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The CRTC has added to what it wants to discuss at April's conventional TV station licence renewal hearing. With the recession depleting ad revenues and threatening local content, the Commission is looking for ways to immediately help out the over-the-air (OTA) TV sector.
The CRTC will not listen to any fee-for-carriage arguments during the April hearing, but will consider it "as part of the group-based licence renewal process" in 2010.
According to broadcasters, the carriage of distant signals causes them revenue losses of around $50 million. In the upcoming hearing, the CRTC wants to know whether the date from which TV stations can ask for payment should be moved up from August 31, 2011 to something a lot sooner.
The release explains, " 'the Commission considers that there may be merit in advancing the date for the implementation of the new distant signal regime in light of the deteriorating economics for conventional broadcasters and that this issue should be discussed as part of the licence renewal hearing for private conventional television stations.' "
The Local Programming Improvement Fund (LPIF) was announced with the BDU/Specialty policy and will launch in late September. The additional 1% tax on BDU revenues is intended to generate about $60 million for local content for Canadian conventional broadcasters outside of major metropolitan areas, and only for those TV stations who are not cutting their spending.
The CRTC wants to re-examine the amount and conditions it set as a result of how the economy has deteriorated since the fall. It wants to know:
" 'a) whether the 1% of broadcasting distribution undertaking (BDU) gross revenues to be contributed to the LPIF will provide sufficient support for local programming in non-metropolitan markets, either on a short-term or longer-term basis;
b) what should be the terms of eligibility for access to the funds; and
c) what are the appropriate commitments regarding the production of local content and local news, on a station by station basis, that the Commission should insist upon.' "
Comments are due by April 23.
Source: Cartt, 03/27/2009
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