OTTAWA - The government has ordered the federal broadcast regulator to hold new hearings and file a formal report on the request by TV networks to charge cable and satellite companies for using their local signals.
This fee-for-carriage system as it's known is a bone of contention between the networks and the distribution systems.
The Canadian Radio-television and Telecommunications Commission last year held hearings on the networks' demand for fee-for-carriage and turned them down.
The commission said it recognized that TV broadcasting faced financial troubles, but said the problem was one of viewers turning from general interest TV to more specialized channels, video-on-demand and new media.
The problem required a systemic solution, it said, not the simple fiscal fix of carriage fees.
Canadian Heritage Minister James Moore said the cabinet wants the broadcast regulator to hold new hearings and produce a formal report on the implications of fee-for-carriage.
Broadcasters as well as Rogers Communications, one of the country's largest cable companies, welcomed the prospect of renewed hearings.
The networks, hard hit by falling ad revenues, want to collect millions of dollars from companies that deliver their signals to subscribers by cable or satellite.
The cable and satellite firms don't want to eat the fees themselves, but are loath to pass them on to subscribers. They say customers don't want to pay for signals that can be pulled in free over the airwaves. The networks say people will pay because they appreciate local TV.
"We've directed the CRTC to consider what fee-for-carriage would mean for Canadians, because this is an issue that affects them directly," Moore said in a release.
He said the CRTC must take into account the impact on consumers, in particular the impact on affordable access to local and regional news, information and public affairs programming.
It must also look at how it would affect the communications industry at a time when new business models are emerging.
"This is an opportunity for the CRTC and the broadcasting industry to look to the future, to find innovative solutions, always with the consumer in mind," the minister said.
Phil Lind, vice-chairman of Rogers, said consumers are the key.
"The government says the CRTC must take into account the impact on consumers of a fee-for-carriage regime which is something we have consistently advocated," he said in a release.
"We must ensure that consumers are front and centre in this discussion."
Paul Sparkes, CTV's executive vice-president of corporate affairs, said the decision to hold hearings is a positive step for everyone.
"Consumers no longer benefit from the broken broadcasting model, and we welcome the government's support in implementing a solution that recognizes the value of local TV for consumers."
The networks say fee-for-carriage and the resulting revenues will help promote local programming. They also say viewers value that programming.
"We have and continue to hear from Canadians across the country about the importance and value of local television," said Steven Guiton, CBC's chief regulatory officer.
