Local TV precarious, despite increased funding: networks

The CRTC's move to boost funding for local TV programming may not be enough to save some stations, the networks say.

On Monday, the Canadian Radio-television and Telecommunications Commission announced it would increase the funding to create local programming from $68 million annually to $100 million for 2009-10.

The funding is to come from the cable companies, which have consistently opposed further underwriting of Canadian programming.

Canwest Global confirmed it would likely cut local programming outside big cities and was not changing its plans to sell some stations.

But CTV's Paul Sparkes said the CRTC decisions could help keep some stations alive, including the Windsor station.

"We have said that we would review Windsor if there was an increase in the local programming improvement fund," he told CBC News.

"We are currently reviewing that and I'm hopeful we'll find a solution for Windsor.

CTV announced earlier this year it would close CKNX-TV in Wingham, Ont., and CHWI-TV in Wheatley, Ont., plus a rebroadcaster in Windsor.

Canwest Global Communications has sold stations in Montreal and Hamilton and put up for sale affiliates in Red Deer, Alta., and Kelowna, B.C.

Karen Wirsig of the Canadian Media Guild said the network threats to close stations seems to have forced the CRTC's hand.

"It was like a high-stakes poker game between the broadcasters and the CRTC.… The broadcasters were using the local stations as pawns in that game," she said.

"The CRTC blinked. Maybe it's right that they blinked; maybe it's right that the broadcasters are going to get some extra help."

But Wirsig is worried about the CRTC's new minimum requirements for the amount of local programming.

The levels — 14 hours a week in major markets and seven hours a week outside Canada's biggest cities — are significantly lower than what's on the air now, she said.

"So what we may end up seeing is a bailout for the broadcasters that actually results in a reduction in jobs across the country," she said.

New carriage fees coming for cable, satellite

The CRTC also signalled it would be asking the cable and satellite firms to pay a fee for conventional over-the-air signals.

The carriers such as Rogers and Shaw currently don't pay for the signal from networks like CTV, Global and the CBC, though they do pay for the signal from specialty channels.

The amount the cable and satellite companies will have to pay will be determined in a hearing this fall.

Rogers said it will have to pass those costs on to the consumer.

Phil Lind, of Rogers Communications, warned cable bills could increase by $50 to $100 a year, depending on the package.

"We just think that more subsidies, more bailouts for the broadcasting industry is not good public policy and it hurts the consumer badly," he said.