GATINEAU — As administrator of the Independent Local News Fund (ILNF), the Canadian Association of Broadcasters (CAB) this month asked the CRTC to raise the fund’s current 10% market cap to 12% in a Part 1 application filed August 10.
The CAB application makes the request in order to preserve the status quo following Bell Media’s acquisition of V Interactions (licensee of the V television network and five French-language television stations in Quebec) from Groupe V Media in May 2020.
The ILNF supports the production of local news and information by private, independent television stations. As it stands now, the funding allocation method for the ILNF, as established by the Commission in 2016, states that no television station or group of stations operated by the same licensee in a given market will receive more than 10% of ILNF funding in any given year.
The CAB explains in its application that after Bell acquired the V television stations, they were no longer eligible for ILNF funding. In 2019, the V stations received almost $3 million in ILNF funding.
In an appendix to the application, the CAB models ILNF disbursements on a pre- and post-V stations basis, using calculations showing the effect of a range of market caps from 10% to 15%. According to the CAB’s calculations, a 12% market cap would preserve the status quo in terms of those subject to a cap. In comparison, maintaining a 10% cap or setting an 11% cap means a majority of ILNF beneficiaries would be subject to the cap in at least one market, while a 15% cap would mean only one recipient is capped, says the CAB.
The CAB says it held a number of consultations with the ILNF recipient groups, and by group vote a 12% market cap was found to be the most acceptable compromise. Eight out of nine recipient groups were prepared to endorse the proposal, with RNC Media being the one dissenting group, the CAB says.
“In order to bring clarity to much needed ILNF funding during this time of pandemic induced 30-50% advertising declines, we respectfully request a CRTC decision on this request as soon as practicable,” reads the CAB application.
The CAB is proposing, should its request be approved, the change to a 12% market cap be made effective September 1, 2020.
The Commission posted the CAB’s Part 1 application to its website on August 18. Interventions are due by September 17, 2020.
