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INDEX: Television Industry, Television, Media, Satellite Technology, Forestry And Timber, Consumers, Satellite And Cable Service, Business,...(Canadian Press DataFile Via Acquire Media NewsEdge) INDEX: Television Industry, Television, Media, Satellite Technology, Forestry And Timber, Consumers, Satellite And Cable Service, Business, Entertainment TORONTO _ Canada's conventional television broadcasters praised a ruling Monday that they say takes an important step towards fairly compensating them for their programming while boosting funding for local shows. The CRTC said it has increased the size of a fund for local television stations to more than $100 million for the 2009-10 broadcast year. The regulator also invited Canadians to share their views on a number of issues, including "the provision of revenue support for conventional broadcasters" by establishing the fair market value of their signals. The CRTC will hold a public hearing starting Sept. 29 in Gatineau, Que., to discuss the development of a new regulatory framework for Canadian television. The decision marks another step in the CRTC's attempt to devise a policy for small- and medium-market stations, whose survival is threatened by competition from specialty channels and slumping ad revenues. Conventional TV providers, which saw their profits plummet by almost 93 per cent in 2008, had asked the CRTC to begin charging cable and satellite distributors for carrying their channels. Currently, specialty channels collect money from subscribers but conventional broadcasters don't get a cut when their shows are aired on cable or satellite TV. "The rapid evolution of the communications industry is forcing everyone to rethink the model for conventional television broadcasters," CRTC chairman Konrad von Finckenstein said in a statement Monday. "This fall, we will develop a new framework that will give broadcasting ownership groups the flexibility to adapt to this changing environment. However, in exchange for greater flexibility, we expect broadcasters to make meaningful commitments regarding the production, acquisition and broadcast of high-quality Canadian programming." CTVglobemedia spokesman Paul Sparkes said the CRTC's call to establish the fair market value of broadcasters' signals is what the conventional television industry has been seeking. "Having the ability to negotiate fair market value for the distribution of our programming is key to the future viability of local television and the commission recognizes that," Sparkes said. "Obviously there's a lot of work to do before we get to that point but the commission seems in their statements today to be very adamant that there is value in local television and we just need to find a way to be able to negotiate with the cable companies compensation for that." John Douglas, a spokesman for Canwest Global Communications Corp. (TSX:CGS), owner of Global Television, described Monday's ruling as "a good first step." "What we see is a clear recognition that we're not receiving fair market value for our signals, and we look forward to participating in that discussion and moving towards a system that does not require people to pay more but simply divides up what is being paid out now more fairly between the different players in the industry," Douglas said. Conventional broadcasters like CTV and Global had claimed that the lack of a carriage fee was hurting their ability to provide local programming in small markets, and three stations owned by CTVglobemedia and five E! stations belonging to Canwest have been either slated for closure or put up for sale in the past year. Shaw Communications Inc. (TSX:SJR.B) initially agreed to buy the CTV stations _ in Brandon, Man., Windsor, Ont., and the southern Ontario town of Wingham _ but pulled out last week. Sparkes said the CRTC's decision to boost funding for local programming will allow CTV to "review" its plans for the Windsor station. Under the ruling, cable and satellite companies will contribute 1.5 per cent of their gross broadcasting revenues to the fund, an increase of 0.5 per cent, increasing total funds available from $68 million to over $100 million for the 2009-10 broadcast year. Television stations in markets under one million people will be able to draw on the fund to support news and other types of local programming, the CRTC said. Not all reaction to the ruling was positive. Cable providers Rogers Communications Inc. (TSX:RCI.B), Cogeco Cable Inc. (TSX:CCA) and Bell (TSX:BCE) criticized the CRTC for the move towards making cable and satellite providers pay conventional broadcasters for their local programming. "The CRTC is seeking to impose another new tax on consumers. The only question outstanding is how much more consumers will have to pay to watch the same television signals they watch today," stated Rogers vice-chairman Phil Lind. Rogers said the increase in contributions will cost consumers an additional $50 to $100 a year depending on their cable package. The NDP and the Communications, Energy and Paperworkers union also criticized the CRTC ruling for not going far enough to promote local programming. NDP heritage and cultural spokesman Charlie Angus said a move by the CRTC to harmonize local programming requirements will force some stations to increase the hours they dedicate to local shows, but "the vast majority" will be allowed to decrease their local content. "On the one hand we're asking for money to be set aside to commit to (local programming), but there has to be commitments that the broadcasters aren't going to simply drop down to a minimum standard," Angus said. (c) 2009 The Canadian Press |