CRTC rules out one-to-one ratio and issues short-term licences

Conventional broadcasters, who largely depend on American programming to shore up their revenue bases, can breathe a sigh of relief at a decision from the CRTC that rules out a one-to-one ratio cap on Canadian and foreign programming. In a statement released today, the CRTC says a one-to-one ratio regulation will not be practical for the next broadcasting year in light of programming commitments that broadcasters have already made and the production timelines of the sector. “However, the Commission will continue to explore various regulatory measures to ensure that English-language television broadcasters devote an appropriate proportion of their expenditures to Canadian programming,” the statement said. The commission also announced that it will be issuing short one year licence renewal terms for large broadcasters to allow it to consider group-based licence renewals in the spring of 2010. Stations run by CTV television Inc., Canwest Television GP Inc., Sun TV Company and Rogers Broadcasting Limited will benefit from the one-year renewals. The commission also issued a two-year licence renewal term for TV stations and discretionary services operated by TVA Group Inc. “This will allow the Commission to consider group-based licence renewal for TVA at the same time as it reviews the licence obligations of TQS Inc., and for the French-language television stations operated by the Canadian Broadcasting Corporation.” Other steps taken include: a six-year licence renewal term for OMNI stations operated by Rogers and a seven-year renewal term for stations operated by RNC Media Inc. and Télé Inter-Rives Itée. The CRTC also said a follow-up process will take place this summer to find solutions to the financial crisis facing broadcasters. In the fall, a public hearing will be held to determine any unresolved issues left over from the summer hearing. The scope of the proceeding includes the following: -modalities and conditions for group-based licensing in 2010 -revenue support for conventional stations -Possible models for digital transition -Establishing minimum levels for expenditures on Canadian programming and the regulatory mechanism to govern these levels.

CRTC rules out one-to-one ratio and issues short-term licences

Brief | May 15, 2009

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