Coming soon to a TV near you: More freedom to pick channels CRTC loosens rules for cable packages Paul Vieira Canwest News Service
Friday, October 31, 2008 http://www.canada.com/components/print.aspx?id=b6e35f9e-8938-4949-bea3-6f2d68280ce1&sponsor= OTTAWA -- The federal broadcast regulator has granted TV consumers and cable operators additional freedom in how they package the channels they want as part of a cable package. The Canadian Radio-television and Telecommunications Commission said Thursday it is eliminating "most" rules governing how cable and satellite companies package their channels for consumers. That will give cable and satellite providers more flexibility in packaging channels for their customers, conceivably freeing households to pick whatever channels they want. But two conditions remain: at least a majority of channels, meaning 50 per cent plus one, must be Canadian; and cable and satellite providers must be willing to offer such a package. Up until now, packaging rules specify that for every non-Canadian specialty service offered, there must be one Canadian specialty outlet thrown into the mix. The changes won't come into effect until September 2011. However, one change takes effect on Sept. 1, 2009 -- cable and satellite companies must pony up an additional $60 million, or 50 cents a subscriber, to a fund aimed at helping over-the-air broadcasters with local programming, such as local TV news. In Thursday's ruling, the CRTC also denied the request from over-the-air broadcasters -- such as Global or CTV -- to charge cable and satellite operators for their signals. The ruling comes after three weeks of hearings held in April aimed at how to rewrite the rules governing the broadcasting, cable, satellite and specialty-TV sectors in preparation of the digital age that starts, in earnest, in 2011. "From the outset we wanted to make sure the system was as flexible as it could be," Konrad von Finckenstein, CRTC chairman, said of the commission's work to develop this ruling. "We spent a lot of time second-guessing ourselves, and trying to make sure we avoided unintended consequences. I hope we have done that but the proof will be in the pudding." The headline item during those three weeks of hearings was whether over-the-air broadcasters would be able to charge a fee to cable and satellite companies to carry their signals. The broadcasters pushing hardest were CTVglobemedia and Canwest Global Communications, which said they were losing revenue to specialty channels and the Internet. Had their proposal passed, over-the-air broadcasters would have earned roughly an additional $75 million annually in extra revenue. However, in its decision, the CRTC said: "Although over-the-air broadcasters clearly feel strongly that they need the commission's assistance in increasing their revenues, the commission does not have conclusive evidence in order to make a favourable determination on this matter." Moreover, it said the broadcasters "might look to their own business plans before making a request for increased revenue from the commission." There was also a concern, the CRTC added, that the over-the-air broadcasters might use the new-found revenue on matters unrelated to improving Canadian programming. However, the CRTC did give broadcasters the right to negotiate with cable and satellite providers to determine compensation for distributing "distant signals," which allows viewers to watch stations from other provinces. -- ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
