Over 300,000 Canadians in remote and rural areas could be cut off from CBC TV in two years because the broadcaster doesn't have the money to convert its signals to digital.
August 31, 2011 is the deadline for the switch to digital broadcast technology, but the CBC doesn't have the funds to continue the conversion process, said corporation president Hubert Lacroix.
The CBC has managed to switch over only eight of its 600 transmission towers, covering about half its potential audience. Lacroix and the corporation's chief financial officer, Suzanne Morris, said the company is struggling with a $171 million budget gap this year.
All broadcasters have been complaining about the staggering costs of switching to digital. The federal government has not offered any assistance for the switch, despite the fact it's making money from selling the old analog spectrum.
Unlike the United States, the federal government has no program to help Canadians who do not have cable or satellite to pay for digital converters.
An industry working group had proposed a possible "hybrid" solution that would help Canadians in more remote areas get their TV signals through a low-cost cable or satellite option. Lacroix said, however, that even that is not feasible for the CBC at the moment.
" 'There has to be either from government a realization that the broadcasters can't afford this, or there has to be some help given through some fund if government thinks this is a priority for the broadcasting of Canadian TV signals,' " Lacroix pointed out.
The corporation has cut 700 jobs and is in the midst of selling off assets. " 'Now we're looking to try and make up the difference between now and the end of our tax year, which is March 31,' " Lacroix explained.
Source: Marketing Daily, 09/24/2009
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