A television set from the 1970s.Getty Images/iStockphoto
The Banff World Media Festival kicked off late Sunday with a look at the state of the Canadian television industry, which, according to the high-powered panelists involved in the discussion, may be challenging, but is also exciting - with tremendous changes that will provide new opportunities for broadcasters, content providers and viewers.
"If you go back two years, this was an industry in Canada and in this room that was on the brink of disaster," said Kevin Crull, President, Bell Media.
"Let's fast forward to today and we have a lot of vibrant competition, we have a ton of investment going on right now; I think we have the most vibrant creative environment that we've had in many years in this industry. We have multiplatform technology getting funded and experimented and I think we have some stability for our industry going forward."
One positive development that received some attention from the panel (moderated by The Globe and Mail's Gordon Pitts) was the terms of trade agreement reached in April between Canada's private broadcasters and the Canadian Media Production Association - a mention of which received applause in the room filled with members of the production industry.
The industry, though, is not without its concerns, among them upcoming CRTC hearings on vertical integration. For companies such as Bell and Rogers which both create content and provide it to viewers on various platforms, this is an important issue.
"Vertical integration is a wonderful thing for the Canadian industry," said Phil Lind, Vice Chairman, Rogers Communications. "It means scale and with vertical integration you get scale, so that things that might have struggled under a small broadcaster can now be enhanced and go forward. So I think there are one or two potential problems, but overall it's s a very, very good thing for Canada; not only a good thing for Canada - necessary, absolutely necessary."
Added Mr. Crull: "I really do worry that ... where vertical integration was a necessary step forward to get off that brink of disaster, that regulation will make us take two steps back."
Shaw Media President Paul Robertson agreed that vertical integration is "wonderful" but added: "we have to watch out to make sure that some of the small and independent players have fair access."
If the big communications companies want the CRTC to back off on vertical integration, it's a different story when it comes to so-called over-the-top providers such as Netflix and Apple TV. There was talk of the need for level playing fields, and warnings about what could result if such providers don't face the same regulatory requirements as Canadian cable companies.
"I think if cable gets shaved or cut and everyone goes to Netflix then obviously it impairs our ability to contribute to the CMF [Canadian Media Fund]and all these other things that we do," said Mr. Lind. "I think that the current posture of some, especially in government, is 'look, let the flowers bloom; let's let everybody have everything and go to it, guys.' The problem is that may have serious implications down the road. I'm not warning everybody that it's around the corner, but down the road it could have serious implications for the Canadian content industry."
Mr. Crull said it was important, but "very, very costly" for broadcasters to create Canadian content. "If you're competing with somebody who doesn't have that obligation, you can't compete."
While the CBC's Executive Vice President, English Services Kirstine Stewart pointed out that Netflix purchased "quite a few hours" of Canadian content from the CBC, Astral Television Networks President John Riley said there's a big difference between purchasing already-made programming, and doing what Canadian broadcasters and cable companies are required to do. "People like us are at the forefront at the beginning. We're there at the licensing stage, we commission programming, we help that programming get made."
But Mr. Crull said the Netflix effect should be kept in perspective. "For all the fear we have about Netflix, it is very, very nascent. The amount of total viewing is not even a drop in the bucket yet."
The panelists were unanimous on the need to embrace new technology, and seemed anything but reluctant; there was some genuine excitement about the opportunities technology could afford. Mr. Crull talked about simultaneous viewing apps for smartphones, tablets or laptops. And Riley stressed the need for getting the panoply of digital rights to allow viewers to watch anytime, anywhere.
The industry may be facing unprecedented change, but the feeling in the room was lighthearted (lots of friendly barbs) and optimistic.
"I think that we've done a remarkable job in this country building a strong and vibrant and distinctive Canadian broadcasting system in the face of an entertainment giant to the south and also constant change in technology," said Mr. Riley. "My view is that has been a great thing for Canada, and we should do everything we can to continue and maintain that distinctiveness. And if we do all of us will be better off in the room as well as Canadian consumers."
Marsha Lederman