Broadcast antennas dot a rooftop in TorontoBrian Kerrigan
A special outlet for public beefs about cable companies and a new process for the industry to hash out its cash-flow battles are among measures expected in a major decision next week by the federal broadcast regulator, say industry insiders.
The Canadian Radio-television and Telecommunications Commission (CRTC) has been studying the problem of the ailing television industry, and whether a major financial rebalancing is in order.
Part of that study was the commission's own process, and part was an order by the Conservative government. Details will be revealed Monday.
The networks, such as CTV and Global, are continuing their slide into the red. Revenues shrank 7.9 per cent in 2009, according to numbers released Thursday by the CRTC.
They say they need a new revenue stream, fast, and charging a fee for their signals - dubbed fee-for-carriage - is the right way to do it.
The cable companies say they can't absorb those costs and will pass them on to the consumer. The CRTC statistics show they made 25.4 per cent in profits before interest and taxes last year, in the middle of a recession.
The commission is expected to release details of a new negotiating framework so the two sides can work out among themselves the value of a signal, along with other financial issues.
Such negotiations are unlikely to go quickly or smoothly, and it's unclear at what point the CRTC would be brought in to arbitrate or limit the discussions.
Stay tuned for more bitter wrangling between the parties. They already spent millions trying to sway the public to one side of the debate or the other last fall in the media.
There is also talk of a new ombudsman or complaints system for Canadians who have grievances against their cable or satellite provider.
The regulator is also expected to weigh in on the issue of how much the networks spend on Canadian programming. The 2009 numbers show the conventional broadcasters - as opposed to pay and specialty networks - spent their highest level yet on foreign programming at 59 per cent.
Foreign programming is often the most economically viable choice for the TV schedule, given that it will draw more advertising revenues and often costs less than investing directly in a Canadian production.
The industry and the CRTC are closely watching what the Conservative government will do once it absorbs the decision.
Heritage Minister James Moore has already come out firmly against any measure that will hit the consumer's pocketbook.
This week, he also flatly rejected the idea of a levy on MP3 players and hard drives to compensate music artists. That attack had the TV industry wondering whether this was also a message to them about their quest for more cash.
But Thursday's statistics on the industry, published curiously close to the decision's release, might make it more difficult for the government to balk at more money for the broadcasters. Some local stations have already closed.
"There is an element of 'These guys can afford to pay something'," said Ian Morrison of the Friends of Canadian Broadcasting.
"I think the politicians would be aware of that. It continues to be a hot potato issue."