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The CRTC has created the Local Programming Improvement Fund (LPIF), a charge to subsidize the production of new local television content in markets with a population of less than 1 million. This charge is not the same than fee-for-carriage, also called value for signal, which the media have discussed a lot recently. However, those who will benefit from the fund are primarily Canadian conventional broadcasters such as CBC/SRC, CTV, Global, V and TVA, which are the same companies that want access to fee-for-carriage. Community TV channels like TVCOGECO are not eligible for the fund.

To finance this $100 million dollar fund, cable and satellite television companies like Cogeco will have to pay out a 1.5% levy on their revenues from all television services.

This funding is on top of the other 5% of television revenues that Cogeco and the other cable and satellite companies already pay to finance the production of Canadian and local television programming.

But, creating the LPIF does not guarantee any improvement in local programming. In fact, last July, the television broadcasters that are eligible for the LPIF asked the CRTC to allow them the flexibility not to have to use the funds to produce new local content. The CRTC agreed.

Cogeco promotes local programming. As proof, we invest millions of dollars every year in TVCOGECO, our community television.

But Cogeco is opposed to the Fund, because the CRTC and the broadcasters that benefit from it will not guarantee that it will in fact be used to create new local content. Unfortunately, the LPIF is already in place and Cogeco has no choice but to comply with the decision.

The LPIF is already in place and the new 1.5% charge on all television subscriber fees, including items such as VOD and PPV rentals, has appeared on your bill since January 2010;

The LPIF fee will not be applied to any of your Cogeco Internet or Phone services;

If you have opted for a pre-authorized payment via credit card or automatic bank withdrawals, as per standard practice this new charge has appeared on your statement of account since January 2010;

The amounts will be forwarded directly to the LPIF;

You should already have received a letter detailing the new billing as well as the terms and conditions.