Compelled to pay
I can understand why the Government compels Bermuda's cable TV companies to include the Island's local channels in their line-ups. What I do not understand, however, is why it now wants to make the cable companies pay for the privilege.
Telecommunications Minister Michael Scott argues that the cable companies are making money from the local channels. I find it difficult to see how this is the case. Viewers do not pay additional fees to receive them. Indeed, it’s the channels themselves who seem to get the best deal from the current arrangement, as it gives them bigger audiences and hence more valuable advertising spots.
If the local channels are attractive to the cable companies, presumably the latter would have no problem paying for them (even if that’s because they knew they could pass the cost on to us). Only if they are not that attractive, and the cable companies wouldn’t pay for them, can I see the case for some element of compulsion.
By requiring the cable companies to air the channels and forcing them to pay, however, Mr. Scott is guaranteeing that the full costs will be passed along to us. We’ll have to pay for something that we currently get for free (and could still get for free with an antenna).
If Cablevision and WOW were to let us choose the channels to which we wished to subscribe, this may not be a bad thing. It would give us some say in which channels got our money, and might spur those channels to improve the quality of their programming. Those who wanted to save a few dollars could put up an aerial and watch the channels on that.
Alternatively, the channels might simply be bundled with the cable companies’ standard packages, the price of which would rise accordingly. We’d have no choice but to pay.
Bundling, however, is generally only necessary for niche channels, which would be unable to survive if they had to support themselves on fees or advertising alone. Most of Bermuda’s local channels are popular, though, so it’s conceivable that you could charge a subscription fee for them.
I wouldn’t fancy Fresh TV’s chances though. Maybe they should start thinking about a different distribution model – a la carte downloading and purchasing online, perhaps?
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I think the minister might ahve his priorities a little messed up, can this really be a huge issue? How much do local programmers want to charge? And there definitely wont' be an option, because lets face it, who is giong to pay for local content if not forced? Certainly not enough people to create funding for anything other than the local news. I personally quite like Michael Scott, I'm surprised to see him focusing his energies in such a bizarre small issue.
What I think he should be doing is looking to the future.
As has been discussed somewhat briefly on the topic about IB leaving, this seems another good time to push the idea of Bermuda being a 'testing ground' for new tech. Lets face it, Cablevision have been ripping off the public for years, between illegally obtaining channels and suddenly cutting them off when caught, to giving us ESPN in spanish (sorry what percentage of bermudians have spanish as a first language?) to charging absurd rates.
I personally have had a real run in with them about premiership football taht should show up on Fox Sports World. I lived in Philly at the time, and could watch the games on teh identical feed to what was airing in bermuda, up until they copy and pasted the Speed network over FSW when the game started. And tehy claim that its a problem on Fox's end, so why not leave it long enough to show the message from Fox saying the games are cut out? Why paste over with teh Speed channel. And why, interestingly enough, can the pubs get the games on that channel, through cablevision? Hrm...
Anyway, I digress. Bermuda would be a relatively easy place to install a high bandwidth network (such as ADSL2+ - which can run over existing copper), and run an IPTV service island wide. The government should be investigating this opportunity. 35 of the world's top 40 telco's are developping IPTV platforms, and are looking for small markets to test the technology. Given the problems that cablevision and wow have reachign some homes, IPTV can exist over normal phone lines, so has almost complete penetration. Content management is always the headache, but if we tied into a big Telco we could leverage from them. Plus the infrastructure would be invaluable for Bermuda's future.
Posted by Lost in Flatts on 02.12.05 at 07:32
Wow. Michael Scott has absolutely no business sense whatsoever. Good thing he's not helping to run a country... Oh wait...
Posted by Combat Banker on 02.12.05 at 07:50
Cunning financing plan for the gov TV station?
Posted by Fourth Estate on 02.12.05 at 08:29
Well I can guarantee they wont make money from advertising....
Posted by Combat Banker on 02.12.05 at 08:38
The Ministry just finished sponsoring a telecommunications forum where the pressing issues of the day were aired for the government to act on. This was not one of them. It makes no sense to pursue this when there are many other pressing priorities.
This is also an incredibly stupid proposal unless, as someone suggested, Cablevision is allowed to offer all channels ala carte. The channels should be happy they are legislated those timeslots.
Posted by silencedogood on 02.12.05 at 09:18
Since GOVTV is going to be a local television, this is a rather cunning way of making people pay for it/
Posted by Pitts Bay on 02.12.05 at 10:10
It sure is Pitts...it sure is.
Posted by ace on 02.12.05 at 10:45
The proposal might even get Fresh closer to breakeven ;)
This is an unfair proposal. The cable providers are actually providing a service to the local stations; if they were not on the cable offering, they would tend to be forgotten.
If I have to pay more for local TV, then I want them to drop advertising. How's that for a fair trade?
I'd support an a la carte offering. Many of the channels on cable are filler extraordinaire.
