Public Broadcasting inPublic Broadcasting inCanada and BeyondCanada and Beyond

-Week 15--Week 15-

By: Elias and NicoleBy: Elias and Nicole

IntroductionIntroduction• 70 % of all English-language viewing (90% of prime time) 70 % of all English-language viewing (90% of prime time)

is devoted to American programmingis devoted to American programming• Highly bureaucratic- extensive government regulations, Highly bureaucratic- extensive government regulations,

funding and pressures.funding and pressures.• Little research and studies of Canadian televisionLittle research and studies of Canadian television

Cultural Nationalist PerspectiveCultural Nationalist Perspective• Strengthen and protect Canadian televisionStrengthen and protect Canadian television

– Creating a public broadcaster (CBC)Creating a public broadcaster (CBC)– Developing funds to be dispersed as grants, subsidies Developing funds to be dispersed as grants, subsidies

and tax exemptionsand tax exemptions– Canadian content regulationsCanadian content regulations– Promote activist groups to lobby for Canadian Promote activist groups to lobby for Canadian

programmingprogramming– Create strong regulations which limited competition, Create strong regulations which limited competition,

and forbade foreign ownershipand forbade foreign ownership• These principles are included in the Broadcasting ActThese principles are included in the Broadcasting Act• Interpreted and enforced by the CRTCInterpreted and enforced by the CRTC

Free Market or Non Liberal Free Market or Non Liberal PerspectivePerspective

• Should not place television programming at the heart of Should not place television programming at the heart of what is culturewhat is culture– Deregulate broadcasting and allow foreign ownershipDeregulate broadcasting and allow foreign ownership– No content regulationsNo content regulations– Encourage market or audience driven private sector Encourage market or audience driven private sector

productionproduction– Open airwaves and allow competitionOpen airwaves and allow competition

History of Canadian TelevisionHistory of Canadian Television• September 6, 1952, CBMT first went on the air with both September 6, 1952, CBMT first went on the air with both

English and French programming in MontrealEnglish and French programming in Montreal• From the beginning Canadian viewers chose American From the beginning Canadian viewers chose American

programmingprogramming• Led to a study done by the Massey CommissionLed to a study done by the Massey Commission• This became Canada’s official television policyThis became Canada’s official television policy• ““a valuable instrument of national unity, of education and a valuable instrument of national unity, of education and

of entertainment”of entertainment”

The CBC RuleThe CBC Rule1952-19601952-1960

• Exclusive authority to CBC Exclusive authority to CBC • Expertise in news, documentaries, public affairs, sports, Expertise in news, documentaries, public affairs, sports,

and children’s programmingand children’s programming• Network style: clear, educated, informative, emphasis on Network style: clear, educated, informative, emphasis on

documentarydocumentary• Regulatory privileges withdrawn by Diefenbaker Regulatory privileges withdrawn by Diefenbaker • Power given to Board of Broadcaster Governors (BBG)Power given to Board of Broadcaster Governors (BBG)

CRTCCRTC1961-19681961-1968

• Private broadcasters like CTV appear under BBG rulePrivate broadcasters like CTV appear under BBG rule• BBG replaced by CRTC (Canadian Radio-Television BBG replaced by CRTC (Canadian Radio-Television

Commission in 1968)Commission in 1968)– Canadian content regulationsCanadian content regulations– Framework for both cable and satellite Framework for both cable and satellite – Simultaneous substitution rule Simultaneous substitution rule

Consolidation Consolidation 1968-19831968-1983

• Renamed Canadian Radio-Television and Renamed Canadian Radio-Television and Telecommunications CommissionTelecommunications Commission

• Channel expansionChannel expansion• Licensed specialty Canadian channels to mimic Licensed specialty Canadian channels to mimic

American counterpartsAmerican counterparts

Beginnings of Independent Beginnings of Independent Production 1983-1993Production 1983-1993

• Telefilm- funds film and television works of independent Telefilm- funds film and television works of independent producersproducers

• CBC evolved from in-house producing to purchasing CBC evolved from in-house producing to purchasing independent productions independent productions

• Point system Point system

Digital TechnologyDigital Technology 1993-2001 1993-2001

• Direct Broadcast Satellites Direct Broadcast Satellites • Grey marketGrey market• 1997- Bell ExpressVu and StarChoice1997- Bell ExpressVu and StarChoice

ConvergenceConvergence• Convergence Report- allowing content carriers to acquire Convergence Report- allowing content carriers to acquire

financial interest in content production financial interest in content production • Mergers and the beginnings of conglomeratesMergers and the beginnings of conglomerates• Reach diverse audienceReach diverse audience• Block new entrantsBlock new entrants

