Evidence of meeting #14 for Canadian Heritage in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was programming.
A recording is available from Parliament.
Vice-President, Rogers Television, Rogers Communications Inc.
About 10% use rabbit ears. In 1997, 85% of people got their television through cable, and today that's 60%.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Thank you.
You've been forthright, and we appreciate that, because it helps us to formulate the recommendations we want to make. In my own humble opinion, the way I see this is that the regulations will change as we get into a new structure. I'm not just talking about a business structure—we're also going to get into a new cultural structure by which we protect Canadian content.
Let me ask a quick question, going around the table. The LPIF— which I understand only affects you in Winnipeg—you see as a moderate success. You see fee-for-carriage as not being the way of the future but as something that could be a short-term solution. Is the long-term solution for you a model based on the LPIF?
Vice-Chairman, Rogers Communications Inc.
Because I think the LPIF is structured to help small and medium-sized TV markets, and that's the only thing that needs any assistance.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
In other words, if there is fee for carriage, you feel that the restrictions on fee-for-carriage would not be strict enough to enable local broadcasting to survive or to grow.
Vice-Chairman, Rogers Communications Inc.
I can't see any reason for fee-for-carriage under any circumstances.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Yes, okay. Now I'm quite clear on that one.
Let me create a scenario for you in the United States. Let's say I own a cable operation down in Utah and I want to carry NBC and ABC and all the over-the-air situations. What do they do? What is the model they use in the U.S. right now?
Vice-Chairman, Rogers Communications Inc.
Fee for carriage is structured very differently in the United States. You go to this TV station, and you can have either mandatory carriage or fee for carriage. If you have mandatory carriage, and some of the stations opt for that, then you're on, with no questions asked. When you have a fee for carriage, you have a negotiation between the cable system and the TV station. There's a give-and-take there.
Of course, until very recently almost all of the cable companies have never paid a cent, because ABC is asked for ESPN 2 or ABC Family or something like that. So they've added a network and--
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Okay, so this is a negotiation that they do, and it is based on a package more so than just an individual channel. Is that correct?
Vice-Chairman, Rogers Communications Inc.
Well, it's based on a negotiation.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
All right. Now, would you be satisfied with that model?
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
I'd like to move back to the issue about the LPIF.
Vice-Chairman, Rogers Communications Inc.
But you see, CTV and Global will never agree to be taken off, no matter what. They'll always insist on being carried, because we like Canadian programming, right?
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Certainly if you go to that model, then the whole regime of being basic cable is thrown out the window.
You're required, on basic cable, to put how many channels on basic?
Vice-Chairman, Rogers Communications Inc.
In Toronto there are 15 to 17, or something like that.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
Okay. If you were in a position where you had to negotiate, and you decide, doesn't that diminish the role of the CRTC?
Vice-Chairman, Rogers Communications Inc.
Yes. But a number of those channels would opt immediately for mandatory carriage--immediately.
Vice-Chairman, Rogers Communications Inc.
There would be no fee at all; there would just be mandatory carriage.
Liberal
Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL
The reason I bring this up is because I think the CRTC is lacking direction from the government on this one, and from Parliament itself, for that matter. I think we have to be forthright in putting an opinion up on how we feel about the future regulation, because I think it has to change, based on the proliferation of technology, period.
I'm trying to explore the short-term and long-term solutions. The LPIF is a model we could look at, as government, and say that could be a future solution.
Vice-Chairman, Rogers Communications Inc.
LPIF, yes. But I think everybody's struggling to figure out what the new model's going to be.
