TV grapples with Netflix effect as more consumers cut cable ties

Originally published in Business in Vancouver on May 18, 2018.

At the end of the 2016-17 television season, The Big Bang Theory was the most popular television show in the United States, with a rating of 11.5.

This means that, whenever a new episode of the comedy show aired live, an estimated 11.5% of all television households in the country were watching it on their local station.

This might seem like a fantastic number for television producers, but it outlines a steady decline in traditional viewership.

Ten years earlier, in 2006-07, the most popular television show in the United States was the Wednesday edition of  American Idol, with a rating of 17.3. If we go back to 1996-97, ER topped the charts with a rating of 21.2. Ten years earlier, in 1986-87, the most popular television program in the United States was The Cosby Show, with a rating of 34.9.

At the time The Cosby Show managed to get more than a third of television households to tune in to NBC, a show with an 11.5 rating would not have made it into thetop 40. Its producers would have faced a reboot or cancellation. Now, reaching more than 10% of television households in a given night is cause for celebration.

The steep drop in live television viewership has been accompanied by advancements in technology. Personal video recorders and streaming video were still in their infancy in 1997, but became more prevalent 10 years later and are practically everywhere now. It is the ability to choose content that is making North American audiences abandon the tradition of waiting a week (or longer) for their favourite program.

Canada is not immune.

Most of the content Canadians can watch on prime time is shown on American networks and makes its way to our homes through cable television. A recent Research Co. survey shows that age and region play a role in the way we are reacting to the content that is at our disposal.

For starters, a third of Canadians (33%) have cut the cord and do not have cable television at home. More than seven in 10 Canadians aged 35 and over are keeping their cable, but millennials – a coveted group for advertisers – are looking elsewhere. Only 54% of Canadians aged 18 to 34 have a cable subscription.

This discrepancy presents a conundrum for advertisers, marketing managers and news content providers. Millennials are choosing other platforms for their content, with streaming services fast becoming a staple of their media consumption.

Among the cable subscribers we talked to, the feelings are not exactly pleasant. There is practically universal agreement with two thorny issues: 88% of Canadians say there are many channels included in their current cable television plan that they never watch and 85% agree with the notion of “paying too much money for cable television each month.”

The arrival of ultra-cheap cable packages has not made Canadians happier about their television content. Flipping through channels that are never watched can be cumbersome.

This unpleasantness is also reflected in the fact that a slightly smaller but still sizable proportion of Canadian cable subscribers (70%) say they are disappointed with the variety of programming they are getting from their cable television plan. The numbers are highest in Atlantic Canada (78%) and British Columbia (75%). This is not a stat that should be spurned by our province’s media providers: three-in-four B.C. residents with cable are dissatisfied with what they are paying for. If these current consumers become more aware of cable-less options, as millennials clearly have done, they might opt to cut the cord.

But cutting the cord has provided a different challenge for governments. With streaming services gaining prominence, the idea of a “Netflix tax” consumed a lot of airtime and ink last year. In the end, the federal government ultimately abandoned this idea, which is especially popular only in one province.

In Quebec, the provincial government has compelled streaming services to start charging the Quebec Sales Tax in 2019. The Quebec government seeks to generate approximately $270 million each year from this move and ensure that local content providers – which might have a hard time being featured on streaming services – can compete with American behemoths like Netflix or Amazon Prime Video.

At this stage, the Netflix tax seems like a distant memory in English Canada. But if consumers continue to walk away from traditional television, federal and provincial governments might consider following Quebec’s lead, even if protecting local culture is not invoked as the main reason for their action. 

Photo Credit: Gage Skidmore

Half of Canadians Reject Taxes on Streaming Services

Quebec is the only region of the country where the idea is widely supported.

The idea of paying provincial or federal sales taxes for online streaming services is rejected by half of Canadians, a new Research Co. poll has found.

In the online survey of a representative sample of Canadians, 51% of respondents disagree with the idea, while more than a third (36%) agree with it.

Last year, the federal government suggested that companies that provide streaming media and video on-demand online—including Netflix, iTunes, Amazon and Spotify—should be taxed in Canada, with any revenues generated from this tax being used to fund Canadian film and television productions. Because these companies have no physical presence in Canada, they are currently not compelled to collect or remit provincial or federal sales taxes.

