The broadcast regulator, the CRTC, has loosened up the rules on TV. But the changes are smaller than expected following the CRTC’s first major review of TV distribution in nearly a decade.

The Canadian Radio-television and Telecommunications Commission sought to simplify its regulation. One way it is doing this is by scrapping most of the rules on how TV channels, meaning providers will be able to offer a la carte packages

In response to concerns about the reduction of local programming, the CRTC created a new $60m fund to pay for local content. To pay for this, broadcast distributors will now hand over six per cent of revenues, up from five per cent.

According to CRTC chairman Konrad von Finckenstein:

The desire for better local programming in Canada’s smaller markets was clearly made evident during this proceeding. We have taken concrete steps to make sure that viewers in these markets continue to benefit from a diversity of local programming.

But the regulator shied away from imposing controversial new charges to cable distributors who carried signals from Canadian over-the-air broadcasters.

Instead the CRTC is allowing the networks to negotiate with the cable companies to time shift programs by showing them in other provinces. For example, the BC feed of an 8pm show in Toronto at 11pm.

The decision has been described as a “big fat win for consumers“, who could have seen their cable TV bills by an extra of up to $10 a month.

Update: Vancouver Sun managing editor Kirk LaPointe says the CRTC decision was both good and bad news for conventional newsrooms.  He estimates the cable fees would have raised $300 million for his employer Canwest and his former employer CTV. But he is positive about the new fund for local programming as well as the decision to open up competition in the news genre on cable.