OTTAWA-GATINEAU – Saying the need for new subscriber fees wasn’t demonstrated by conventional broadcasters, the CRTC’s new convention television policy does not include a boost in Canadians’ cable or satellite bills.
The new policy will, however, "ensure Canadians have access to digital and high-definition television programming, and that broadcasters continue to contribute to the production, acquisition and broadcast of high-quality Canadian programming.
The Commission has decided to:
* Remove restrictions on advertising time limits after gradually increasing the amount of advertising allowed;
*Establish August 31, 2011, as the date by which television licensees will only broadcast digital signals (about two years after the official U.S. conversion date);
* Require English- and French-language broadcasters to caption for the hearing impaired 100 per cent of their programs over the 18-hour broadcast day, with the exception of advertising and promotions
* Deny a subscriber fee for the carriage of local conventional television stations on cable and satellite as its necessity has not been demonstrated.
"These changes reflect our approach of developing lighter and more targeted regulation to achieve the objectives of the Broadcasting Act," said Konrad von Finckenstein, chairman of the CRTC, in a release. "Broadcasters will have the flexibility to air more advertising, and Canadians viewers will ultimately decide what is acceptable."
Advertising
The Commission has decided to remove restrictions on advertising time limits as of September 1, 2009, to provide broadcasters with additional revenues to respond to the changes this industry is experiencing. As of September 1, 2007, they will be able to broadcast a maximum of 14 advertising minutes per hour during the prime time period, which is between 7 p.m. and 11 p.m. On September 1, 2008, this limit will increase to a maximum of 15 minutes during the 18-hour broadcast day. The Commission will evaluate the impact of the increased advertising time limits during the licence renewal hearings for conventional television stations that will be held in the spring of 2008.
Additional revenues
During the CRTC’s review of certain aspects of its regulations for conventional television, broadcasters requested the imposition of an additional carriage fee that cable and satellite subscribers would have paid
to obtain local conventional television signals. The Commission denied this request on the grounds that its necessity has not been demonstrated and the current financial situation of conventional television broadcasters does not justify such a measure. In addition, given that the digital specialty services derive 81 per cent of their revenues from cable and satellite fees, the imposition of a fee for the carriage of conventional television signals could have an impact on the subscribers of these specialty services.
Transition to digital and high-definition (HD) broadcasting
The Commission has established August 31, 2011, as the deadline for the transition from analog to digital and HD broadcasting. A deadline is necessary to avoid a situation where viewers turn to foreign programming to take advantage of this new technology because there is not enough Canadian digital programming available. Several other countries have established their own deadline for this transition; for instance, the United States has set February 17, 2009, as its deadline. However, the Commission will allow for exceptions after August 31, 2011, in remote regions where there are no digital transmitters. This will ensure that those viewers continue to have access to the programs offered by conventional television stations, including the CBC.
Canadian productions
The conventional television sector has always made significant contributions to the production and broadcast of Canadian programming. During the past five years, English-language broadcasters allocated an average of 24.9 per cent of their revenues to Canadian programming and French-language broadcasters, 36.4 per cent. However, while the proportion of total programming budgets spent by French-language broadcasters on Canadian programming remains consistently high at approximately 90 per cent, the proportion spent by English-language broadcasters has decreased to approximately 40 per cent. The Commission intends to discuss this aspect of programming expenditures with English-language broadcasters at the time of their licence renewals, as well as their commitments for the broadcast of Canadian programming.
The Commission has also encouraged broadcasters and independent producers to develop terms of trade agreements to provide stability and clarity in their negotiations regarding programming rights. Broadcasters will be expected to provide, at the very least, a draft of such agreements with their licence renewal applications.
Closed captioning for persons who are hearing impaired
The Commission has issued a new policy with respect to closed captioning for persons who are hearing impaired. Under the new policy, English- and French-language broadcasters will be required to caption all programs broadcast between 6 a.m. and midnight, unless there are circumstances beyond the broadcaster’s control. Furthermore, the broadcasting industry will need to create English- and French-language working groups to develop measures to improve the quality of captioning in Canada.
More to come on this story later today and tomorrow.
