I'm Mad as Hell

Icon

and I can't do a thing about it

Canada’s Own Evil Empire?

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, , , , , , , , , , , , , ,

Monopoly…a Canadian way of doing business

A lot of you will look at the deal to buy Maple Leaf Sports and Entertainment (MLSE) by Bell and Rogers as simply a sports deal. You may be questioning what this means for the future of your favorite sports franchise, be it the Toronto Maple Leafs, the Toronto Raptors, TFC (the soccer team), maybe even the Toronto Blue Jays or one of the other six NHL teams in Canada. If you are a sports fan in this country and whether you love the dismal Toronto franchises, or love to see them fail year after year, there are real sporting implications…the truth though, whether you like to hear it or not, is that the future of the Leafs success on ice is mostly irrelevant in this deal.

The sale of MLSE is about content rights, who will control the television, radio, internet, mobile, etc. rights to the sporting content generated by these teams. In those terms this is a very frightening deal. Bell and Rogers are already the two most powerful media conglomerates in Canada. They own and manage, some would say mismanage, 80 television stations including all of the major sports stations on TV. They own 88 radio stations including all of the major sports-talk stations. They will pick up an additional three television licenses that MLSE owns. Together they own the vast majority of Canada’s online and mobile services. You think that it’s just Bell and Rogers? Think again. They also own Virgin, Solo, ChatR and Fido, and of course the largest satellite and cable companies too.

It’s hard to believe that a few short years ago it was deemed illegal for a cable or satellite company to own a television station, let alone a network. Thank you CRTC.

This concentration of power will be bad for everyone. While Bell and Rogers are busy divvying up the nation, they leave little room for their competition. This means they can do with sports content what they have done with mobile technology and cable and satellite delivery. They can control access and they can control price. All you have to do to see the future is to look at what these to companies have done in the past. Canadians pay among the highest rates in the world for mobile service and internet access, and Bell and Rogers continually strive to keep competition out through influence on government and regulatory bodies and with unfair discount practices that disappear when the competition is wiped out. To quote Ellen Roseman in the Toronto Star, “Rogers and Bell bludgeon customers into accepting a flurry of extra charges for wireless phones. They hit them with unexpected bills for data roaming and third party text messages.”

Roseman goes to describe some of the dirty practices of Bell and Rogers that include discounts that evaporate before the subscriber ever sees them, raised prices that make the discounts offered moot, and of course, some 8000 complaints from Canadians to the government last year about how they are being treated by telecommunications companies like Bell and Rogers.

I expect to see access to Toronto’s sports franchises on radio and television to change in three ways, first, you will see far more games on Rogers Sportsnet and TSN and expect to see fewer games in which let’s say the Calgary Flames or Winnipeg Jets own the rights. Why pay the owners of a third party NHL club when you can pay yourself and fill the same amount of air time? Second, I see fewer opportunities for non-MLSE affiliated channels like CBC and Global to get the rights to the most popular sports entertainment. Finally, I see the possibility of a new pay channel that replaces Leafs-TV and Raptors-TV with a new sports channel that forces the public to pay big subscription fees to gain access to games that will no longer be available on any other channel, think MSG Network (Madison Square Gardens) or YES Network (Yankee Entertainment) two very profitable networks in the United States that control all of the most popular sports franchises in the New York City area.

Lastly I want to make a point about the way sports journalism will be affected. Since the owners of MLSE will now control virtually all of the sports broadcast media who will be left to criticize the missteps and worse the arrogance of this new sporting monster?

Will the guys at The Fan or TSN Radio take on their corporate bosses? Will they lose jobs and be punished for doing so? Does anyone see the conflict of interest here? Does anyone at the competition bureau or the CRTC care?

In the past few months Rogers and Bell have been busy buying the services of dozens of the best print sports writers to fill slots on radio and television and to write for new magazines. Most have quit their print jobs like Stephen Brunt, some like Damien Cox keep a foot in both camps. It is my contention that just about every sports writer in Canada is at least partially beholden to either Bell or Rogers. Sure you may write for a local paper in Vancouver that’s owned by the Post group or an independent in Toronto like the Toronto Star, but you all supplement your income, your reach and your popularity with appearances on one of the Bell or Rogers sports television and radio channels. Do you want to blow your chances for more guest shots? I think not. So, when the Toronto Raptors decide to spend less money and refuse to sign a free agent that’s available and who might make the team competitive, or merely watchable, will you write about it or just keep it to yourself? When TFC charges more for tickets than Manchester United (this is already a fact) will you shout about it in your column or is discretion a better road to take? For those of you who haven’t seen it, The Globe and Mail, which should stop calling itself Canada’s national newspaper, barely noticed this story. Why?

Sports journalism is for the most part an oxymoron in Canada. The last bastions were the daily newspapers in the major cities. Bell and Rogers have figured out how to co-opt even this small amount of opposition. Now it can only get worse.

Canadians in general and sports fans in particular will be the big losers if this deal is allowed to go through. The only way to stop it is if all Canadians get up of their backsides and scream at their political representatives. There’s one thing more powerful than the money and influence Bell and Rogers can and do wield, that is the threat of losing the next election.

Filed under: Media Commentary, Political Commentary, , , , , , , , , , , ,

About the Author

Howard Bernstein is a former TV producer. He has worked at CBC,CTV, Global and has produced shows for most Canadian channels as an independent producer.

Pages

Categories

Follow

Get every new post delivered to your Inbox.

Join 28 other followers