Small TV stations propose using portion of local programming funds to pay for digital conversion

Independent television station owners in small markets are asking the CRTC for permission to use a third of their money from the new Local Programming Improvement Fund (LPIF) to pay for the conversion to digital broadcasting. Rick Arnish, president of the Kamloops-based Jim Patterson Broadcasting Group, who spoke on behalf of small market independent television stations (SMITS), told commissioners today at the group-based licensing hearing that while funds like the LPIF and the Small Market Local Programming Fund are crucial to the survival of independent stations in small markets, an eroded revenue base leaves small stations with no choice but to ask for help to meet digital transition costs. “As the revenues continue to exacerbate and go down further, for us to be able to fund these small market television stations in English Canada and French Canada, we need some help. And we are asking some of the LPIF funds to go toward digital transition,” he said in an interview with Tech Media Reports. The request for flexibility is likely to raise eye-brows in the television sector because cash from the LPIF was strictly envisaged as a means of boosting local programming in small markets. Commissioners pressed SMITS on whether they have explored other ways to minimize or offset the transition costs. For instance, commissioner Michel Arpin, pressed Arnish about multiplexing, a solution pitched by the Canadian Media Guild early this year. Under multiplexing, broadcasters would split the costs of operating digital transmitters. But Arnish replied SMITS have not had a chance to gather all the details about its potential. Arnish also expressed concern that small stations would not be able to meet the Aug. 31, 2011 transition deadline because of regulatory processes at Industry Canada and the CRTC. “Our biggest concern is if we have to put on the air digital transmitters, there is not enough time to do that at this point in time to meet that Aug.31, 2011 deadline.” With respect to funding and carriage, Arnish urged commissioners not to tinker with current policies as they relate to SMITS. In particular, small stations are concerned about being dropped by satellite carriers and want the regulator to ensure that this does not happen. The concern arises from regulatory changes proposed in Broadcasting Public Notice 2008-100 issued in October 2008, which would determine the number of stations to be distributed on basic packages offered by satellite carriers. Currently, there are 20 small market independent television stations across Canada. About 14 are distributed by by DTH carriers Bell TV and Shaw Direct. But Arnish says if the yet-to-be enforced digital policy comes into force on Aug. 31, 2011, the number of stations carried on DTH will drop to four. “So we will be going backwards, not forward,” he said. But in previous comments sent to the CRTC, Bell TV and Shaw Direct have argued that SMITS’s concerns about being dropped by DTH carriers have no “foundation” and that there is no evidence to suggest that satellite carriers want to drop them. The hearing continues on Wednesday with testimony from: Canadian Conference of the Arts; Aboriginal Peoples Television Network; Canadian Association of Community Television Users and Stations (CACTUS); ACTRA; Newfoundland Broadcasting; Alliance quebecoise des techniciens de l’mage et du son (AQTIS); and Association québécoise de l’industrie du disque, du spectacle et de la vidéo (ADSIQ).

Small TV stations propose using portion of local programming funds to pay for digital conversion

News | 11/24/2009 7:14 pm EST

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