INSIGHTS

Yesterday, the CRTC has endorsed the private broadcasters in a decision that serves to change the TV industry. The major networks have won the right to negotiate with distributors and cable companies over charging for their signals. The fight is just beginning, as the battleground now moves from the backrooms to the courtroom. The Federal Court of Appeal will hear arguments since it has jurisdiction to ask companies to negotiate fees.

Ironically, the very same day that the CRTC decision landed, a new survey by Ipsos Reid indicated that – for the very first time – the average Canadian spends more time online than watching television. All along, the major networks have argued that the current business model is broken. Their solution? Fight the cable networks for additional revenue streams. The fact of the matter is, major networks are no longer the gatekeepers of how, when and where Canadians consume television. Many, as the Ipsos Reid survey suggests, are just opting out of watching TV altogether. The greater challenge facing broadcasters is not a courtroom brawl. If they commit as many resources to finding solutions to rapidly shifting consumer habits and emerging technologies as lawyer fees, perhaps the future of network television would be brighter.

This fact was not lost on CRTC Chairman Konrad Von Finckenstein, reiterating that the industry needs to focus on preparing for the future instead of bickering.

We couldn’t agree more Konny.