FragmentationFragmentation• Speicialty channelsSpeicialty channels• Personalization of television (PVRs, timeshifts, program Personalization of television (PVRs, timeshifts, program

guides)guides)

New Television Disposition New Television Disposition • HDTVHDTV• Alt Cam, PlayerCam, Second Look featuresAlt Cam, PlayerCam, Second Look features• TiVo and PVRs, VODTiVo and PVRs, VOD

Policy- GoalsPolicy- Goals• Balance economics with social, political and cultural Balance economics with social, political and cultural

issues issues • Cultural sovereignty Cultural sovereignty • Public input (lobbyist organizations preferred)Public input (lobbyist organizations preferred)

Telecommunications PolicyTelecommunications Policy• Data, wireless and satellite telecommunicationsData, wireless and satellite telecommunications• ““Emission, transmission or reception of intelligence by Emission, transmission or reception of intelligence by

any wire, cable, optical or other electromagnetic system, any wire, cable, optical or other electromagnetic system, or by any similar technical system (s 2.1)or by any similar technical system (s 2.1)

• Reliable and affordable servicesReliable and affordable services• Common carriers and contract carriersCommon carriers and contract carriers• INTELSTAT- satellite communicationsINTELSTAT- satellite communications• Telesat Communications ActTelesat Communications Act

Broadcasting PolicyBroadcasting Policy• Includes radio and television (cable, pay, specialty and Includes radio and television (cable, pay, specialty and

satellite)satellite)• Vital for cultural sovereignty as well as industryVital for cultural sovereignty as well as industry• Public, private and community broadcastingPublic, private and community broadcasting• TechnologyTechnology• Content Content • AccessAccess

Other Various Communications Other Various Communications LegislationLegislation

• Canadian Charter of Rights and Freedoms Canadian Charter of Rights and Freedoms • Access-to-information legislation Access-to-information legislation • Privacy protecting legislation Privacy protecting legislation • Limits on free speech Limits on free speech • Censorship of obscene or offensive material Censorship of obscene or offensive material • Copyright and patent protection Copyright and patent protection • Public access of company information Public access of company information • Employment legislation Employment legislation • Consumer protection Consumer protection • Contract law and Company lawContract law and Company law

Welcome to the CRTCWelcome to the CRTC• Who is the CRTC?Who is the CRTC?

– Federal Communications Commission (FCC); USAFederal Communications Commission (FCC); USA– Responsibility and FunctionResponsibility and Function– Level of government involvedLevel of government involved

• Other role-players at workOther role-players at work– Informal social pressuresInformal social pressures– Censorship boardsCensorship boards– LawsLaws– StructuresStructures– Public ownershipPublic ownership

• Then: Canadian broadcasting in the hands of the publicThen: Canadian broadcasting in the hands of the public• Now: CBC Now: CBC Corporations / CRTC Corporations / CRTC Regulation Regulation

– CRTC cannot tell what broadcasters can/cannot broadcastCRTC cannot tell what broadcasters can/cannot broadcast– 1991 1991 Broadcasting Act; Bill C-40Broadcasting Act; Bill C-40

The Regulatory EnvironmentThe Regulatory Environment• Canada VS USACanada VS USA

– Geographical, Economical, DemographicalGeographical, Economical, Demographical– Population VS CostsPopulation VS Costs

• ViewersViewers

• DistributionDistribution

• AdvertisersAdvertisers

– program availability; construction of tastesprogram availability; construction of tastes

• The above are key defining features for the formation of The above are key defining features for the formation of the CRTC.the CRTC.

Role of the CRTCRole of the CRTC• Broadcasting ActBroadcasting Act

– CRTC to regulate all aspects of the Canadian systemCRTC to regulate all aspects of the Canadian system– CRTC to exercise the broadcasting policyCRTC to exercise the broadcasting policy– Development of Canadian programmingDevelopment of Canadian programming

• Maintain values, beliefs, crafts, culture, ideas, duality, aboriginalsMaintain values, beliefs, crafts, culture, ideas, duality, aboriginals

• These values must be upheldThese values must be upheld• Large amount of power in respects to radio and televisionLarge amount of power in respects to radio and television

– Encouraged to enforce due to absence of a gov’t policyEncouraged to enforce due to absence of a gov’t policy– ““filling the void”filling the void”

Structure of the CRTCStructure of the CRTC• 13 full-time and 6 part-time commissioners13 full-time and 6 part-time commissioners

