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Privacy and Security
Transparency

Local Programming Improvement Fund (LPIF)

Notice: The CRTC recently announced that it will be holding a public consultation to review the Local Programming Improvement Fund. The review will determine whether the Fund should be maintained, modified or cancelled.

A public hearing will begin on April 16, 2012 in Gatineau, Quebec and you are invited to submit your comments until February 15, 2012. Should you wish to have your comments considered in the context of this public proceeding, you must submit them prior to the deadline date. Note that the information you provide as part of this public process, including any personal information, becomes part of a publicly accessible file and will be posted on the Commission's website. To participate, please see the notice of consultation.

What is the Local Programming Improvement Fund (LPIF)?

The LPIF is a fund created by the CRTC in 2008 to support local programming produced by conventional television stations1 operating in non-metropolitan markets.

Why did the CRTC decide to create the LPIF?

Conventional television stations in non-metropolitan markets are having difficulty due to their precarious financial situation. The CRTC created the LPIF in order to support and improve the quality of local television programming.

Where does the money for the Fund come from?

The money for the Fund comes from a percentage of cable and satellite companies’ gross broadcasting revenues. This percentage is determined by the CRTC.

Why did the CRTC decide to increase the percentage of the LPIF contribution from 1% to 1.5%?

The impact of the economic situation had become more pronounced since the initial decision was made. The CRTC therefore decided to increase cable and satellite companies’ contribution from 1% to 1.5%.

How is the CRTC going to divide the Fund among the broadcasters?

• One third of total funds will be divided evenly among all eligible stations in anglophone and francophone markets.
• The remaining two thirds will be divided so that 70% goes to anglophone markets, and 30% to francophone markets.
  • These amounts will be allocated on the basis of average spending on local programming over three years and will be proportional to the percentage of LPIF funding available to all eligible stations within a linguistic market (i.e. the LPIF’s linguistic envelope divided by the sum of average spending on local programming over three years multiplied by an individual station’s average spending on local programming over three years).

The first third will be divided evenly among all eligible local television stations. The remaining two thirds will be allocated according to the amount that each station has dedicated to local programming over the last three years.

How does the CRTC determine which local television stations have access to the Fund?

Television stations operating in non-metropolitan markets will have access to the Fund. However, a French-language station operating in an anglophone metropolitan market (i.e. an anglophone market where the population that has knowledge of English is greater than or equal to one million) will receive the same amount of funding as those operating in francophone non-metropolitan markets. Conversely, an anglophone station operating in a francophone metropolitan market will receive the same amount of funding as those operating in non-metropolitan anglophone markets.

Which stations are currently eligible?

The list of eligible stations is available at:

How does the CRTC intend to ensure that the money from the Fund is in fact used for local programming?

In the annual reports that they submit to the CRTC, the local television stations must indicate the amount of LPIF funding they received and their spending funded by the LPIF contribution. In order to ensure accountability and transparency, starting in the 2009–2010 broadcast year those stations eligible for LPIF funding will have to provide a Statement of Direct Local Programming Expenses for each broadcast year.

Certain cable and satellite companies have increased their customers’ bills by 1.5%. Can the CRTC stop them?

In Public Notice 2008-100 (paragraph 357), the CRTC indicated that “in light of the performance levels of the BDU sector2 and the benefits accruing to BDUs as a result of other changes being made to the regulatory framework, the Commission is of the view that there is no justification for BDUs to pass along any increased costs relating to the LPIF—estimated to be on average approximately $0.50 a month—to their subscribers.” (A BDU is a broadcasting distribution undertaking, such as a cable or satellite company.)

What recourse do I have to avoid this increase?

Subscribers can contact their service provider, as this increase is not required or regulated by the CRTC.

[1] SRC, CBC, TVA, V (formerly TQS), CTV, Global, Canwest and approximately 20 independent stations.

[2] Programming distribution revenues totalled $7.5 billion in 2009, an increase of 7.4% over 2008. See the 2010 Communications Monitoring Report.