GATINEAU, Que. - The CRTC is holding back on saddling English-language television broadcasters with new Canadian content requirements for at least a year that would have insisted they spend as much on Canadian programming as they do on foreign shows.
And the regulator agreed to hold hearings in the fall that would explore remuneration for signals currently carried by cable and satellite companies for free as it said Friday it will go ahead in granting one-year licence renewals to four major broadcasters.
The licences were given to CTVglobemedia, Canwest Global Communications (TSX:CGS), the City stations operated by Rogers Communications (TSX:RCI.B) and Sun-TV, which is owned by Quebecor Inc. (TSX:QBR.B).
The specific terms and conditions of the licences will be made public in the coming weeks.
The decision ends for the time being one of the more contested suggestions made by the CRTC, that broadcasters put as much money into domestic programming as they do buying popular U.S. shows like Desperate Housewives or CSI.
"Such a condition would not be practical for the upcoming broadcast year, given the sector's production timelines and the programming commitments that are already in place," the commission said in a statement.
Ian Morrison of Friends of Canadian Broadcasting praised the CRTC for coming up with a "good, sensible decision" in not imposing the requirement on broadcasters who face considerable financial headwinds already, given the drop-off in advertising revenue.
"I think the one-to-ratio idea was just too simple a solution to a very complicated problem," he said.
CTV executive Paul Sparkes said it was clear the regulator "recognize(s) our dire circumstances and want to find a way to fix it."
However, the networks are not out of the woods and the commission said it will look at various regulatory options to ensure broadcasters devote "an appropriate proportion" of their expenditures to Canadian programming, a concept Morrison endorsed.
Nor have the networks abandoned their plans to keep pushing the regulator for a new funding model they say they need to survive and prosper in the increasingly splintered industry.
CTV is sponsoring a "National Save Local Television Day" on Parliament Hill for May 23, turning up the pressure on Ottawa to provide some sort of financial relief or direct assistance to broadcasters.
The broadcasters have demanded that they be allowed to charge distributors like cable companies 50 cents per signal for the right to carry programming, which the distributors would likely pass on to consumers. Currently, distributors pay a fee for specialty stations such as The Sports Network or Bravo, but nothing for CTV's or CBC's programming.
Some have estimated the charges could add up to $8 to a monthly cable bill, depending on the area.
The commission has twice rejected the request, but said Friday it is willing to work with the industry on the economic squeeze faced by conventional broadcasters because of the growth of the Internet, the multi-channel universe and other economic challenges.
It announced new public hearings this fall to look at alternative support mechanisms for local programs and to explore establishing, through negotiations, a fair market value for conventional over-the-air signals.
Morrison called the move a victory for the broadcasters because it signals that the CRTC believes there is market value for the over-the-air signals, although it wants the level to be negotiated rather than regulated.
During recent meetings, commission chairman Konrad von Finckenstein suggested the broadcasters could negotiate with the cable and satellite companies a value for their signals, with a possible use of an arbitrator if no agreement can be reached.
The one-year renewals handed out Friday gives both the broadcasters and the CRTC additional time to work the intractable issues facing the industry for the next round of group-based licence renewals in the spring of 2010.
"We are making our initial determinations public to provide a measure of guidance to conventional broadcasters as they prepare for the upcoming broadcast year and embark on program purchases," von Finckenstein said
"In the case of the large networks, we have opted for shorter licence terms to give these broadcasters some flexibility during the current period of economic uncertainty."
