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Cable Technology Feature Article

March 24, 2010

Broadcast Fees Not as Detrimental as Cable Industry Thinks, Canadian TV Comes to Resolution

By Kelly McGuire, TMCnet Editor

The cable industry has been suffering quite a blow recently, with numerous controversies surrounding major providers and the space.

However, in Canada, where various hearings were taking place regarding broadcasting fee negotiations, Reuters (News - Alert) reported that the rulings were less detrimental to the state of the industry than many would think.

On March 22, cash-strapped TV networks like CTVglobemedia Inc and Canwest Global Communications were given the go ahead by the Canadian Radio-television and Telecommunications Commission, or “CRTC,” to start charging Rogers Communications, Shaw Communications (News - Alert) and Quebecor Inc., three Canadian broadcast companies, fees for their signals.

While Rogers Communications was quick to try and retaliate, it’s rumored that any fees are likely to be small, with little to no immediate effect, especially since the CRTC still has yet to put a definite plan in effect with the Federal Court of Appeal.

Since cable companies own meaningful stakes in television networks, or are in the process of acquiring stakes, negotiations for this arrangement may overlap. Well, that was easier than here in the United States wasn't it?

Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly "green" technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.

Edited by Kelly McGuire