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Canadian actors Sonja Smits (right) and Wendy Crewson speak with the media at the opening day of the CRTC TV hearings taking place in Gatineau, Que. Monday, Nov. 27, 2006.   (CP PHOTO, Jonathan Hayward)

Broadcasters ask for cut from cable TV fees

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Date: Mon. Nov. 27 2006 10:27 PM ET

GATINEAU, Que. — Canada's broadcast regulator should give conventional networks a cut from cable fees just like specialty channels, TV executives argued Monday at hearings into the future of the industry.

CBC president Robert Rabinovitch began the push by conventional broadcasters for a cut of subscription fees, telling the CRTC hearing that fairness dictates traditional television networks get their share of cable billings.

A refusal to level the playing field "would create a grave financial disparity between specialty channels and conventional networks and could undermine the economic foundation" of traditional broadcasters, Rabinovitch told the hearing of the Canadian Radio-television and Telecommunications Commission.

While specialty channels get a share of the fee cable and satellite companies charge for their services, networks like CBC, CTV and Global do not.

The president and CEO of CanWest Global Communications said much has changed since the existing rules were first adopted.

"It is fair to say that the regulatory framework that was developed at a different time and under vastly different conditions is now out of step with today's reality," said Leonard Asper.

Kathleen Dore, president of CanWest Media Works, said conventional television is often viewed as the foundation of the broadcasting system.

"Cracks are starting to appear in that foundation. This proceeding is an opportunity to do more than paper over those cracks -- it is an opportunity to start rebuilding."

The CRTC is conducting hearings into the future of the television industry amid sagging ad revenues and soaring competition.

Rene Guimond, president of TQS, a French-language private network in Quebec, said consumers would be ready to pay for the service. He suggested a dollar per month for the two private networks in Quebec would be fair.

"For several years now specialized services have had a distinct advantage with access to two sources of revenue including advertising and subscription fees, whereas conventional broadcasters only have the right to ad revenues," Guimond said.

Guimond said three cents a day for the Quebec television networks would be a reasonable amount.

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