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BDUs and Broadcasters Should Negotiate a Fee

BDUs and Broadcasters Should Negotiate a Fee

Speaking before the Standing Committee on Canadian Heritage, CRTC chair Konrad von Finckenstein said that rather than regulating a new, set, fee-for-carriage, it would be better to have distributors and broadcasters get together and come up with their own payment plan.  He continued to tie this new negotiated funding to " 'firm commitments regarding local news, local programming and programs of national interest.' "

The conventional broadcasters want to be like specialty TV (by adding a subscriber revenue stream), and the value of specialty TV channels are negotiated between the two parties, noted the chair.  The "negotiated signal value" proposal that falls under the category of "clarified funding" " one of seven areas highlighted by the CRTC " drew numerous queries from the politicians.

" 'Instead of one value across the board (under fee-for-carriage, CTVglobemedia and Canwest Communications are asking for a monthly fee of 50 cents for each OTA station), I think it"s more logical to get the value for what (each signal) is worth,' " pointed out von Finckenstein.

NDP Heritage critic Charlie Angus was among the politicians who asked if the Commission had enough regulatory tools to ensure broadcasters come through with new local programming commitments linked to the new negotiated fee, if the proposal comes to pass.

The chair replied that the CRTC currently has the means to enforce compliance through such measures as mandatory orders. Asked by numerous politicians about acquiring the ability to impose fines, he repeated his viewpoint, which he has stated repeatedly since his hiring as Commission head, that he would welcome that additional bite to the Regulator"s bark.

Angus wondered if it was viable for the broadcasters and distributors " given the hostility between them on the fee-for-carriage argument " to actually be able to negotiate a deal that would be beneficial to the overall TV industry.

" 'They are putting on a very good show" The broadcasters and BDUs need each other,' " responded the chief regulator. " 'They (CTVglobemedia and Canwest Communications) have a stable of specialty channels, and for each one of those, they negotiate a fee. Why can"t they do it for their conventional stations? They know each other; they know each other"s businesses and markets.' "

To Conservative MP Dean Del Mastro"s question of whether distributors should be allowed to opt out of carrying an OTA signal, von Finckenstein stated, " 'That is one (area) to be explored.' " He added that currently the OTA signals have to be carried, but they are not paid for.

Source: Cartt,
05/25/2009


      
 

Originally Posted: 5/26/2009 9:06:17 AM
Last Updated: 5/26/2009 9:07:34 AM