TORONTO – In a new message on its “save local” web site, CTVglobemedia says it wants cable and satellite bills to be regulated.
As most Canadian BDU customers are becoming aware, their monthly bills are about to rise due to the launch of the new local programming improvement fund (LPIF) September 1st.
That fund, a levy of 1.5% on revenues (or about $102 million a year) will go directly to small market broadcasters to help them weather the economic storm, changing media markets and buy time until a new ownership group based licensing regime is decided – a process which has also been further delayed, as a story elsewhere on this site confirms.
BDUs will be adding a new line item on customer bills (Rogers calls it the “CRTC LPIF fee”) that will be about 77 cents a month/customer, according to our “back of the napkin” calculations.
However, according to CTV, “Cable and satellite companies are erroneously informing customers that the CRTC’s ‘Local Program Improvement Fund (LPIF)’ is responsible for these fee hikes. This is just wrong,” reads the message on www.savelocal.ctv.ca.
“Under cloak of the LPIF, cable and satellite companies are increasing customer bills to enhance profits. Cable and satellite companies are already paying into the LPIF. This is not new. What is new is the attempt by cable and satellite companies to download the cost of their regulatory obligations on customers,” it continues.
“These anti-consumer billing practices by cable and satellite companies are contrary to the recommendations from the CRTC on the LPIF: ‘the Commission is of the view that there is no justification for BDUs [cable and satellite companies] to pass along any increased costs relating to the LPIF. to their subscribers’,” said the CRTC when it came up with the LPIF, as quoted by the CTV web site.
(Ed note: As far as we know, the LPIF is a new thing announced in 2008 that was always scheduled to begin on September 1, 2009. What’s new is that the BDUs are going to ID the charge on customer bills, something they don’t do with other regulatory fee obligations. The CRTC has little official jurisdiction over the billing practices as cable and satellite rates have been – mostly – deregulated for years.)
“At a time when cable and satellite companies are experiencing record revenues and profits, Canadians deserve better including open and transparent billing practices from TV service providers,” adds the site.
“We will be raising our concerns with these anti-consumer billing practices by cable and satellite companies at the public hearings scheduled before the CRTC this fall.”
– Greg O’Brien
