Content is verbatim from a news release issued this afternoon.

OTTAWA, March 26 /CNW Telbec/ – The rules governing the new Canada Media Fund announced today are a source of considerable concern for CBC/Radio-Canada.

When the Fund was created a year ago, we had responded favourably to the announced changes, even though they eliminated the 37 per cent envelope that was formerly dedicated to the Corporation under the now defunct Canadian Television Fund. We were enthusiastic about the Minister’s desire to focus on injecting money in the production of original prime-time programming. This philosophy was going to reward those who took risks by making regular and substantial investments in original Canadian programming, with the aim of increasing the success and impact of these programs with English-Canadian audiences. It was also going to preserve the conditions that have led to the long-standing success of Canadian programming in the French-language market.

As CBC/Radio-Canada President Hubert T. Lacroix stated at the time: “If it’s done right, the new model will be a success. If it isn’t, CBC/Radio-Canada is concerned that the elimination of our 37 per cent envelope will lead to a reduction in viewing of Canadian programming in prime time.”

We have a hard time understanding how, in the span of a year, the Canada Media Fund has not been able to establish clear rules for achieving the Minister’s stated objectives. We now understand that these rules will not be in place until next year.

“For the second time in a less than a week, CBC/Radio-Canada is being asked to wait. As the broadcaster that contributes the most to creating high-quality original programs, we’re surprised at this approach,” said Hubert T. Lacroix.

Under the rules announced today, it appears that less money will be invested in television production this year and that many independent producers will not have access to funding for their projects.

Once we know how the envelopes will be assigned to broadcasters next week, we will be in a better position to judge the implications of the announced changes.

CRTC approves talks on TV signal fees
Cable and satellite companies say CRTC has no say in fight with networks
Canada’s private TV broadcasters celebrated somewhat of a victory Monday after the CRTC ruled that they can negotiate fair market value for their over-the-air signals from cable and satellite companies.
…”Broadcasters and distributors have a symbiotic relationship,” said Konrad von Finckenstein, chair of the Canadian Radio-television and Telecommunications Commission, on Monday in a statement. “The time has come for them to put their differences aside and work together to ensure the continuation of conventional television, which Canadians clearly value.”
…”This is a very dark day for public broadcasting and there does not appear to be a future for public broadcasting … with this decision.” —Steven Guiton, vice-president and chief regulatory officer, CBC/Radio-Canada.
CBC News

The Globe and Mail
CRTC rules TV networks can charge for their signals
The major television networks have won the right to start charging for their signals, but it will now be up to the courts – and the federal government – to determine whether consumers will pay more on their monthly bills.
…“We’re obviously very pleased with the CRTC, that they recognize there is a value associated with the content we provide,” said Paul Sparkes, CTV’s executive vice-president of corporate affairs.
…CBC executives responded angrily to the decision yesterday to leave the public broadcaster out of future negotiations between the private broadcasters and the carriers.
“What the commission has done in this decision is say that we recognize that commercial revenues, advertising revenues, are under threat. … We have come up with a solution for the private element [private broadcasters], we have no solution for the public element,” said Steven Guiton, the CBC’s chief regulatory officer.
Susan Krashinsky

The Globe And Mail, Monday March 22, 2010
CRTC decision won’t end slugfest between TV networks and cable, satellite companies
Regulator has already asked court to review decision allowing networks to seek payments for their signals
The four-year blood feud between television networks and cable and satellite companies over signal fees is far from over.
In the same breath that the CRTC ruled Monday that Canada’s conventional networks can seek payments for their television signals from cable and satellite companies, the regulator took the unusual step of seeking approval of its ruling from the Federal Court of Appeal.
…This isn’t over,” said Lawson Hunter, a former federal regulator and communications lawyer with Stikeman Elliott LLP. “The government has been particularly sensitive to anything that could result in additional costs to consumers.”
Jacquie McNish