Posted by Tiger Bay on 02.12.05 at 10:53
Hey, guys. I have a great idea: pick any Bermuda company in which you have shares that, perhaps, hasn't been doing so well of late, write to your local MP and the Minister of Finance to explain that said company hasn't been doing so well and demand that legislation be passed to compel each and every Bermudian to pay to use the services of the company, regardless of whether they actually wish to use the company's services. Does this sound reasonable? Well, according to your Government, it is!
Posted by loki on 02.12.05 at 11:06
I'd ne willing to pay to not watch the local programming, especially freshTV - where do I sign up?
Posted by kate on 02.12.05 at 11:07
In the US, Cablevision has just announced its support for cable a la carte. Perhaps they'll consider introducing the same thing here.
Posted by Phil on 02.12.05 at 13:40
The new licenses issued by the PLP (to mainly to party insiders) have crippled the local broadcast media by spreading a limited advertising market even thinner - at a time when retail advertising has slimmed down dramatically.
Kenny Defontes says that 17,000 subscribers paying a $3 extra fee each month (to be divided amongst the broadcasters) would sure be helpful to his bottom line.
I'll bet: that would be a $204,000 annual windfall to each of the three TV channels.
Or put another way, it would be another $612,000 in annual taxes levied on the Bermuda public.
Maybe the PLP think that the broadcast news will be more supportive if they pay them off.
This is a VERY BAD IDEA all round.
Posted by Fourth Estate on 02.12.05 at 13:52
>>
In the US, Cablevision has just announced its support for cable a la carte. Perhaps they'll consider introducing the same thing here.
Posted by The Limey on 02.12.05 at 13:40
>>
Just like the cell companies will consider roll over minutes, and all the other deals and features the US offer... yeah right.
Posted by Somers on 02.12.05 at 14:22
This is nothing more than a cunning plan by the makers of rabbit ears - to make us ditch cable TV and tune in the old fashioned way.
:-)
Posted by Chris Broadhurst on 02.12.05 at 14:27
It is an affront on the ability of the market to regulate such issues.
Cablevision are legislativly LOCKED OUT of advertsing revenue. They charge the consumer directly. This is their model.
BBC / DeFontes contract with the affiliates and derive their revenue from advertisers who want to pay for shows like Oprah Winfrey and the Young and the Restless.
If they cannot justify their costs on the revenues they collect they should go out of business. This legislative approach is wrong.
Posted by jake on 02.12.05 at 19:56
For all those who are doing guess work on why the Government has plans to make the "must carry" a "paid must carry".
The problem is the Broadcasters are going broke because they have the following to sell:
TV News
Soap Opera
Oprah
Cricket
Christmas Special
24 of May
The broadcasters have lobbied Minister Michael Scott saying that they are jepoardy of going out of business. Minister Scott is listening to the broadcasters and sharing their view. However, the Minister is mistaken in placing the blame on the Cable companies. Why?
The TV stations are privately owned. If Minister Michael Scott decrees that WOW and Cablevision must pay the television stations, Finance Perry and Kenny Defontes will directly pocket the money.
The TV stations must create their own sources of revenue, not ask Minister Scott to extort it from the working man.
If you don't want to pay for local tv, write to Minister Scott and say:
"Free TV today; no way will I pay"
Posted by read on 04.12.05 at 17:47
From the p.o.v. of someone with only the rabbit-ears:
I recall an old TV commercial that aired here several years ago clamouring for us to support 'Free TV' or something like that... guess that campaign lost utterly in the end anyway.
While I'm not happy with the idea of paying for local TV, I accept that TV broadcasting is a business. And if the local stations go under and we're left with only the new Government channel then heck, bring on the cable and the extra $$ out of our wallets.
Posted by Triforce on 05.12.05 at 16:17
It's a way for the PLP to make money, its a scam. I say this because you can just switch your tv over from the cable setting to air and get the local channels. This could also be applied to a PLP channel, but you don't have to worry about that because it will never come into being, it's all just talk with lots of BS from the PLP.
Posted by 44-40 on 05.12.05 at 16:34
Cablevision pays approximately $400,000 a year in taxes (based on an estimate of their revenues and the 3% Gov tax they pay).
If Gov cares so much about local broadcasters, why don't they earmark some of that sum to supporting local musicians and creation of (positive not political) local content for the TV stations that might attract viewers and advertisers.
Posted by Tiger Bay on 09.12.05 at 17:38
Here's what CableVision boss Jeremy Elmas told me about the prospects for cable a la carte:
Posted by Phil on 12.12.05 at 15:01
Come on Michael....
No one should have to pay for local TV over Cable....That is a farce....
Look technology has changed....
Soon we will have everyone listening to Sirius satellite radio and XM radio....and we will have a great choice...instead of what we have had to endure for years....
the world has changed....and Bda Tv has not....they are operating with equipment from the dark ages....anyway...since content is king...and no one here seems to be able to come up with much more than the Gene and Jean show every year...who wants to watch local TV....
Give me a reason and I will...I am not going to pay for it...nor should anyone else..
The Minister used to be a really nice guy before he joined up with this band of brothers ruining our country on a daily basis !
Posted by Tony B on 12.12.05 at 15:14