PDA

View Full Version : HNIC To CTV?



Toswammi
08-15-2006, 04:51 PM
August 14, 2006


SCREEN SHOTS: CBC'S LOSS A COSTLY PROPOSITION
by Adam Proteau

As was made completely clear during the 2003-04 lockout, the NHL’s strategic business decisions can affect a considerable and varied group of people – including thousands not under the direct employ of Gary Bettman or Ted Saskin.

Food and beverage workers (inside and outside the arenas), ushers, and those in the hockey equipment industry, among others, were forced into abrupt career changes due to the season’s cancellation. For the most part, those folks suffered in silence, with nary a multi-million-dollar war chest to offset the pain. It was a brutal reminder of the precarious economic domino structure that allows people to make their next mortgage payment, and few who felt its sting will soon forget it.

Unfortunately, we’re about to witness another evolution in the NHL’s business plans, and its ripple effect on other enterprises. This time, though, the league’s decisions have the potential not only to again increase the unemployment rate, but also to fundamentally alter the fabric of a nation.

That’s the first thought that came to mind when we heard a private Canadian company – Bell Globemedia, whose massive portfolio includes the CTV national TV network, TSN (Canada’s top sports broadcaster), and a share of the Toronto Maple Leafs – intends to drastically outbid the government-owned Canadian Broadcasting Corporation (CBC) for the rights to show NHL games.

Now, if you’re reading this outside of Canada, other thoughts may have come to mind, including (a) Huh? and (b) How could a simple transfer of broadcasting contracts change the very nature of a country?

Here’s how: The CBC currently pays some $65-million annually to air NHL games on its stations, and doesn’t charge Canadians a penny more than they pay in taxes to watch those games. In return, the network generates more than $30 million each year in advertising revenue, which helps cover the costs related to its world-renowned news services.

If the CBC loses those rights when its contract with the NHL expires at the end of the 2007-08 season – and with Bell Globemedia’s initial offer reported to be in the $140-million-a-year range for 10 years, there is little doubt it will – its biggest moneymaker will shake for the competition, and the fallout on the public broadcaster’s hard news division will be horrendous.

Hundreds, if not thousands of jobs will be lost. Important documentaries and educational programs will go un-financed, un-purchased and un-aired. Sooner than later, the CBC will become PBS minus the ponderous pledge drives, reduced to airing Engelbert Humperdinck concerts for the blue-rinse demographic.

Indeed, when we talk about NHL broadcasting rights and whether or not CBC’s legendary Hockey Night In Canada program will become mere legend, what we’re really debating are the nature and focus of Canada’s national broadcaster.

Some feel the CBC is a tax-wasting propaganda tool of the country’s political left, and deserves to be privatized post-haste. Others believe the network provides a vital public service by keeping the population informed, and should be protected from advertiser pressure by fully bankrolling it via government funds.

We’re squarely in the latter group. And that’s not because this writer has been paid to appear on CBC programming for the last few years.

All you need to do is look at some of Canada’s other private broadcasters – such as the one that decided against airing live coverage of two separate provincial elections in favor of Friends and Survivor episodes – to see what bottom-line economics and ratings fixations can do to a newsroom. The CBC’s relative independence means it can afford to avoid Brangelina, Vaughniston and other symptoms of our celebrity-smitten culture, and instead pursue stories of real and lasting civic consequence.

Regardless of your leanings on the debate, there is little doubt the CBC is approaching the biggest crossroads in its history, and it is being delivered to the intersection by the NHL’s business interests.

In this instance, Bettman and the owners can’t be faulted for pursuing the best deal for their product (although some might argue moving games from “free” TV to cable will result in a viewer drain similar to the one that took place when the league left ESPN last year for a broadcasting deal with OLN). Bell Globemedia’s offer is simply too rich for any sane business executive to reject.

There is an outside chance the federal government could attempt to keep NHL games on the CBC choose by matching the $1.4 billion offer. But seeing as Bell Globemedia is hiring hockey experts from rival networks – as well as the fact they’ve already secured the rights to the Olympic Games in 2010 and 2012 – it is likely they would go the extra mile to beat the CBC’s best offer.

So it seems undeniable, and undeniably sad, that a relationship which has seen Hockey Night aired on the CBC for nearly 55 years will soon come to an end.

Sadder still will be the new reality for Canadians who value their news untainted by the odor of commerce.

Carebear
08-15-2006, 07:11 PM
That makes me sad.
:(

Number_4
08-15-2006, 07:38 PM
I think the saddest part of all of this, besides the fact that money will rule again, is the fact that so so many people without cable will not be able to watch NHL hockey. Imagine how many young players this may affect.

