MP Brown optimistic regarding long term viability of A Channel

July 10, 2009

Barrie - MP Patrick Brown applauds the recent CRTC decision to reverse its earlier rulings regarding programming fees. This decision could ensure the long term viability of local TV in Canada and specifically the A Channel in Barrie.

“This is the outcome we were hoping for when we started the petition to save the A Channel. With this decision the CRTC has provided us with optimism that local television networks such as A Channel will be able to continue providing quality local programs for the city of Barrie.” said MP Patrick Brown.

The CRTC opened the door for the system of payments from cable companies to broadcasters, known as fee-for-carriage, as part of a review of licensing and conventional television. But rather than approve a fee outright, the regulator wants the broadcasters and cable carriers to negotiate what the payment should be, and if the two sides can not reach a deal, they would go to arbitration.

“I’m very pleased,” said Paul Sparkes, executive vice-president of corporate affairs for CTV Inc.’s CTVglobemedia Inc., owner of A Channel Canada, of the hearings that will look at carriage fees. “Negotiating fair market value for our services is key to our viability.”

The CRTC said it is now of the view that a negotiated solution for compensation for the free market value of local conventional television signals is also appropriate. The CRTC said it will increase the charges cable and satellite companies pay for the Local Programming Improvement Fund by 33 per cent for one year, to 1.5 per cent of their gross broadcasting revenues from 1 per cent. The House of Commons Heritage Committee had been calling for an increase to 2.5 per cent.

Specifics on how the fee will be negotiated, and how much cable companies can expect to pay will be discussed in the larger review of conventional TV broadcasting on September 29, 2009. 
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The CRTC will be taking comments and suggestions from Canadian citizens. Barrie residents are encouraged to pass along their comments to MP Patrick Brown by phone at (705) 726-5959, or by email at barrie@servingbarrie.com.