Update (Apr 11). In citing Michael Geist’s post below, I neglected to point out the suggestion he makes to replace must-carry in the service of viewer interests. A must-offer policy would require “broadcast distributors to offer all licensed channels to their subscribers in a pick-and-pay format.” That idea seems sensible, although it’s difficult to see how it could be implemented across the board without a) confronting capacity and delivery issues, especially for smaller BDUs; and b) having the Commission set demand thresholds for very marginal broadcast services. What happens if 50 people request a service on a system with 5,000 subscribers? Whatever the merits, the big distributors are not exactly enthusiastic about pick-and-pay, if only because of the money they would have to leave on the table. But these are all yesterday’s battles and they demonstrate clearly what’s wrong with Canada’s broadcasting system: it’s 20 years out of date, based on outmoded assumptions about infrastructure scarcity, the need to “protect” our sovereignty and the passive role of the TV audience. If only we had a technology that offered a more economic, personal and interactive way to communicate. Wait. We do. It’s called the Internet.
In my previous post, I concentrated on channel-bundling in the US and how the market has been reacting to the pros and cons. Today I want to talk about the CRTC’s must-carry proceeding, an event that has triggered a lot of debate (see Broadcasting Notice of Consultation CRTC 2013-19).
Right after it was announced in January, Michael Geist tore into the CRTC, referring to the announcement as bad news for Canadians frustrated by ever-increasing cable and satellite bills (CRTC Should Put Consumers First and Drop ‘Must Carry’ Requirements):
Rather than convincing millions of Canadian consumers that their services are worth buying, the broadcasters need only convince a handful of CRTC commissioners that their service meets criteria such as making “an exceptional contribution to Canadian expression.” That is supposedly a high bar, yet it is surely far easier than convincing millions of people to pay for your service each month. Continue reading