– Geographic decentralizationGeographic decentralization• Part-time commissioners located in different parts of CanadaPart-time commissioners located in different parts of Canada

• Full-time commissioners must reside wherever there is a CRTC officeFull-time commissioners must reside wherever there is a CRTC office– Used to reside in OttawaUsed to reside in Ottawa– Critics – “meetings would be difficult”Critics – “meetings would be difficult”

• Government & Parliament go-ahead with decentralization Government & Parliament go-ahead with decentralization of the CRTCof the CRTC– Teleconferencing, electronic aidsTeleconferencing, electronic aids

Modus OperandiModus Operandi• Work of the CRTC falls into 4 categoriesWork of the CRTC falls into 4 categories

1.1. The development of policiesThe development of policies

2.2. The making of regulationsThe making of regulations

3.3. The issuing of licensesThe issuing of licenses

4.4. The exercising of powers of suasionThe exercising of powers of suasion

• Public consultationPublic consultation– Widely-available Policy PaperWidely-available Policy Paper– WitnessesWitnesses– LicensingLicensing

• Mandatory in order to broadcastMandatory in order to broadcast

• The airwaves and youThe airwaves and you

• Penalty for breaching a “condition of license”Penalty for breaching a “condition of license”

– Diagram~!Diagram~!

Acquiring a Broadcasting LicenseAcquiring a Broadcasting License

Companies/Individuals

License Application Submission

To Public Hearing

Submissions made accessible to all

competing applicants and the public.

PUBLICPUBLIC

PANEL

Hearing takes place with panel of commissioners.

PANEL

Licensing decisions and conditions made.

Review

Court

Federal Cabinet

In the Event of an Appeal

Revising the SystemRevising the System• The Broadcasting Act and adapting to technologyThe Broadcasting Act and adapting to technology

– Satellites; “Death Stars”Satellites; “Death Stars”– Digital Video Compression (DVC)Digital Video Compression (DVC)– The “black-box”The “black-box”– Increased servicesIncreased services– BillingBilling– Satellite-to-Home Delivery VS CableSatellite-to-Home Delivery VS Cable

• ““Structural Hearing”, September 1992Structural Hearing”, September 1992– Due to new tech:Due to new tech:

• Regulation to be minimizedRegulation to be minimized

• Viewers to have a greater choiceViewers to have a greater choice

• Will take time to develop these techsWill take time to develop these techs

• Telephone and Cable companies should cooperateTelephone and Cable companies should cooperate

Structure ChangeStructure Change• Three decisions that affected the structure of Canada’s Three decisions that affected the structure of Canada’s

broadcasting system:broadcasting system:1.1. The upgrading of hardwareThe upgrading of hardware

• To permit interactive use of cableTo permit interactive use of cable

2.2. Cable companies to contribute to a production fundCable companies to contribute to a production fund• $300 million over five years$300 million over five years

3.3. New range of Canadian specialty servicesNew range of Canadian specialty services• Pay-TV, Pay-Per-ViewPay-TV, Pay-Per-View

• Increased flexibilityIncreased flexibility• Less regulationLess regulation• Strengthen Canadian presenceStrengthen Canadian presence

Religious BroadcastingReligious Broadcasting• October 1992; commission hearing to review policiesOctober 1992; commission hearing to review policies

– A result of many available channels, agitations by some religious A result of many available channels, agitations by some religious groups, and the importing of unauthorized American programsgroups, and the importing of unauthorized American programs

• Solution?Solution?• CRTC agreed to allow religious servicesCRTC agreed to allow religious services

– Single / Point-of-view religious programs (Single / Point-of-view religious programs (limitedlimited))• Only on cableOnly on cable

• Must be mixed with other Canadian religious servicesMust be mixed with other Canadian religious services

– Single / Point-of-view religious programs (Single / Point-of-view religious programs (entiretyentirety))• Available to those who subscribe to itAvailable to those who subscribe to it

• Does not apply to the “balance rule”Does not apply to the “balance rule”

“Removing the requirement for balance in discretionary religious broadcasting will promote religious, cultural, and racial intolerance in

Canada and will lead to a weakening of the cultural, political, social, and economic fabric of Canada.”

Controversies about RegulationControversies about Regulation• The same conditions present for print media should be The same conditions present for print media should be

applied to the electronic sectorapplied to the electronic sector– There should be minimal gov’t intervention.There should be minimal gov’t intervention.– Sure, gov’t can allocate radio frequencies, but that’s it.Sure, gov’t can allocate radio frequencies, but that’s it.

