The private broadcast industry vented its concerns and the public agencies listened at Broadcasting 2001, the annual convention of the Canadian Association of Broadcasters. Top of mind at the conference, held Oct. 28-30 in Ottawa, were regulatory amendments and production funding.

Broadcasters addressed the loophole in Section 31 of the Copyright Act that allowed the rise of iCraveTV and JumpTV.com.

‘[iCraveTV and JumpTV.com] have caused enormous harm to the Canadian broadcast industry,’ said Epitome Pictures’ Stephen Stohn, executive producer, Degrassi – The Next Generation. ‘Tens of thousands of hours and dollars have been spent to fight an issue that never should have been an issue. Until legislation is actively put in place, another pretender will arrive.’

Section 31 allows for BDUs to retransmit signals provided that they pay a royalty per subscriber per month. But it did not take into account the rise of the Internet. Although the Web companies in question said they were willing to pay royalties, they were also looking to profit from adding advertisements around the signals.

Michael Wernick, ADM, cultural development, Department of Canadian Heritage, assured those attending a session on copyright that the government has put together a report on reform, and is looking at new legislation in 2002 with Industry Canada and cabinet approval.

Another pressing concern is the renewal in March of the annual $200-million-plus Canadian Television Fund. Heritage Minister Sheila Copps, who spoke at the CAB Hall of Fame luncheon, said she would lobby Finance Minister Paul Martin to make the fund permanent.

The post-Sept. 11 world

The specter of Sept. 11 hung over the three-day proceedings, even preventing the participation of ABC World News Tonight anchor Peter Jennings, the scheduled keynote speaker. ABC did not want its leading newsman in the air, and Jennings, a Toronto native, reluctantly complied. He did, however, send a taped message in which he spoke of the ‘globalization [that] has created the despair that inspires terrorism.’

While Jennings painted a foreboding picture of the expanding global market, John Cassaday, president and CEO, Corus Entertainment, talked of it as a reality Canadian broadcasters must face, as well as a strong argument against CRTC Cancon regulation.

‘We are 55% owned by U.S. investors,’ he said. ‘Corus must therefore compete with Viacom and Time Warner.’

But being competitive also has its casualties. Just over a week after the conference, Corus laid off roughly 100 positions from its corporate operations (less than five including some senior management), its specialty television division (50 people, mostly from its digital adventure service) and its content division, including Nelvana (50 people, 60 positions).

The announcement, however, came as no surprise. Three days prior to CAB, Cassaday announced that Corus, which employs roughly 3,500, was looking to reduce $10 million in annual expenses. ‘Staff reductions is one way to improve operation margins and debt,’ says Corus spokesperson Kerry Morgan.

In the past two years, Corus acquired eight companies and ‘we’re still in the process of integrating and consolidating,’ confirms Morgan.

Back at the conference, Jay Switzer, president, CHUM Television, noted, ‘One can argue that the success of our system is attributable to regulation. The system in place with checks and balances works best.’

Meanwhile, Ted Rogers, president and CEO, Rogers Communications, expressed his disapproval of the proposed tightening of foreign ownership restrictions in the Broadcasting Act.

‘I don’t know a single Canadian in broadcasting in favor of amendment to foreign ownership regulations,’ Rogers said in the closing panel, moderated by Peter Kent, the Global Television Network’s senior correspondent.

Panelists downplayed talk of recession in terms of TV and the Internet. In fact, they argued, recent world events have resulted in keener interest in news programming, as well as bigger audiences overall since people are putting off travel plans and staying at home. Programming has been affected in another way, however.

‘There’s a difference in public taste,’ said Ivan Fecan, president and CEO, Bell Globemedia. ‘We set our broadcast schedule in early June. What Hollywood thinks is hot, we try to fit in the groove. September 11 changed that.’ He noted that audiences have shown renewed interest in the tried-and-true genre of the sitcom.

Andre Bureau, chairman of Astral Media, which reported record financial results for fiscal 2001, said that despite Astral losing some of its specialty channel audience for the two weeks following the terrorist attacks in the U.S., viewers have since returned.

‘On pay-TV, we’ve seen no change,’ he added. ‘In terms of subscriptions, that’s something [viewers] will not let go of. And from an advertising point of view we’ve seen no difference.’

Gerry Noble, president and CEO, Global Television Network, shrugged off the suggestion from Kent, an employee of his company, that parent company CanWest’s reported $4-billion debt load would slow its entrepreneurial approach. ‘There might be some good bargains in terms of acquisitions out there,’ he said.

Michael MacMillan, chairman and CEO, Alliance Atlantis Communications, said AAC’s stock dropping 9% to 10% since Sept. 11 has not altered his company’s plans. He proceeded to downplay the threat personal video recorders and video-on-demand pose to broadcasters’ programming strategies.

‘When I come home from work, I like TV that’s pre-organized,’ he said. ‘My friends and I don’t have the energy to be programmers.’

Of all the panelists, Switzer was the most forthright about the negative impact of Sept. 11. He referred specifically to the unfortunate timing of launching CHUM’s seven new diginets four days before the attacks.

‘It’s been difficult enough,’ he said. ‘Long term, things will be fine, but we are prepared for some changes for the first time in our young lives.’

In another session, the consensus was that interactive TV will not be viable until a business model is in place.

Merchandising possibilities are seen as one of the key benefits of iTV, but everybody must wade through muddy rights issues first. Michael Hennessey, senior VP policy and regulatory affairs, Canadian Cable Television Association, put forward a problematic example. Say, for instance, that on a Friends episode Jennifer Aniston is wearing a sweater a viewer would like to order via their remote control. The question is, how do you divide up the pie so that all parties are satisfied, including the retailer, talent, producer, broadcaster, iTV platform provider and iTV software developer?

Farewell, Mr. McCabe

Broadcasting 2001 celebrated the 75th anniversary of the CAB, and also said goodbye to outgoing leader Michael McCabe, who was feted at a tribute from industry colleagues and friends emceed by Lloyd Robertson and Francoise Bertrand.

Paul Robertson, CAB chairman of the board of directors, announced Glenn O’Farrell as McCabe’s replacement, commencing Jan. 7, 2002.

The closing gala featured the Gold Ribbon Awards, where the CAB recognizes the work of its membership. Craig Oliver, CTV Ottawa bureau chief, was the recipient of the prestigious award for broadcast excellence. A full list of winners is available on the CAB website.

-www.cab-acr.ca