coverage.
cosmostein





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PostPosted: Thu Oct 22, 2009 12:44 pm    Post subject: Reply with quote

Hate to say it,
But I agree with the Pay TV Providers be it Cable or Sat on this issue.

A good portion of a TV stations revenue is based on what they can charge for advertising, which is basically an equation made up of how many people are watching, and what is the demographic of the people watching.

CTV, CBC, Global all broadcast their product for free over air, much like radio does in an attempt to attract the largest number of listeners possible to increase the amount they can charge advertisers.

Cable and Satellite while they do not pay for the signal, they pump it into million of Canadians homes free of charge to the stations thus expanding their audience and base in which an advertiser can reach by paying for ad time on that station.

While the cable company is getting the content for free, they do have an infrastructure they need to maintain.

If anything its a very symbiotic relationship as it is,
and if the Cable company wants to charge me for these local stations because they are being forced to pay CBC, CTV, and Global then I as a consumer want the right to opt out of some of these channels as I can just get them for free over the air.


Last edited by cosmostein on Thu Oct 22, 2009 5:39 pm; edited 1 time in total
gc





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PostPosted: Thu Oct 22, 2009 1:22 pm    Post subject: Reply with quote

I think cable companies should have the choice to pay for these stations if they want to. If the TV stations can't stay in business without being paid by the cable companies, that would provide an incentive for the cable companies to pay them if they want to. If the cable companies don't want these stations, then so be it. In other words, let the free market sort it out.

The only exception would be the CBC because it is publicly funded. There is no point in having a publicly funded station if the public doesn't receive that channel.
Mac





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PostPosted: Thu Oct 22, 2009 5:28 pm    Post subject: Reply with quote

Anytime an industry starts crying for tax bailouts, regardless whether it's auto manufacturers or television stations, they should be told to go pound sand.

-Mac
Craig
Site Admin




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PostPosted: Thu Oct 22, 2009 6:54 pm    Post subject: Reply with quote

gc wrote:
I think cable companies should have the choice to pay for these stations if they want to. If the TV stations can't stay in business without being paid by the cable companies, that would provide an incentive for the cable companies to pay them if they want to. If the cable companies don't want these stations, then so be it. In other words, let the free market sort it out.

The only exception would be the CBC because it is publicly funded. There is no point in having a publicly funded station if the public doesn't receive that channel.


You are sounding more and more conservative everyday. There is hope for you yet!
gc





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PostPosted: Thu Oct 22, 2009 7:12 pm    Post subject: Reply with quote

On somes issues, government spending, free market, and crime I am center-right.
On some issues, especially social issues, I'm about as far left as you can get :lol:
kwlafayette





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PostPosted: Thu Oct 22, 2009 7:27 pm    Post subject: Reply with quote

If some are losing money, and some are making money, isn't there a reason for that, such as bad management or some such? If all TV stations are in trouble, then doesn't that mean that the business is going away or something?

I say, abolish the CRTC, Canadian content rules, abolish cable monopolies, telephone monopolies, let stations air what they will, and attract viewers in whatever manner they wish. Those that fail, good riddance, those that succeed good for them. Legislating winners is just going to end up in inefficient businesses needing further bailouts/legislation to keep them going.

You want great TV? Bring back 'Lexx', and do 'Kung Fu: the Next Generation', and I will watch your station everyday of the week.
kwlafayette





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PostPosted: Thu Oct 22, 2009 7:32 pm    Post subject: Reply with quote

You know, there may be an option for these local stations. There is a copy protection bit defined for digital broadcasts, they could turn that on. I believe it even exists in the analog broadcast standard. Then the cable companies either have to pay up or lose the feed.

Too bad Canada won't be going to digital broadcasts for 300 years.
FF_Canuck





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PostPosted: Thu Oct 22, 2009 9:28 pm    Post subject: Reply with quote

kwlafayette wrote:
If some are losing money, and some are making money, isn't there a reason for that, such as bad management or some such? If all TV stations are in trouble, then doesn't that mean that the business is going away or something?

I say, abolish the CRTC, Canadian content rules, abolish cable monopolies, telephone monopolies, let stations air what they will, and attract viewers in whatever manner they wish. Those that fail, good riddance, those that succeed good for them. Legislating winners is just going to end up in inefficient businesses needing further bailouts/legislation to keep them going.

You want great TV? Bring back 'Lexx', and do 'Kung Fu: the Next Generation', and I will watch your station everyday of the week.

Agreed, 100% ... except for Lexx. Seriously, this whole episode just highlights the absurdity of the CRTCs interference in the telecommunications market.
don muntean





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PostPosted: Fri Oct 23, 2009 1:28 am    Post subject: Reply with quote

i NEVER watch CBC or CTV or Gobhole anymore anyway - they have nothing on there worth viewing anyway it's all crap crap crap - I say if the useless CRTC approves this tax grab then these networks ought to be on the 'pick and pay' list - you want them you pay for them - you don't want them you don't pay for them. I agree with kwlafayette: "abolish the CRTC, Canadian content rules, abolish cable monopolies, telephone monopolies, let stations air what they will, and attract viewers in whatever manner they wish" - that is the solution.

Like most everything here - TV in Canada is a joke!!
cosmostein





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PostPosted: Fri Oct 23, 2009 11:31 am    Post subject: Reply with quote

kwlafayette wrote:

You want great TV? Bring back 'Lexx', and do 'Kung Fu: the Next Generation', and I will watch your station everyday of the week.


Can I get some love for Traders?
machiavelli





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PostPosted: Wed Nov 18, 2009 11:00 am    Post subject: Reply with quote

The far-left plunging Harper government is consistently reminding us pursuant to the taxes they cut, however they never mention that they disingenuously employ their government agencies to increase taxes.

An example of this disingenuous tax increasing behavior was the use of the CRTC last summer to increase our cable tax. My letter from Rogers reads: CRTC “has established a new fund to which cable TV and satellite companies are required to contribute. The Local Programming Improvement Fund will subsidize TV stations….” Any reasonable tax payer recognizes this as a HARPER TAX INCREASE.

Currently the CRTC is going through the motions in order to once again raise our taxes with another HARPER TAX INCREASE.

Canadians want a system where TV consumers can pick and choose all of their stations without any packages.

Its time for all of us to stand up and tell Harper that we, recession survivors do not want another HAPER TAX INCREASE.
Roger Langille





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PostPosted: Wed Nov 18, 2009 12:18 pm    Post subject: Reply with quote

The cable companies are producing record profits year after year the average person is now spending over 100 dollars a month on cable TV plus pay per view, that is nearly a 400 percent increase in Cash flow to the cable companies for providing the same service as before. They have very low operating costs and produce almost no films or show in Canada.
So what happened to the CRTC allowing them to make all these profits in exchange for them producing Films and TV in Canada?
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CTV stations face the axe if cable doesn't pay

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