• WRONG! This is impractical.WRONG! This is impractical.• Three major flaws in this train of thought:Three major flaws in this train of thought:

1.1. Economic structure of publishingEconomic structure of publishing• interests: owners & advertisersinterests: owners & advertisers

2.2. ExpenseExpense• printed material VS electronic materialprinted material VS electronic material

3.3. State intervention.State intervention.• Canada needs Canadian shows, right?Canada needs Canadian shows, right?

Controversies about RegulationControversies about Regulation• Canadian Association of Broadcasters (CAB) and Canadian Association of Broadcasters (CAB) and

Canadian Cable Television Association (CCTA)Canadian Cable Television Association (CCTA)– Complain of the CRTC’s regulatory intrusion into their businessComplain of the CRTC’s regulatory intrusion into their business– Yet they seem to enjoy the predictability resulting from regulationYet they seem to enjoy the predictability resulting from regulation– Fact is, both the CAB and CCTA have done very well for Fact is, both the CAB and CCTA have done very well for

themselves financially while regulated by the CRTCthemselves financially while regulated by the CRTC– Perhaps they want a cookiePerhaps they want a cookie

Controversies of the CRTCControversies of the CRTC• The CRTC as an “independent” regulatory agencyThe CRTC as an “independent” regulatory agency

– Then:Then: independent; appointments; gov’t “severely limited” independent; appointments; gov’t “severely limited”– Now:Now: Broadcasting Act; “arm’s length”; gov’t on top of everything Broadcasting Act; “arm’s length”; gov’t on top of everything

except licensingexcept licensing

• Cannot be truly “independent”Cannot be truly “independent”– Temptation to favor friendsTemptation to favor friends– Broadcasting a very complicated & technical trade (need people)Broadcasting a very complicated & technical trade (need people)– Infrastructure development (easier in numbers)Infrastructure development (easier in numbers)– Politicians, and what they do bestPoliticians, and what they do best

• CRTC and government predispositionsCRTC and government predispositions• Gov’t decides which appeals move from Cabinet back to Gov’t decides which appeals move from Cabinet back to

the Commission (a good thing for the CRTC; like a filter)the Commission (a good thing for the CRTC; like a filter)– 1993: 4,500 decisions made by CRTC1993: 4,500 decisions made by CRTC

• 6 were appealed6 were appealed

• 2 referred back to commission2 referred back to commission

Controversies of the CRTCControversies of the CRTC• Cable-rate regulation of 1986Cable-rate regulation of 1986

– Change from regulatory to supervisoryChange from regulatory to supervisory– Broadcasters, do your thing.Broadcasters, do your thing.– Returned to it in 4 yearsReturned to it in 4 years– Protection neededProtection needed

• Violation of the terms of a licensing agreementViolation of the terms of a licensing agreement

• Herschel HardinHerschel Hardin– Airwaves are public propertyAirwaves are public property

• So why should someone “own” a frequency?So why should someone “own” a frequency?

• Competitive bidding on licenseCompetitive bidding on license

– Canada: license renewals every 5-7 yearsCanada: license renewals every 5-7 years– UK: license renewals at a longer time, but are auctioned-offUK: license renewals at a longer time, but are auctioned-off

• CRTC: “A more lenient style of regulation produces CRTC: “A more lenient style of regulation produces better results in the long run.”better results in the long run.”

Controversies of the CRTCControversies of the CRTC• CRTC VS CBC and private broadcastersCRTC VS CBC and private broadcasters

– occasionally “ignoring” each other, like childrenoccasionally “ignoring” each other, like children

• Reduction in effectiveness and authorityReduction in effectiveness and authority• Private broadcasters in constant battle against CRTCPrivate broadcasters in constant battle against CRTC

– Entertainment industryEntertainment industry

• Required dedication to domestic materialRequired dedication to domestic material– As of 1995:As of 1995:

• 50% overall50% overall

• 60% in evening hours60% in evening hours

– Programs added VS Quality of contentPrograms added VS Quality of content

CRTC and the InternetCRTC and the Internet• Internet cannot be regulatedInternet cannot be regulated• Other than obvious factors:Other than obvious factors:

– Alphanumeric text is not considered under the Alphanumeric text is not considered under the Broadcasting ActBroadcasting Act– Transmissions can be modified to user’s likings; not broadcastingTransmissions can be modified to user’s likings; not broadcasting

• So what’s the big deal?So what’s the big deal?

“The infinitely elastic Internet may well herald the demise of the federal regulator (CRTC) as far as broadcasting is concerned…Some

radio stations are already transmitting over the Web…