TORONTO – Comments due today on the expanded scope of the CRTC’s hearings into policy governing broadcast distribution undertakings and specialty services show the fee-for-carriage debate will be the dominant issue, come April.
While most companies are not filing their comments until 5 p.m. today, CTVglobemedia issued a press release just before noon touting what it believes are the necessary features of new BDU policy.
While the policy review has been set for some time (the hearing begins April 7), the Commission only announced in November that it had expanded the scope of the proceeding and invited comments from interested parties on the introduction of compensation to conventional broadcasters for the distribution of their local television stations.
Satellite and cable companies had hoped the issue was settled when the CRTC issued its new over-the-air television policy in early 2007 and said there wasn’t enough evidence supporting the need for Canadians to pay extra fees on their cable or satellite bills for conventional television stations that can be had for free, over the air.
To get a sense of what carriers think of the fee-for-carriage idea, Michael Hennessy, vice-president – wireless, broadband and content policy at Telus had this to say earlier this week at the Canadian Broadcast Distribution Association annual conference when the fee-for-carriage issue cropped up during a panel session: “You’d think the idea was so brainless it wouldn’t be revisited.”
“CTVglobemedia is seeking fairness and balance in the economic model for local television,” says the company’s release. “Compensation for carriage is essential if CTVglobemedia is to sustain the level of service it provides to local communities and its contribution under the Broadcasting Act. CTVglobemedia operates 27 local television stations serving large and small Canadian communities from Halifax to Victoria.”
The company’s filing says that local television is in the midst of a crisis as audience fragmentation and the rise of new media platforms are resulting in declining advertising revenues.
Its bullet points say
* All cable and satellite providers should be required to compensate local broadcasters for the distribution of over-the-air signals.
* Eligibility for the compensation should be linked to the provision of local programming.
* Cable and satellite providers who wish to provide out of market local television station to subscribers allowing them to station shift or time shift should be required to obtain consent from the original broadcaster.
* In markets where Direct-to-Home (DTH) penetration has reached 30% they should be compelled to provide local subscribers with their local televisions stations.
"Conventional TV has passed the tipping point. Ad revenues are shrinking year after year and our expenses continue to rise. Right now, cable companies pay nothing for our signal, yet they charge their customers to watch local news and programming. It’s just not right." said Paul Sparkes, executive vice-president, corporate affairs, CTVglobemedia.
"We are asking for a change in the CRTC’s approach that have allowed cable and satellite providers to use our signals without compensation. Cable and satellite providers should pay for the content they use to operate their businesses. The model for local TV needs to evolve to meet today’s realities and compensating broadcasters for the use of their signals is a crucial part of the solution."
Watch for additional coverage on this issue in the days and weeks to come from Cartt.ca
– Greg O’Brien
