Licence and Poetic Licence: A Critical Examination of the Complicated Relationship Between the CRTC and Specialty Channels

Abstract

Specialty channels in Canada earn revenues from cable carriage that are rarely commensurate with their audience size. These revenues are potentially so lucrative that prospective operators often make unrealistic promises to the CRTC regarding the channels’ original and Canadian content. In exchange for these promises, the Commission limits competition among specialty channels. Once a licence is obtained, however, specialty channels quickly attempt to extricate themselves from their burdensome promises in order to maximize profits and establish stronger advertising revenues. In some cases, specialty channels attempt to redefine themselves in ways that depart significantly from their original promises. Specialty channels can improve their chances of securing changes to their licences through strategically timed applications. In a misguided attempt to promote Canadian programming and curb the dominance of American broadcasters, the CRTC is not allowing specialty channels to properly prepare for a future that may not include lucrative revenues from cable subscription fees.