TORONTO/GATINEAU — Canada’s broadcast regulator moved to adopt a “market-based” U.S.-style model on Monday that could see the most popular shows blacked out from Canadian televisions if cable companies and the national television networks cannot agree on carriage contracts for TV signals.

The goal of the Canadian Radio-television and Telecommunications Commission (CRTC) in permitting negotiations — a first for the industry — is to stabilize a private broadcast system facing sharp declines in advertising revenues as niche specialty channels and online content portals consume ad dollars once automatically allotted to conventional TV stations.

“The commission has set out a market-based solution to allow private local television stations to negotiate with cable and satellite companies,” the body said. Accordingly, each television station will have the option of entering into negotiations to establish a “fair value” for the distribution of their programs.

“We’re encouraged that the commission recognizes the protection of program rights and the value of local television,” said Charlotte Bell, senior vice-president of regulatory affairs at Canwest Global Communications Corp., also the owner of the National Post. Its television subsidiary sought creditor-protection in October as falling ad revenues could no longer offset its hefty debt load.

Still, the CRTC said it must first seek legal approval from the Federal Court of Appeals, something that could take months to resolve.

Some charged that the CRTC was not acting quick enough. “The threat to local television around the country is real and urgent. We don’t see anything that is going to help broadcasters for at least the next year,” said Ian Morrison, president of Friends of Canadian Broadcasting, an industry group. “It’s fiddling while Rome burns.”

In an accompanying release, The CRTC defended the delay saying it received “conflicting legal opinions” as to whether it has the authority to implement the new regime and has therefore asked for clarification on its jurisdiction “on an expedited basis.”

If given legal approval, the groundwork is laid for a fee-for-carriage bargaining system between the two industry groups that could see tens of millions in profits from the cable companies paid to the broadcast networks. The cable and satellite companies collective profits last year rose $200-million to $2.3-billon as the consortium of broadcasters recorded a combined loss of $116-million.) But the utilities said they are not interested in cutting a deal with the content suppliers.

“We’re going to be fighting it, we’ll use court action,” said Phil Lind, vice-chairman of Rogers Communications Inc., “It means there is a broadcasting tax imposed with the threat of blackouts imposed as well. It’s the worst news for the consumer.”

“This new framework imposes the TV tax that we were fearful the CRTC would impose all along,” said Mirko Bibic, senior vice-president of government and regulatory affairs at BCE Inc., which operates Bell TV, a satellite distribution service. “We don’t think it’s workable.”

BCE, Rogers and other key television providers like Shaw Communications Inc. have doggedly fought paying any direct fee to broadcasters for years.

Like in the United States, negotiations would be for three-year carriage contracts on set dollar value per station per subscriber.