Michael McCabe is president of the Canadian Association of Broadcasters.

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The broadcasting system has undergone a dramatic transformation over the past 10 years.

We have seen the encouragement and introduction of competition in the distribution arena through the licensing and launch of dth and mmds services. The crtc has established a framework that allows cable and telephone companies to move into each other’s businesses. There has been an unprecedented number of new specialty and conventional television services introduced into the system.

Part of the response to this transformation of the marketplace has been a dramatic restructuring of the Canadian television industry as corporate groups realign themselves to create larger, more effective operating units that are better able to compete in the new environment.

These developments have led to a quantum increase in programming services, both domestic and foreign, and in the number of pathways to the home. Canadians have never had a better opportunity to access the best in Canadian television programming. The broadcasting and production industries have never faced a greater challenge than meeting that demand.

To meet the challenge in the new environment requires new partnerships and alliances between broadcasters and producers. Broadcasters and producers need to work together more effectively to create the dynamic and powerful engine for Canadian television production that will serve Canada well in a more competitive future.

There are a number of areas where this is happening. Our joint efforts to secure a long-term commitment from government for funding support to the ctcpf is a good illustration of the value of working together toward a common goal.

As well, the recent ctcpf Lobby Day on Parliament Hill provided an excellent opportunity to showcase our stars and bring the message home to mps and other decision makers about the importance of celebrating our success and the need to build on that success.

We can build on that momentum and carry that energy forward into other areas that are key to meeting our mutual objective of more and better programming.

Specifically, we need to work together to build a Canadian star system, particularly in English Canada, and a better promotion engine for Canadian programming. We should be designing incentives in the system that encourage and support promotion efforts by both broadcasters and producers.

The issue of scheduling is linked to promotion. We need to design the system in such a way that we create new opportunities to maximize audiences for Canadian programs.

We should look at new forms of program substitution both as a means of better protecting the program rights broadcasters acquire and as a tool to improve upon exhibition opportunities for Canadian programs.

We should also consider whether or not the current approaches we have for the exhibition of Canadian programming are the ones that most effectively maximize audiences.

We should reassess the traditional model of how Canadian programming works in the Canadian broadcast market. We cannot afford to rely exclusively on the old formula of cross-subsidizing money-losing Canadian programming with the profits from a top u.s. show.

As the number of services increase and the industry restructures to deal with that competitive reality, the cost of top u.s. programs goes up and margins go down.

While the relationship between u.s. and Canadian programming is still an important one, it is not necessarily the model that will carry us forward in the future. Therefore, we have to be prepared to consider that the Canadian programs in our schedules become net revenue generators.

We should look at the question of specialization. Production companies have developed expertise in particular program areas, whether, for example, it is children’s, drama series, animation or feature film. That has been a positive development for the system.

In a more competitive environment, broadcasters will need to pick and choose the niches they will go after, either because they identify it as an underserved niche or because the broadcaster has some particular advantage in that area.

Therefore, we should reevaluate our traditional view of conventional broadcasters as ‘all things to all people’ and move to a more market-based model that enables broadcasters to pursue the program areas in which they feel they can best compete. The program specialization broadcasters pursue can be supported by the specialization production companies have already developed.

We need to look at how we create a better balance between broadcasters and producers in terms of how the risks and rewards of Canadian programming are shared. We welcome the cftpa’s invitation to its Phase III Network comments to the crtc to possibly collaborate in joint venture investment and distribution opportunities by broadcasters and producers.

Finally, in order for Canadian companies to compete and succeed in the production, distribution and broadcast of Canadian programming we need to build new partnerships and new alliances. At the end of the day, it is the quality of the product that will determine our success and so it is essential that we encourage and support the creation of those alliances so that we effectively harness the resource and the creativity of all Canadian companies to the creation of more and better Canadian programming.

Competition is creating the conditions under which new alliances and new partnerships will be formed between broadcasters, producers and distributors. The only way we can succeed in the future is if we succeed together.