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Canadian Radio-television and Telecommunications Commission (CRTC) Chairman Jean-Pierre Blais takes part in a news conference in Gatineau, Quebec June 27, 2013.© Chris Wattie / Reuters/Reuters

Canada's broadcast regulator has chosen to preserve the status quo for free over-the-air television signals, but it may not be business as usual for the local stations that use them.

Broadcasters have argued that the business model for local television is broken. Some stations are now consistent money-losers, and their owners say they need an infusion of new revenue to keep some outlets from closing. Bell Media and the CBC argued they should be allowed to shut down transmitters that broadcast their signals for free, and instead charge a fee, while keeping prime spots on the TV dial.

Jean-Pierre Blais, chairman of the Canadian Radio-television and Telecommunications Commission, poured cold water on both ideas on Thursday, saying in a London, Ont., speech that "Canadians reacted and told us that the time had not yet come" to abandon free television.

But he also chastised the large media companies that control local stations for crying poor.

"These are large corporate groups. They're billion-dollar companies. And they're making choices," he said.

Local television's bottom line has suffered for several years due mostly to a sagging advertising market and increased competition from online video services and specialty channels.

In a submission to the regulator's Let's Talk TV hearing on the future of Canadian television last year, Rogers Communications Inc. projected a $45-million loss across its City network of channels. At the fall hearing, Bell Media president Kevin Crull told the CRTC his company's 30 local television stations lost a combined $12-million in 2013. (Bell Media is owned by BCE Inc., which also owns 15 per cent of The Globe and Mail).

"The economics of an advertising-only revenue stream can no longer pay for the costs," Mr. Crull said at the time.

Nevertheless, Mr. Blais is adamant that local TV is still "where most people go and get their news and information." Forty per cent of English-language televisions are still tuned to local stations between 7 p.m. and 11 p.m., he said.

"I think [the broadcasters] normally do the right thing," he said. "If they don't, well, there's always a day of reckoning at licence renewal."

And 95 per cent of Canadians who responded to the call for input during Let's Talk TV want to maintain over-the-air signals – which provide between five and 15 free channels through digital antennas.

What remains is a dispute about who should foot the bills for strong local programming. Mr. Blais has said the CRTC will review whether more funds earmarked to support Canadian content could be diverted to local TV.

Rogers agreed over-the-air signals should continue, but renewed its call for help on the revenue side on Thursday. "In order to keep giving viewers the local TV they love, it needs to be financially sustainable," said spokesperson Patricia Trott, in an e-mail. "We hope the CRTC moves forward with more flexible programming regulations in their full decision on Let's Talk TV."

Calling broadcasting a "privilege," Mr. Blais said he knows companies will make business decisions, but stressed that "local news and information is important."

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Rogers Communication
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