Annual Conference of the International Institute of Communications, Canadian Chapter
Ottawa, Ontario
December 2, 2008
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Good afternoon, ladies and gentlemen.
I' d like to begin by paying a warm tribute to Ted Rogers.
His entrepreneurial spirit and relentless ability to take risks resulted in one of the largest and most successful communications companies in Canada.
I join everyone in this room in extending my deepest condolences to Ted Roger' s family and friends. He will be greatly missed.
I am pleased to be with you today for the first time as the Minister of Canadian Heritage and Official Languages.
This is a great opportunity for me to meet you, listen to you and share some of my thoughts about where we want to go in the future.
Our Government supports arts and culture in Canada. We know how essential it is to our communities, our identity, and our economy.
And we are investing more in arts and culture through the Canadian Heritage portfolio than any other government in Canadian history.
At the same time, we must ensure that we remain accountable to Canadians and make sure they continue to get good value for their money. We all must innovate and harness the opportunities of new technologies to refresh our approach to arts and culture, and meet the changing needs of Canadians.
I understand that the communications industry is an important part of the everyday lives of Canadians. You showcase Canada and the best the world has to offer through:
- diversity in programming choices
- world-class audiovisual production services and
- access to a multitude of distribution platforms
You have succeeded in building a world-class infrastructure that connects you with Canadians – Canada has one of the highest rates of subscriber access to cable and satellite service in the world.
The Canadian broadcasting system serves the citizens of Canada in both official languages, which is an integral part of Canadian life. That' s why we asked the CRTC in June to review services to official language minority communities and why I recently referred back for reconsideration and hearing, decisions made by the CRTC concerning radio licences in the Ottawa-Gatineau region.
The Canadian broadcasting system nourishes our democracy. Your services provide a forum where we can now explore an infinite range of subjects, share our respective points of view, create our own stories, and ultimately come to a better understanding of one another. And, let' s not forget, your services also provide hours and hours of entertainment.
During this period of economic uncertainty, we want to ensure the continued viability of the communications sector. The pivotal role you play in securing Canada' s long-term prosperity was acknowledged two weeks ago in the Speech from the Throne, where we stated:
"Cultural creativity and innovation are vital not only to a lively Canadian cultural life, but also to Canada' s economic future."
Culture is an important contributor to the Canadian economy, accounting for 3.8% of the GDP. It helps attract highly skilled workers and drive innovation. The Canadian broadcasting and television production industries employ over 100,000 people and generate revenues of close to $20B a year. Interactive media generates an estimated $5.01B in revenue and employs about 50,000 people across Canada.
The Throne Speech also reflected the tough economic times that are now prevalent in Canada and throughout the world, and our Government' s commitment to manage hard-earned tax dollars in a responsible way.
Canadians taxpayers understandably want to see value for their money, and so do we.
We also recognize that hard-working Canadians in many industries, including yours, are worried about their jobs.
These are difficult times. I assure you the Government will do its part by showing the utmost restraint. All Government institutions will be expected to reassure Canadians that they can have confidence in their public organizations.
We will be making hard choices, and in making them, we will put Canadians first.
For those of us in this room, our choices will be guided by the unprecedented technological, economic, social, and international changes that have transformed Canada' s cultural landscape.
Digital technologies are having an unmistakable impact on communications frameworks around the world.
As the youngest member of the Cabinet and a typical Canadian, I thrive on digital technology. I am an avid consumer of your products. My computer, my Blackberry, my iPod, my PVR ― they are an integral part of my life. I am a multi-platform, multi-tasking guy, who wants information in real-time.
I am more loyal to the content than to the technology or the station. Canadians like me want HD content. We want interactivity and we want mobility.
Not to put too much emphasis on my age, but being born in 1976, I have never known a world without colour TV and multi channels. Computers have always been a part of my life.
As one of your customers, I am very interested in knowing what you' ll be doing for all of us.
I see great opportunity for Canada to harness new trends, to make our economy more prosperous and innovative, and to brand our cultural exports to the world. The commercial dividends are there and the opportunity is digital.
I know the transition to digital is a top-of-mind issue for many of you, and that much work remains to be done in the rollout.
However, I am concerned that different parts of this country' s communications system are making the transition to digital technologies at different rates.
I know that BDUs (Broadcasting Distribution Undertakings) are well advanced in terms of transitioning their equipment. So are production facilities, in terms of making use of digital technologies. High-definition programming is becoming more readily or widely available and because high-definition TVs are dropping in price, consumers are purchasing them in greater numbers.
At the same time, over-the-air (OTA) television faces significant challenges. Advertising revenues are down, and we know that could get worse if other sectors curb spending.
Digital television has tremendous advantages. For theGovernment, it means more efficient use of spectrum. You know the advantages from an industry point of view:
- broader audiences through multiplex
- and new profit-generating services, such as interactivity, web-based programming and even video gaming
And for Canadians, like me, it means:
- getting to watch what I want, when I want, where I want
- and enjoying great programming
And therein lies your challenge. Consumers want it all, and broadcasters have to adapt in very difficult times. You have all begun to do that by morphing into true media entities with the ability to cross-purpose your content and distribute it across a variety of platforms.
This transition is not easy and you are making difficult decisions.
That being said, the transition to digital must remain on track. Countries around the world have established deadlines for the transition to digital OTA television and the subsequent shut-down of analog transmission. The US is making its transition by February 17, 2009 ― that' s in less than three months.
Everyone in this room knows that what happens in the US will affect Canadians. If better picture quality signals are available from our neighbours, Canadians will turn increasingly to American stations. This will have an impact on Canadian broadcasters who rely on American programming and regulatory benefits, such as simultaneous substitution, to generate revenues and create Canadian programming.
The transition to digital is inevitable. The CRTC has set a deadline of August 31, 2011, for Canada to make the transition ― which is two years after the US transition. This deadline gives Canadians fair notice and lots of time to react accordingly– and gives you time to develop your plans.
We need solutions that will encourage innovation and new approaches, rather than asking Canadian taxpayers to subsidize existing business models.
I am pleased that the CRTC has initiated discussions with the over- the-air broadcasters and BDUs to discuss their transition strategies. I would be interested in seeing an industry-led solution which would involve over-the-air broadcasters working in partnership with BDUs to ensure universal access to Canadian conventional broadcasting. If necessary, I would be prepared to ask the CRTC under section 14(2) of the Broadcasting Act to review and consider any technical matter relating to such a solution and I would expect the CRTC to play a role to ensure that no regulatory barriers would impede such a solution.
It is clear that change is inevitable. Everybody has a part to play in meeting the evolving needs of Canadians.
I will work with you as you develop your plans, but make no mistake, the plans are yours.
Our Government expects you and the CRTC to think outside the box in terms of finding solutions to today' s digital world.
These are challenging times. I look forward to working with you to meet these challenges and to hearing your proposed solutions. I am listening, open to your ideas, and relying on you to find the innovative solutions that will meet the changing needs of Canadian citizens, creators, and consumers, and put their interests first.
Thank you.
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