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Rogers, The Local Programming Improvement Fund, and Passing the Buck to the Consumer

by Blogger on 08-31-2009 07:38 PM - last edited on 09-10-2009 03:35 PM by Moderator

I'm lazy. I'm so lazy that I'm pretty sure I'm overpaying for cable, because I haven't bothered to shop around and find out if there are better deals available--though with cable TV seeming to be a duopoly between Bell and Rogers--neither whose prices really differ significantly--in Toronto, I'm the kind of beaten down consumer that these huge corporations like--to lazy and ultimately apathetic to do anything about getting ripped off. But sometimes things annoy me. And Roger's treatment of the Local Programming Improvement Fund is one of them.

 

Now in principle, I have absolutely nothing against the idea that television for smaller markets could or should be subsided to fit the needs of markets that are less than one million people (as the fund has been set up to do). And in fact, I am completely happy for it to exist and do what it is expected to do.

 

What I am not happy about is for companies like Rogers Cable to simply pass on the fee directly to the consumer. Remember when I said I was lazy? Well, it all relates to a letter I received nearly a month ago now that I when I read it I became so depressed I just didn't want to do anything about. It was similar to this one.

 

A little background first: The Local Programming Improvement Fund is the CRTC (Canadian Radio-television and Telecommunications Commission)'s response to campaigning in order to save channels such as local CTV and A channels. As a result of this ruling the fund, which originally (since launch in October 2008) asked for cable companies to contribute 1% f their gross broadcasting revenues to the fund, is now asking 1.5% (as of July 6th.)

 

As a result, Rogers Cable has decided to charge the consumer directly the 1.5% as the "Local Programming Improvement Fund fee". That's bad--horrifying, even--but what makes it worse is that before, Rogers were paying the 1% of their gross broadcasting revenues to the fund. Now they're charging the consumer directly 1.5%. Notice something? Yep, it means that Rogers are now making 1% profit more than they were before, in a naked cash grab even as their letter claims "Rogers Cable recieves no financial benefit from the LPIF fee." 

 

That's only true directly; indirectly they're profiting from it greatly.  Just imagine how much 1% is to Rogers Cable; their gross revenue last year was in the region of two thousand million dollars!

 

If you think this is as unacceptable as me--and you may not have to be a Rogers customer, I'm sure the other cable companies have followed suit--then you can complain. I've complained directly to the CRTC following the instructions printed at savelocal.ctv.ca:

 

Write to the Secretary General of the Commission:


- by using the Broadcasting Intervention/Comments Form, available at www.crtc.gc.ca.

To assist you in navigating the CRTC website, here are simple instructions that will help make the process of filing a letter a little easier.

Note that you have until 11:59 p.m., Monday, September 14th to file your letter. Letters received after this date will not be accepted by the CRTC.

In order to file through the CRTC website, follow these steps:

1. On the left side of the Home page, under “Quick Links”, select “Public Proceedings”.
2. Next, click on the link that says “Submit interventions (support/oppose) and comments to a public proceeding”
3. Scroll down and select Notice No. 2009-411
4. Indicate that your comments are “in comment”, and either insert your comments in the field provided OR browse and upload the file you wish to submit from your computer.
5. Follow the remaining steps where you submit your personal information until the process is complete, or

- by mail to CRTC, Ottawa, Ontario K1A 0N2, or

- by fax at 819-994-0218

 This is to directly complain and comment on the policy hearings beginning on Tuesday, September 29, 2009 to establish a "new framework" for local television for the future. You can also just complain direct to the CRTC here, though it may not receive as much attention. If there's one good thing, it's that the CRTC already agree with anyone complaining, as they've publicly stated "the Commission is of the view that there is no justification for BDUs
[cable and satellite companies] to pass along any increased costs
relating to the LPIF… to their subscribers.”

 

I'm also complaining directly to Rogers, but their website is a mess and I sincerely doubt anything will come of that. But will anything come of my complaint to the CRTC? I can only hope. After all, I'm lazy, and I hope they can stand up for the rights I'm too lazy to defend myself. Then again, I may find I'm not too lazy to cancel my cable completely if things don't work out.

Message Edited by MathewKumar on 08-31-2009 07:40 PM
Message Edited by ElizabethS on 09-10-2009 07:35 PM

Comments
by Tkavil on 08-31-2009 08:58 PM

Yes, I remember receiving this letter too, I was amazed that they had the nerves to do such a thing, most of their services are overpriced as it is.

 

 Anyways somewhere in the letter it states that the CRTC requires  the companies to contribute 1% of the gross broadcasting revenues to local stations, though I didn't see anything about the consumers. I have had it with Rogers, I think I may go ahead and file a complaintto the CRTC right now.

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