The role of broadcast regulators in “the new television age” is not to place barriers or protect business models, but to be responsive to citizens, says the CRTC’s vice-chairman, Tom Pentefountas.
Speaking at the Culture et médias au défi de l’attention conference in Paris on Monday, Pentefountas said traditional TV no longer “holds a monopoly” on information and entertainment, and broadcasters and content creators must find new ways of bringing content to viewers as they move from appointment-based to on-demand viewing.
“The future of audio-visual content will not be built by erecting walls that will be ineffectual in the face of technologies focused on free movement,” he said. “We need to focus on conquering international audiences. Ignoring these new realities would be irresponsible.”
He described the arrival of Netflix – which launched in France in September 2014 – as an incentive for broadcasters to do better and be more open to new market trends.
“This is no longer the time for control and regulation,” he said. “We have entered the era of promotion.”
Pentefountas also outlined what he described as “the advertising challenge” for traditional broadcasters, noting that Canada’s private local stations experienced a 5% decline in local ad revenue and a 7.8% decline in national revenues in 2014 as ad dollars continue to migrate online.
He said ad insertion technology, enabling advertisers to target particular households by age, revenue and other demographic factors, could play a key role in the revitalization of the TV advertising industry.
He said 100 targeted viewers, divided into groups of 10, can be the equivalent of 1,000 viewers reached “randomly and unexpectedly.”
“We should therefore not be discouraged by a potential decline in audiences,” he said. “Rather, we need to use other tools available to us, such as those used by the digital competition to better monetize audiences.”
While noting that Canadian advertising is still dependent on ratings, he said the audience measurement system established in the 1950s was sufficient in the era of four TV channels, but has become “ineffective” in the multi-channel universe.
“Knowing who watches what is vital, since advertising revenue depends on it,” he said. “Precise measurement enables monetization, which means revenue that we can reinvest in content, which means jobs in the creative field.”
He said in a system where nearly one third (30%) of ad revenue is reinvested in content created by Canadians, there is a “responsibility” to maximize audience measurement. He said a measurement system using set-top boxes would allow the TV industry to better compete with data-rich digital platforms.