The Globe and Mail
The CRTC justifies its existence
Complain all you like, but it’s just shown why we need it
There’s a large group of Canadians who are champion complainers. Whine, whine. Gimme, gimme. No fair. I want my MTV/HBO/Showtime/Fox News/that channel with all the celebrity news. I want it now and I don’t want to pay for it. Canadian content shoved down my throat? Screw that.
…This is what the CRTC exists to do: find a solution that assuages the interests of corporations and does the best for the consumer, both in the sense of cable’s bill-paying customers and consumers of local news and other Canadian programming. At the same time, it has to examine the interests of the unions and guild representing actors, writers, directors and producers of Canadian programming, those groups who like to call themselves “the creatives.” The cable and broadcasting bosses don’t have a monopoly on egotism, believe me. The Canadian TV racket is shark-infested waters, and somebody has to regulate.
John Doyle

The Globe and Mail, Monday March 22, 2010
What the new broadcasting rules mean
Canada’s broadcast regulator set out to reshape the TV industry in Canada Monday. Here are three key things to know
TV NETWORKS COLLECT COMPENSATION FOR SIGNALS
The decision: The big networks – CTV, Global, Citytv and A Channel – can now seek payment from cable and satellite companies for their signals. Much as cable channels such as TSN and the Weather Network are allowed to charge monthly fees, the big networks must now negotiate their own rates. If a deal can’t be reached, the networks can pull their programming and black out corresponding shows on U.S. channels. So if CTV can’t reach a deal with Rogers, for example, it can pull CSI off the air, then black out the show on CBS in Canada, since the network owns the rights to air that show here.
The impact: For consumers, the impact is still unknown. It will mean new fees on bills, but how much is unclear. In the past, the networks have suggested they would be satisfied with 50 cents a month per subscriber for each network. But that number must now be individually negotiated. The CRTC is also allowing cable companies to use other items, such as channel placement, to barter with the networks. The cable and satellite carriers can threaten the networks with a more obscure spot on the dial if the price is too high.
Grant Robertson

National Post
Evil genius logic at CRTC
After watching in dismay for years as the kids bickered and bullied, Big Brother rolled out a sandbox yesterday and ordered them inside until they find a way to play nice.
The Canadian Radio-television and Telecommunications Commission was caught between two intractable positions when cable companies and national broadcasters unleashed campaigns last year aimed at whipping up public hysteria to support their self-interests.
…But there’s a certain evil-genius logic to the CRTC’s proposal. The broadcasters argue they produce a signal consumers want, probably a lot more than those itsy-bitsy specialty channel fragments that make piles of money siphoning pennies off the cable bill for a product few viewers want to see.
…It seems unlikely that Heritage Minister James Moore would arbitrarily reject this CRTC recommendation. It should appeal to Conservatives who don’t believe in excessive interference in free enterprise.
Don Martin

Financial Post
CRTC supports ‘market-based’ approach
Carriage Fee Debate
Canada’s broadcast regulator moved to adopt a “market-based” U.S.-style model yesterday that could see the most popular shows blacked out from Canadian televisions if cable companies and the national television networks cannot agree on carriage contracts for TV signals.
The goal of the Canadian Radio-television and Telecommunications Commission (CRTC) in permitting negotiations — a first for the industry –is to stabilize a private broadcast system that is facing sharp declines in advertising revenues. Niche specialty channels and online content portals have diverted ad dollars that were once automatically allotted to conventional TV stations.
…”We’re encouraged that the commission recognizes the protection of program rights and the value of local television,” said Charlotte Bell, senior vice-president of regulatory affairs at Canwest Global Communications Corp., also the owner of the National Post. Its television subsidiary sought creditor protection in October as falling ad revenue could no longer offset its hefty debt load.
…Today, the CRTC is to deliver its findings on the afford-ability of fee-for-carriage to Cabinet — which effectively gives the Conservative government a key role in deciding whether the regulator’s proposal passes muster.
Jamie Sturgeon and Paul Vieira

