Meanwhile, we must recognize that not all programming that is appealing to Canadians will be financially viable. CBC will continue to need a stable funding base to fulfil the goals we've set for it in this regard.
The CBC should also have some freedom to evolve. We think the CBC, with its web-based services, satellite radio, and other specialty services, is taking the necessary steps to remain relevant in the new media landscape that we have described. The single most immediate technological change the CBC faces is the transition to HDTV production and transmission. There is no incremental revenue for HDTV at the moment, as it does not generate additional advertising or subscription revenues; however, all broadcasters, including the CBC, must make the transition to HDTV. This transition is well under way in the U.S.—it is less than two years away there—and we must make this important change if we expect to retain our Canadian audiences.
Corus believes that the CBC's hybrid model is the right one. It contemplates digital over-the-air broadcasting in urban areas and reliance upon Canadian distribution undertakings for other markets. This is a practical and financially viable plan that will meet the needs of Canadians.
With unrestricted access to content from all parts of the globe, the key differentiator will be the local programming made available to Canadian audiences. Corus, as an affiliate of the CBC in three small eastern Ontario markets, fully understands the importance of local reflection. This content will be a key element in ensuring the success of our local stations and the CBC as a network. Local affiliates play a meaningful role in the provision of local news and information to viewers. They also actively participate and support various community-based charities and initiatives. They are the place that citizens turn to in both good and bad times. Local broadcasters are at the core of community life. Any new policy must recognize this reality.
In conclusion, the future will be vastly different from the control and regulation we've experienced over the last several decades. This is because the way media is consumed, bought, and delivered will change dramatically. To have high-quality Canadian content, we will need to rely on all elements of the Canadian broadcasting system. The CBC can and should have an important role in this new landscape. Leveraging the CBC's assets on the various media platforms will be an important means by which to ensure the public broadcaster achieves the goals set out in the Broadcasting Act. These goals remain relevant. It is simply the manner of achieving them that will need to be diversified.
In Corus's view, a healthy Canadian media landscape will have a regulatory regime that allows Canadians to experiment. It will embrace the merits of fostering a globally competitive industry. It will reward success, and it will increase the probability of success by encouraging the creation of larger enterprises.
Thank you for your time and attention. We would be pleased to respond to any questions you may have.