Playing Poker With a Weak Hand

GRANT ROBERTSON in the Globe & Mail has some delicious tea-reading of the recent CRTC hearings, and how the Canadian Networks are being pushed to seek their "carriage fees" in a different way:

According to transcripts of the meetings, Mr. von Finckenstein instructed CTV and Global to consider a different path that would see the networks negotiate with the carriers for compensation for their signals, rather than the regulator approving a monthly fee. He suggested the CRTC would look at changing federal regulations to allow the networks to enter arbitration if a deal could not be reached.

"I think you should contemplate a scenario where there is a negotiation where at the end of the day if you don't get to an agreement you can put it to us for arbitration and we will deal with it," Mr. von Finckenstein said in meetings that were closed to the public. The transcripts have since been produced with sections blacked out, though much of the discussion remains intact.

The CRTC's idea would see the networks given the right to negotiate money from the carriers for their signals, as cable channels do, and potentially withhold their signal. That rate would not be set by the regulator. If a deal could not be reached, the matter would be settled in arbitration.

The problem here, of course, is that it brings into sharp, sharp relief the question exactly as framed by the creative guilds in this country: if you lose Canadian signals, what are you missing?

The networks have doubled down on local news. Sure, that's one thing - unless you're under 50 and get your news from the internet. The rest of the time, the privates are usually re-broadcasting American shows. They have spent so little time bringing up a homegrown stable of shows that if you were to lose their feeds, what would you be missing? It's likely a pretty empty threat.

Even their new strategy -- pairing with U.S. nets for "reverse simulcasted" U.S. shows -- means that you could still get those shows on U.S. nets if the CTV or Global signal went dark on your dial.

For years, this argument has been framed by business. And they forgot the first rule of selling: What's your unique selling proposition?

I'm not sure CTV and Global have one. In fact, since they took over CHUM and Alliance Atlantis, respectively, even the properties they once held seem less valuable. I used to watch Bravo! and Showcase and History and Comedy and Space. But lately, a channel like Showcase, which used to have a very distinct identity, looks like just one more repository for the shows bought down south at the screenings. What made it unique is gone. In St. John's, I have a cable package that includes TMN, but none of those specialties -- Space, Bravo! History, HG, Comedy, etc. Don't miss 'em. The only channel I don't have that I miss is CNN.

It's curious: with that one simple word: negotiate, we risk exposing just how unclothed the Emperor is in this situation.

I'd have paid 50 cents a month for Corner Gas, maybe. Gas is gone. I would certainly pay 50 cents a month for four or five shows like Corner Gas I couldn't get on CBS, ABC, NBC or FOX. But if the Cable co's and the CanNets continue to play this game of chicken and that signal disappears? What am I supposed to miss, exactly?

Interesting corner we've been painted into. I mean, they could point to the Broadcast Act and say, "you have to carry us, we're Canadian." But how do you do that with one hand and keep playing the "we can't afford to do the rest of the stuff the Broadcast Act demands, and make Canadian shows?"

Curiouser and curiouser.