Canadian Media Guild says CRTC’s FreeHD decision opens possibility of charging for free OTA broadcasts

A CRTC decision Monday granted satellite company FreeHD Canada Inc. a licence to operate a national direct-to-home (DTH) satellite service, a move that the Canadian Media Guild warns could lead to charges for local broadcast signals via satellite. In July 2009, FreeHD Canada, a new satellite TV venture, filed applications with the CRTC to provide DTH satellite TV service for Canadian programmers. Part of the plan involved carrying about 100 local TV stations for free through a local-program package for customers. The company planned to get off the ground in early 2011 to be ready to switch from analog to digital by Aug. 31 of that year—when the plug is pulled on analog broadcasts. In Monday’s decision, the CRTC granted FreeHD a licence to operate a national direct-to-home satellite service. Although the commission refrained from allowing FreeHD to distribute local signals—saying it would be “premature” to do so—it added that it sees merit in providing local channels via satellite and is considering the proposal. Lise Lareau, the president of the Canadian Media Guild (CMG), said that it appears more likely that FreeHD will get permission to air local broadcasts, and that such a decision would set up a situation in which private companies could charge for local content in small Canadian markets. “There’s nothing in here that says how long they’ll keep it free,” Lareau told The Wire Report. “It’s insulting to all the players that have had a lot at stake in these hearings to give this operation a green light, and yet keep the major issue on hold,” she said. The “major issue,” she added, is an upcoming CRTC decision to adopt transition model to move from analog to digital broadcasting. Currently, 29 large markets in Canada receive free, over-the-air HD television signals. There remain 11 million Canadians outside of those markets, however, who do not. Once the analog over-the-air signals get turned off, Lareau said, they may have to turn to satellite providers to get over-the-air television. “We feel that we’re providing a huge public benefit to Canadians by maintaining signal continuity when the over-the-air broadcasters walk away from the transmitters,” David Lewis, CEO of FreeHD Canada, told The Wire Report. Lewis said his company estimates that up to four million Canadian households could lose access to over-the-air television signals when the industry switches to digital on Aug. 31, 2011. He said satellite providers like FreeHD Canada will be in a position to fill that void. While most Canadians already pay for television, many stick with over-the-air signals. Lareau said more Canadians could move away from paying for television and settle for the basic over-the-air channels as more viewing options become available on the Internet. The CMG has proposed that the CRTC should promote a shared multiplexing model to allow smaller communities to receive over-the-air signals after the digital transition. Under this model, broadcasters would share digital transmitters to broadcast their signals. The multiplexing technology would allow them to carry more channels and reduce the number of transmitters. “You’ll just have to trust us. We’re not the typical satellite or cable provider,” Lewis said. “We’ll earn people’s trust and go forward from there.” Lareau said the satellite model is expensive for consumers because of the high upfront costs of buying home satellite. She said such equipment costs anywhere from $300 to $500. Lewis, however, said the company would aim for a price of less than $199 for a home satellite.

Canadian Media Guild says CRTC’s FreeHD decision opens possibility of charging for free OTA broadcasts

News | 02/08/2010 10:59 pm EST

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