In the end, the federal government announced it would not tax streaming providers, and Netflix announced a $500 million investment in original Canadian film and television productions.

Rejection to a tax on streaming services is high across most provinces, with one glaring exception. While large majorities of Canadians in the Atlantic Provinces and the Prairies are opposed to this tax, 54% of Quebecers are in favour of it.

The Government of Quebec announced in March that it will require foreign-based online services to collect the general sales tax (GST) from its customers, starting in January 2019. Quebec claims it is losing up to $270 million each year by not collecting these taxes.

“This is an issue where Millennials and Baby Boomers across the country are in agreement,” says Mario Canseco, President at Research Co. “These two groups have the highest level of opposition to a tax on streaming services.”

Methodology:
Results are based on an online study conducted from May 7 to May 11, 2018, among 1,000 adults in Canada. The data has been statistically weighted according to Canadian census figures for age, gender and region. The margin of error—which measures sample variability—is +/- 3.1 percentage points, nineteen times out of twenty.

Find our full data set here and download the press release here. 

For more information on this poll, please contact:
Mario Canseco, President, Research Co.
778.929.0490
[e] mario.canseco@researchco.ca

Corporate world not without its lamentable #MeToo moments

Originally published in Business in Vancouver on February 23, 2018.

By now, most Canadians – and British Columbians – are familiar with the sudden downfall of Patrick Brown, the man touted as the “next premier of Ontario” whose political aspirations came to an end in the span of six hours following a CTV News report that outlined serious allegations of misconduct.

We can now add Brown’s name to a growing list of men in North America who have faced the consequences of the #MeToo movement. Most of them made a living in entertainment and politics. But is sexual harassment prevalent only in these two areas of professional life?

The answer is “No.” Research conducted last year found that more than half of working women in Canada have experienced “conduct, comments, gestures or contact of a sexual nature that caused them offence or humiliation,” and three in 10 endured “conduct, comments, gestures or contact of a sexual nature that they perceived as placing a condition of a sexual nature on their employment or on any opportunity they might have for training or promotion.”

This incidence is simply too large to be exclusively representative of show business and public service. A majority of working women in Canada say they have been sexually harassed, but many of them lacked any mechanism for a successful resolution. Fewer than three in 10 women who have experienced sexual harassment reported it to a human resources department or a superior.

When asked why they decided to keep quiet, the women we spoke to detailed how difficult it was, and still is, to deal with these regrettable incidents.

“It was a small company, where the offender was the superior in charge,” wrote a woman from British Columbia. “It was the superior doing it,”, explained another from Atlantic Canada. In both of these cases, reporting was regarded as futile.

What about human resources? It doesn’t always go as planned, as a woman from Alberta told us: “The offending comments were made in the presence of the HR representative.”

In other cases, the behaviour of employees was simply normalized by management.

“Everyone knew this individual was crude in speech,” revealed a woman from Ontario.

None of these women worked in entertainment or politics. While there have been some highly publicized instances of executives behaving badly – particularly after bounteous amounts of alcohol – we have not seen many women coming forward to out sexual harassers in the corporate world.

While most cases of sexual harassment involve co-workers, there is a lamentable proportion of instances where the boss, manager or superior behaved in an abominable fashion. Across Canada, 40% of the working women we spoke to say they have listened to unwanted jokes with sexual content from the person they were reporting to, while 23% listened to unwanted sexual comments, conversation or innuendo. One in five (21%) report unwanted physical touching, cornering or patting, and 18% have been subjected to catcalls, whistles or being referred to using derogatory or demeaning sexual terms. Lastly, 13% felt unwanted pressure for dates. From their boss.

We might be tempted to assume that if something is not happening to the majority of working women in the country, it can be dismissed. When it comes to sexual harassment – especially when it originates from a superior – one case is too many.

In its essence, sexual harassment is related to power. A female employee with what the “Old Boys club” could describe as “the right kind of attitude” might look forward to bigger paycheques and promotions. Speaking out against abuse, or refusing the sexual advances of superiors, can signify the end of the line at a company. The conversation about sexual harassment in Canada is starting. Our survey shows that many women lack confidence in their company’s current guidelines to deal with specific transgressions. They also need assurances that their careers will not be affected if they decide to come forward. Addressing both of these issues is fundamental to bringing an end to this practice.

