MONTREAL – Cogeco Cable said that it is broadcasters’ “rampant spending to purchase major US network programming” that is at the real root of what ails the industry, not simply the erosion of market share and advertising revenue.
In a statement released after its appearance at the CRTC hearings Tuesday, the cable co said that granting broadcasters the right to charge compensation for signal “would be irresponsible and inappropriate”.
"Compensation for signal is only a partial and inappropriate solution to a much broader problem," said president and CEO Louis Audet, in a statement. "We are entitled to ask why the broadcasters are investing so much more in foreign programming than in producing Canadian content. We are also entitled to ask why they are not willing to commit to spending potential compensation for signal on Canadian content, while they have made local television their war horse. It would be irresponsible to create a situation where consumers pay more, because ultimately, they will pick up the tab without getting anything in return."
Cogeco also offered its own solutions, including a CRTC requirement that limits the amount broadcasters invest in foreign programming to not exceed the amount invested in Canadian programming; carriage of conventional broadcasters’ local signals through Cogeco’s network to areas broadcasters consider unprofitable to convert to a digital over-the-air transmitter; and, the implementation of a local news service under Cogeco’s current community programming budget, in smaller markets where conventional broadcasters consider it unprofitable to operate a local television station.
"We believe these solutions will allow Canadian conventional broadcasters to continue to receive the required funding to maintain them through existing programs (Canada Media Fund and subsidies via the income tax of all Canadians), without carrying the full weight of local production”, Audet continued. “Moreover, this will allow the entire system to breathe easier and particularly provide Canadians with greater assurance of access to the local programming they want, without having to spend more."
