Canadian Television Networks: Bound to Fail

If Canadian television networks have any hope of surviving into the next decade, they need to drastically alter their business model.

The concept that you can survive and thrive by being nothing more than a re-broadcaster of internationally produced (read American) content is comical.

The media world is now officially flat. Cultural protective barriers are bound to fail. Technology allows the consumer to easily circumvent any regulatory barrier.

I presume we’ll see that broadcast web channels will become a profitable proposition. That more revenue will be generated by an online website vs. selling the re-broadcast rights to broadcasters in various countries. If that happens, why would a content producer bother re-selling their content if a global audience comes to their website?

Further that, what’s the point of a broadcaster if the content producer can obtain a large enough audience? What’s the value of NBC, CBS in an online world? Broadcasters have long thrived in a monopolistic world where technology and costs were massive barriers to entry and provided great controls over competition.

In the new world of reliable high-speed – it’s not the broadcaster that matters but rather the content.

CTV has slowly begun experimenting with an online parallel channel. Yet, it’s purpose is to be a re-broadcaster of American content. Taking advantage of restrictions on the web – they think they can survive with a cable industry model in an online world. Well good luck with that one.

Hulu – NBC’s broadcast network currently is limited to American only audiences. But for how long. Why would NBC (or the content producers) work with international broadcasters for replay rights if they can attract enough audiences in the homes of Canadians?

Why not circumvent a Canadian broadcaster and earn advertising revenue directly. Why wouldn’t a company not want 100% of the profits?

I’ve said this for years – content is king – who creates and owns the content will thrive in an online world.

The days of earning great sums of money simply by slapping your logo on someone’s else’s content is going to die. If Canadian networks want to grow – they need to become the makers of content. Look at the BBC who disproportionately export large sums of content in comparison to it’s domestic television market.

There’s an appetite for Canadian television – it’s just lacks the investment by our own broadcasters.

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