CRTC Sets New Regulatory Policy

OTTAWA-GATINEAU: The new regulatory framework from the Canadian Radio-television and Telecommunications Commission (CRTC) supports giving free-to-air commercial broadcasters the ability to negotiate retransmission fees with the pay-TV operators.

Calling it a "market-based solution," the proposed regulation allows each television station the option of entering into negotiations to establish a "fair value" for carriage. “The current dispute between conventional broadcasters and distributors threatens the overall integrity of the broadcasting system,” said Konrad von Finckenstein, the CRTC’s chairman. “Broadcasters and distributors have a symbiotic relationship. The time has come for them to put their differences aside and work together to ensure the continuation of conventional television, which Canadians clearly value.”

The issue now heads to the Federal Court of Appeal, as CRTC says it has "received conflicting legal opinions as to whether it has the authority to implement a negotiation regime."

CRTC is also proposing that the three main broadcasting groups—CTVglobemedia, Canwest Television and Rogers Communications—spend 30 percent of their gross revenues on Canadian programming. "They will be able to shift resources among their English-language conventional television stations and specialty services to meet this obligation," CRTC says.

In addition, VOD services will be allowed to insert commercial advertising in programs acquired from Canadian English- and French-language broadcasters. However, the restrictions on the sale of advertising in the local availabilities of programs broadcast by foreign pay and specialty services will be maintained. This time, usually two minutes per hour, will continue to be used primarily for the promotion of Canadian programs.

Referencing the CBC, the commission stated: "The CBC’s unique mandate and needs within the Canadian broadcasting system will be discussed in the context of the next licence renewal for the public broadcaster’s English- and French-language television services."