PIAC calls for review of TV services prices

The CRTC should launch a proceeding to examine the rates consumers pay for their television services after a new survey found increasing dissatisfaction among Canadian TV subscribers, the Public Interest Advocacy Centre (PIAC) said Wednesday. In an opening statement during the third day of CRTC hearings into BCE Inc.’s proposed $3.38-billion acquisition of Astral Media Inc., PIAC legal council Janet Lo said a new, Canada-wide survey found that 82 per cent of Canadian television subscribers believe the rates they pay for those services are too high. “When the commission deregulated prices in 1997, basic service cost $18.70 per month,” Lo told commissioners. “Today, basic service costs $32 to $44 per month." In a document PIAC submitted to the commission Wednesday, the group said the survey—which was conducted by Environics Research Group Ltd. for PIAC and other partners from Aug. 23 to 26, 2012—found that 48 per cent of respondents said TV service prices were “much too high,” while another 34 per cent said they were “a little too high.” The survey complemented a 2005 panel study that found that 44 per cent of television subscribers said subscription rates were “unreasonably high,” the PIAC document added. The document said the study also found that consumers are not satisfied with their ability to “pick and pay” for the individual channels they want, and that TV subscribers in English Canada “are notably less satisfied with cost, service provider options and the level of flexibility of choice” than Quebec-based subscribers. “The steady rise of pricing since deregulation demonstrates that the level of competition is insufficient to protect consumers,” Lo said, according to speaking notes posted on the commission’s website. “Thus we urge the commission to immediately initiate a public proceeding to examine pricing.” Lo said the commission’s review should study how vertically integrated companies establish wholesale rates for their broadcasting services, as well as “rules for TV packages, and the impact on the affordability of services and choices in the retail market.” The 2012 survey found that 63 per cent of Quebec respondents believed there is no “real choice” between competing television providers, while that number climbed to 73 per cent in English Canada. PIAC said 41 per cent of respondents were dissatisfied with their ability to pick and pay for cable television services in 2005. In 2012, PIAC said, 39 per cent of respondents were dissatisfied with the choice of pre-set service packages offered by broadcast distributors, and 35 per cent were dissatisfied with their choice of additional pre-set “theme packs” of TV channels. The most recent survey also found that 47 per cent of respondents were not satisfied with their ability to pick and pay for individual television channels in addition to their pre-set package, PIAC said.” The survey questioned 1,005 Canadians 18-years-old or older and is accurate with a margin of error of plus or minus 3.1 per cent, PIAC said. news@thewirereport.ca

PIAC calls for review of TV services prices

Broadcast | September 13, 2012

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PIAC calls for review of TV services prices

Broadcast | September 13, 2012

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