As Canadians, we have been lucky to have a television broadcasting system that is second to none anywhere in the world: more choice, more options, more channels. In recent weeks and months, there has been a great deal of discussion about the future of the industry, especially “local television.” The sad truth is that advertiser-supported mass media such as we’ve come to know it becoming a thing of the past, and without additional sources of revenue, there is a very good chance that these local channels will disappear. We live in unprecedented times.
One misconception that I hear often is that channels like CTV Edmonton are no longer relevant in the era of internet and a 500 channel universe, but this simply is not true. A Decima Research Poll released today shows that more Canadians turned to their television for news than they did five years ago, with 52% saying they tune in the same amount and 27% indicating they watch more news on television than they did 5 years ago. It is a fact that the most-watched program in Edmonton is “CTV News at Six” with Daryl McIntrye and Carrie Doll - period. In fact, if you combine the audiences of CTV (142,000), Global (106,000), and CBC (6,800) there is more than a quarter of a million adult viewers watching a local newscast on a conventional television station everyday in this city. That’s a very large number. Think of this way – if you’ve ever shared the experience of being at a concert or a hockey game at Rexall Place with a full, screaming crowd, you’ll know how powerful that experience is. Now think in terms of our audiences for local television newscasts each night. Except it’s the equivalent of more than 15 sold out Rexall Places – all experiencing at the same time, the news of the day.
The same Decima survey also suggests that 36% of respondents said they got more news from websites of established media outlets than they did 5 years ago. The reason is very simple. They trust brands like CTV News and as we offer our product on more and more platforms, consumers will continue to follow. For 55 years, this station and others like it have diligently chronicled the daily evolution of our city; the good, the bad, and at times, the very ugly.
Let’s face it, the accurate reporting of news is critical - a news report can change the course of someone’s life, alter a business’s future, damage the career of a public official, or tell someone’s personal story at a tragic or touching time in their life. This is one of the reasons that this type of programming is so expensive to produce. It takes considerable experience and technical resources. The editorial and technical staff must deal with the daily pressure of reporting on events, often controversial or highly-emotional. The production process is complex. You must have footage. You must have sound. And it has to be balanced and factual. A demonstration can be shot to look large, small, violent, or peaceful depending on the photographer’s perspective. Our role is to capture it with the right balance. And then editors need to distill all of this into a consumable, understandable package. To coordinate this daily ritual of capturing, editing, writing and delivering a smooth news broadcast each day takes a great deal of expertise and experience.
At CTV Edmonton we have 33 staff members who deal directly with the editorial and news gathering component of our operation. They have a combined 334 years of experience covering the news in this city alone! And the 8 Full Time ENG shooters have 128 collective years of recording the audio/visual history of this region in a balanced and fair manner. This editorial group understands the issues, understands the history behind the issues, and as a result of their daily work, so do most Edmontonians.
Another thing I’ve learned from my 28 year career in local television, regardless of the city I have lived in, (Red Deer, Saskatoon, Winnipeg, Calgary and now Edmonton), is that local television provides a phenomenal level of community service. I personally have had the privilege of serving as Chair of the United Way Campaign in Central Alberta (1997) and currently serve on the General Campaign Cabinet in Edmonton as a Director at Large. I am a member of the Edmonton Mayor’s Task Force on Community Safety, and serve proudly on the Foundation Board of Red Deer College and the CTV Good Neighbour Fund. The staff and managers I work with contribute in a similar fashion. Our anchors and reporters volunteer countless hours as well, helping to promote and MC events throughout our broadcast region. We contribute well in excess of $2.5 million annually in free advertising to help these groups achieve their fund-raising goals. To every one of these events, we bring cameras and we bring a mass audience, and use this medium to help our community work together, to be stronger and healthier. To lose a valued resource like this in a local community would be devastating.
So, what is the problem? In Canada, local television has only one form of revenue– advertising. As audiences shift and evolve with an abundance of new technologies and choice, advertising dollars have shifted as well. This migration of advertising revenue has been taking place for a long time, but has reached a critical point in recent years. Also in Canada, we have higher regulatory expectations than other countries. This increases the costs associated with producing our product, and, at the same time, we lack the legal protections that exist in the rest of the western world.
For instance, our local signals continue to be supplied for free to cable and satellite providers, who in turn package them and sell them to consumers. One particular damaging practice is the selling of a “time-shifting” package, where for an extra monthly fee your provider gives you the ability to watch local stations from across Canada. While popular with viewers, the reality is that significant audience flows away from CTV Edmonton to watch the same program on a CTV station from a different time zone. Other countries do not allow this because of the damage and confusion it creates. CTV Edmonton loses significant audience during the prime time hours as a result of this. It contributes directly to a decrease in revenue for this station. We do not authorize this practice, nor are we compensated for it. While the CRTC has asked the industry to negotiate with cable and satellite companies for compensation, these negotiations have been unsuccessful.
Local stations like CTV Edmonton do not receive any compensation from cable and satellite companies. We believe the time has come that local television must share in this pool, just as all other channels on your cable and satellite systems do.
Naturally, cable and satellite companies do not like this idea, and have said they will pass any costs associated with fee for carriage directly to consumers. Our industry believes there is enough money already collected from consumers, and the role of the CRTC in this must be to help rebalance the revenue structures within these two regulated industries. .Cable and satellite companies have become very powerful forces in recent years. These industries had combined profits last year that were in excess of $1.8 billion. By contrast, profits of conventional television during the same period were $6 million. It’s worth noting that these profits were recorded before the recession, and this year it is safe to say that conventional television is no longer profitable, and without profit, business does not exist.
It appears that our industry is being heard. This past Thursday, the CRTC issued a release saying they will “…. work with the industry to find a systemic and structural solution to the challenges facing conventional broadcasters…”. A follow-up proceeding will be launched this summer, and will culminate in a public hearing in the fall. The scope of the proceeding will include, among other things “…a way of providing revenue support for the conventional television stations by: investigating alternative support mechanisms for local programming; protecting the integrity of Canadian broadcaster signals; and exploring a mechanism for establishing, through negotiation, the fair market value for the signals of conventional television stations distributed by cable and satellite companies”.
If you are concerned about the future of local television, you should contact your Member of Parliament and/or send a note to the Minister of Heritage, James Moore. You can find all of the necessary links at www.ctvedmonton.ca. Simply click on the “SaveLocal” link. Also, please bring your family and join us this Saturday, May 23rd at CTV for an open house between the hours of 9 AM and 2 PM. Meet our on air staff and learn about local news, and increase your overall understanding of an industry that contributes immensely to the greater good of our community.
-- Lloyd Lewis
Vice President and General Manager
CTV Edmonton and Access Television
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