CRTC Issues New Canadian Broadcast Policies

OTTAWA, October 31: The
Canadian Radio-television and Telecommunications Commission (CRTC) has released
its much-awaited new broadcasting policy, promising to deliver a "more
dynamic" system but disappointing the major networks for its refusal to
sanction the collection of retransmission fees.

CTV and Global had been
lobbying for the ability to charge cable and satellite carriers a carriage
fee—a move that could have brought in some C$300 million, press reports
indicate.

"We are disappointed
the regulator did not address structural issues—specifically
fee-for-carriage—that we clearly said were required to address the
challenges facing conventional television," said Leonard Asper, the president and CEO of Canwest. "Canwest will continue to
aggressively pursue change as we enter into the license renewal process in the
coming months, providing a business case for reducing license obligations that
better reflects the competitive environment that we are in today."

There were parts of the
new policies, however, that broadcasters welcomed, such as allowing them the
right to negotiate the retransmission of their signals to other provinces. The
CRTC will also support local programming by increasing to 6 percent, up from 5
percent, the contribution pay-TV platforms must make to Canadian programming.
This increase will amount to approximately C$60 million and will be allocated
to a new Local Programming Improvement Fund. The CRTC says it does not expect
companies to pass this cost along to their subscribers.

In announcing the new
regulations, CRTC said it was preparing the market for its transition to
digital with a simplified regulatory environment. The majority of the changes
will come into effect on August 31, 2011, coinciding with the end of analogue
over-the-air broadcasting in Canada.

"Following a
comprehensive review, we have streamlined a number of rules and eliminated those
that were no longer necessary," said Konrad von Finckenstein, the chairman
of the CRTC. "These measures will contribute to a more dynamic
broadcasting system, which will be in a better position to respond to the
opportunities and challenges presented by new media. They will also make it
easier for viewers to choose the programs they want."

For pay and specialty
services, key policy elements include allowing direct competition between
Canadian services in mainstream sports and national news, while maintaining
exclusivity across other genres.

—By
Mansha Daswani