Bell ExpressVu, CAB agree on satellite distribution of local television signals

The per subscriber compensation for not having to perform signal deletion of out-of-market television signals hasn’t changed, but Bell ExpressVu LP has made other concessions under an agreement recently reached with the Canadian Association of Broadcasters (CAB) on the distribution of distant Canadian stations. The direct-to-home (DTH) satellite TV distributor has agreed to carry more Canadian local or regional television stations, not to distribute more than two sets of U.S. commercial network signals, and to redirect a portion of what it currently pays in support of Canadian production to a new fund for local programming. The agreement represents a breakthrough after almost two years of "arduous" negotiations over the distribution of out-of-market TV signals. The previous agreement expired on August 31, 2000, and discussions continued throughout most of 2001 between the CAB and Canada’s two DTH satellite distributors. But there was no resolution. After the commission began a process late last year to examine the impact of satellite TV distributors carrying one local television signal and not others in the same market, and the effect on small market stations of beaming in out-of-market signals (CCR, Oct. 11/01), intense negotiations resumed in January 2002. This summer, the CAB and Bell ExpressVu came to terms. Under a memorandum of understanding (MOU), Bell ExpressVu has committed to paying 20 cents per month per DTH subscriber to small market broadcasters if it doesn’t carry their local signal. It has also agreed to pay 25 cents per month for every DTH subscriber who purchases a second set of U.S. network signals. The amount is the same as under the previous agreement, which required Bell ExpressVu and rival DTH operator Star Choice Television Network Inc. to pay 20 cents per month for each DTH subscriber to any local broadcaster without signal distribution. The MOU between Bell ExpressVu and the CAB still needs the approval of the CRTC, which is calling for comments on the deal by December 2 – Broadcasting Public Notice 2002-57. The commission also wants the two parties to file a brief by October 25 that explains why their deal is in the public interest and how it addresses issues set out in Public Notice 2001-103. Last year, following a complaint from Cogeco Inc., the CRTC initiated a process to investigate the matter. In that process, Star Choice accused the broadcasters of trying to use the threat of changes to carriage rules as a bargaining tool for higher compensation for not having to perform signal deletion (CCR, Jan. 18/02). Star Choice has not agreed to this latest MOU, which is noted by both Bell ExpressVu and CAB in their filings to the commission. "The final key element of the MOU is the necessity to ensure that absent the execution by Star Choice...of an agreement with the same terms and conditions as those that apply to Bell ExpressVu LP, the full breadth of the existing regulatory regime of program deletion must be mandated and enforced," the CAB states in its submission. "...Should the CAB television members not have their requests for program deletion honoured, it is required to seek all legal remedies including seeking the commission’s support in ensuring Star Choice swiftly comply with regulations on program deletion. This measure is key if the commission wishes to ensure that program rights are protected. When the CAB negotiated an MOU in 1998 with Bell ExpressVu it took more than a full year for Star Choice to execute a similar agreement. Such a situation must not be allowed to occur a second time." Bell ExpressVu has agreed to devote a maximum of two additional transponders for the distribution of local and regional television stations. It will distribute 12 additional small market, independently owned local television stations and eight additional television stations by large broadcast groups. This will be costly for Bell ExpressVu, as the distributor will "be responsible for all transmission costs including backhaul costs" associated with the distribution of these television signals, according to the MOU. Bell ExpressVu has committed to carry four of the small market signals on an immediate emergency basis "based on the financial needs of these stations." As a result, CKSA-TV Lloydminster and CITL-TV Lloydminster, both owned by MidWest Tele-vision Inc., and CFTK-TV Terrace-Kitimat and CJDC-TV Dawson Creek, both owned by Standard Broadcasting, are now being carried by the DTH operator (CCR Update, October 2/02). The remaining small market signals – two stations chosen from those owned by Jim Pattison Group, Norcom Telecommunications Limited’s CJBN-TV Kenora, two from those owned by Radio Nord Communications Inc., two from Tele Inter-Rives Inc., and the two Thunder Bay stations operated by Thunder Bay Electronics – must be carried by December 31, 2003 or 60 days after the commercial deployment of Bell Express Vu’s new satellite, whichever comes first. As well, Bell ExpressVu has agreed to provide equitable distribution of the signals of large broadcast groups. Both the CAB and Bell ExpressVu are also asking the CRTC to allow two per cent of the five per cent of gross revenues that the distributor must contribute to Canadian programming to be diverted to an independent Canadian local and regional television fund. If the new fund is approved, Bell ExpressVu proposes giving 40 per cent of its total contributions to Canadian programming to the Canadian Television Fund, 40 per cent to the new fund, and 20 per cent to the Bell Broadcast and New Media Fund. "The new independent Canadian local and regional television programming fund is a key to the MOU and cannot be severed from the other components of the agreement," the CAB notes in its submission to the CRTC. Several cable companies are now also offering out-of-market TV signals in their digital packages. For example, Rogers Cable Inc. reached an agreement with the CAB to pay $1 per month for each Rogers subscriber who receives distant Canadian signals, and 87 cents for each subscriber who received the second set of U.S. 4+1 signals (CCR, Jan. 18/02). But that contract stipulates that Rogers may amend its deal once a new agreement is made between the CAB and the DTH distributors.

Bell ExpressVu, CAB agree on satellite distribution of local television signals

News | October 10, 2002

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