Fee for carriage debate heats up

The cable and satellite TV industry’s pushback on fee-for-carriage of local TV signals has gone public.

In response to the broadcasters grassroots ‘Local TV Matters’ campaign — to drum up support for first-time compensation for carriage of their local TV signals – cable and satellite distributors including Bell Canada, Cogeco, EastLink, and Rogers Communications have now rolled out the ‘Stop The TV Tax’ print, radio and TV advertising campaign.

The latest finger-pointing has both sides accusing the other of prizing American programming over Canadian fare, and of misleading ordinary Canadians with their respective campaigns.

The stepped-up appeals to the media also come as the CRTC invites public input into the proposed fee-for-carriage regime, ahead of formal hearings on the issue, which is set for December.

As they look to influence the CRTC deliberations, the carriers launched www.stopthetvtax.ca as an internet portal to enable Canadians to oppose the proposed TV tax.

Like the broadcasters’ www.localtvmatters.ca site, the carriers invite Canadians to follow the industry debate via social media, and e-mail the CRTC with their views.

But where the broadcasters argue they’re standing up for TV viewers, the carriers say they have consumer interests at heart.

‘It’s an unnecessary new tax on consumers,’ said Bell Canada’s SVP of regulatory and government affairs Mirko Bibic in a statement, as cable and satellite outfits ramp up their battle against broadcasters beyond stealth lobbying in Ottawa.

And where the broadcasters argue fee-for-carriage will support local TV station programming, the cable companies cite CRTC financial data to argue major broadcasters last year spent $740 million on U.S. and foreign programming, and far less on homegrown fare.

The carriers also tell TV subscribers they will pay ‘up to $10 per month,’ with no guarantee that local TV stations will remain in business.

For their part, the broadcasters are criticizing the ‘Stop the TV Tax’ campaign for misinforming Canadians on local TV.

‘It is unfortunate the cable and satellite providers have resorted to scare tactics and misleading information,’ said CTVgm’s EVP of corporate affairs Paul Sparkes. Broadcasters reiterated that cable operators remain profitable, and should not pass any fee-for-carriage charge onto consumers.