CRTC relaxing rules blocking 'third-language' TV stations by Richard Blackwell
Source : Globe & Mail
December 17, 2004
The federal broadcast regulator has opened the door to more "third-language" television stations in Canada, by relaxing rules blocking foreign services that compete with Canadian-based channels.
Up to now, the Canadian Radio-television and Telecommunications Commission's policy has been to deny a licence to a foreign service if it was likely to hurt a Canadian channel that provided programming in that same language. That was the reason the CRTC decided in July to keep Italian channel RAI off the Canadian airwaves -- because it would damage Corus Entertainment Inc.'s Telelatino channel.
Under the new scheme any foreign third-language service will automatically be approved as long as certain "safeguards" are in place to protect Canadian channels:
If the new foreign service competes with a Canadian-based ethnic-language station that is on the analogue tier of channels, viewers who want the new channel will have to pay for a package that includes the existing Canadian service.
If the new service competes with a channel on the digital tier, viewers who want it must be offered a package with the Canadian channel, but they will be allowed to pick up the new station on a stand-alone basis if they want.
Canadian third-language services will have the right to buy any programming they want from the foreign channels.
The new CRTC rules apply only to general interest channels, not to specialty services such as movie channels offered in third languages. Those will continue to be blocked if they compete with an existing Canadian specialty channel.
While a panel set up by the federal Heritage Department had recommended that new foreign channels allowed in to Canada contribute to a programming fund to help Canadian-based broadcasters, the CRTC rejected this idea as unworkable.
The change in policy is expected to prompt a follow-up application by RAI to come to Canada, and possibly other applications from Portuguese and Spanish language channels. Telelatino president Aldo Di Felice said yesterday he is encouraged by the CRTC ruling, which ensures his channel can get access to RAI programming. It also "clearly indicates that Canadian services need to be put first because of the contribution we make."
Michael Hennessy, president of the Canadian Cable Telecommunications Association which represents many cable companies that want to add new services, called the CRTC decision an "important first step" in opening up the Canadian market to many new channels.
The ruling is a "signal that the commission has recognized you can have more competition if you think creatively," he said.
Mr. Hennessy said the new rule should also help prompt the government to take stronger action against people who are using illegal devices to pick up foreign television signals.
Ottawa was loathe to crack down on these pirates since some of them appeared to be merely trying to get access to foreign language services not available in Canada, he said.
