FOR IMMEDIATE RELEASE

Toronto – The CRTC should protect consumers from skyrocketing basic cable TV rates in the face of price increases of up to 85% since 2002 when basic cable prices were de-regulated, according to the watchdog group Friends of Canadian Broadcasting.

"Lately, the cable monopolies have posed as consumer advocates, but since the CRTC ended the regulation of basic cable rates six years ago, Rogers and Shaw have increased their basic price by 85% and 68% respectively, during a period when the Consumer Price Index rose by only 14%," FRIENDS spokesperson Ian Morrison wrote in a submission today to the CRTC concerning the value of local television.

Consumers are not the only ones being fleeced. 

Cable is taking conventional TV broadcasters to the cleaners too.  Cable TV distributors pay nothing to conventional broadcasters like CTV, Global and CBC for the national and local programs they provide.

"For five decades cable monopolies have generated substantial profits from the sale of a product for which they have not paid" says Morrison in FRIENDS' submission.  Forty per cent of all cable subscriber viewing is to Canadian conventional television programs.

This extraordinary circumstance has helped to distort the Canadian broadcasting market to the point that the cable monopolies earned a profit before interest and taxes of 25% in 2008, while the private conventional broadcasters earned a profit of less than 1% during the same period.

Noting that the cable monopolies can well afford to pay for the programs provided by the conventional broadcasters, FRIENDS recommends that the Commission ensure that cable distributors do not pass along compensation for signals to their subscribers.

FRIENDS is also recommending that this compensation should be allocated among the local conventional broadcasters based on total tuning to Canadian programs in each market during the preceding broadcasting year.

FRIENDS' submission notes that the type of program Canadian viewers cherish most – local news – may fade from the small screen without swift and decisive action from the CRTC.

"No one disputes that the CRTC has the power to make cable pay for the products it profits from and treat this charge as a cost of doing business.  The only question is whether the CRTC has the will to protect viewers and listeners," Morrison said.

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For information: Jim Thompson 613-447-9592

Related Documents:

 Nov 2, 2009 — Policy Brief: Re: Compensation Regime for the Value of Local Television Signals
FRIENDS recommends that the CRTC re-regulate basic cable rates, ensure that big cable companies do not pass along signal costs to subscribers and new compensation be divided among local conventional stations based on viewership of Canadian programs.