SO DID y'all have a nice weekend? Me too, thanks for asking.
There were some interesting changes in the TV firmament over the weekend. First, out of the upfronts came a bit of a ratings revolution. It looks like most of the networks are now agreeing on a
standard for viewership called, "Live plus three." Simply put, with 17% of households now timeshifting using TIVO and other PVR's, and that number set to go to 20% by Christmas, the whole
"watching live" paradigm is no longer tenable. (Interesting that it survived the
VCR...is it possible that that many of us never taped because the machine was flashing
12:00, 12:00, 12:00 all the time?)
Live Plus Three is exactly what it sounds like -- they'll now set rates based on people who watch live plus all the people who watch PVR'd shows up to 72 hours after they first air. (Why 72 hours? They had to cut it off arbitrarily somehow, and with time-sensitive ads for things like sales or movie openings, much past three days and the value of the ad is lost.) The
Amnets tried to float
"Live Plus Seven" last year, but were rebuffed.
If some advertisers want to use measurements other than live plus three, Ms. Ross said, CBS “is going to be flexible” and consider just about any alternative — except one.
“We want to write business,” Ms. Ross said, but “we will not do live only; we want to get credit for DVR viewing.”
The difference in attitude between last year and this year seems attributable to data showing the growing popularity of DVRs. David F. Poltrack, chief research officer at CBS, said his forecasts estimated that by the fourth quarter, DVR penetration would increase nationally to 20 percent or 21 percent. And by spring 2008, he added, it “will be in the high 20s.”
“The good news,” Mr. Poltrack said, is that about three-quarters of all shows watched in delayed mode in DVR homes originally appeared on broadcast networks, which include CW in addition to ABC, CBS, NBC and Fox. In DVR homes, he added, series like “C.S.I.” on CBS are watched even more as playbacks than they are live.
What's more interesting to me is that this consensus seemed to be arrived at very quickly. Because, of course, necessity is the mother of invention and all.
In
Canada we are often told that
change in Television takes a long time. It takes a long time to develop shows, it takes a long time to know if a policy is working or not. It's interesting and instructive to remember that in an industry where
a lot of money is at stake,
all the time, sometimes change doesn't take very long at all.
***
Meanwhile, as the
U.S. upfronts hangover fades, the
Canadians have lammed it to L.A., cheques in hand. (That's right, yankees, I said "cheques.")
It's worth noting now, before the joyful announcements in the next week or so about the goodies they've brought from down south, the drift of how things work here, where change is much slower.
Private broadcasters in this country receive lots of public funding, either direct or indirect. Indirectly, they receive monetary benefits from the
CTF, which allows them to offer lower license fees for indigenous programming. They enjoy
cable substitution, which allows them to maximize value of those U.S. shows they buy by showing them at the same time as the U.S. channels, and bumping their signal for their own, so they get
two channels to show their ads, not just one. And they get other benefits, which we'll get into in a minute.
Point to remember is this:
the airwaves do not belong to the networks. The way it's supposed to work is that they belong to you and I. The
CRTC is supposed to look after them for us, and make sure they're being adminsitered and used in such a way that it benefits
the public trust. Us. For the privilege of using the airwaves, media companies like
CTV Globemedia and
Canwest Global and
Corus and
Alliance Atlantis and
Rogers are supposed to give something back.
I know it's very quaint to express things in those terms in a time when media mergers and business realities in broadcasting are presented as
faits accompli...but last time I checked, they hadn't actually changed any of those regulations. Yet.
Now a few figures. According to the
CRTC, private networks spent
$479 million on foreign, mostly U.S. programming, in
2006. That was a
16 percent rise from
2005. From
2005 to 2006, spending on domestic Canadian drama series
fell 15 percent: to
$70.9 million.
That's a little more than the cost of one high profile U.S. drama series like 24, or Heroes or E.R.
When the announcements come from the private Canadian networks this week, read them in their proper context. Canadian networks are like people haunting the remainder table at a bookstore: their business model is based on benefiting from the creative risks of others while they take as few of their own as possible.
You want to find that admirable, go ahead. I don't, particularly. I think that 70 million dollar U.S. drama you bought for 80% off
shows off your blotchy chicken legs and varicose veins, and makes you look fat in those pants. There. I said it.
***
Finally, back to the supports received above. Here's
the news that came down on Friday:
TORONTO (Hollywood Reporter) - Canadian TV viewers have more commercials in their future, the country's communications watchdog said on Thursday.
Releasing its latest policy changes for over-the-air TV stations here, the Canadian Radio-television and Telecommunications Commission said it will progressively remove restrictions on advertising-time limits for broadcasters, with the ultimate goal of removing all such restrictions by September 1, 2009.
The CRTC said that the move from the current 12 minutes- per-hour primetime advertising limit to a completely market-driven model aims to give broadcasters additional revenue to deal with increasing competition from cable channels, new media and other emerging digital platforms.
This brings in line the number of commercials allowed in Canada and the U.S. (The U.S. allows 14.) Of course, after 2009, even that restriction will be lifted.
By
2009, expect the
38 minute hour show, and the
18 minute half hour. You're welcome.
This is a major change. And it didn't take very long at all.
See? Money involved.
