Canadian cable channels should be allowed to invade each other's programming turf but signals from popular U.S. competitors such as HBO and ESPN must be kept out of the country, the head of Corus Entertainment Inc. says.
Corus chief executive officer John Cassaday plans to argue against lifting restrictions on U.S. cable channels when regulatory hearings are held on rules governing specialty channels in January.
However, Corus will support an easing of rules that protect Canadian cable channels by preventing formats from being duplicated.
Those rules date back to the 1980s, when specialty cable was getting off the ground, but several channels are now making millions of dollars yearly.
Toronto-based Corus owns YTV, CMT Canada, Treehouse and the W Network. Mr. Cassaday believes specialty channels can now withstand direct competition from domestic rivals in their genres.
But regulators should not allow U.S. channels to move in unfettered, since they aren't required to spend on Canadian content.
“Canadian competition is fine, and will improve the system. If we can't defend our position on W or CMT or YTV from Canadian competition, shame on us,” Mr. Cassaday said during a conference call Tuesday after the company reported third-quarter financial results.
“What we're simply opposed to is operators that can come into Canada without the same Canadian-content obligations, and effectively dump American product into our marketplace without the commensurate responsibilities.”
The Canadian Radio-television and Telecommunications Commission (CRTC) will consider the matter at the hearings in Gatineau, Que., on Jan. 28, 2008. The broadcast regulator will assess whether the rules limiting the industry to one channel for each type of format needs to be updated, “given that the pay and specialty industry is now a mature, healthy industry characterized by a diversity of popular, recognized brands.” The CRTC will also consider whether restrictions on U.S. cable networks that compete directly with Canadian channels should be lifted.
Nuances in TV licences prevent channels from encroaching on other formats. MuchMusic, for example, is not allowed to show live sporting events – such as snowboarding – because that would compete with sports networks.
In turn, sports channels can't show sports-related films, which would threaten movie networks. And MTV in Canada must air predominantly talk and lifestyle-related programs, rather than music videos, to prevent direct competition with MuchMusic. (Both MuchMusic and MTV in Canada are owned by CTVglobemedia, parent company of The Globe and Mail.)
Easing rules on foreign cable channels would have other implications for Corus, since its profitable pay TV business in Western Canada, Movie Central, buys shows from HBO and other U.S. pay networks. First-run episodes of programs such as The Sopranos have been a key to drawing subscribers.
