Canadian Television Changes & Brands
11-05-10
Canadians watch a lot of television but rarely think about the laws and regulations this industry is monitored by. The Canadian Radio-Television and Telecommunications Commission (CTRC) ruled recently that private TV networks now can negotiate more compensation from cable and satellite distribution companies for the right to broadcast their signals. Standard procedure in today’s economic reality.
Canadian network broadcasters requested additional fees to offset declines in audiences and advertising due to new specialty channels and the Internet. Cable and satellite companies warned any additional fees imposed by the CRTC would be passed on to consumers. So expect that to happen to your bills.
Changes to Canadian content rules now have broadcasters needing to spend a minimum of 30% of annual gross revenues on homegrown content, and 5% on “programs of national interest.” The Can-con requirements were lowered from 60% to 55%. Half of the programming from 6 p.m. to midnight will need to be Canadian.
This is not good news for Brands created in Canada. Creators of brands will have less television time to promote their projects. Strange that a Canadian governing body would reduce its ability to achieve its mandate of protecting Canadian Content.
An Ipsos Reid poll showed Canadians are spending more time online than watching television. Brand creators may need to shift their launch and promotion of their brands to more global internet activities. That is my recommendation at this time.
Even though television has high-definition format in its favour, and remains the more dominant medium for advertisers, the computer is increasing as an entertainment focus point, especially for younger demographics. Also the cost to watch your favourite shows on the internet is lower than cable/satellite and is more convenient since you can view them when you want and not during the restricted fixed time-slot of a network offers.