Are Canadians Being “Taxed” By Local Television Stations?

Most Canadians have probably already seen the attack advertisements going on between Canada’s local news networks and cable and satellite providers. The issue being fought between these two identities is whether or not local TV stations are having their content ripped off by the distributors with no compensation.

CTV and GlobalTV say that Canadian clients to television providers are paying money to watch content whereas the local television stations providing the content aren’t receiving any compensation whatsoever. Here’s what CTV has to say on their website:

Current regulations in Canada allow cable and satellite companies to take CTV and ‘A’ programming without compensation. These companies then charge you, the consumer, for the programming they take for free. Most TV subscribers in Canada hold the false belief that part of their basic monthly bills goes to their local TV stations. This isn’t true. Television service providers, including cable and satellite companies, are reaping huge profits at the direct expense of local Canadian TV stations that are going out of business. As a consumer, you are at risk of losing local programming options on the dial.

Their solution to the problem is quite simple in their eyes. They want to be compensated by the Cable and Satellite providers for distributing local programming. They also want a review done on how Cable and Satellite television providers bill their costumers for the TV channels they decide to purchase.They’re now encouraging Canadians to contact their member of parliament to raise the issue.

Shaw, the biggest Cable company in Canada isn’t taking these accusations light heatedly. They say that that Global and CTV are wanting to “Tax television”.

CTV and Global TV are trying to convince Canadians that local TV is in trouble. What they’re really doing is lobbying to push through a new TV tax, a charge to the cable and satellite companies and their customers for carrying their stations. They want this extra charge because they’ve misspent the hundreds of millions of dollars they’ve already received from taxpayers, cable and satellite companies.

Taxing Canadians to provide broadcasters with yet another bailout won’t help fix the problem. What it will do is add up to $72 to your cable bill.

We can’t afford to keep bailing out companies who don’t know how to control their spending. Major broadcasters must be responsible for their own businesses.

This battle is really going to be a wild one for the next little while. Who will win? Who’s right? Feel free to leave a comment below with your opinions on this television frenzie.