The federal broadcast regulator embarks on hearings today to overhaul the rules controlling what Canadians watch on television, but industry players are already painting a conflicting picture about what consumers actually want to see.

Cable and satellite television companies are pushing the Canadian Radio-television and Telecommunications Commission to streamline the regulations governing their industry, arguing the current set of "archaic" rules is stifling consumer choice.

Canadian-content advocates, meanwhile, released a survey yesterday suggesting nearly three-quarters of Canadians believe extensive deregulation of those television service providers will result in a "diminished" program choice.

Rogers Communications Inc., which will kick off today's proceedings, is among those pushing for more latitude on how television services are packaged, arguing a pressing need for a more "consumer-focused framework."

Ken Engelhart, senior vice-president of regulatory affairs, said Canadians want more choice and are increasingly turning to the Internet, grey market satellite dishes and even "illegal" options to get that choice.

"You've got the Internet, you've got Joost, you've got all of these things.

"They are giving people a different way of watching television," Engelhart said in an interview.

"You can kiss goodbye to your cable company, even your broadcaster. You can simply watch all this stuff over the Internet, and people are."

Rogers argues that lessening the regulatory burden on cable providers will give consumers "a reason to choose to stay within the regulated system."

Toward that end, most cable and satellite companies are asking the broadcast regulator to replace current "access rules" with a "simple preponderance obligation" that would require at least 51 per cent of the services received by viewers to be Canadian.

Critics say that implies a "lessening" of Canadian-content obligations, which could result in a potential loss to the domestic broadcasting system of as much as $750 million a year.

Engelhart, however, argued that a "desire to avoid consumer disruption" means the overall ratio of Canadian to foreign services is "unlikely to change, even in the absence of a preponderance rule."

Keeping consumers in the regulated system, he added, hinges on the ability to make television more like the Internet. In that vein, Rogers is asking the regulator to simplify the rules for subscription video on demand.

"Right now, we are doing video on demand with two hands tied behind our back," Engelhart said.

Of key concern is the prohibition of advertising, which cable companies say discourages broadcasters from providing content. The no-ad rule is in place because video on demand was originally classified as a "pay-TV" service, much like stand-alone channels that deliver movies.

Additionally, Rogers is pushing to end a one-week time limit on video on demand programming packages to provide consumers with a "longer window of availability for popular titles."

Said Engelhart: "We think the role of the CRTC in this hearing should be to get the system better able to compete with the Internet. So, part of it is, let's get rid of all these complicated rules that really aren't making it easier for us to satisfy customers."

Canadian-content advocates, however, say consumers want the regulator to be a "guardian of Canadian culture" on television. They point to a survey that suggests Canadians simply "don't trust that deregulated cable and satellite companies would promote and deliver Canadian content on the small screen."

The Pollara survey of 1,200 Canadian cable and satellite subscribers was commissioned by ACTRA, the Communications, Energy and Paperworkers Union of Canada, Friends of Canadian Broadcasting, Stornoway Communications and the Writers Guild of Canada.

Of those surveyed, 74 per cent think that "less regulation is likely to reduce the choices of Canadian programs on TV."

Underscoring that suggestion is another key finding that "87 per cent believe cable or satellite providers would likely favour channels they own over independent channels."

Moreover, more than half believe Canada's television-production industry would not survive in an unregulated cable and satellite environment.

The survey's findings, released at Stage 3 of Toronto Film Studios, even received some celebrity backing. R.H. Thomson, one of Canada's leading film, television and stage actors, said industry deregulation would be a "business dream" for cable and satellite companies, but a nightmare for consumers passionate about Canadian content.

"What's missing from the CRTC hearings ... is the Canadian public," Thomson said.

In fact, the survey also found only 15 per cent of Canadians were aware of proposals to reduce cable and satellite regulations.

Ian Morrison, spokesperson for media watchdog Friends of Canadian Broadcasting, said U.S. channels will flood the system if TV distributors are given more choice over how they package content.

"It will always be cheaper for cable and satellite distributors to import U.S. channels; that's obvious."

The results are based on 1,200 telephone interviews from March 14 to 19 and are considered accurate to within plus or minus 3 per cent, 19 times out of 20.

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