The Ottawa Sun
Broadcasters can demand cash: CRTC
OTTAWA — Canadian consumers could be forced to pay more to watch local television after the broadcast regulator said Monday it wants to give private television broadcasters the right to demand payment from cable and satellite companies that carry their signals.
…Canadians watching TV shows through video-on-demand services will also see more advertisements. The regulator said the move would help conventional broadcasters.
For now, the CRTC’s decision applies to private English and French language stations.
The CBC is shut out of the negotiated solution despite having lobbied for similar treatment last fall.
The CRTC said it would review CBC’s mandate and funding next year.
Althia Raj

www.truthandrumours.net, Monday March 22, 2010
CTV and Global get what they want; CBC outraged over exclusion
The CBC has strongly denounced the CRTC’s ruling today that will allow CTV and Global Television to negotiate distribution fees with the cable and satellite operators – but deny the CBC the same opportunity.
“The CRTC’s decision defies logic,” Hubert T. Lacroix, the president and CEO of CBC/Radio-Canada, said in a statement.
“The Commission wants to save Canadian programming. CBC/Radio-Canada invests more in Canadian programming than all of the other broadcasters combined.
“Denying us the same rights held by every other broadcaster in this country means that this supposed solution will not apply to over half of the Canadian content produced and aired in this country – over $650 million last year alone.
…Still, why wouldn’t the CBC be upset? It’s a broadcaster, like Global and CTV, and it invests much more in Canadian content than either CTV or Global. Yet it has been denied the opportunity to earn money based on the new ruling.
William Houston

The Hollywood Reporter, Monday March 22, 2010
CRTC calls for ‘market-based’ regime
Opens the way for imposed charges on local TV signals
TORONTO — Looking to end Canada’s bitter retransmission fee feud, the country’s TV watchdog on Monday opened the way for Canadians to be forced to pay to watch U.S. series-rich local TV signals.
The Canadian Radio-television and Telecommunications Commission (CRTC) also approved U.S. programming blackouts here if broadcasters that own the Canadian rights to the American shows cannot secure negotiated compensation from domestic cable and satellite operators for carriage of those signals.
…In return for receiving compensation for local TV station signals, the CRTC re-imposed homegrown programming spending requirements on the country’s three largest broadcast groups: CTV, Canwest Global Communication and Rogers Media.
Etan Vlessing

The Winnipeg Free Press, Monday March 22, 2010
Quotes on the CRTC fee-for-carriage policy
Some of what was said Monday about the CRTC decision on fee-for-carriage:
-”The current dispute between conventional broadcasters and distributors threatens the overall integrity of the broadcasting system. Broadcasters and distributors have a symbiotic relationship. The time has come for them to put their differences aside and work together to ensure the continuation of conventional television, which Canadians clearly value.” – Konrad von Finckenstein, chairman of the CRTC.
The Canadian Press

The Toronto Star
Networks win a round in ‘TV tax’ showdown
OTTAWA–The Canadian Radio-television and Telecommunications Commission has opened the door to major change on small screens across the country by suggesting private networks and cable companies head to the negotiating table.
The federal regulatory agency released a decision Monday supporting the principle of private broadcasters being able to obtain compensation for their on-air signals, which cable and satellite providers are currently able to get for free.
…Broadcasting industry reaction to the decision was swift, and mixed.
Stephen Guiton, CBC’s chief regulatory officer, came out swinging, saying he was “very disappointed” by the decision.
“In our view the CRTC has failed to fulfill their responsibilities under the Broadcasting Act.”
He said the regulator recognized there is “fragmentation” in the marketplace that is causing “financial harm to the conventional broadcasters” but failed to address that harm. The public broadcaster relies on commercial revenues for 40 per cent of its financing, he said, and would not be able to access new revenue sources at a future licence renewal hearing.
“This is a very dark day in public broadcasting, and there does not appear to be a future for public broadcasting further to this decision,” Guiton said.
Joanna Smith, Tonda MacCharles, Emily Mathieu

www.cartt.ca
ANALYSIS: The Commission bought what the broadcasters were selling
“NEVERTHELESS, THE SYSTEM is not working well in 2010 in ensuring that conventional television broadcasters have the means to continue to meet their obligations under the Act.”
That quote – from paragra
Whatever the outcome of the Federal Court filing that will need to happen before the broadcasters can solicit new wholesale fees for their signals, the Commission came down solidly behind the conventional ’casters Monday afternoon in its decision stemming from the 2009-411 November hearing. Assuming the court sides with the legal opinion that states the Regulator does have the authority to establish a new compensation regime and that there’s no intervention from the federal government, the customers of cable, satellite and telco TV carriers could well be paying for the signals of conventional broadcasters by this time next year.
Greg O’Brien

