Licensing issues delayed Telus’ online access to Movie Central, HBO, Corus says

Telus Corp.'s mobile, on-demand access to Corus Entertainment Inc.'s Movie Central and HBO programming was delayed by the complicated nature of multi-platform rights agreements and other licensing issues, Corus said in regulatory documents filed with the CRTC. In September, Telus accused Corus of breaking the CRTC's rules for large, vertically integrated broadcast companies by making its Movie Central and HBO content available on Shaw Communications Inc.'s new online and mobile over-the-top TV service, Shaw Go, but not on Telus’ competing service, Optik on the Go. The CRTC said last month it will expedite Telus' complaint, in which Telus said Corus agreed to give it access to the on-demand content starting Oct. 20, a month after Shaw launched its Shaw Go service on Sept. 20. Telus had asked the commission to order Corus to make the content available immediately. The CRTC's vertical integration rules apply to large companies that own both broadcast assets and broadcast distribution networks. Corus is not a subsidiary of Shaw but it is owned by the Shaw family, which also owns Shaw Communications. Shaw also owns the Global Television network. In reply comments filed with the commission Oct. 1, Corus said the studios from which it secures its content licensing for the channels each have different requirements for when and how the content can be distributed through video-on-demand platforms. The company said the need to cross-reference these requirements against other broadcast distributors’ requests to carry the programming was a time-consuming process that prevented it from making that content available to all distributors at the same time. “In each case we must evaluate every point on the matrix (studio against BDU) , determine if the requirements for exhibition are met, and potentially seek approval of exceptions from the studio,” Corus said. The company said distribution methods based on different technologies require different file formats and encryption to protect content from unauthorized access. “Security and protection from piracy is a key element of this,” Corus added. Corus said it is now preparing a rights package for Telus to carry the content on its Optik on the Go service. Telus is a mobile carrier, Shaw said, meaning that its request differed from Shaw’s, which does not offer mobile services. Corus said these differences are a “fundamental reality” that prevent it from making the rights available to all broadcast distributors at the same time. “Programming is now migrating to a retail supply chain type of environment,” Corus said. “We can’t just open the spigot and ask everyone to drink at the same time. There needs to be a process.” Under commission rules fully implemented in July, vertically integrated broadcasters that launch a “new programming service” must “make that programming service available for distribution by all licensed broadcasting distribution undertakings or operators of exempt distribution undertakings.” Corus said the Telus complaint is “not premised on a valid regulatory provision” because Corus did not launch a new programming service and because it is “a program titles supplier for the digital new media environment,” not a “licensed programming undertaking.” In a separate response dated Oct. 1, Shaw said Telus' complaint against Corus falls outside the the CRTC’s pay TV regulations. “The Regulations address allegations of possible head start and exclusivity specifically with respect to new, licensed linear programming services made available solely on one distribution system for a certain period of time,” Shaw said. “That is not the case with respect to the TELUS complaint.” In reply comments filed with the commission Tuesday, Telus said Corus can give Telus multi-platform access to the content and that it’s suggestion these rights need to be negotiated are a “clear delay tactic.” “The only question the Commission needs to determine here is whether Corus should be allowed to delay TELUS’ launch of this content for no apparent reason when Corus has made the content available to Shaw,” Telus said. The companies had a deal in place in April for Telus to carry the content on its Optik on the Go platform and the only issue the two sides failed to agree on was when it could begin accessing it, Telus said. The company added that Corus wanted to give Telus access on Oct. 20 and Telus wanted access sooner. Telus said it “assisted Corus with many negotiations with various studios in 2011 in order to ensure that Corus had the necessary rights to enable TELUS to launch its Optik on the Go service,” and that Corus reneged on a deal allowing Telus to launch the content on its service last fall. nkyonka@thewirereport.ca

Licensing issues delayed Telus’ online access to Movie Central, HBO, Corus says

Broadcast | October 10, 2012

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