Canada’s broadcast regulator has approved higher mandatory cable fees for CPAC, despite warnings from telecom companies and internal dissent that the publicly funded parliamentary channel is being propped up while the broader TV industry struggles.The Canadian Radio-Television and Telecommunications Commission granted CPAC a 23% increase in subscriber fees, raising its share from 13 cents to 16 cents per month for all cable users starting September 1. Blacklock's Reporter said the decision comes after the channel warned its finances had become “critical,” even after receiving a $5 million federal bailout in 2024.In its ruling, the CRTC said CPAC’s deteriorating financial position threatens its ability to fulfill its public mandate of broadcasting parliamentary proceedings. The regulator said the fee increase was necessary to address what it described as pressing financial challenges.Major telecom providers including Bell Canada, Telus Communications and Quebecor Media opposed the hike, arguing it places an added burden on subscribers already facing rising costs.Two CRTC commissioners also broke ranks, noting CPAC has benefited from mandatory carriage since 2002 along with recent taxpayer support. .In their dissent, they warned the channel’s situation should be viewed in the context of a broadcasting sector undergoing widespread disruption.“CPAC is not alone,” the commissioners wrote, pointing to multiple specialty channels that have shut down or cut programming as audiences move away from traditional television.According to figures cited in the decision, CPAC’s subscription revenues fell from $16.4 million in 2019 to $14 million in recent years, an 11% decline tied to cord-cutting trends.A separate report by the Department of Canadian Heritage underscored the challenge, finding only 15% of Canadian households now rely exclusively on traditional TV for news and entertainment, raising doubts about the medium’s long-term viability.CPAC executives told regulators the fee increase is essential to maintain current programming levels, warning the channel cannot continue operations beyond August 31, 2026 under the existing rate.Without the increase, management said it would be forced to scale back its parliamentary and public affairs coverage, arguing the adjustment is a “modest and realistic” step needed to sustain operations.
