Compensation for local TV signals, Cancon expected to be among top issues at group licensing hearing

Negotiating a fair market value for local signals, Canadian content levels, and worries about a two-tier broadcasting system are among the top concerns raised in 103 interventions filed in response to the CRTC’s review of group-based licensing for television services. In June, the CRTC called for comments on issues related to a group-based licensing system, including criteria for determining renewals, revenue generation for conventional television, and digital transition models. The deadline for comments was on Aug. 10 and a public hearing is scheduled for Sept. 29. The group-based licence proposal was designed to offset the financial difficulties facing the broadcast sector brought about by dwindling ad revenues and the global recession. Because of the heavy consolidation of broadcast holdings by the major broadcasters, the CRTC said a group-based renewal system was preferable in helping stave off financial difficulties rather than have individual stations apply for licence renewals on their own. Six MPs—all of them Conservative—weighed in on the issue of a negotiated market value for local signals, saying they support the CRTC’s proposal for an industry-to-industry solution for the compensation of local TV signals. Ed Holder, a Tory MP representing London West, argued that consumers already pay for local TV in their monthly basic cable fee, but that cablecos do not compensate local stations in return. “A rebalancing of this system is needed in order to sustain local television and service to consumers. The Commission’s stated intent of implementing a negotiated, fair market value for local signals is essential to continued local service,” he wrote. While acknowledging that the effects of the global recession have contributed to the crisis facing the broadcast industry, Holder said the problems facing broadcasters are also linked to market fragmentation by the cable and satellite services. “I look at the A Channel in Barrie and I know they are struggling financially. I worry about their long-term survival given their dependence on a single source of revenue,” he stated. Some industry groups expressed concern about the level of Cancon, arguing that the CRTC must ensure that Canadian productions benefit from any decision taken at the hearing. The Toronto Film Board (TFB) says that a decision that meets the criteria of “distinctly Canadian” is important, stressing that the “spending ratio between Canadian programming and a US based product must be much more in balance across all delivery systems.” “We would assert that Canadian television cannot be Canadian nor support Canadian cultural development and our cultural industries where less than half of both expenditures (CPE) and programming in prime time are less than 50%.” The Alberta Motion Picture Industry Association also called for adequate Cancon levels in key areas like drama, documentaries and the performing arts. The Alliance for Children and Television, says the CRTC must question broadcasters on their intentions for children’s programming. “Not withstanding that many think our youth are busy texting, twittering or spending countless hours on the computer to the detriment of watching television, recent data shows exactly the opposite,” writes Catherine Fortier, executive director for the Alliance. The Canadian Media Guild, which represents 6,000 workers in the media industry expressed concern that the transition to digital will create a two-tier system, which will deprive 11 million Canadians of access to free over-the-air television. “We urge the Commission to maintain regulations in place that prioritize the provision of a free signal after the transition to digital and work with broadcasters and the government to ensure a phased transition that does not exclude large groups of Canadians.” The Legislative Assembly of the Northwest Territories however took a different spin in its intervention to the proceeding. It urged the CRTC to accept community programming provided by the Northwest Territories Legislature as “a must carry” service on basic satellite and cable in order to reach remote communities and to foster development. Graham Fraser, the Commissioner of Official Languages expressed concern that proposed access modalities for the Local Programming Improvement Fund would lock out English-language television stations in Montreal since it is designed to shore up local programming in areas with small populations. “Given that a metropolitan market is defined as one in which a population of at least a million people speak an official language and that English in Montreal fall in this category, English-language stations in Quebec are ineligible because they are located in Montreal,” wrote Fraser. The full interventions can be accessed here.

Compensation for local TV signals, Cancon expected to be among top issues at group licensing hearing

Broadcast | August 24, 2009

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