Video Age International June-July 2008

Canada Airs TV Fees To PM Ear Afight between Canada’s cable industry and two of its national TV networks has landed at the country’s Prime Minister’s office, with both sides pleading their cases directly to Stephen Harper. Canadian TV networks CTV and Global want to start charging cable and satellite carriers for their signals — a plan that could be worth C$295 million to the broadcast industry. But the nets are facing opposition from distributors, who have said they would add the fees to consumers’ bills. Instead of waiting for the federal broadcast regulator, the Canadian Radiotelevision and Telecommunications Commission (CRTC), to rule, the two sides decided to go the unconventional route and write letters to Harper. Calgary-based cable operator Shaw Communications Inc. wrote to the Prime Minister in April, criticizing the nets. CTV responded with a letter of its own in which it said that networks are sick of giving their feeds to distributors for free since the distribs make large profits from the service. In response to that, the cable and satellite companies argued that they give the broadcasters access to millions of homes, thereby boosting their ad revenue. Worried that government officials would intervene before the CRTC could adequately assess the merits of the dispute, CTV said it felt “compelled to correct several fallacies” in Shaw’s letter. “I encourage you and your government to let the process continue and allow the CRTC to complete its review,” wrote Paul Sparkes, vice president of CTV globemedia Inc. CTV and Global have proposed a monthly fee of 50 cents per cable and satellite subscriber. Should the fees be approved, the cable and satellite companies have made it clear that they intend to pass them on to consumers, rather than pay the fee themselves. Of the C$295 million that has been proposed, CTV and Global would get about C$150 million. The networks have said that they plan to spend the money on local programming across the country. CNN Sued For Criticizing China Time Warner Inc.’s CNN and one of its commentators, Jack Cafferty, have been sued for $1.3 billion by a Chinese citizen and a U.S. citizen who claim they were defamed by remarks that the TV net said were aimed at China’s government. The lawsuit –– which asks for “$1 for every Chinese national CNN and Cafferty offended” –– follows comments made by Cafferty on April 9 when he said that Chinese exports were “junk” and referred to the Chinese as both “goons” and “thugs.” China’s foreign ministry immediately spoke out, saying the comments “slander” the Chinese people. Plaintiffs Li Lan Li, a retired Beijing elementary school teacher, and Lydia Leung, a Flushing, New York beautician, called the statements “defamatory, malicious, slanderous and libelous,” and have asked for damages on behalf of all Chinese. On April 16, CNN apologized for the comments, saying: “Jack was offering his strongly held opinion of the Chinese government, not the Chinese people. CNN would like to clarify that it was not Mr. Cafferty’s, nor CNN’s, intent to cause offense to the Chinese people, and would apologize to anyone who has interpreted the comments in this way.” Power PR Firm Launches Web TV Up-and-coming media talents now have a chance to win major contracts, thanks to Edelman Studios, a new program created by powerful New York-based public relations firm, Edelman. On April 28, the company launched a branch that connects talented amateur content creators with big-name companies looking for innovative advertising ideas. The program operates by gathering and developing Web content with commercial potential, including Web series, short films and viral videos. Hopefuls from this pool will have a chance to compete for professional contracts. Edelman Studios has signed an impressive client roster, including such heavy hitters as Burger King Corp, Butterball, Expedia and Kraft’s Philadelphia Cream Cheese. The companies involved are looking to come up with novel ways to reach their customers. Content submissions can be from any medium from video to mobile, and those selected will team up with members of Edelman’s entertainment arm to complete assignments. JU N E 2 0 0 8 (Continued on Page 6)

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