Class Notes (839,092)
Canada (511,185)
POLS 3250 (22)
Lecture 11

Cable and CBC (week 11/lecture 11)

10 Pages

Political Science
Course Code
POLS 3250
J Killingsworth

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T UESDAY ,NOVEMBER 20,2012 CABLES MPACT ON B ROADCASTING AND THE CBC Canadian Content - Why do governments of all political stripes maintain policy? - Goals are nationalistic in nature - So deeply entrenched, hard to find reason for them - Supporters believe policy has opened up market for Canadian artists that would not exist otherwise - But if you go too far, quality will suffer - Can be used as tool for industrial development - Due to citizenship of people who make programs, theme or content itself is not relevant - Increases choice - How do you measure choice? - Regressive tax on television viewing - Pay for it even though may not consume it - W.T Stanbury believes supporters claim far too much success from policy - Has nothing to do with content - Increases number of Canadian programs, but what about consumption? - Where is the link between policy and contribution to national identity? - Ends up being a regressive tax? The Policy Debate? - Canada’s broadcasting policy has been aimed at ‘redirecting audience desires’ - Audience taste seen as part of the problem - Elites don’t want to just indulge their own tastes, want to improve the masses - Rent seeking applied gain some portion of the social surplus, - Elite believes if they can increase exposure, masses would come to demand it - Increase income and cultural products produced by Canadian citizens Final thoughts * - Canadian cultural policy - What are the goals? Cultural vs economic - What are the goals in your view? * Make connections, feed it back to policy process, how is this policy area framed? Whats the policy image? Who’s defining the problems? How do we get TV Signals? - Cable - Satellite or DTH - Antenna over the air Cable Industry - Distributes television signals to viewer - CRTC sees cable as a way of controlling broadcasting system - Can be argued that it has opposite effect, allowing for more American integration - CRTC policy very profitable for cable industry Canadian Television Private vs Public - Public (CBC) - Private: for profit stations, in it too make money, CTV, Global, City - Private stations don’t receive as much attention from academic community, but garner much larger audiences than public broadcasters such as CBC Conventional Broadcasters - CTV - Global - CBC - City TV - Available generally speaking on an antenna, try to reach mass audiences Conventional vs Specialty Conventional Broadcasters - Signal is available over the air in addition to cable and satellite - Advertising main source of revenue - One time conventional channels were all they were Specialty Channels - Geared toward a targeted audience - TSN  sports - Slice - BNN - Much - HGTV renovation - Not available on antenna, must get them via cable or satellite, do not have transmitters - Where the money is today Cable Industry - Distributes television signals to viewers - CRTC sees Cable as a way of controlling broadcasting system - Can be argued that it has opposite effect, allowing for more American integration - CRTC Policy very profitable for cable industry Commercial Substitution Definition - If a Canadian station airs on American program that airs at exactly the same time on an American station, the cable company must substitute the Canadian signal for the American station - Also true if you subscribe to satellite - Why? Helps promote Canadian subscriptions, promoting private broadcasters, making private broadcasters financially secure Consequences - Allows Canadian broadcasters to become very profitable - Does nothing to promote Canadian programming - Makes Canadian broadcasters more dependent on American programming - Canadian prime time lineups look exactly the same as American ones - No Super bowl commercials from US broadcasters Cable Policy - Conventional Broadcaster: CTV, Global, NBC, can get their signal over the air on cable, programming geared towards a particular theme or genre (i.e. sports, business, etc) numbers have been declining, steady erosion - Specialty channels have taken over their market place - Popular to advertisers because you can target a specific audience, ex: sell lipstick, go to W network - The fiasco of Pay-TVs introduction in Canada - First specialty channels arrive in 1984 with TSN and Much music - TSN/Much start out on Pay-TV, become too big, end up on discretionary tier How Specialty Channels Grew CRTC Policy - Protect Canadian specialty channels from American Competition - Bundle American specialty channels with Canadian ones, which makes them desirable to Cable Industry - Can be profitable without attracting large audiences, you can narrowly attract audiences How does it work? - Earn revenue from advertising - Earn revenue from cable subscriptions, unlike conventional broadcasters - Can be very profitable without attracting large audiences Specialty Channel Numbers (2011); where the money is Cable Revenue- $1.7 Billion Satellite Revenue- $698 million Advertising Revenue- $1.2 billion Total revenue- $3.7 billion Total profits- $796 million The Economic of Specialty Channels Show me the money! - Cable and satellite subscriptions account for approximately 63% of overall revenues - Advertising accounts for approximately 35% of overall revenues - Overall revenues for 2011 are up 8% from 2010 The Big Picture - CTV’s specialty channels turned a profit of 267 million dollars in 2011 - CTVs conventional broadcasting channel earned a profit of 57 million dollars in 2011 TSN - Cable revenues, $112,800,000 - Satellite revenues, $34,200,000 - Ad revenues, $129,500,000 - Profit, $58,300,000 Total Revenue up 8% Profits up by over 16 million from 2010 Subscription revenues make up 50% Advertising revenues make up 44% W Channel - Cable revenue, $23,600,000 - Satellite revenue, $8,700,000 - Advertising revenue, $54,060,000 - Profit, $14,900,000 Normally a consistent performer with profits in 40 million range Much Music - Cable Revenue, $9.800,000 - Satellite Revenue, $4,300,000 - Advertisitng Revenue, $29. - Profit, $8.700,000 Subscription and ad revenues up slightly Profits are up because programming costs have been reduced Food Network - Subscription revenues, $7,800,000 - Satellite revenues, $2, 960, 000 - Ad Revenue, $41,500,000 - Profit, $22,600,000 Programming costs have increased and so have adveristing revenues Ad revenues make up 79% of revenues  Exception, not typical G4techTV - Subscription revenues, $3,600,000 - Satellite revenues, $4,300,000 - Ad Revenue, $1,800,000 - Profit, $1,800,000 Cable revenues down and profit down Subscription revenues up 80% Digital specialty channels - Subscription revenues, $210, 000,000 - Satellite revenues, $149,500,000 - Advertising Revenues, $92,000,000 - Total revenue, $479,800,000 Category 1: $18.6 million dollar profit Category 2: $47.9 million dollar profit Revenues and programming expenses up sharply DejaView Cable Revenue, $2,500,000 Satellite Revenue, $2,200,000 Advertising Revenue, $2,700,000 Profit, $3,200,000 Subscription revenues approximately 63% of total revenues Final Thoughts - Remember fee for carriage?--> went away, cable companies own specialty channels - Conventional television is in flux, changing, - Cable and specialty channels is where the money is Satellite Delivery - Satellite versus cable - Direct broadcast satellite (DBS) and direct-to-home (DTH) are terms that can be used interchangeably - Plays out with paytv - Initially satellite unregulated - CRTC decides to license satellite carriers - Express VU and starchoice very weak at startup, about 100,000 subscribers each in 1998 - Grey Market: describes a market in which customers decode signals with authorization of lawful distributor, but receive them in an area where the programming service is not permitted to be sold - Black market: use illegal decoder, staling from legal distributor and using it in an area that is not permitted - Both are considered illegal in Canada Show Me the Money! Cable Industry $11 billion revenue $2.5 billion profit 8.5 million customers (75%) (Revenues about the same as 2010) Satellite Industry $2.5 billion revenue $174.6 milli
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