Source : Ottawa Citizen

It is not the CRTC's job to boost the profit margins of private-sector broadcasters, cable giant Rogers Communications Inc. told the regulator yesterday in a spirited attack on proposed subscription fees for conventional broadcasters.

Ted Rogers, chief executive and controlling shareholder, said the proposal is misguided because it would force consumers to fork over more money just to keep the package they already have. Moreover, the broadcasters have failed to demonstrate to the Canadian Radio-television and Telecommunications Commission why they need the money and how they would allocate it.

"This idea is trash," Mr. Rogers told reporters after testifying for two hours before a five-member CRTC panel. "This idea has no basis in fact and should not be supported ... (It) has probably the least reliable financial data that I've ever seen at a CRTC hearing. And it's certainly not clear who gets what funds and how the funds would be spent."

CRTC commissioners pressed Mr. Rogers on how he would like to see a subscription fee applied should the regulator heed the broadcasters' request. If one had to be levied, the Rogers CEO said, proceeds should go only to Crown-owned CBC and not to the private-sector players.

"Good grief, CTV Inc. is one of the most profitable media companies in the world," Mr. Rogers said, adding the company paid a 50-per-cent premium on CHUM Ltd.'s shares when it acquired its rival for $1.7 billion Cdn.

He added CanWest Global Communications Corp. has foreign assets and owns newspapers Canada-wide, all worth upward of $3 billion.

"These are hardly guys with their hand out," he said. "True, the profitability of individual broadcasters varies from year to year, but it's fair to say this has nothing to do with the absence of subscription revenue and everything to do with whether the broadcaster has been lucky enough to pick the right U.S. shows."

The big-name analog broadcasters have told the CRTC this week they should have access to subscription fees, just like their specialty TV rivals. The fees are needed, they say, because of a precarious environment in which ad sales growth is stagnant, households have more viewing choices and technology is changing the way Canadians catch their favourite programs.

In the event of a wide-ranging subscription, Mr. Rogers said the company would have no choice but to pass it on to its 3.3 million customers. Mr. Rogers said if the company was to absorb a $3-per-month per subscriber fee for conventional broadcasters, it would wipe out $350 million from its bottom line.

As an alternative, Mr. Rogers backs the broadcasters' efforts to push for liberalized advertising rules.

© Ottawa Citizen