Ha ha ha...look for an increase in your cable t.v. charge in the very near future.
I'm definitely willing to pay more.
I'm definitely willing to pay more.
TV gets nod to negotiate signal fees
Susan Krashinsky
16:12 EST Monday, Mar 22, 2010
Gatineau, Que. — Canada's conventional television networks should be able to negotiate payment for their signals, which are currently available for free to cable and satellite distributors, the federal regulator ruled on Monday.
It's an issue that has gone before the Canadian Radio-television and Telecommunications Commission twice before.
During a set of hearings in November, the broadcasters – CTV Inc., CBC and CanWest Global Communications Corp., which owns the Global network – argued once again that in an environment of crumbling advertising revenues and fragmented audiences, they should have access to an additional revenue stream from the distributors that make money providing those signals to Canadian homes.
The result is not exactly what the broadcasters wanted: fee-for-carriage, as was proposed in the past, would have seen the federal regulator require distributors like Rogers Communications Inc. and Bell Canada to pay the conventional networks the same way they pay for the signals of specialty and pay television services. Value for signal, on the other hand, simply puts the CRTC's endorsement behind a negotiation process.
The CRTC decision said that “the system needs revision so as to permit privately owned television broadcasters to negotiate ... to establish the fair value of [their signals].”
The CRTC's new policy
“The new approach to licensing on the basis of ownership groups reflects the trend of media convergence”
View
Under the new system, the broadcasters would have the choice every three years to negotiate value for their signals. If they choose to do so, they give up regulatory protections that require cable and satellite companies to carry all the conventional networks and to place them at a preferential point on the dial (on channel 8 instead of 508, for example). That three-year option was proposed by CTV at the hearings in November.
If the broadcasters choose to negotiate, and are unable to come to an agreement with a distributor, they could pull their signals from the cable or satellite feed in question and also block other channels on the same service from broadcasting programs to which they have purchased the Canadian rights.
So, if CTV and Rogers were unable to make a deal, there might be no cable distribution of CTV for Rogers' customers and also a blackout on any channel with American Idol in its prime-time lineup.
The only broadcaster left out of the new framework is the CBC. Because it is a public broadcaster, a negotiation process that could involve the network pulling its programming does not fit with the CBC's mandate, according to the CRTC.
The decision comes after a CRTC report last Friday that showed broadcasters operated at a loss in 2009, for the first time since the commission began recording industry numbers in 1996.
The CRTC's decision on Wednesday noted that “the dramatic change in proportions indicates a significant shift in market positions.”
Cable and satellite distributors once again boosted their profits in 2009, and also increased the fees they pay to specialty and pay television channels for the privilege of distributing their programming. The broadcasters now want a slice of those fees, which last year amounted to a total of $2.5-billion.
Private broadcasters lost $116-million before interest and taxes, wiping out an already meagre profit of only $8-million in 2008. However, they also spent more on foreign programming than ever before, a practice that was strongly criticized by the cable and satellite firms during the course of the debate.
The CRTC has introduced a minimum spending requirement for Canadian programming of 30 per cent for the three largest private broadcasters (CTV, Global and CITY-TV). For companies such as CanWest that own both a conventional network and specialty stations, the regulator will allow more flexibility on how they distribute some of that spending among their conventional and specialty services.