Chapter 12: Maintaining a Single System – The Digital Transition

In this chapter, the Lincoln Report describes the challenges facing the broadcasting industry and the unsettling obstacles ahead. In the beginning of the chapter, the Lincoln Report describes the availability of broadcasting in more remote areas through DTH satellite services. The Committee predicts that there will be continuous technological revolutions in the next 10 to 20 years and will therefore put “incredible strains on the Canadian broadcasting system”.

In a call for comments, the Lincoln Report found that there was significant approval that radio frequencies will now change to a digital format, television will go from analog to digital, and that specialty programming will grow rapidly and shift into a digital platform. The result, as witnesses have stated, is the expansion of new revenue streams and efficient transmission capacities as well as the quality of signals. However, despite these amazing benefits, there are also drawbacks that may slow down the pace and transition of the development. These drawbacks include: the cost of equipment and copyright, and the investments will be uncertain.

This digital transition may prove to have a significant impact on current legislations, particularly the Broadcasting Act and the Telecommunications Act. In this digital transition, policies will try to re-amend and repair the Broadcasting Act to serve changes in production and the distribution of content. The digital transition is also changing the business model, and there are uncertainties about the idea of innovation and experimentation. Furthermore, the Lincoln Report stated that coherent public-policy frameworks need to be established early on in response to this digital transition.

In order for Canada to respond adequately to this digital transition and embrace it, the Committee suggests that federal departments and agencies carefully organize a highly detailed plan to help businesses in the private, public and non-profit stakeholders. Furthermore, there should be an inclusion of detailed standards to properly monitor and inspect diversions in policy-agreed concepts. There should also be significant access granted to individuals in remote areas. There must also be significant regulatory support and adequate support for the growth of new revenue streams.