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Telus proposal a ‘win-win’ for distributors and broadcasters
November 25, 2009
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 Canadaâs ailing broadcast system without charging consumers a cent.
Calling the proposal a âwin-winâ for both cable and satellite distributors such as Telus and the countryâs conventional broadcasters such as the Global network and CTV Inc., Michael Hennessy, Telusâs 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 companyâs 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 âto support Canadian programming.â The remaining portion would be kept by the cable or satellite distributor.
Telusâs 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 countryâs 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 âTV tax.â
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
Posted in: Headline, Industry News