However, nothing is certain yet. We'll just have to keep our fingers crossed

SectionNDeserter
08-15-2006, 07:43 PM
The effect on the employees of CBC will certainly hurt, but by those numbers, if the CBC pays 65 Milllion for the rights to the games, and gets back 30 Million, the CBC will save 35 Million dollars by NOT getting the rights to broadcast NHL games. The bigger question would be why Bell Globalmedia would pay 145 Million dollars for something that has in the past, generated around 30 Million dollars in advertising revenue. :confused:

SeventhHeaven4U
08-15-2006, 08:14 PM
The effect on the employees of CBC will certainly hurt, but by those numbers, if the CBC pays 65 Milllion for the rights to the games, and gets back 30 Million, the CBC will save 35 Million dollars by NOT getting the rights to broadcast NHL games. The bigger question would be why Bell Globalmedia would pay 145 Million dollars for something that has in the past, generated around 30 Million dollars in advertising revenue. :confused:

Yes it is sad, money makes the world go around. What you're forgetting is that Bell will make much more than $30M is revenue due to the fact that all viewers have to pay for these services, unlike CBC... and more than likely there will be "special events" which will generate that much more moolah.

I'm sick of the money issues in everything! Nothing is done for the enjoyment of the public anymore, it is all about making alot of bucks.... Thank god we still have WHL hockey!!!

SectionNDeserter
08-15-2006, 08:28 PM
What you're forgetting is that Bell will make much more than $30M is revenue due to the fact that all viewers have to pay for these services, unlike CBC...I dunno, less market penetration to start with, and even fewer that are subscribed to it(people are cheap). Most of their money is going to be coming from advertising, which I don't expect to demand much more than the $30 million in revenue that it was getting previously. They will certainly make 'more' revenue than CBC was making with it, but $110 million more? I think the bigger question here is, what will this mean to Don Cherry? ;)

scamperdog
08-15-2006, 09:09 PM
Friends of the CBC can make anything sound bad, and thats all that story does, the time has come when CBC should stay out of main stream broadcasting and yes if that means becoming like PBS so be it, It will only make the private broadcasters in this country stronger and the chance to produce quality Cdn broadcasting with out CBC taking our tax dollars and the money that CTV or Global could use to produce good tv. As for HNIC its time for many of the employee to retire.

MJCO5
08-15-2006, 10:46 PM
Bell Globemedia Has a good chance at being able to outbid CBC for those rights and so will bring and end to an era but with this comes the fact with paying 45million a year more comes more advertising to pay for that bill what this will do is extend the already horrendous commercials brakes that fill up NHL games already it makes them almost intolerable to sit through and it tends to damage the game even more

Hatguy
08-16-2006, 12:04 AM
I say the saddest thing is there is no point in watching CBC anymore, besides The Hour, Rick Mercer and HNIC they don't have much to offer to my generation. No one wants to watch Coronation Street or David Suzuki all the time.

As for commercials during sporting events, I don't mind the hockey games, but the CFL! That's a different story, I hate watching the CFL on TSN. Hey! TSN is owned by Bell isn't it? Ohh boy!!!

nivek_wahs
08-16-2006, 12:28 AM
I say the saddest thing is there is no point in watching CBC anymore, besides The Hour, Rick Mercer and HNIC they don't have much to offer to my generation. No one wants to watch Coronation Street or David Suzuki all the time.

What about Chilly Beach? :laugh: :thumb:

Beaner
08-16-2006, 10:12 AM
The effect on the employees of CBC will certainly hurt, but by those numbers, if the CBC pays 65 Milllion for the rights to the games, and gets back 30 Million, the CBC will save 35 Million dollars by NOT getting the rights to broadcast NHL games.

That is something that the supporters of the CBC won't talk about. By not doing the games they come out with more money.

And those employees hurt by losing HNIC can move on to doing other things to fill the hole left by HNIC. Maybe the CBC could actually spend some of that money to make some quality TV programs, instead of buying foreign programs to show.


The bigger question would be why Bell Globalmedia would pay 145 Million dollars for something that has in the past, generated around 30 Million dollars in advertising revenue. :confused:

It only generated 30M in revenue airing on one station, on one day a week and only 2 games.

Bell Media will be able to air as many games as they choose to cover, and air them on as many stations, and as many times as they choose too. This will also more than likely give them priority over all the playoff games for Canada, which will genereate a boatload of revenue for them.

145M may be a loss for the first 2 years, but after that I would expect them to start making significant cash.

145M is a little over Double what CBC paid to air games, one night a week. It doesnt seem to me to be that high a price to air games 7 nights a week on multiple stations.

-----------------

I'm with Scamperdog on this one. Time for the CBC to start operating on its own, and if it can't then see you later.

Hatguy
08-16-2006, 01:13 PM
What about Chilly Beach? :laugh: :thumb:

You got me there. I forgot about Chilly Beach... lol

Toswammi
08-16-2006, 01:38 PM
I could care less about which channel is carring a hockey game. Sorry to say it, but i am not channel loyal, just team loyal.

Also if a company is willing to spend that kind of money on the league its always a good thing.