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.
GOING TO THE COURTS FOR A SECOND OPINION
The decision: The CRTC has heard conflicting legal opinions on whether it has the jurisdiction to force the cable and satellite companies to negotiate with the networks. So just to be sure, it is putting the matter to the Federal Court of Appeal.
The impact: Regardless of what the court decides, that may not be the final decision after all. The federal government has said it is not in favour of making consumers pay more for TV, and there is the possibility the government could step in and overturn this decision. The government has already overruled the CRTC once this year, when it allowed Wind Mobile to operate as a new cellphone company, despite concerns the regulator has about foreign ownership.
MINIMUM SPENDING ON CANADIAN TV SHOWS
The decision: Canadian networks must now spend at least 30 per cent of revenue on making Canadian TV shows, to prevent domestic programming from being nudged aside by rising spending on U.S. shows such as House and Grey's Anatomy. At least 5 per cent of revenues must be spent specifically on Canadian dramas, comedies, awards shows or documentaries.
The impact: This doesn't change the world for the networks: 30 per cent is about what they spent from 2007 to 2009. But it stops the numbers from falling further.
The TV networks are also allowed to move spending on Canadian programs between their channels. So Global could take some of the spending requirements for cable channels such as the Food Network to make a show for its main Global network.