Keeping it Real…

The big push by private television networks is on to get YOU to pay them for their “free” programming.

No, they haven’t asked for a direct tax to be paid by television viewers … but a hidden tax to be applied through the cable operators. Because I have no doubt that if forced by the CRTC to pay private television networks a fee, the cable companies will add it to our cable bill.

It is true many of the huge corporations that own our private television networks are in deep financial trouble … but everything I’ve seen and read convinces me their troubles do NOT stem from their local television operations.

Local news and local stations make money: in some cases millions upon millions of dollars in profit. And the amount of local programming hours they provide overall is piddly, compared to the massive amount of network hours and U.S. programming that they just deliver … and then sit back and let the advertising dollars roll in.

What is strangling the private networks, I believe,  is their corporate owners’ past greed and over-expansion into other ventures, acquisitions, including even some overseas, and in areas  that have almost NOTHING to do with their television services.

And with the global economic collapse,  their greed and excessive expansions and acquisitions  has caught them with their debt up but their revenues down.

But of course, no one would be very sympathetic to billion-dollar private corporations asking for a public tax to compensate them for bad over-reaching past decisions. And the CRTC wouldn’t likely be very sympathetic to an appeal to bail them out of  these dumb decisions.

So the corporate parents took their own local television children hostage: give us your money or will kill the babies (small market television stations,and even their grown up siblings of news and programming in major markets ).

And to soften up any resistance, they have already lopped off a few digits to send a message to the public and regulators: pay up or there will be more.

Private networks are even running ads urging viewers to help save the baby … even hinting DEATH could lie ahead if we fail to speak out loudly enough for the ransom to be paid (although that’s not how they depict it or  call it! )

And the CRTC, terrified at the prospect of being seen as complicit in the murder of  local services, seems about to cave in and pay the ransom: or at least, have YOU pay the ransom.

BUT all the propaganda … sorry, advertising ..  I’ve seen being used to justify handing over hundreds of millions of dollars of public money to the private billion-dollar corporations leaves out what I see as a very critical point.

“Cable and satelite companies have been charging you for delivering our signal for years, without paying local stations a penny in return” opines a CTV ad now running to stir up public support.

And how’s this for a scare tactic: the ads urges viewers to support their campaign “before local television is silenced forever”.  Total hysteria.  Give us a break!!!

If the big conglomerates don’t want their licences in smaller or medium-sized markets, let them go. As the economy revives, I have NO doubt that other no-sniveling corporations or even groups of local business people will come forward and scoop up those licences in those communities ..and maybe even expand local content/coverage in the process.

Meanwhile I expect similar scare-tactic ads will be run on private networks right across Canada in an attempt to coerce the CRTC into paying up.

But wait!  What’s missing from those ads?  How about a mention of the hundreds of millions of dollars CTV (and the other private networks) take in as advertising revenue … billions of dollars over the last 10 years … from the huge audiences delivered to them THANKS to the cable companies carrying their signal …  from what I understand, without the networks paying the cable operators a single penny either.

Imagine what would happen to ANY of the private networks if a local cable operators refused to carry their signal. Aaaaargh! Swift death would soon follow … for the network, not the cable operator!!

But of course, the CRTC would not allow that: it REQUIRES cable operators to carry Canada’s major private networks, and the networks cash in as a result of that.   Isn’t that enough?

Until now, the two have had a very profitable, symbiotic relationship: cable makes millions by running the signal; and the networks make millions on the advertising they broadcast, thanks to cable.

Local television across Canada has ALREADY paid a heavy price for the foolishness of network executives and their corporate acquisitions and expansions. 

News programs have been slashed, local shows cancelled, sports content trimmed or eliminated  … and I suspect even if the CRTC caves and gives in to the ransom demands, more cuts will come to news, sports etc. especially after the 2010 Olympics … UNLESS the CRTC stands up for local Canadian television.

Let the private corporations who own the TV networks dig themselves out of their own stupidity by divesting themselves of their losing non-television assets (or liabilities). Or refinance and restructure like so many other private corporations do … without demanding public bucks.

(The auto industry is, of course, an exception, but even they are theoretically only getting loans … stop laughing … that will be paid back as the economy recovers.. and NONE of them are having a special public fee added on to our bills just to bail them out.)

If you care at all about this, and want to stop the ransom from being paid and rules enforced to protect exisiting local television and news levels, I urge you to write the CRTC, Ottawa, Ont. K1A ON2 …   and get everyone you know to write as well.

Because I’ll bet the private networks are getting all their staffs, suppliers, office cleaners, business associates, board of trade friends, politicians, and their uncles and aunts to write the CRTC appealing for the ransom to be paid.

The majority MUST also speak out to ensure the CRTC doesn’t let those holding the local television stations, programs and news shows hostage kill them off … unless, of course, they do it as part of a prime time reality show.

Just  think of the ratings and advertising revenues that could bring!

Harv Oberfeld

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