CRTC dismisses Quebecor complaint of CBC undue preference

The CRTC has ruled that the CBC/Radio-Canada is not giving itself an undue preference with its paid subscription, online, video-on-demand service, and that it has not contravened any exclusivity rules by allowing Telus Corp. customers free access. Tuesday, the commission dismissed a complaint by Quebecor Inc. that argued CBC should shut down its subscription streaming service ICI Tou.tv Extra. Quebecor took issue with Tou.tv Extra charging $6.99 per month - noting the CBC is already subsidized by public tax dollars - but offering Telus customers free access, and argued that a public broadcaster cannot offer programming on a preferential basis to a limited population. It told the CRTC that Videotron subscribers decreased from 2013 to 2018. “Videotron subscribers who wish to receive services distributed by Tou.tv Extra are at a disadvantage given that they must subscribe to the basic service and to other packages, costing up to $45, even though they can subscribe directly to Tou.tv Extra for $6.99 a month,” it told the CRTC in its complaint. In its reply, the CBC argued to the commission that Tou.tv Extra is a broadcasting programming undertaking (BDU), rather than a distribution undertaking, because it transmits programs only on the internet, making it a subscription video-on-demand service like Netflix Inc. It also argued that commission data showed that cable and Internet Protocol television (IPTV) BDUs serving Quebec “collectively experienced increases in subscribers and in total revenues” when it launched its service, despite Quebecor’s numbers seeing a decline, therefore, French-language BDUs were not subjected to a negative impact. “CBC expressed the view that... the decrease in Videotron subscribers can instead be explained by Videotron’s inability to withstand competition, including that from IPTV BDUs,” according to the commission's decision. Telus, in its reply to the CRTC, pointed out that its agreement with CBC was available to all distributors, including those of Quebecor's Videotron., and argued that Quebecor should pursue the a similar arrangement with CBC, rather than to terminate that of Telus. In its analysis, the CRTC determined that Tout.tx Extra distributes libraries, rather than signals of service like a BDU. “As an undertaking operating pursuant to the Exemption Order as opposed to BDUs operating pursuant to the regulations, Tou.tv Extra is not obliged to offer a basic package or to contribute to Canadian programming in the same way as for a BDU,” it wrote. It also noted that Rogers Communications Inc. previously took advantage of the offer with the CBC just like Telus currently is, while Videotron declined altogether, therefore, there is no preference given on the part of the public broadcaster. “Tou.tv Extra did not create a disadvantage under the current regulatory framework, the service being instead a competitive offer to the benefit of the Canadian broadcasting system and of Canadians,” it wrote. — Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC dismisses Quebecor complaint of CBC undue preference

Broadcast | August 3, 2021

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CRTC dismisses Quebecor complaint of CBC undue preference

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