Canadian media companies square off over fees

OTTAWA, April 20 (Reuters) - Two leading Canadian media companies were poles apart on Monday over whether cable television operators should have to pay conventional TV broadcasters a fee to carry their signals.

Quebecor Inc (QBRb.TO), a big player in the French-speaking province of Quebec, argued for fee-for-carriage, saying over-the-air broadcasters were under unfair pressure to provide local programming without enough compensating revenue.

On the other side, Rogers Communications Inc (RCIb.TO), which owns one of Canada's biggest cable companies, told a House of Commons committee that the idea was a cash grab.

The committee is examining the idea of having cable companies pay conventional broadcasters as a means of easing an acute revenue crisis among broadcasters and trying to preserve local TV programming.

Quebecor Chief Executive Pierre Karl Peladeau said conventional television's costs were increasing while advertising revenues were decreasing, and it was not able to maintain the same level of local content.

"Conventional television (is) in bad shape and therefore needs fees to subsidize it," he said.

Quebecor has both over-the-air broadcast assets, including TVA, the largest private French-language broadcaster in North America, as well as cable TV operations under the Videotron banner. Peladeau said fees should be negotiated between cable and conventional television units.

Rogers Vice-Chairman Phil Lind urged legislators not to buy in to the fee-for-carriage idea.

"It's nothing more than a tax on consumers. It is one of the most insidious schemes to come around in a long time," Lind said. "It's robbing Peter to pay Paul."