Local news at risk with status quo, Bell Media executives warn CRTC
The end is near for local news on BCE Inc.’s regional channels if Canada’s broadcast regulator doesn’t grant the company’s wish list of proposals, executives told a hearing Wednesday.
During a marathon fiveand-a-half hours of presentations and questions at the Canadian Radio-television and Telecommunications Commission’s hearing in Gatineau, Que., into the future of television, representatives from BCE’s Bell Media division gave their thoughts on how regulations should change. Their proposals were more modest than those put forward by Quebecor Inc. during its presentation Tuesday, which called for complete deregulation to allow it to compete with U.S. online video providers such as Netflix Inc.
But Bell’s vision of the future if it doesn’t get what it wants was no less apocalyptic than Quebecor’s.
“I don’t have a plan B,” said Bell Media president Kevin Crull. “I think we’re out of cost ideas that don’t dramatically damage the delivery of the product. We in this space need a second revenue stream.”
BCE owns CTV, which operates local news channels across the country. Executives said they have already cut costs to the bone at regional stations and are running out of ways to keep them running. Bell is proposing the creation of what it calls a “local specialty” model, which would see over-theair transmitters, which allow viewers to access certain channels for free with an antenna, shut down. To replace the reduced advertising revenue that would come with the loss of over-the-air viewers, channels in the local specialty class would come with subscription fees.
Bell also puts conditions on its support of “pick-andpay,” or allowing customers to choose and pay for only the channels they want. Bell
“I THINK WE’RE OUT OF COST IDEAS THAT DON’T DRAMATICALLY DAMAGE THE DELIVERY OF THE PRODUCT.” BELL MEDIA PRESIDENT KEVIN CRULL
wants to keep the ability to offer bundles and also wants the freedom to negotiate with other big cable companies for the distribution of Bell channels like Discovery Channel Canada and Space.
CRTC commissioner Candice Molnar appeared to pour cold water on the idea of subscription fees for a local specialty category.
“The commission would not endorse customers having to pay for something that’s been free to them for its history, which is traditional conventional television,” Molnar said. “What is your backup if there is no subscription fee? What’s the best alternative?”
“We don’t have an alternative,” Crull said. “The revenue side has run out of steam.”
CRTC chairman JeanPierre Blais congratulated Bell for a well-researched presentation — a comment that stands in contrast to his rebuke Tuesday that he was “disappointed” in Quebecor for coming to the hearing with a blanket plea for deregulation instead of realistic suggestions for change.
“I don’t necessarily agree or disagree, but you’ve done a good job of preparing,” he said.
With six presenters scheduled after Bell, he warned that everyone was in for a late night.
Thursday’s agenda is even more jam-packed, with Rogers Communications Inc., Shaw Communications Inc., Cogeco Inc. and Telus Corp. all lined up to have their say.