Saturday, July 17, 2010

Time to worry more about vertical integration than net neutrality

I was reading the submission, and it's a decent submission, from the Directors Guild of Canada on the Digital Economic Strategy and one of its recommendations, that gave me pause, was to have the CRTC proactively monitor net neutrality. Now I don't really care too much, assuming my company isn't buried in paperwork but I don't get the emphasis. To me net neutrality is a vague and nebulous concept that tends to mean different things to different people.

Why not hit the nail on the head and just lobby the CRTC under its existing powers to vigorously address vertical integration in terms of carriage and content? That is something that is more precise and more relevant . Heck why wait for a Digital Strategy (could be a long wait re content) and go right at the heart of the matter in the Shaw Canwest Global Hearing which we hear is scheduled for around Sept 25 (rumor)?

Think about it. Three/four years ago there was all this angst about threats to diversity in broadcasting if CTV took over the CHUM assets or Global took out Alliance Atlantis. Then we went through the angst of the save our local TV/fee for carriage debate because the allowed takeovers help put CTV/Global finances in the sink and someone (disributors) had to bail them out for spending too much and overpaying for Hollywood product. Flash forward to September, and all of a sudden there is now even more concentration and independent broadcasters are disappearing faster than the ice cap while the three largest cable companies now own,or are about to own, most of the broadcast assets in a more consolidated fashion than everyone was fussed about three years ago.

Seriously, why the fuss about net neutrality? When TELUS looks at the disintegration of carriage and content we worry about having to negotiate and pay fees to our cable competitors to support their integrated content properties, while they can write themselves a truly blank check.(Nice solution to FFC from their point of view).
We worry that broadcast content from those integrated properties will not be available on our mobile and Internet platforms even though the CRTC says its undue preference rules apply to these platforms. Heck we have to go to the CRTC today just to get access to broadcast content for VOD from at least one integrated broadcaster even though it is clearly obliged to provide it under the rules.

Given the negative attitude towards Canadian content , local TV and/or the CMF from some distributors you would think independent broadcasters, Associations and Guilds would be as, or more, worried about access for their content to platforms for broadcast distribution and less concerned about access to the Internet. The latter may soon be the easiest window to access for independents. Sadly making noise about net neutrality may be reasonable in principle but right now it seems to me like its barking up the wrong tree at the wrong time and in the wrong place.

5 comments:

  1. A foward looking submission about topics concerning the future of the industry is 'wrong time, wrong place'? Michael, did you get the point of the digital submission exercise?

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  2. Re "worried about access for their content to platforms for broadcast distribution and less concerned about access to the Internet" -- I think they're worried about both, 'cause some think that content will be distributed over the Internet.

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  3. I totally agree about net neutrality being a vague concept, especially considering that network infrastructure is arguably inherently non-neutral (at least fundamentally). But still, even vague concepts can be worthy ideals.

    My feeling (although I'm an industry outsider) has been that although vertical integration is one (perhaps very important) concern for "healthy" content production and distribution in Canada, the current populist concern around telecom i think involves concern about throttling of torrents and YouTube videos. Although vertical integration and populist conceptions of net neutrality share an underlying principle, concern over slow download speeds is more accessible than concern over future diversity of (Canadian) content. And it's easier for "independent broadcasters, Associations and Guilds" to appear to have strong public support if they position themselves behind something as popular as the current populist conceptions of net neutrality.

    In other words I've assumed this is a political move. It's not that they don't care about vertical integration (although for all i know, maybe they don't). Rather, it makes sense to me that they would jump on the net neutrality bandwagon. What else is there for them to do?

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