So, no, it is not a tough time to be a politician, a film producer or a boss. It is a tough time to be someone who behaved, or behaves, in an unpalatable, abhorrent and abusive fashion. And, as the recent high-profile cases have indubitably proven, when it comes to sexual harassment, there is no statute of limitations.

How do Canadians feel about the justice system?

Originally published in National Observer on February 16, 2018.

Four months before the not-guilty verdict in the killing of Colten Boushie ignited concern across Canada, a poll indicated that half of Canadians believe the justice system has not done enough to address bias against Aboriginal Canadians.

The poll also indicated that only half of Canadians who have been to court in a criminal case found the outcome fair. The poll suggests seven in ten Canadians regard the justice system as “too soft” on criminals. And a vast majority say justice takes too long.

The findings were in an online poll in October, 2017, released now to show that some of the controversy ignited by Gerald Stanley’s acquittal for second-degree murder was already smouldering.

The findings provide a glimpse into how Canadians regard the justice system on other issues made topical by the Boushie case: delays, leniency, and quality of counsel.

Controversy over the justice system, notably the treatment of Aboriginal people, burst out after Stanley, a 56-year-old Saskatchewan farmer, was recently acquitted of second-degree murder in the shooting death of Boushie, 22, a member of Red Pheasant First Nation.

The verdict was delivered by a jury and set off protests and solidarity gatherings in many communities across Canada, as well as federal government promises to address concerns about the justice system.

The poll indicated a huge 84 per cent of Canadians—and 87 per cent of those who have interacted with the justice system—think more resources are needed and that cases take too long.

Fifty-two per cent agreed with the statement: “The justice system has not done enough to address bias against Aboriginal Canadians.”

Seven in ten Canadians and 76 per cent of those who have been to court said that the justice system is “too soft” on offenders when it comes to criminal cases.

Finally, a view shared by 87 per cent of Canadians and 89 per cent of those who interacted with the justice system: “The outcome of cases depends heavily on how good your lawyer is.”

Half of those polled had never had direct interaction with the justice system. The dealings of the remaining Canadians can be summed up as “traffic and bylaw” (25 per cent), “family” (24 per cent), “criminal” (16 per cent) and “small claims” (15 per cent).

We asked those who actually went to court to say whether they found the outcome “fair” or “unfair.” Majorities of those who dealt with “traffic and bylaw” (such as disputing a driving ticket or parking violation) and “family” (such as divorce, custody or spousal support), said the outcome was fair (fifty-nine per cent and fifty- six per cent respectively).

Canadians who went to small claims court (which usually entails unpaid accounts for goods and services) were almost evenly split, with 50 per cent saying the resolution was “fair” and 48 per cent “unfair.”

“Half say the justice system is unfair.”

The perception of impartiality was lowest in criminal cases, with 47 per cent calling their day in court “fair” and 48 per cent calling it “unfair.”

On criminal cases, there were significant regional differences. Quebecers and Albertans were the least likely to call the resolution “unfair” (34 per cent and 40 per cent respectively), while Ontarians (53 per cent) and those in Saskatchewan and Manitoba (63 per cent) were the most likely to feel duped.

Some of the divisions outlined in the survey are expected. A parking violation may not have gone your way, and visits to family court and small claims court often lead to settlements that end up making everybody unhappy. But a near 50/50 split on the perception of fairness in criminal court cases is noteworthy.

The situation becomes direr when we ask Canadians why they feel dejected after a criminal case.

“The defendant received nothing but a slap on the wrist,” wrote a man from Atlantic Canada. “When all was said and done, he could pay his debt to society and get on with his life—I am still paying the price for what he did and will likely continue to do so.”

“The person I had seen stealing was let off because the lawyers said he mistakenly thought it was okay,” wrote a man from Ontario.

“As a witness, I was subjected to complete character assassination by the defence counsel,” wrote a woman from British Columbia. “Police investigated, recommended charges to Crown, Crown approved the charges, but the justice system failed.”

Overall, Canadians do not give stellar marks to the justice system. On a scale of 1-10, only 24 per cent rate it eight or higher and 17 per cent rate it three or less.

Delays, leniency, bias against Aboriginal Canadians and quality of counsel: these are not new issues that deserve a look only after a specific case captures our attention. Canadians who have dealt with the justice system know this all too well.

Image credit: By Saffron Blaze