Try Something New: HDTV to CRTC

[cablewithaview]

Canada's broadcast industry regulator should try something completely unprecedented, said Canada's high definition independent broadcaster.

In written and oral remarks made at public hearings conducted by the Canadian Radio-Television and Telecommunications Commission (CRTC), John Panikkar, co-founder and partner of High Fidelity HDTV, said "The CRTC should get out of the business of licensing new entrants who are Canadian and independent and who broadcast in HD 100% of the time."

The CRTC has stated publicly that it believes its rules should be simpler, more market and consumer focussed and more streamlined. High Fidelity HDTV is saying the CRTC should take that even further, to the point where qualified new entrant broadcasters should be exempt from licensing requirements provided they meet four key criteria.

"New entrants should be Canadian-owned and controlled; new entrants must not be effectively controlled by a big cable or satellite company or a big broadcaster; new entrants must be all-HD on a 24/7 basis; and new entrants must agree to spend not less than 20% of their previous year's revenue on Canadian programming", said High Fidelity HDTV in its remarks to the CRTC.

High Fidelity HDTV operates four all-HD channels: Oasis HD, Equator HD, Treasure HD and Rush HD. While all four channels are carried nationally by Bell ExpressVu, as well as a growing number of other carriers such as SaskTel and members of the Canadian Cable Systems Alliance, High Fidelity HDTV is not yet carried on some major carriers such as Shaw and Cogeco.

"One of the reasons we are not yet carried by the remaining major carriers is that the current rules make it far too easy for them to launch low-cost, high-margin U.S. services that are being dumped into Canada at the expense of Canadian specialty services that are making significant contributions to the Canadian broadcasting system", said Panikkar.

"We think that ought to change – and the best way to change it would be to allow us and other qualified new entrant broadcasters to compete fairly via far less stringent rules. The CRTC's current rules are holding back Canadian broadcast innovators like High Fidelity HDTV", he added.

"We are virtually alone among all of the broadcasters at these hearings because we are not looking for handouts or the protection of the CRTC", said Mr. Panikkar. "We simply want the CRTC to level the playing field so that we can compete fairly against foreigners in our own country".

Another solution advocated by High Fidelity HDTV is for the CRTC to impose an immediate moratorium on the approval and launch of any new foreign satellite services in Canada.

"We think the CRTC needs to know more about the impact of foreign satellite services before any more are allowed to operate in Canada", said Panikkar.

It has been estimated that foreign satellite services such as A&E, TLC, Spike and others pull 250 million dollars annually out of the pockets of Canadians by way of subscription fees. However, such services are not required to adhere to any of the obligations or restrictions which Canadian specialty services must follow.
"Does anyone in this room seriously believe that anybody at The Nashville Network worried for one second about what the CRTC would think or do when The Nashville Network morphed into Spike?" Panikkar asked the CRTC yesterday.

High Fidelity HDTV also told the CRTC that foreign satellite services "demand and receive preferential carriage" from certain Canadian carriers, and that this "creates an anti-competitive playing field and eliminates access and attractive shelf-space for premium Canadian services like ours."

The hearings conclude today. The results of the hearings, and any rule changes, are not expected to be made known by the CRTC until later this year.


mediacastermagazine.com - Mediacaster - 4/25/2008