GATINEAU – Canadian content exhibition requirement for over-the-air broadcasters were lowered to 55% from 60%, and the broadcasters seem to have been given a break on spending requirements, according to the CRTC decision from proceeding 2009-411 released today.
Under the CRTC’s new group-based TV regulatory policy, the CRTC will now require Canada’s three largest English-language networks to spend at least 30% of their gross overall revenues on Canadian programming.
CTVglobemedia, Canwest, and Rogers will also be given a specific spending requirement for their OTA networks during licence renewals, but will have the flexibility to shift some of their expenditures to their specialty channels. They can shift 100% of their specialty spending requirements to other eligible specialty or OTA stations. As much as 25% of each OTA network’s requirement can be shifted to specialty TV.
News and sports services will continue to be considered separate.
The eight hours per week of priority programming during prime time currently in effect is out and also done away with is priority programming. The new framework promotes programs of national interest, such as drama and documentaries, while the current regulation supported under-represented genres.
“Ownership groups will be able to pool their resources to produce compelling programs,” reads the CRTC decision. Broadcasters still have to air 50% Cancon between 6 p.m. and 12 a.m., of course.
The CRTC also established a framework to allow OTA broadcasters to negotiate value for signal with cable and satellite. However, the CRTC is waiting for the Federal Court of Appeal to rule on whether it has the legal authority to implement such a negotiated regime.
The Commission has opened up other new sources of revenue, such as allowing advertising on video-on-demand. However, the regulator kept its current policy restricting the ad sales in the local availabilities of programming broadcast by foreign pay and specialties.
As well, the Regulator established a proceeding to ensure an orderly transition to digital by August 31, 2011. In particular, it is seeking comments on:
• the number of Canadians that could potentially lose access to free local TV
• the size, type and manner of administering a subsidy program for OTA viewers, should such a program be authorized
• the provision of a free package of local and regional television stations
• measures to educate consumers
• the establishment of a trial market ahead of the transition date
The French-language broadcasters and the CBC are not included in this decision.
Tomorrow, the CRTC will issue its report, requested by the government, on value for signal. The report is based on December hearings. The decision was derived from hearings in November.
The full release from the Commission can be found here.
