We acknowledge that conventional television faces some business challenges. We would point out, however, that a key factor in their financial challenges is the ever-escalating amount of money they're spending on acquiring foreign, mostly U.S., programming. Broadcasters also must accept responsibility for the huge debt loads they're carrying from major asset acquisitions. Private conventional television still draws the largest audiences in peak viewing hours. We also highlight that Canada's television broadcast ownership groups remain strong and profitable as a whole.
The most pressing economic challenges facing the television sector are mainly cyclical and short-term in nature. The economy is already showing signs of renewed life, and many economists predict that by this time next year a recovery will be solidly underway. The proposals put forward by broadcasters fail to take into account a number of measures implemented by the CRTC to help them deal with the challenges they face. I won't enumerate them here, because I'm getting the “running out of time” signal.
Broadcasters fail to take into account the additional revenues they stand to earn from cable and satellite TV companies for the delivery of their signals in distant markets, and we are certain it is germane to your committee that the proposed changes to the eligibility criteria for the local programming improvement fund could help sustain local news and programming.
Independent producers have been struggling with their own challenges long before the current difficulties related to the economy. These challenges have only been exacerbated by the significant level of consolidation that has occurred in the system. This has tilted the balance of power even further in favour of large corporate broadcast groups, and it has effectively reduced both the business prospects available to producers and the employment opportunities for the entire creative community across Canada. We therefore urge the CRTC to hold firm to the Broadcasting Act's overriding policy objectives. We've asked the commission not to surrender to the current exaggerations orchestrated by the private broadcasters. To make changes to the regulatory regime for over-the-air television as it relates to priority programming and independent production would most certainly weaken the Canadian broadcasting system and result in fewer Canadian content choices.
We would support other efforts by both the federal government and the commission to address the challenges facing local conventional television stations, particularly those located in smaller markets. These include the changes to the LPIF and the plan to move up the implementation date of the new distant-signals policy. In our view, these measures will go a long way to help strengthen the over-the-air television sector.
In closing, we would like to reiterate the need for a national digital media strategy. This will ensure that Canada is well positioned to be at the forefront of the global digital economy.
We thank the committee again for inviting us to appear and we apologize for going a little too long. We look forward to answering any questions you may have.