Most of the blogs I write are born in a news story or an event that grabs my interest and all but twists my arm forcing me to write something about it. This one is different. This blog is the result of an accumulation of upset that has taken years to come to terms with. I ask you, anyone who reads this column, is there a huge corporation in Canada that is more anti-consumer than Rogers?
Let me start with the easy stuff. Rogers brought the mobile phone industry to Canada, does anyone remember Cantel? They created a mobile telephone system that was ludicrously expensive and then created fictitious fees to gouge their customers even more, fees that we are still paying, for services that do not exist and never have. Sure Bell and Telus came along afterwards and jumped on board to overcharge Canadian consumers, but it was Rogers that created the pricing policies that make this country one of the most expensive in the world to own and operate a cell phone.
Canada was a leader in creating cable television. We were the first country in the world to use this system for disseminating TV signals. Many Canadians have a short memory about this industry. In fact Rogers bought into the industry, they had little to do with creating it. What Rogers added was higher prices and the inability to chose the stations you wanted. They bundled services so that if you want The Movie Channel, you have to buy a whole whack of stations you may not have any interest in. Worse, if you want Turner Classic Movies, you have to pay the big bucks for The Movie Channel to get it. It’s been close to two years since they promised the CRTC that they would give the consumer the choice to pay for only the stations they want, yet nothing has happened. The Rogers people gift to Canadians: little choice, higher prices and if I may add here, long telephone waits and poor service.
I will only mention Rogers internet service in passing. Canadians pay way too much for internet service, again, amongst the highest in the world. And, if that’s not enough Rogers has added insult to injury by using throttling to slow their service when it gets busy. You pay for fast service, but Rogers slows it down on purpose. While U.S. companies race to install fibre optic wire to help make their service better and quicker, Rogers uses old fashioned coaxial cable that in many cases is as much as forty years old. They claim the high prices are to increase bandwidth and new technology…where do we, the consumers, see the results of that money?
Don’t get me started on their television services. In a previous blog, The Rape of CITY-TV, I discussed how Rogers ruined one of the most unique and innovative television franchises anywhere. When was the last time anyone noticed CITY-TV? They also own Rogers Sportsnet. This started as a regional sports network with four channels, each aimed at a different part of the country. Then the tricky bastards at Rogers added Sportsnet One, put a lot of the most watched content on the new station exclusively and made us pay more to see the channel. Rogers also owns Omni, the multicultural channels with bases in Montreal, Toronto and Vancouver.
What did they do with those licenses? First they got rid of most of the multicultural content and replaced it with cheap U.S. game shows and sit-com reruns. They do news in Italian, Chinese and Hindi and run some movies in those languages but they produce very little else. What you may not know is that when you see a Russian show, an Arabic show or any other minority show, the minorities buy the time from Rogers and then have to find their own advertising dollars to pay for their work and what they owe Rogers for the airtime. Many actually lose money to provide their poor communities with a service while Rogers makes millions off them and billions in total.
Rogers also owns the Toronto Blue Jays. They should be embarrassed by their involvement. They have managed to turn the largest market for any single baseball team, 33 million in Canada and 5.5 million in the Toronto area into what they call a small market. Year after year they have underfunded the Jays, in fact the Jays’ budgets are the same today, about $60 million U.S., as when Rogers bought the team. What that doesn’t take into consideration is that the Canadian dollar was at 65 cents when they took over and is close to par today. That means they are actually spending 30% less today then they spent when they bought the team. No need to ask why the Jays have never gone to the post-season under Rogers’ ownership, the answer is all too obvious.
Now Rogers wants a piece of the Toronto Maple Leafs, Toronto Raptors, TFC, etc. Here they see an opportunity to parlay ownership of the teams into television content for their channels. If past performance is any example of future performance, don’t plan for any parades on Yonge Street…ever.
Over the decades Rogers has set the example of greed and gouging that has been seen and followed by the folks at Bell, Shaw, Telus and the rest. They could have been leaders in customer service, competitive pricing, quality television and performance excellence. They never chose those routes. All they have ever shown an interest in was maximizing their bottom line at the expense of their customers.
Who do I blame? Ted Rogers of course, but I also blame the CRTC and the Canadian government for allowing them to get away with the worst of their actions. How could the CRTC allow them to create phony charges for cell phone service? How could the CRTC have allowed prices to grow out of all proportion to other countries? How could the CRTC change their own rules to allow cable companies to own television stations? How indeed?
The people who ran and run Rogers should be ashamed of what they have wrought. The CRTC should be ashamed of what they have allowed to pass. Finally, successive governments of Canada, both Liberal and Conservative should be ashamed of standing by while the CRTC allowed Rogers to gouge the Canadian public.
I invite anyone from Rogers who wants to rebut anything to contact me. I will make space available to them to explain their side. I’m sure all Canadians would like to hear any explanation from Rogers.
