CRTC chairman slams TV executives as yacht-owning 'complainers'

Canada's broadcast regulatormounted a vocal defence of television journalism Wednesday, while slamming the executives who run the stationsas wealthy yacht-owning complainers who are out of touch with changing audiences.

CRTC chairmanJean-Pierre Blaissaid he is tired of broadcast executives coming before his committee to tell him the "cupboards are bare," and thatthey can no longer afford to fund local news without government subsidies.

"Local television news is failing us. But it need not. The system sits at a position of strength,"Blaissaid in a luncheon speech at the Canadian Club in Toronto."In 2014, TV stations spent more than $470 million on local programming and news the industry is rich in resources.

"Ilistened as Canadians spoke with intelligence and passion [about local TV news], while corporate executives who own luxury yachts and private helicopters came looking for subsidies,"Blaissaid.

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TheCRTChas held a number of hearings on the future of local TV in recent months, and regulators are studying whether changes are necessary to preserve local news coverage.

Many stations have found their traditional financial model under threat amid a changing landscape for advertising and consumer viewing habits.

A recentreport warnednearly half of the country's local TV stations could be off the air by 2020 without a boost in revenues to pay for local programming.

The industry has been hobbled by the loss of the Local ProgrammingImprovement Fund (LPIF), which was established during the 2008 market downturnto help struggling local stations. The fund was paid for through a levy on cable and satellite subscribers.

The fund paid out about $100million annually to private broadcasters and CBC stations, but the CRTC phased it out in2012.

Executives'justcomplaining'

In 2015, the CRTCalsomade controversial changes to Canada's cable and satellite television packages.Starting in March, subscribers will be able to purchase a "skinny basic" package for a maximum of $25 a month; customers will be able to addindividual pick-and-pay channel options after that.

New CRTC Rules Will Change Canadian TV

9 years ago

Duration 4:20

The CRTC is relaxing rules around Canadian content and that could alter the future of Canadian TV.

Broadcast companies have warned that doing away with channel "bundling" will rendermany TV channels financiallyunviable, resulting in at least 1,000 layoffs.

"[The executives are]just complaining. They're forecasting doom and gloom: job cuts, revenue losses, station closures. They run off to court, they run off to cabinet to seek relief. It's their right to do so, but it doesn't make them right," Blais said.

The regulatorsaid broadcasters have panicked at the sight oftechnological change, and have needlessly cut coverageand newsroom staffto the bone to the detriment of the audience.

He said cutbacks at CTV News, Hamilton-based CHCH and Rogers Media-owned OMNITVisa worrisome trend that ignores the important role broadcast journalists play in a vibrant democracy.

"I fear those who manage media the corporate executives, accountants, lawyers and MBAshave lost touch with their audiences. Analysts on Bay Street focus on quarterly results, profits, balance sheets, share prices and other calling cards of private wealth.

"They do not care nearly as much about the health of costly endeavours that preserve the wealth of our democracy," Blais said.

The chairman pointed to the success of Quebec-based newspaper LaPressewhich has done away with its weekdayprinted productin favour of a robust suite of online optionsas an inspiration for other media companies who are dealing with disruptive internet technology.

"Corporate executives cannot bury their heads in the sand and pretend that change isn't happening. They must rise up and meet the challenge of a new content era head on."

Fourth estatethreatened

Blais said he is "not convinced" that citizenjournalismand social media platforms like Twitter andFacebookwill ever be able tochallenge thesupremacyof legacy news organizations.

"If the journalist trained to professional standards, who subscribes to a particular code of ethics, and who aspires to the highest standards for gathering and interpreting facts to create valuable, intelligent news analysis disappears, in the absence of a proven alternative, I fear the future of the fourth estate as a pillar of democracy will be at risk," he said.

The regulator also took aim at the business model of private television channels that rely on American-made programming to boost the bottom line.

"The old way of doing business of squeezing every last drop of profit out of simultaneous substitution and rented, made-in-America content is no longer sustainable. Truly great content is what draws viewers. Those that make that content will thrive."