Evidence of meeting #17 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 cbc.
A recording is available from Parliament.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
But you said a few moments ago that your audience ratings have recently increased?
Co-Founder and President, Remstar - TQS
They have in fact increased, which is a good sign and which encourages us to work very hard to get TQS back on track.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
Has there been a general increase in your ratings, at all times, or mainly during prime time?
Co-Founder and President, Remstar - TQS
There has been a strong increase mainly during prime time. Obviously most of the impact of our recovery plan will only be felt in September 2009, but there has already been a significant increase in our evening numbers.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
I believe you broadcast many American programs during prime time. Do you think that is a factor?
Co-Founder and President, Remstar - TQS
We have no more American programs than we do Quebec programs. Our programming is very diverse. We believe in Quebec production. Once again, there must be a way of paying for it, but currently we offer very varied programming.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
If you think you can meet your CRTC commitments up until 2011, at which time the CRTC will review its conditions, do you really need new funds? Things are going well, your ratings have increased, all is well.
Co-Founder and President, Remstar - TQS
That's right: our increase in ratings has not been reflected in dollars yet. We're looking forward to seeing the dollars come back, but that is a long-term process. Relaunching a television network takes time, it requires massive investments because it involves audiovisual projects, so we are talking development, writing, long-term work with the artists.
We have made a few adjustments to our program schedule and we feel that people want to come back to TQS, we feel that they want different content. For now, it's nice to have better ratings but we need our advertisers to be there buying advertising.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
You have a good host right now, you have brought him with you.
Co-Founder and President, Remstar - TQS
Oh, oh! He has not started working yet.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
Oh! That's why you said you would wait until fall 2009 to see if your ratings are rising?
Co-Founder and President, Remstar - TQS
Yes, because we're talking about huge investments. So it takes time for a full cycle to take place.
Currently there is a crisis. The audience is very fragmented, and the advertising market is very competitive. We are competing with channels that have two sources of income.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
You knew that last year. You knew that the audience was fragmented and that revenue was falling.
Co-Founder and President, Remstar - TQS
Absolutely, but I don't think anyone could imagine that the economic situation would be as terrible as it currently is.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
I'm sorry to interrupt you but as you know our time is limited. You're asking that the funding rules be rebalanced, but in order to rebalance, funds have to be taken away from some in order to be given to others, or funding has to be increased for everyone. When you talk about rebalancing, you really mean taking away from Peter in order to give to Paul.
From what I understand, you would like to be on the receiving end, but who do you think the funds should be taken away from?
Co-Founder and President, Remstar - TQS
I would leave that decision up to the authorities, to the CRTC. The numbers are quite clear, when you compare the profitability of general channels to specialized channels. If you add to that the distributors, that's a lot of money to maintain an entire industry.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
Exactly. As you know, the whole industry is evolving, it's evolving very quickly and we don't know exactly where we're going.
Could you share your thoughts with us on the changes in the television industry as a whole? What direction is television currently headed in?
Co-Founder and President, Remstar - TQS
Obviously major investments are being made in this industry. We have a vision and a strategic plan for TQS's development, as well as other strategic goals. However, everything's happening so quickly.
I have attended several conferences throughout America, so I can tell you that nobody can predict the direction we're going in; we can only have opinions on the topic. We have a plan and vision to bring TQS to a certain—
Conservative
The Chair Conservative Gary Schellenberger
Time is up. I have to treat everyone the same.
Mr. Angus.
NDP
Charlie Angus NDP Timmins—James Bay, ON
Thank you, Mr. Chair.
Thank you for coming today. I have to say at the outset it's very pleasing to see your company come back from the economic grave. We're very glad that we've got a second go at the operation and I think it's very commendable.
At the outset I'd have to frame my comments on some of the frustration that we've been feeling around this committee, in that we have the cable giants come before us and they've been making money hand over fist and then when we talk to them about their obligations suddenly their business is so precarious that an extra $2 a month fee means, oh my God, the whole business model of Canada will collapse. Then we have the broadcasters, your big brothers and sisters in the industry, come before us and say they're in a crisis and they're tossing local stations out of the lifeboat one by one and saying you have to give us fee-for-carriage or there will be no local left. And we're looking at what's left in the lifeboat and we're not seeing anybody else in there; they've tossed them all overboard. They keep saying give us fee-for-carriage and it will fix it, and we keep asking if it will help local, and we never get the answer that it will help local. Then we hear there were speciality stations that are competing against themselves. We remember when the argument was that speciality networks were going to help the bottom line of the broadcasters. It certainly helped the bottom line of the broadcasters, but it didn't help local.
So given our trepidation about where this carriage fee would go, would it not be better for us to recommend an increase in the local programming improvement fund from the cable giants, and that way we know at the end of day that all the money that's coming from the cable giants is actually going to help our local producers? Wouldn't that be a more transparent response?
Tony Porrello Vice-President, Remstar - TQS
Perhaps. However, in regard to the guidelines and the rules for the allocations in this fund, right now if we look at what's been out there, $60 million has been advanced, of which only $20 million would be allocated for the French language. That being said, I think we looked at that the other day, and there are perhaps 30 to 33 stations that would qualify to apply for this fund. Now, depending on how the guidelines come out, it may mean just a fraction of that $20 million will be going to any particular station. It's hard to respond right now. Surely, if you exaggerate those numbers and you make that fund quite large, then it would be a different answer that you would be getting.
It's very hard to respond right now.
NDP
Charlie Angus NDP Timmins—James Bay, ON
That's what I'm saying--if the fund were larger. I think we all agree that as it is, the fund is an anemic response for the patient that's lying on the table. If there were more money in there, then there would be an assuredness that we'd be making sure the money that's coming from one sector would be going into local.