CRTC dives into TV review, says public complaining about channel packaging

The CRTC officially launched its public consultation on television services, asking the public for input into questions related to the Conservative government’s promise to unbundle television channels. “If you subscribe to cable TV or satellite TV, how satisfied are you with the way your channels are packaged?” said one of several questions put to the public by the commission in a notice Thursday, adding that the regulator received more than 200 public complaints over the summer about channel packaging and another 180 about price increases. CRTC Chairman Jean-Pierre Blais launched the consultation Thursday, called “Let's Talk TV: A Conversation with Canadians,” at an event at Université Laval in Quebec, where students and faculty could offer comments. A similar, follow-up event happened Thursday evening at Ryerson University in Toronto. Industry is not invited to participate in this phase of the consultation, though Blais said in a statement Thursday that companies are encouraged to participate by engaging the public. “We hope that broadcasters and television distributors will help us bring Canadians into the conversation,” he said. “For example, television channels could air public service announcements, local television stations could host panel discussions, and cable companies could use their community channels to engage viewers. The comments we receive from Canadians will help set the stage for the formal public proceeding that will get underway next year,” the chairman said. The consultation will have three phases, the CRTC said, building up to the launch of a public proceeding starting in the spring of 2014 to review any proposed changes to the broadcasting system. That proceeding will involve a public hearing in September 2014. “efore we make any changes, we need to hear from you. We want to hear about your television experience—what’s working and what isn’t,” the regulator said in the notice. “Is Canada’s television system providing you with the programming you want? On the devices you choose? Are you well served in the way you receive programming? Are you getting the information you need to make informed choices?” the CRTC said. The questions put forward by the CRTC—broken down into the three themes of programming, technology, and whether consumers have the necessary “viewer toolkit” to make informed choices—ask about issues such as consumers’ views of the most important TV genres, whether they know which programs are Canadian, whether their TV programming reflects Canada, and on what devices people prefer to watch TV. The commission also asked questions related to TV channel unbundling, a promise made in the Conservative government’s throne speech this month, which would give consumers the flexibility to individually subscribe to the specialty channels they want. The CRTC asked whether people are satisfied that the information they receive from their TV providers is enough to understand their “service options, including packaging and pricing,” and whether consumers experience any barriers to switching from one television package to another, or even to another television provider. “Changes to Canadian television affect certain segments of the Canadian population more directly,” the CRTC notice said. “When channels are removed or repackaged, the CRTC hears about it. Just in the past 6 months, the CRTC has received 220 such complaints. When rates increase, Canadians voice their concerns. In the past 6 months, the CRTC has received 181 such complaints.” The first phase will gather public input through written submissions, volunteer-organized “flash” conferences, and telephone messages, by the deadline of Nov. 22. In a second phase, the CRTC said it will publish a report on the public input received, and based on that, issue another questionnaire with more specific questions for the public. “You will be asked to make tough choices between certain options. The questionnaire will be posted on the CRTC’s website and paper copies will also be available,” the CRTC said. In a third phase, the commission said it will propose changes to the television broadcasting system as part of the public proceeding to be launched next spring. The Wire Report reported this month that the Conservative government’s promise to unbundle television channel packages and move toward a pick-and-pay model will involve a complex series of changes to the broadcasting system, affecting regulations and the carriage agreements between broadcasters and TV providers. Blais said in Toronto on Thursday that a conversation about the future of TV is necessary because television is evolving rapidly and the regulatory system needs to evolve as well. " not just to keep up with the tech gadgets that will come out on the market in six months’ time. Our regulatory framework needs to be nimble enough to continually adapt to relentless change so we can seize emerging opportunities. It cannot be static in a world of perpetual change," Blais said, according to speaking notes. Heritage Minister Shelly Glover said in a statement Thursday that the CRTC's consultation "will play a part in fulfilling our Speech from the Throne commitment, and I encourage everyone to get involved in shaping their future options with respect to television services." Ken Engelhart, senior vice-president of regulatory affairs with vertically integrated cable TV provider Rogers Communications Inc., said on a conference call with analysts Thursday Rogers supports “more packaging flexibility” for consumers, though efforts to offer more flexible options are limited by carriage agreements with broadcasters and specialty channel owners. “The contracts that distributors have with content providers and broadcasters makes that very difficult, or in some cases impossible,” he said, in response to a question about pick-and-pay options. “So that is a complicated area that the CRTC will have to wade into as part of their investigation.” Bradley Shaw, chief executive of Shaw Communications Inc., said on a Thursday conference call with analysts that there is an opportunity for the industry to find the “right solution.” “There’s a lot of competing interest and a lot of different players that have a big stake in the broadcast industry, and it’s our goal to work with all players in finding the right level and right solution,” Shaw said while discussing the company's quartlerly results. “And how we get there, we hope at the end of the day there’s a clear process for that.” Analysts have suggested that moving to a pure pick-and-pay, or a la carte television subscription system, would cause subscriber numbers for some channels to fall, and that less popular channels could go out of business. John Cassaday, president and CEO of broadcaster and specialty channel owner Corus Entertainment Inc., also held a conference call with analysts Thursday to discuss the company's results, and said most of Corus’ carriage deals with broadcast distributors run through 2016. Those agreements, he said, contain “effective make-whole provisions” that protect the company against subscriber erosion. Viewer ratings, as opposed to subscription numbers, wouldn’t change under a pick-and-pay model, “and as a result, we’re not going to lose any audience, which is what we sell to our advertisers,” he said. “If, in fact, there is less fragmentation and the viewing levels stay the same at about 24 hours a week, one of the consequences of that is there could be more time spent viewing fewer channels, which could in fact result in incremental advertising for those fewer channels,” Cassaday said. —With reporting by Simon Doyle at sdoyle@thewirereport.ca and Nicholas Kyonka at nkyonka@thewirereport.ca, and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC dives into TV review, says public complaining about channel packaging

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CRTC dives into TV review, says public complaining about channel packaging

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