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Here is a fact sheet from the CRTC explaining the Local Programming Improvement Fund (LPIF):
What is the Local Programming Improvement Fund (LPIF)?
Created by the CRTC in 2008, the LPIF is a fund that supports local programming for conventional television stations operating in non-metropolitan markets.
Why did the CRTC create the LPIF?
Conventional TV stations in non-metropolitan markets are in difficulty because of their precarious economic situation. The CRTC created the LPIF to maintain and improve the quality of local TV programming.
Why has the CRTC increased the percentage of the LPIF contribution from 1% to 1.5%?
The impact of the economic situation is more severe now than when the initial decision was taken. As such, the CRTC has increased the contributions of cable and satellite companies from 1% to 1.5% for one year.
How has the CRTC distributed the funds among broadcasters?
The first third will be divided into equal amounts among all eligible local TV stations. The remaining two-thirds will be allocated based on the amount each station has devoted to local programming over the past three years.
How does the CRTC determine which stations are eligible for the Fund?
Local TV stations outside of metropolitan markets are eligible for the Fund.
How will the CRTC ensure that money from the Fund is used for local programming?
In the annual report they submit to the CRTC, local TV stations will have to indicate the amount of contribution funds they receive and the expenditures paid from this amount.
Several cable and satellite companies want to increase their customers' rates by 1.5%. Can the CRTC prevent this?
In Public Notice 2008-100 (paragraph 357), the CRTC indicated that it saw no reason why the cost should be borne by cable and satellite subscribers. The CRTC considers that these companies can absorb a contribution of this size, given their strong financial performance.
What can I do to avoid paying such an increase?
Consumers must contact their service suppliers, since this increase is not required or regulated by CRTC. The CRTC considers that these companies can absorb a contribution to the LPIF of this size and does not see a reason why these supplemental costs should be transferred to their subscribers.
Source: CRTC, 08/27/2009
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