Apr 12, 2021
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Telus proposal a ‘win-win’ for distributors and broadcasters

TORONTO – Telus Corp. brought a fresh idea to an old and contentious debate Tuesday that the telecommunications giant says will open up tens of millions of dollars to assist Canada’s ailing broadcast system without charging consumers a cent.

Calling the proposal a “win-win” for both cable and satellite distributors such as Telus and the country’s conventional broadcasters such as the Global network and CTV Inc., Michael Hennessy, Telus’s executive vice-president of regulatory affairs, suggested that air-time currently used on U.S. channels carried by Canadian cable firms allotted for their own promotion be opened up to advertising.

Current regulations for channels such as A&E and CNN dictate that two minutes of every hour be used to promote a cable company’s services and Canadian broadcasting in general.

Telus suggested to the Canadian Radio-television and Telecommunications Commission as much as $70-million could be generated annually if ads could take the place of the promotions.

Mr. Hennessy said in an interview that the proposal, which was developed by Media-de-Novo Inc., a Canadian consultant, would send 70% of the ad revenues raised “to support Canadian programming.” The remaining portion would be kept by the cable or satellite distributor.

Telus’s appearance before the CRTC in Gatineau, Que. comes in the middle of a two-week marathon of hearings convened to once again craft a compensation plan between the country’s TV distribution firms and the conventional networks. The networks provide over-the-air signals to the distributors at no charge now, but have hemorrhaged money in recent years as audiences have fled for specialty channels and to a lesser degree, online in search of content.

The deteriorating situation has erupted in recent months into an acrimonious battle between the cable and satellite firms and the broadcasters, with the latter side imploring the CRTC to channel cable profits back into broadcasting and the latter charging that it would amount to a damaging “TV tax.”

The CRTC concludes the hearings on Friday. A public hearing with consumers is slated for Dec. 7, after which the government is expected to make a final determination.

Source: Financial Post

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Headline, Industry News

Telus proposal a ‘win-win’ for distributors and broadcasters

TORONTO – Telus Corp. brought a fresh idea to an old and contentious debate Tuesday that the telecommunications giant says will open up tens of millions of dollars to assist Canada’s ailing broadcast system without charging consumers a cent.

Calling the proposal a “win-win” for both cable and satellite distributors such as Telus and the country’s conventional broadcasters such as the Global network and CTV Inc., Michael Hennessy, Telus’s executive vice-president of regulatory affairs, suggested that air-time currently used on U.S. channels carried by Canadian cable firms allotted for their own promotion be opened up to advertising.

Current regulations for channels such as A&E and CNN dictate that two minutes of every hour be used to promote a cable company’s services and Canadian broadcasting in general.

Telus suggested to the Canadian Radio-television and Telecommunications Commission as much as $70-million could be generated annually if ads could take the place of the promotions.

Mr. Hennessy said in an interview that the proposal, which was developed by Media-de-Novo Inc., a Canadian consultant, would send 70% of the ad revenues raised “to support Canadian programming.” The remaining portion would be kept by the cable or satellite distributor.

Telus’s appearance before the CRTC in Gatineau, Que. comes in the middle of a two-week marathon of hearings convened to once again craft a compensation plan between the country’s TV distribution firms and the conventional networks. The networks provide over-the-air signals to the distributors at no charge now, but have hemorrhaged money in recent years as audiences have fled for specialty channels and to a lesser degree, online in search of content.

The deteriorating situation has erupted in recent months into an acrimonious battle between the cable and satellite firms and the broadcasters, with the latter side imploring the CRTC to channel cable profits back into broadcasting and the latter charging that it would amount to a damaging “TV tax.”

The CRTC concludes the hearings on Friday. A public hearing with consumers is slated for Dec. 7, after which the government is expected to make a final determination.

Source: Financial Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Headline, Industry News

Telus proposal a ‘win-win’ for distributors and broadcasters

TORONTO – Telus Corp. brought a fresh idea to an old and contentious debate Tuesday that the telecommunications giant says will open up tens of millions of dollars to assist Canada’s ailing broadcast system without charging consumers a cent.

Calling the proposal a “win-win” for both cable and satellite distributors such as Telus and the country’s conventional broadcasters such as the Global network and CTV Inc., Michael Hennessy, Telus’s executive vice-president of regulatory affairs, suggested that air-time currently used on U.S. channels carried by Canadian cable firms allotted for their own promotion be opened up to advertising.

Current regulations for channels such as A&E and CNN dictate that two minutes of every hour be used to promote a cable company’s services and Canadian broadcasting in general.

Telus suggested to the Canadian Radio-television and Telecommunications Commission as much as $70-million could be generated annually if ads could take the place of the promotions.

Mr. Hennessy said in an interview that the proposal, which was developed by Media-de-Novo Inc., a Canadian consultant, would send 70% of the ad revenues raised “to support Canadian programming.” The remaining portion would be kept by the cable or satellite distributor.

Telus’s appearance before the CRTC in Gatineau, Que. comes in the middle of a two-week marathon of hearings convened to once again craft a compensation plan between the country’s TV distribution firms and the conventional networks. The networks provide over-the-air signals to the distributors at no charge now, but have hemorrhaged money in recent years as audiences have fled for specialty channels and to a lesser degree, online in search of content.

The deteriorating situation has erupted in recent months into an acrimonious battle between the cable and satellite firms and the broadcasters, with the latter side imploring the CRTC to channel cable profits back into broadcasting and the latter charging that it would amount to a damaging “TV tax.”

The CRTC concludes the hearings on Friday. A public hearing with consumers is slated for Dec. 7, after which the government is expected to make a final determination.

Source: Financial Post

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Your email address will not be published. Required fields are marked *

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