Barrie MP Patrick Brown Presses CRTC to save A Channel and Local Television in Canada

April 01, 2009

 
Conventional television in Canada is in crisis and a broken domestic regulatory model is resulting in the closure of TV stations and the end to local programming.  Without immediate regulatory changes, more communities across Canada will lose local television stations, broadcasting infrastructure, news and entertainment programming, production and jobs.
    
A Channel in Barrie and across Canada has already had massive staff cuts and is on the verge of being the first cultural casualty of the difficult economic times.  MP Brown believes local television is of critical importance to Canadian culture and identity.   
    
During his annual report to Heritage Committee in Ottawa today, CRTC Chairman Konrad von Finkelstein was asked by MP Brown if the CRTC will consider fee-for-carriage as part of the upcoming renewal of group licenses in April.

“Mr. von Finkelstein, my family grew up watching A Channel news and I know most families in my riding treasure their local news.” said MP Brown  “Without fee for carriage changes, we will see the death of local television in Canada. It will be a set back for Canadian culture, patriotism and identity."

"In your previous rejection of the fee for carriage request you said it was because financial revenues in the television industry were stable but they are in a precarious and grave situation today” continued Brown.  “The A Channel in Barrie let one third of their staff go on March 3rd.  Stations are closing down across Canada due to financial challenges. Is it not time to revisit this critical issue?"

MP Patrick Brown believes that the CRTC should consider fee-for-carriage as part of the upcoming license renewals for local Canadian television stations.  Allowing local Canadian television stations the right to charge for the retransmission of their signals and programming provides several immediate benefits for the industry.  As well as providing access to legitimate revenues it reinforces consumer preferences for local Canadian news and programming which is consistent with the objectives of the Broadcasting Act. 

Background:
 
“Fee-for-carriage” is the term used to describe the commercial practice of cable and satellite companies compensating television stations for the retransmission of their signals and programming.

Fee-for-carriage has been an issue in Canada since the introduction of cable TV in the early 1970s.   The issue intensified in the 1990s when local US television stations received the right to charge retransmission fees to cable and satellite companies. At the time, the US adopted these measures to keep local TV stations on a level playing field with for fee specialty channels.  With the economic downturn and declining advertising markets, access to these retransmission revenues are now more vital than ever for the survival of local US television stations.