Filed under: Media Commentary, Political Commentary, Bell, City-TV, CRTC, Omni-TV, Rogers Communications, Rogers Sportsnet, Shaw Communications, Telus, TFC, The Movie Channel, The Toronto Blue Jays, Toronto Maple Leafs, Toronto Raptors, Turner Classic Movies

April 8, 2012 • 8:21 pm 5
CBC: Failure at the top
It is all too clear that no matter what you think of the cuts to the CBC in last week’s budget, the people who run the Corpse have been missing in action in the process. Sure they will tell you how hard they have been working behind closed doors in offices and boardrooms across the country for the past while to figure out how to cut $200 million from their budgets over the next three years. The problem is that the real work they should have been doing was never done.
It seems, and this is according to CBC President Hubert Lacroix, that the government came to them a few weeks ago and asked them how they would cut 5% or 10% of their budget. I want to first say that this should be none of the government’s business. Yes, they can cut the CBC’s stipend any way and any amount they want to, but there is supposed to be an arms-length relationship between the national broadcaster and the government. The purpose of this is to make certain that there’s no political interference in the running of the CBC. By asking the Corpse how they would make the cuts the Finance Ministry and the Heritage Ministry crossed a line that should never be crossed for the protection of all Canadians.
Just as important though, the President of the CBC should not have provided the government with the answers they asked for. This was the time for Hubert Lacroix to take a stand, in fact many stands, against a government that recognizes no rules unless it suits them.
The first thing the CBC president should have said to the government was that the CBC could not deal with any cuts at all. The broadcaster is already underfunded and cannot do the job it has been mandated to do with the money it is already getting. I don’t know whether this is true or not, but it doesn’t matter. Lacroix is there to protect the CBC’s budget and mandate not to give it away whenever the government comes calling.
Certainly the Harperites would have cut anyways, but at least Lacroix should not have made it easy for them.
Second, Lacroix and company should have appealed publicly to all Canadians. He should have held a media conference to say that the Tories were planning to cut the CBC budget. He should have explained the consequences to his organization and to all Canadians. In other words, he should have put up a fight. It’s his job to make it difficult to hurt the organization he runs, not to make it easy.
Third, Lacroix should have told the government it is none of their business how he will make any cuts if they are forced on him and the CBC. Once again, that’s his job, to protect the CBC not to help the Finance Minister balance his budget.
In the end Lacroix committed the biggest crime of all. He told CBC staff and all Canadians that CBC could not only absorb the cuts, but that his 2015 plan would still be able to go ahead. He made the cuts look like it was no big deal to the average Canadian. He gave Canadians no reason to protest, no reason to care.
If you don’t believe me, just check out what the Heritage Minister, James Moore, said when he was questioned about the cuts in question period. He said:
“I would encourage my honourable colleague to look at the speech that was given by Hubert Lacroix, president of the CBC, that outlines it in greater detail, and as a matter of fact the member opposite has it exactly wrong,” he said. Moore then used his time to explain that the budget allows for the “funds necessary for the CBC to fulfill their obligations under the Broadcasting Act.”
The network will still be able to fulfill its 2015 plan which, he said, includes maintaining coverage in all areas, maintaining its official language “footprint,” more “digitization,” and to become “leaner”. The plan “serves the interest not only of the cultural communities but also of taxpayers.”
Talk about an easy out. Thank you very much Hubert Lacroix!
From the performance I have seen over the past week from CBC brass I find it near impossible not to believe that Lacroix, Kirsten Stewart and French V.P. Louis Lalonde appear to be far more interested in keeping their jobs by making the government like them, than they seem to care about the future of the CBC.
It’s too bad really, just when the CBC needs strong leadership most, it becomes obvious that the folks running the corporation are petty bureaucrats whose only interest is self-preservation. Past CBC presidents have resigned their posts over far less.
As far as the actual cuts are concerned, there is little specific information available at this time. Lacroix and his hench-people promised more information soon. What is clear is that $43 million is going to be cut from English programming. Kirsten Stewart refuses to say, at this time, whether that will come from entertainment, sports, or news. We do know that the doc unit is gone, at least as far as making documentaries is concerned. CBC will basically become a buyer of docs in the future.
We were also told that 10% of managers will be cut. We were not told whether this referred to salary or numbers. CBC is still massively over managed. Few managers have been cut over the years. I, and almost anyone who has ever worked for more than one network in Canada, am amazed that CBC honchos can’t cut far more from management to protect programming and the people who actually make the shows.
Lacroix estimates that 81% of the cuts will come from the networks (French and English) and 19% from the regions.
All-in-all a sad time for the national broadcaster: unloved by government and un-led by it’s bosses. If there is any justice in the world, Lacroix will not have his contract renewed. Nobody likes a suck up, not even the folks he’s sucking up to.
Filed under: Media Commentary, Political Commentary, CBC, Heritage Minister, Hubert Lacroix, James Moore, Kirsten Stewart, Louis Lalonde, Minister of Finance