A task force at Canada's television regulator is recommending a more "market-oriented" Canadian Television Fund that would channel money to shows that are a ratings success.

The task force on the CTF wants to see a new private-sector funding stream in which audience success is the primary criterion for continued funding, a report released Friday said.

The Canadian Radio-television and Telecommunications Commission set up a task force to study the CTF after private-sector cable firms Vidéotron and Shaw Communications stopped making payments into the fund, saying they got no benefit from it.

The cable companies declared the CTF to be dead and said the system, which provides funding to independent producers to make Canadian stories for TV, should be dismantled.

The cable firms resumed their CTF payments after Heritage Minister Bev Oda ordered the CRTC review.

The CRTC task force reaffirmed that the CTF plays an important role in producing quality television programming, but has recommended reforms that would ensure more money flows to programs made for private-sector broadcasters.

The rules should be rewritten to specify that broadcasters and cable firms must pay their CTF contributions monthly, the task force recommended. Broadcaster licence fees would be increased.

But their contributions would be directed toward the new more market-oriented stream.

The report did not say how funding of shows made for the CBC, which has amounted to about 37 per cent of CTF spending, would be affected by these changes.

However a separate stream would be devoted to programs that are culturally significant.

CTF would own stake in programs

The shows covered in the new stream would have to be Canadian and aired in prime time, but potential return on investment would be a factor in allocating funding.

CTF would own a stake in programs supported through the stream.

The task force also is calling for an envelope of money to support Canadian programs for new media platforms, one of the key demands of Vidéotron.

The task force also reviewed governance of the CTF and has decided that independent producers who receive money from the fund should not sit on its board of directors.

A CBC spokeswoman said the public broadcaster is pleased that the task force has affirmed the importance of the CTF.

Ian Morrison, spokesman for the lobby group Friends of Canadian Broadcasting, agreed.

"I would have been very concerned if the CRTC had rolled over for the cable-billionaires," he said.

"In effect, the CRTC has said the Canadian Television Fund is good and we can make it better."

A spokesman for Quebecor, parent of Vidéotron, said a number of recommendations were "interesting," particularly funding for new media and the board makeup.

"It seems a very rigorous work, but it's 30 pages long and we haven't had a chance to assess it," said Luc Lavoie.

The CRTC said it will solicit the views of Canadians and industry stakeholders before implementing the recommendations.