Fee ruling to boost cable tv bills
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Updated: July 13, 2009 5:20 PM
Cable and satellite TV subscribers will likely have to shell out more as a result of a CRTC decision requiring cable firms to pay more money to television broadcasters.
Rogers Communications officials estimate cable TV subscribers will end up paying between $50 and $100 more annually, depending on their cable package.
Shaw Cable had no immediate estimate of the impact on their subscribers’ bills, but company officials said they will continue to oppose t he fee hikes.
“It is difficult to believe the CRTC is mandating these transfers – money from the pockets of ten million Canadians to three Canadian broadcasters,” said Shaw Communications president Peter Bissonnette.
The ruling by regulators forces cable and satellite providers to temporarily increase their contributions to the Local Programming Improvement Fund to 1.5 per cent of broadcasting revenues in 2009-10 – up from 1.0 per cent previously.
The increase means television stations in smaller markets will be able to tap $100 million this year, instead of $68 million, to subsidize news and other local programming.
The CRTC has also ordered the warring broadcasters and cable/satellite providers to negotiate a deal under which broadcasters will be paid more for their television programming.
Rogers officials said the fee for carriage provision will amount to a new tax on consumers – over and above the five per cent tax on cable and satellite service they already pay to support Canadian programming.
The CRTC has threatened to cut off cable firms’ access to U.S. networks if an agreement isn’t reached.
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