Basically the private broadcasters were just handed a bunch more free land.
Good for you, guys! A job well done, here's a present.Now, reported exactly
nowhere, of course, was that a couple of years ago the
CRTC floated a toothless proposal to allow private networks to earn more time by broadcasting homemade drama. This was supposed to be a carrot-approach to encourage them to do what they're supposed to be doing in the first place.
Now, of course, that's out the window -- and what was secured for this great gift of corporate largesse?
Nothing for me. And nothing for you either, viewer. Oh, except for more commercials.
Again,
you're welcome.What's interesting and instructive, though, is
this... watch the way the story was played in two of the country's more business oriented newspapers...the
Globe and the
National Post.
The
Post Headline and lede:CRTC refuses to give broadcasters fees
Regulator rejects plea to charge cable carriage levy
TORONTO and OTTAWA - The CRTC rejected a plea yesterday by conventional broadcasters to allow them to charge cable companies a fee for carrying their signals.
But the television industry was given a salve of relaxed limits on the amount of advertising they can sell during each hour of broadcast, which should help boost revenue as new technology and growing competition squeeze profits.
And here's how the
Globe played it:CRTC rejects networks' request for more fees
Decision comes down to lack of compelling data showing the major players are having financial difficulty
Canada's biggest television networks say their financial health is fading, but the federal broadcast regulator is not convinced.
In a long-awaited ruling from the Canadian Radio-television and Telecommunications Commission, the regulator told the large TV networks, who are seeking access to millions of dollars in new fees, that they have not provided sufficiently compelling evidence that their business is struggling.
What's particularly interesting about the
Globe's treatment of the story is that the news that you and me will have to watch
more commercials thanks to these businesses that wanted more money from us but were not in any financial difficulty wasn't mentioned until the
16th paragraph of the story. I mean, call me crazy, but to me
that's the news. But that shows how little you, dear viewer, matter in the Canadian broadcast firmament. The news that impacts you gets to go to the bottom of the pyramid.
The other thing that's interesting in the business-paper play of the story is that it's reported as a "setback" when really, it's anything but. And so now, gentle readers, let's call it like it is:
Okay...come in closer. Closer. Ready?
The CRTC got played. And so did you.Carriage fees were
never going to happen. From a public point of view, the whole thing was a non-starter. But in the realm of negotiation, that's not how you go in. You go in with the outrageous request, and then
"settle" for the thing you wanted all along.
The private networks got a tremendous boon, and once again, they had to give up nothing. They asked for the
stars and settled for the
moon, and now they get to do an
"aw shucks, we're actually quite disappointed" as the
hookers and
blow are shuffled in the back door.
***
So where does that leave us? You and me, the
Canadian TV viewer and the
Canadian creative? Well, I don't know, rightly. But I think we actually have common cause, you and I. It's just that people like me have been doing not a very good job of getting that concept across. Strange, since
we're supposed to be storytellers.I'm very tired of the debate around Canadian programming being framed and fought in the business pages. I'm tired of being forced to defend regulation being cast as
"Canadians being forced to watch programs they don't want to watch." You know, like
Corner Gas.
I think, for
my part, the people who are
making the announcements they
always make after
these decisions need to smarten up and take a different tack. We should
learn from the private networks.
We have a
CRTC head who has said that the CRTC
needs to get out of regulation, and get out of the way of the market.
I say
fuck it. Let's
agree with him.Here's the thing, though. Let's
not go forward and talk about things that nobody cares about like making 7% of spending on foreign programming mandatory.
Let's go forward with something big, something that people can get behind.WGC, DGC, Friends of Canadian Broadcasting, CEP, Left Handed Grips of Timmins, what have you...Let's go to the
CRTC with this message:
End Cable Substitution.Seriously. That's what we want. It's a policy that is not market driven. It doesn't benefit viewers -- ask anybody who hasn't been able to see the
"next week on" because the Canadian net doesn't show it. If the CRTC chooses to end Cable Substitution, then the Canadian networks will compete with the U.S. networks. If they have
Grey's Anatomy and
we have
Grey's Anatomy well, that's not an artificial advantage, now, is it? It's the market. Let viewers choose.
Maybe now the network that gets ahead is the one that offers something
different...a program that Canadians want to watch that they
can't find on their U.S. channels. That
benefits viewers!
Oh, and here's one more thing: here's how we sell it. The thing that gets more complaints to the CRTC than anything else every year:
If you're with us, viewers, you'll finally be able to see all the Superbowl commercials!See, we're on
your side, viewers. Canada's creative community just wants to offer you choice.
We should stand up before the commission and make very cogent arguments about why ending cable substitution is the
jim-dandiest thing we could ever do that will just make Canadian viewers so very happy, and make everything great! Oh sure the private networks will complain and talk about how they need to be protected from the larger U.S. market. But
pshsaw! Come on...that's just standing in the way of the market, right?
Maybe if the heat gets
too hot, we accept the
"crappy compromise" -- mandated, fair, and enforceable spending guarantees for indigenous programming to create the next
Corner Gas and
actually reflect some element of Canadian culture on Canadian TV.But we won't be happy about it. No, sir. Nope. Because that's
not what we really wanted, now, is it?