Canadian Radio-television and Telecommunications Commission
www.crtc.gc.ca
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Local Programming Improvement Fund
What is the Local Programming Improvement Fund (LPIF)?
Created by the CRTC in 2008, the LPIF is a fund that supports local programming for 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 in difficulty as a result of their precarious economic situation. The CRTC created the LPIF in order to maintain and improve the quality of local television programming.
Why has the CRTC decided to increase the percentage of contribution to the LPIF from 1% to 1.5%?
The impact of the economic situation is more severe now than when the initial decision was taken. As such, the CRTC has increased the contributions of cable and satellite companies from 1% to 1.5% for one year.
How has the CRTC distributed the funds among broadcasters?
The first third will be divided into equal amounts among all eligible local television stations. The remaining two thirds will be allocated based on the amount each station has devoted to local programming over the past three years.
How does the CRTC determine which stations are eligible for the Fund?
Local television stations outside of metropolitan markets are eligible for the Fund.
How will the CRTC ensure that money from the Fund is used for local programming?
In the annual report they submit to the CRTC, local television stations will have to indicate the amount of contribution funds they receive and the expenditures paid from this amount.
Several cable and satellite companies want to increase their customers' rates by 1.5%. Can the CRTC prevent this?
In Public Notice 2008-100 (paragraph 357), the CRTC indicated that in light of the performance2 level of the cable and satellite sector and the benefits accruing to broadcasting distribution undertakings (BDUs) as a result of other changes being made to the regulatory framework, the Commission saw no justification for BDUs to pass along any increased costs relating to the LPIF to their subscribers.
What can I do to avoid paying such an increase?
Consumers should contact their service suppliers, as this increase is not required or regulated by the CRTC. The CRTC considers that these companies can absorb a contribution to the LPIF of this size and does not see any reason why these supplemental costs should be transferred to their subscribers.
[1] SRC, CBC, TVA, V (formerly TQS), CTV, Global, Canwest and some 20 independent stations
[2] Programming distribution revenues totalled $7 billion in 2008 – an increase of 10.2% over 2007. See the Communications Monitoring Report 2009.
