Axing Freesat and adopting U.S.-type retransmission policy among ideas tabled for CRTC hearing

Canada’s major broadcasters have tabled recommendations on fee-for-carriage that could result in tough negotiations and difficulties for the CRTC when it considers new regulations this fall to accommodate the concerns of broadcasters and BDUs. CBC/Radio-Canada, Canwest Television Ltd., and CTVglobemdia Inc. tabled the recommendations in response to the group based licensing hearing scheduled for November, which is set to examine such concerns as the ever contentious fee-for-carriage issue. While all three broadcasters agree on a fair negotiated settlement with the BDUs, each have individual concerns that vary significantly. In its submission, the CBC argues that BDUs are “free-riding” on conventional broadcasters’ signals, negatively affecting the whole broadcasting sector. “CBC/Radio-Canada notes that this free-riding has reached the point where cable BDUs are experiencing record revenues while the business model of conventional broadcasters has collapsed.” The public broadcaster calls on the CRTC to issue a Distribution Order in accordance with the Broadcasting Act, which would bind BDUs to a written agreement with broadcasters regarding signal carriage, on a mandatory basis or based on a commercial deal. CBC/Radio-Canada also recommends that Bell’s freesat proposal, which would force broadcasters to drop demands for carriage fees, be axed. “The corporation is not in favour of the Freesat proposal on the grounds that it is unnecessary, expensive and not competitively neutral,” the CBC argues. CBC/Radio-Canada says the Distribution Order would also open up avenues for arbitration if agreements on mandatory services are not reached on time. “CBC/Radio-Canada believes that the Distribution Order approach would be simple, efficient and flexible. The Order could be finalized and issued much more quickly with far less administrative process than would be necessary to amend the Broadcasting Distribution Regulations and any relevant exemption orders.” In contrast, CTVglobemedia looks south of the border for a solution. It proposes a framework that draws on the U.S.’s 20-year-old retransmission consent policy, which the broadcaster says will guarantee fair negotiations, while taking into account realities in Canada. Such a framework would grant conventional broadcasters the right to choose must-carry rights and negotiated values for signals, and the right to opt out of agreements based on negotiated values. Additionally, CTVglobemedia proposes that conventional broadcasters be granted the “right to enforce their territorial program rights” in the absence of an agreement as well as recourse from the CRTC if a deal isn’t reached. Canwest Television Ltd. also calls for a negotiated fair settlement based on the size of local markets, the size of subscriber based involved and audience size of specialty services. Not surprisingly, Rogers, Bell, Cogeco, and Shaw are continuing their united front against carriage fees. In a joint legal submission prepared by law firm Fasken Martineau, they warn the CRTC not to compel BDUs to pay conventional broadcasters for their signals. The four cablecos examined whether carrying broadcasters’s signals amounts to copyright infringement and whether the CRTC has the mandate to rule on the issue. “As retransmission rights granted to broadcasters by the CRTC would be inconsistent with the Copyright Act, we conclude that any decision granting those rights would be ultra vires the Commission’s jurisdiction and therefore unlawful,” the submission concludes. CRTC chair Konrad von Finckenstein has said he does not buy into the idea of fee-for-carriage, noting that market forces should decide the value of a signal. While this appears to be a hands-off approach, the CRTC is still tasked with over-seeing any such negotiations between BDUs and broadcasters. Some broadcasters, like Canwest in its submission, have said CRTC supervision in the fee-for-carriage issue is necessary and have openly called for the commission to play an active role in such talks.

Axing Freesat and adopting U.S.-type retransmission policy among ideas tabled for CRTC hearing

Broadcast | September 16, 2009

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us