CRTC to Decide on New Specialty TV Channels as Canada Embarks on Digital Future

Strategic Insights -

The Canadian Radio-television and Telecommunications Commission (CRTC) is set to determine the fate of 48 proposed specialty TV channels as Canada prepares to enter the 500-channel universe of the future. After four weeks of hearings, the commission will announce its decision in June, and by next January, a handful of new specialized cable services will be available to Canadians. These channels could include an all-country music channel, around-the-clock news highlights, an arts channel, a hockey channel, a women's channel, and a space and science-fiction channel.

Key Takeaways:

  • The CRTC is considering 48 proposed specialty TV channels, more than ever before in a single set of hearings.
  • The final decision will be based on factors such as financial viability, contribution to Canadian programming diversity, impact on existing broadcasters, demand, projected revenues, and distribution methods.
  • Cable companies have warned that they can only carry between four and six new channels, while some others expect the commission to licence 10 or 12 channels.
  • The CRTC will assess each application individually, taking into account the proposed channel's business plan, marketing strategy, and programming content.
  • The emergence of digital video compression is expected to bring about the 500-channel universe by the turn of the century, and addressibility is expected to make TV sets interactive, ushering in an era of "pick-and-pay" programming.
  • Broadcasting expert David Ellis sees the current round of licence dispensation as a transitional strategy, bridging the era of analog broadcasting and a truly digital, interactive one.
  • The CRTC will have to balance the demand for new channels with the potential impact on existing broadcasters and the need to ensure financial viability.

Statistics:

  • 48 proposed specialty TV channels are up for consideration by the CRTC.
  • The commission will hear from 68 proposed channels last June, and 68 proposals were received.
  • The CRTC dismissed almost 20 applications in October due to incomplete submissions.
  • 2 additional applications were disqualified last week for English and French-language arts channels.
  • The CRTC is expected to licence between 4-12 channels.
  • 68 proposals were received when the CRTC called for submissions last June.

Sources:

  • "The Globe and Mail"
  • David Ellis, Toronto media consultant and author of "Split Screen: Home Entertainment and the New Technologies"
  • Bill Allen, director of public affairs for the CRTC
  • Friends of Canadian Broadcasting
  • Paul Audley, media consultant