I got a couple of e-mails today that are asking about the CRTC’s “Let’s Talk TV” hearings which started today. Specifically that among other proposals, rules protecting specific channels or broadcasters could be thrown out in favor of new regulations that allow Canadians to get TV programming how they want it, when they want it. In other words, you get to pick the channels you want. The question that both e-mails asked is if these hearings are a good thing? Let’s look at why these hearings are being held first before I answer this question.
Now some would argue that this is long overdue. For example, I pay almost $80 a month for cable and I only watch a handful of the channels that I have access to. I could downgrade to a cheaper package, but I would lose access to the channels that I actually do watch. Thus I am basically forced to pay $80 a month. So for me, an option that allows me to choose the channels that I want would save me some money. At least that’s the theory.
The flip side to that is that specialty TV channels that are unique and draw low numbers may cease to exist as their revenue stream may get cut off. You see, these channels get some revenue from being part of a bundle. That can be the difference between keeping them alive and having them cease to exist. Plus, to make up the shortfall, they may simply raise prices to cover the difference in lost revenue. In the end, you may not save any money.
Another thing to consider, if the CRTC and the cable companies do nothing, the “cut the cord” trend will simply gain momentum and this could get very ugly in a hurry. That’s because Netflix and services like it are unbundled. You pay a flat rate per month and watch just the stuff you want. There’s also the over the air trend where people who are able to pull in HD channels for free.
So, are these hearings a good thing? Yes. There needs to be a robust discussion and at the end of it a real plan has to be put forward as the status quo cannot be allowed to continue as it is in nobody’s best interest.
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This entry was posted on September 8, 2014 at 1:28 pm and is filed under Commentary with tags Cable, Canada. You can follow any responses to this entry through the RSS 2.0 feed.
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Hey IT Nerd: Are The CRTC Hearings Into À La Carte Cable Packages A Good Thing?
I got a couple of e-mails today that are asking about the CRTC’s “Let’s Talk TV” hearings which started today. Specifically that among other proposals, rules protecting specific channels or broadcasters could be thrown out in favor of new regulations that allow Canadians to get TV programming how they want it, when they want it. In other words, you get to pick the channels you want. The question that both e-mails asked is if these hearings are a good thing? Let’s look at why these hearings are being held first before I answer this question.
Now some would argue that this is long overdue. For example, I pay almost $80 a month for cable and I only watch a handful of the channels that I have access to. I could downgrade to a cheaper package, but I would lose access to the channels that I actually do watch. Thus I am basically forced to pay $80 a month. So for me, an option that allows me to choose the channels that I want would save me some money. At least that’s the theory.
The flip side to that is that specialty TV channels that are unique and draw low numbers may cease to exist as their revenue stream may get cut off. You see, these channels get some revenue from being part of a bundle. That can be the difference between keeping them alive and having them cease to exist. Plus, to make up the shortfall, they may simply raise prices to cover the difference in lost revenue. In the end, you may not save any money.
Another thing to consider, if the CRTC and the cable companies do nothing, the “cut the cord” trend will simply gain momentum and this could get very ugly in a hurry. That’s because Netflix and services like it are unbundled. You pay a flat rate per month and watch just the stuff you want. There’s also the over the air trend where people who are able to pull in HD channels for free.
So, are these hearings a good thing? Yes. There needs to be a robust discussion and at the end of it a real plan has to be put forward as the status quo cannot be allowed to continue as it is in nobody’s best interest.
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This entry was posted on September 8, 2014 at 1:28 pm and is filed under Commentary with tags Cable, Canada. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.