Quebecor Media has repeatedly pointed out to the CRTC that there is an urgent for private general-interest broadcasters to be allowed to collect carriage fees, but consumers should not be the ones who have to pay for the system's glaring inability to adapt to the new media environment.

"The fact that they cannot collect both carriage fees and advertising revenues, as the specialty channels can, has pushed private general-interest broadcasters to the edge of the abyss," said Pierre Dion, President and Chief Executive Officer of TVA Group Inc. "The CRTC must end this unfair situation and give the over-the-air broadcasters the oxygen they need to continue playing their role as the leading producers of original Canadian content."

Obsolete and unfair regulations
"As we have noted in every available forum, the legislation governing broadcasting dates from an era when the television market was dominated by three over-the-air networks, the specialty channels had minuscule audiences, there was a clear dividing line between television and telecommunications, and the Internet was virtually unknown," said Mr. Dion. "The industry has changed considerably but the regulatory framework has not. As a result of the current laws and regulations, general-interest broadcasters are now struggling to maintain the necessary levels of investment in the original content that draws audiences and generates significant economic benefits for Québec and the rest of Canada, while the specialty channels are piling up spectacular profits while merely meet their regulatory obligations and generating few benefits for producers of Canadian content."

The numbers tell the story: over the last three financial years, the profit margins of the general-interest broadcasters have plunged from 4.24% to 0.38% while those of Astral's television division have increased from 35% to 36.1% and those of Corus' television division have increased from 41% to 42.6%. These results have had an impact on jobs: the CRTC reported that the general-interest broadcasters had 7,402 employees in 2008, compared with 7,873 in 2007. "How much longer can the regulatory authorities continue to deny such clear evidence?" asked Pierre Dion.

Support general-interest television
In the Canadian broadcasting system, it is up to general-interest broadcasters to provide the bulk of Canadian content in the form of complete news and current affairs programming, high-budget drama and a diverse range of other programming. In Quebecor Media's view, it is precisely because of this mandate that the general-interest broadcasters must also have access to carriage fees, as do the specialty channels.

Quebecor Media Inc. is a subsidiary of Quebecor Inc. (TSX: QBR.A, QBR.B), a communications company with operations in North America, Europe and Asia. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., the largest cable operator in Québec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, the largest publisher of newspapers in Canada; TVA Group Inc., operator of the largest French language over the air television network in Québec, a number of specialty channels, and the English language over the air station Sun TV; Canoe Inc., operator of a network of English- and French language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publisher and distributor Quebecor Media Book Group Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products; Le SuperClub Vidéotron ltée, a DVD and console game rental and retail chain; and Quebecor MediaPages, publisher of print and online directories.

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Information:
Isabelle Dessureault
Vice President, Public Affairs
(514) 380.7501
isabelle.dessureault@quebecor.com