CLEARWATER, B.C. – Not all Canadian cable companies are against the broadcasters’ receiving a fee for their conventional television stations.
Tiny Raftview Communications, which serves the towns of Clearwater, B.C. (pop. 5,000, about 120 kms north of Kamloops) and Barriere (pop. 3,400, and about 60 kms farther north) with digital cable, high definition and high speed Internet has come out against its cable compatriots on the issue of fee for carriage.
“It is absolutely unreasonable that these broadcasters receive nothing for their service,” company president Paul Caissie writes in his submission to the CRTC for the December 7th hearing (2009-614) into the issue of providing compensation for the carriage of conventional TV stations by cable, satellite and telco TV companies. “It must also be clear that this debate has resulted in extreme positions being taken by both the Broadcasters and the Cable/Satellite industry that I would expect the commission to recognize.”
However, Raftview isn’t calling for a very big fee, nor does he say whether he’d absorb the new cost, as the broadcasters are calling for carriers to do in their submissions and advertising, or pass it on.
“Even though I support the Broadcasters’ submission of a fee for carriage the suggested fee of fifty cents per sub is ludicrous in the extreme,” writes Caissie. ($0.50 was the number discussed in the most recent CRTC go-around on the issue, last year).
“I would suggest a fee in the order of 5 cents per sub would be generous and would help them offset ‘local’ production costs. The Commission is already aware that the Broadcasters’ national programing costs are already heavily subsidized by the Cable and Satellite industry. Indeed, it should also be noted by the Commission that CBC Television should be exempted for a fee for carriage as they are already subsidized by the Canadian taxpayers to the tune of a billion dollars a year,” he added.
Caissie also noted that perhaps different carriers should be considered differently, too. Noting cable companies “employ many local people at high wages and pay very substantial community property taxes on their operations,” Caissie adds: “Satellite providers contribute nothing to local communities across this country, so it could be fairly argued that Cable companies should be exempted from fee for carriage and that it should only apply to Satellite providers.”
“I believe it is essential that local Broadcasters and regional network affiliates continue to operate across Canada. It is not unreasonable that they should be allowed to supplement their advertising revenues with a modest fee for carriage levy,” he added.
“The Broadcasters can legitimately claim that the Satellite providers are getting a free ride when it comes to supporting local Broadcasters and local communities. Local Cable companies have always been a big part of small communities supporting many local charities and high schools ands minor athletics, as well as paying substantial local taxes… If a levy is required to support local Broadcasters, that cost should be largely born by Satellite providers.
“As a small Cable television operator in a small town I am happy to support local Broadcasters. We have always paid our share in local communities, while the Satellite providers have enjoyed a free lunch at the expense of all Canadians.”
We bet Mr. Cassie may receive an e-mail or two today.
– Greg O’Brien