www.cartt.ca
August 31, 2011 digital deadline impossible, says dissenting Lamarre
GATINEAU – Despite the majority’s decision today to stick to the August 31, 2011 deadline where all over-the-air TV transmitters in Canada have to switch from analog to digital, commissioner Suzanne Lamarre echoed what many in the industry have been thinking for a long while:
We’re not going to make that date, despite close to six years of notice the industry was given by the CRTC and that the U.S., which made its switch in 2009, has given Canada a road map to follow.
“No one can be expected to achieve the impossible. Based on the evidence on the public record, my intimate conviction is that it is unrealistic to think that all transmitters in all mandatory markets can be converted by 31 August 2011,” reads her dissent to decision 2010-167, the hearing into value for signal and group-based licensing.
Greg O’Brien

justinbeach.blogspot.com
Dear CBC: The CRTC Decision on Local TV doesn’t really matter
There talk of Canadian Media today is the CRTC decision that essentially said that private television broadcasters will get a negotiated fee-for carriage but the CBC will not. CBC President Hubert Lacroix is already saying that it will result in program and service cuts by Mother Corp and the cable and satellite providers are promising it will result in a tv tax higher prices for consumers but no one seems to be making the obvious connection with the other story of the day – Canadians internet time passed their television viewing time this year.
Justin Beach

The Toronto Star, Monday March 22, 2010
CRTC backs TV over cable in fees dispute
OTTAWA—The Canadian Radio-television and Telecommunications Commission has opened the door to major change on small screens across the country by suggesting private networks and cable companies head to the negotiating table.
The federal regulatory agency released an important decision Monday supporting the principle of private broadcasters being able to obtain compensation for their on-air signals, which cable and satellite providers are currently able to get for free.

From a CBC/Radio-Canada news release of March 22, 2010:

The Canadian Radio-television and Telecommunications Commission (CRTC) today failed to fulfill its responsibility to maintain a healthy broadcast system that serves the interests of Canadians.

In its new framework for conventional broadcasting, the CRTC has allowed private broadcasters to negotiate a fair value for their signals with cable and satellite companies, but denied that same right to CBC/Radio-Canada. This is a piecemeal decision that deals with the decline in advertising for private broadcasters but not for CBC/Radio-Canada whose television budgets are 40 to 50 per cent dependent on commercial revenues. The decision recognises the market fragmentation that is harming private conventional broadcasters but is wilfully blind to the fact that CBC/Radio-Canada is subject to the same pressures.

Denying CBC/Radio-Canada access to the same revenue streams as other conventional broadcasters means that the CRTC has accepted that CBC/Radio-Canada’s budget and services should be reduced, and that the services offered by the public broadcaster are less important than those of the private broadcasters.

“The CRTC’s decision defies logic,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. “The Commission wants to save Canadian programming. CBC/Radio-Canada invests more in Canadian programming than all of the other broadcasters combined. Denying us the same rights held by every other broadcaster in this country means that this supposed solution will not apply to over half of the Canadian content produced and aired in this country – over $650 million last year alone. This will solve the economic problems of private sector players but will not bring the system back into balance. It leaves the player who delivers more than anyone else in the system without a viable business model.”

Since the advent of television in 1952, successive governments have determined that Canada’s public broadcaster would subsist on a mix of public and commercial revenue. The CRTC has itself encouraged CBC/Radio-Canada to pursue commercial revenues in order to fulfill its mandate and conditions of licence. Like the private broadcasters, CBC/Radio-Canada is dependent on advertising revenues to provide its services and is being severely affected by a their decline.

“We’ve been evaluating the potential repercussions of a decision like this for several months now,” continued Lacroix. “One thing is clear: this will force us to cut programs and services, and our ability to fulfill our mandate has been compromised. The independent production sector, the cultural community, and the public will all suffer as a consequence. But we need to study the decision in more detail and present a plan of action to our Board before I can share more.”