The CRTC’s decision to gradually lift ad time restrictions on networks is aimed at helping broadcasters cope with flattening revenues and the costly transition to digital television, but could ultimately make little difference.
The commission came out on May 17 with a slew of announcements mapping out a new direction for conventional TV that is so wide-reaching nearly every broadcast stakeholder expressed its disappointment with some aspect of the New Deal – with the exception, it seems, of CanWest Global.
There was a chorus of boos from the production sector and CBC, which saw the part about more ad time as just another bone for CTV and Global, which will get to squeeze more revenue out of their bread-and-butter Hollywood product. The current 12 minutes of ads per primetime hour gets bumped this fall to 14, and then to 15 minutes per hour throughout the broadcast day one year later. By 2009, it’s adios altogether on restrictions.
Because this move towards commercial deregulation came without any stipulations about caster commitments to Cancon, producers were peeved. And, as each of us is a consumer, there is at first blush something distasteful about the prospect of having to sit through another two, three or gosh-knows-how-many minutes of ads per episode of House or Lost.
But the change will likely have little impact on viewers.
These American imports can already come with 14 minutes or more of built-in ad time, with the Canadian nets currently making up the difference with news updates and promos. This could be detrimental to Canadian shows if their promos are the ones that get cut to make room for more spots. But one would at least hope that after sinking substantial cash into original scripted shows, casters would want to keep their own programs as visible as possible.
It’s in 2008, when the nets have the option of exceeding their U.S. counterparts with the amount of ads per ep, that it gets really interesting. Would they dare impose ‘Canadian cuts’ on viewers’ favorite imports in the name of moving a few more bottles of Viagra or Pepto-Bismol?
The casters have to proceed with caution, and CRTC chair Konrad von Finckenstein understands this. With so much choice on TV, viewers will only tolerate so much before changing the channel. And in today’s on-demand world, viewers are increasingly watching scripted series on DVD or, in the U.S., via iTunes – without commercials. There are other options out there, and networks have to keep their own product attractive.
Von Finckenstein is by no means catering to casters’ every wish. He didn’t accept their request to charge carriage fees to the cable companies. But he did give them the ad allowance in tandem with a hard deadline of Aug. 31, 2011 for the digital transition. What has held up the switchover so far is chiefly the great expense required in upgrading the networks’ broadcast infrastructure. So, in theory, more ad time would help pay those bills. But to what degree remains to be seen.
Another gift of digital innovation is the PVR, and while the take-up rate is low as of yet, I’ve got one at home, and let me tell you, once you understand the functionality of these gizmos, it’s the only civilized way to watch TV. One of the reasons is that you can zip through the ads. It’s not that I don’t want to help the nets pay the bills, but with a couple of kids at home and a rather demanding job – well, you know what I mean.
What does an extra three minutes of ads mean in the PVR world? About an extra 0.6 seconds of fast-forwarding. What broadcasters really need to put their heads to is not more ads, but a whole new advertising model.
It is with live event TV that casters would especially look to take advantage of their new freedom. There will be the temptation, for example, for the CBC to increase commercial breaks in hockey broadcasts. But here again, this flies in the face of a recent push by the NHL to lessen the overall time of games, in an effort to resuscitate the sport’s waning popularity Stateside.
It’s just another case of the consumer ultimately deciding – a philosophy, that, as promised, will dictate much of what our regulator does going forward.
I am happy to announce that Patricia Bailey is officially our new Montreal correspondent. Patricia has been diligently on the beat in the Quebec market for us for more than a year, and takes over from Matthew Hays, who has been doing a fine job. Matt is still contributing to the pages of Playback, but needs more time for other ventures, such as promoting his recently launched book The View from Here: Conversations with Gay and Lesbian Filmmakers, released through Arsenal Pulp Press. Thanks to you both.