The CRTC announced its intention today to review, via public process, the Local Programming Improvement Fund (LPIF), and is calling for Canadians to submit comments by Feb. 15, 2012. The review will determine whether the fund should be maintained, modified or cancelled.

The LPIF was created in 2008, with a planned comprehensive review for its third year of operation, to support the development of local television programming, particularly local news, in non-metropolitan markets.

The commission had determined in 2008 that, along with increasing online and new media platforms, viewing choices through satellite and terrestrial BDUs had expanded, with Canadian BDUs experiencing a considerable growth in revenues.

From this, the commission increased financial contributions from licensed BDUs to Canadian production from the required 5%, with the additional contribution (1% in 2008) directed to the LPIF.

The goal of the LPIF was to ensure viewers in smaller Canadian markets continue to receive a diversity of local programming, particularly news programming; improve quality and diversity of local programming broadcast in these markets; and ensure that viewers in French-language markets are not disadvantaged.

Since the 2009-2010 broadcast year, Canadian BDUs have contributed 1.5% of their gross revenues from to the LPIF.

Of this, one-third of the overall IPF is allocated equally to eligible stations across Francophone and Anglophone markets. The remaining two-thirds of the LPIF are divided so that 30% is directed to Francophone markets and 70% Anglophone markets. Eligible stations must broadcast local programming that includes news.

By the end of 2012, the LPIF will have distributed more than $300 million to more than 75 local stations throughout the country.

The commission is seeking comments on the preliminary criteria it established to evaluate the LPIF, including:

• Evaluation of the fund’s objectives and performance of recipient stations
• Additional spending on local programming as a condition for receiving funding
• Eligibility for the fund and the funding allocation formula
• Cable and satellite companies’ contributions to the fund
• Relevance of maintaining, modifying or abandoning the fund

Funding recipients will also be expected to demonstrate how LIPF funding was used to make measured improvements to the programming available to their local markets, taking into account various indicators of success, like audience satisfaction and increases in local advertising revenues.

Comments can be submitted by Feb. 15 online, by fax or writing to the CRTC Secretary General. A public hearing for the review will begin in April 16, 2012 in Gatineau.