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CAB calls for a continued support for specialty services at CRTC specialty services licence renewals

Ottawa, Ontario, May 30, 2003 --- Appearing before the CRTC today on the renewal of 22 specialty television services, the Canadian Association of Broadcasters (CAB) provided an industry perspective on the realities that the “class of ‘96” will face over the course of the next seven-year licence term. The CAB called on the Commission to maintain key policies that have provided the specialty services with the means to succeed in a changing environment.

Notwithstanding the various challenges that they face, these specialty services introduced in 1996, have provided thousands of new hours of diverse Canadian programming, have attracted Canadian audiences and have contributed to over half a billion dollars to Canadian programming during their first licence term. Specialty services have also been a major engine for providing culturally diverse programming and have been proactive in making programming accessible to all Canadians, which is further evidenced by their significant contributions to fund the activities of the CAB’s Task Force for Cultural Diversity on Television.

In his presentation to the Commission, CAB President and CEO, Glenn O’Farrell was joined by Luc Perreault, Vice-Chair of the CAB’s Specialty and Pay Board; and Wayne Charman, CAB’s Senior Vice-President, Television, Specialty and Pay Services and New Technologies.

“These are fantastic services, owned and operated by programmers who both challenge and reward their audiences with a unprecedented array of Canadian programming, alongside the best the world has to offer,” said Glenn O’Farrell. “As we look ahead to the environment in which these services will be operating over the next seven years, we see many uncertainties. Failure to consider these uncertainties when setting terms and conditions of renewal could call into question the ability of the 22 specialty services to sustain business plans consistent with the level of contributions they are currently making to the Canadian broadcasting system.”

During the first licence term, the 22 specialty services have faced many challenges, including a staggered launch over a 3-year period with varying penetration levels being achieved. A number of services are still not in a profitable situation.

There are a number of new challenges facing specialty services including fragmentation of existing revenue sources, the continuing erosion of shared audience base to domestic and international signal theft, and the consolidation of the distribution sector.

Speaking to the serious issue of signal theft Luc Perreault said that, “the consequences of signal theft are very clear. It could mean the death by a thousand cuts to the ability of specialty services to meet their commitments, not to mention the very regulatory framework on which the entire broadcasting system depends.”

In his conclusion, O’Farrell reminded the Commission that, “the extent to which we can expect continued success for the 22 specialty services being reviewed at this hearing will depend on their ability to remain attractive to Canadian viewers. What is needed from the Commission is a regulatory approach that minimizes uncertainties and provides specialty services with the means to continually exceed the expectations of viewers who have come to expect the best.”

The Canadian Association of Broadcasters (CAB) is the national voice of Canada’s private broadcasters, representing the vast majority of Canadian programming services, including private radio and television stations, networks, specialty, pay and pay-per-view services.

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