Skip to main content

MEDIA REPORTER

A push by federal regulators to place restrictions on how Canadian television networks buy prime-time shows in Hollywood has been put on hold.

The plan would have required conventional networks - such as CTV, Global and CITY-TV - to spend one dollar on Canadian productions for every dollar they spend on foreign shows, which mainly come from the United States.

However, with the networks heading to Los Angeles next week to screen the new slate of fall programming from the major U.S. studios, regulators decided there wasn't enough time to enact the new rule.

The 1-to-1 ratio, as it is called in the industry, will be considered for the following year, the Canadian Radio-television and Telecommunications Commission indicated in a statement.

"Such a condition would not be practical for the upcoming broadcast year given the sector's production timelines and the programming commitments that are already in place," the CRTC said.

The CRTC has grown concerned about the amount the networks are spending to buy Hollywood shows in a battle for ratings. Last year, the conventional TV industry as a whole spent a record $775-million on foreign shows.

The delay was generally endorsed yesterday by the networks and members of the TV production community. The Writers Guild of Canada said delaying the ratio on foreign programming was necessary for now, but wants to see the idea discussed further.

The new rule is one of several the regulator is contemplating. The CRTC also confirmed yesterday it wants to look at allowing networks to negotiate compensation for their signals with the cable and satellite carriers. Such changes would give the networks the right to seek arbitration if a deal could not be reached. This process would, in the regulator's eyes, replace the networks' controversial push to charge 50 cents a month per cable or satellite subscriber for their signal.

The CRTC told the networks two weeks ago that it wanted them to consider dropping their request to charge the fees, and consider the new proposal instead. CTV and Global said they would consider the idea, which will be discussed at hearings in the fall. CTV is owned by CTVglobemedia Inc., also the parent company of The Globe and Mail. Global is owned by CanWest Global Communications Corp. CGS-T

Ken Englehart, vice-president of regulatory affairs at Rogers Communications Inc., RCI.B-T objected yesterday to being forced into negotiations with the networks. "If you couldn't agree, the CRTC would set the rate through an arbitration. Well that's just fee for carriage," he said.

The regulator also announced it would renew licences for CTV, Global, Sun TV and CITY-TV for one year in order to hold broader licence renewals in the spring of 2010.

Some of the networks have argued their financial fortunes are dwindling in the face of a recession and competition from the Internet, which has splintered ad dollars and audiences. The CRTC wants to assess the profitability of the networks by looking at all of their assets, including cable channels, rather than just focusing on their main network.

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe