CanWest Global Communications, CHUM, CTV and CBC want to charge cable companies a fee for carrying their signals, telling the CRTC – which next month will hold a wide-ranging review of its TV regulations – that they need the added revenue to stay competitive and to pay for the coming conversion to digital TV.

‘Subscription fees are the fastest growing revenue source for the television market, already surpassing advertising revenues by $2 billion,’ said CanWest in a recent filing to the federal regulator, noting that similar fees ‘have been part of our broadcasting system since the early 1980s.’

Cable companies pay fees to specialty channels, which are passed on as costs to the consumer. Current regulations do not allow carriage fees for conventional TV.

The review is expected to open several contentious issues, including fee-for-carriage and the still-controversial 1999 TV Policy. Written comments were due Sept. 27. Public hearings begin Nov. 27.

In separate filings, the networks complain of audience fragmentation, lower advertising revenues and the expense of switching to digital TV.

CBC says converting its entire over-the-air network isn’t financially feasible, and proposes abandoning some of its conventional transmitters in favor of cable and direct-to-home satellite, spelling the end of free CBC in some parts of the country.

Less than 20% of Canadians receive TV over the air, according to the CRTC.

‘Increasing use of personal video recorders, the rise of on-demand services and the siphoning of advertising revenues to the Internet’ are putting too much pressure on the advertising-only model of current, conventional TV, according to the Ceeb’s statement.

Rogers Cable, Shaw Communications and Bell Canada – owner of CTV through Bell Globemedia – oppose the idea and warn that the fees would be passed on to their customers. Eight specialties, including APTN, Channel Zero and VisionTV parent S-VOX Trust, also issued a joint statement denouncing the fee-for-carriage proposal.

The CRTC is also questioning whether Canadian content spending requirements for conventional networks, which were eliminated in 1999, should be reintroduced.

The CFTPA wants broadcasters to spend 12% of their revenues (at the start of their next licence term, increasing to 15%) on Canadian programming. A coalition of unions including the Directors Guild of Canada, ACTRA and the Writers Guild of Canada recommends that private conventional networks be required to devote 7% of their revenues to Canadian TV drama.