October 31, 2008
Canadian TV Networks Denied Cable Fee
Canada's federal media regulator denied two television networks' bid to charge cable companies a fee for distributing their signals.
The Canadian Radio-Television and Telecommunications Commission shot down the request by CTV and Global Television that would have generated some $300 million per year, the Globe and Mail reported.The networks claimed it was unfair cable operators got their signals for free and then made profits on them while specialty channels such as MTV were allowed to collect revenues.
Regardless, the CRTC said CTV and Global failed to make a convincing argument they needed the money, the Globe said.
Global is carrying $3.6 billion in debt and the Moody's ratings service said Thursday it was placing the publicly traded broadcaster under review.
CTV is privately owned, and executives declined to speak with the newspaper.