TV networks hit by CRTC decision
p2pnet news view | TV:- Canada’s major broadcasters have failed in their bid to start charging carrying fees to cable and satellite companies.
But it’s a win for Canadian viewers: the decision averts the possibility of hefty hikes to TV bills.
“Big broadcasters had complained to the Canadian Radio-television and Telecommunications Commission that it was unfair cable and satellite companies could air their signals without paying a so-called ‘fee for carriage’,” says the Toronto Star, noting fees could have meant a $2 to $10 jump in monthly payments.
However, the decision by the Canadian Radio-television and Telecommunications Commission to deny the move will inevitably leave the networks with some tough decisions to make, said But a decision by the Canadian Radio-television and Telecommunications Commission to deny the move will inevitably leave the networks with some tough decisions to make, said Leonard Asper, the chief executive officer of CanWest Global Communications Corp.
“We’re going to have to go back and look at our business models once again,” the Globe and Mail has Leonard Asper, CEO of CanWest Global Communications saying.
“Nothing is too outrageous to consider.”
“All of the major companies in the last few years have managed to consummate billion-dollar (advertising) deals,”says CRTC chair Konrad von Finckenstein in theToronto Star.
“So clearly the industry is not on the verge of disappearing. So we denied the fee for carriage … there is just no economic rationale for doing it.”
Led by CTV and Global Television, the networks had wanted to start charging cable and satellite carriers for their signals, “which would have been worth $300-million to the big broadcasters as they confront a deteriorating economy,” says the Globe and Mail, adding:
“With the TV industry concerned about an economic downturn, CanWest is in a precarious spot with $3.6-billion of debt and limited financial flexibility.
“Ratings service Moody’s yesterday put CanWest’s rating under review.
“Moody’s said the move was ‘prompted by the likelihood that rapidly deteriorating general economic conditions will suppress advertising revenues while simultaneously causing business enterprise values to fall’.”
The CRTC ruling will give cable and satellite providers more flexibility in packaging channels for their customers, “conceivably freeing households to pick whatever channels they want,” says Canwest.
But, “two conditions remain,” it states: “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.”
But one change takes effect on September 1, 2009, adds the story: “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”.
Toronto Star – , October 31, 2008
Globe and Mail – TV networks dealt blow by CRTC, October 31, 2008
Canwest – Coming soon to a TV near you: More freedom to pick channels, October 31, 2008
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October 31st, 2008 at 12:38 pm
IN THE UK WE PAY TV TIX
October 31st, 2008 at 5:01 pm
Broadcast TV is supported by ad dollars which are paid based on estimates of numbers of viewers. More viewers = more money (unless they negotiated crappy deals). In short, they ARE getting paid. They just want MORE. Sound familiar?
November 2nd, 2008 at 1:45 am
First I’ve heard of this. Glad to see Shaw won’t be handed yet another excuse to charge me even more money for their horrid service. I guess I shouldn’t be surprised Shaw’s audio video quality has taken such a huge nose dive over the years given the near monopoly they’ve had in my province over the past several decades. If I had to pay any more than I already am, I’d completely get rid of them and just use P2P solely. Glad I have at least one alternative option when it comes to broadband internet service, given how Shaw throttles all of their traffic. The instant I’m able to move away from where I’m currently stuck living is the day I write Shaw one long nasty letter telling them where to go, how to get there, and most importantly all the reasons why, a list that originally started with only one or two minor points but has slowly grown to more than sixteen major ones as time passes. Will telecommunications companies ever learn to reinvest their profits instead of pocketing them, all while asking for ever more? Doubtful.