In press reports, Heritage Minister James Moore confirmed his government was looking at ways to help private broadcasters citing concerns over the state of local news.
Possible Aid for Canwest
Canwest has been specifically named as a recipient of possible financial aid. In comments printed in the Brantford Expositor, Heritage Minister James Moore remarked his government is aware of the corporation's financial difficulties: “We’re mindful of that, and we’re thinking about whether or not there’s anything the government can do, but I can’t be more specific than that right now.” Moore’s spokesperson emphasized that no specific funding commitment has been made to any broadcaster.
The network has until April 7th to come up with a solution. Discussions with federal authorities are ongoing; Prime Minister Stephen Harper has met with company CEO Leonard Asper. Canwest owns 39 daily and community newspapers, and the Global Television Network; it has already begun selling off its assets including a stake in Score Media. It’s looking to sell its Hamilton station CH, as well as its stake in the Australian network: Ten.
The private broadcasters have been asking the Canadian Telecommunications Commission (CRTC) to relax its content regulations.
The Canadian Broadcast industry has been hit by declining advertising revenues, and Internet usage. CTV Globemedia has closed two Ontario stations, and canceled newscasts. CBC has already canceled two shows, and is rumoured to be announcing an additional 600 layoffs. The federal government insists there’s no more money for them.
Possible Fee-For-Carriage
Signals for Global, and CTV are free to cable providers. The parent companies: Canwest Global as well as CTV Globemedia argue because they have been hit by declining ad revenue as well as web-based technology, they should be able to charge for their signal in a fee-for carriage system. The networks suggested a 50cent/subscriber fee, and this is estimated to add up to $10/ month extra on a cable bill. It could make the networks an approximate: $150 million/ year annually in additional revenue. Rogers Communications stands against it.
At a recent meeting the Canadian Radio Telecommunications Commission (CRTC) shot down the request. They argued that because the broadcasters were able to buy various specialty channels and radio stations, they didn’t need the additional money. CRTC has admitted the current model is broken and has asked for industry input.
In comments to Canadian Press, Moore hinted his government would help: “we’re a low taxation government that does not believe in over-regulating industries that are struggling”
The Parliamentary Committee on Heritage has set up a sub-committee to examine ways to help the industry. New Democratic Party (NDP) MP Charlie Angus says they intend to question CRTC officials on what tools the regulator has that would help broadcasters. The committee is to begin hearings when Parliament resumes following its spring break.
Laura Steiner - First hand experience covering politics at all levels; municipal, provincial, and federal.
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