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

Cable and CBC (week 11/lecture 11)

10 Pages
78 Views

Department
Political Science
Course Code
POLS 3250
Professor
J Killingsworth

This preview shows pages 1,2 and half of page 3. Sign up to view the full 10 pages of the document.
Description
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
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit