Accessible Media seeks to increase rates for mandatory carriage

Accessible Media Inc. (AMI) submitted an application to the CRTC for an interim rate increase for its AMI-tv and AMI-télé channels to address the financial challenges facing the organization, which predominantly serves Canadians with disabilities. AMI's application seeks to increase the monthly wholesale rate per subscriber for AMI-tv and AMI-télé, set by the CRTC in 2018 when it reviewed wholesale rates for channels with mandatory carriage on basic packages. The proposed interim rate increase, $0.01 per month per subscriber for AMI-tv, and $0.02 per month per subscriber for AMI-télé, is intended to be in effect until the current licence terms expire in August 2026. The overwhelming majority of AMI's revenue comes from subscription fees paid by broadcasting distribution undertakings (BDUs). However, with a decline in BDU subscribers over the years, AMI's revenues have plummeted, threatening its ability to continue serving Canada's disability community effectively, it argued in its Part 1 application filed last Thursday. The wholesale rate for its English services sits at $0.20 per subscriber per month while AMI-télé receives $0.28 per subscriber per month. AMI attributes the decline in subscribers to changing viewing habits, including the trend of cord-cutting. The organization's annual revenues have decreased by more than $2 million annually compared to five years ago, necessitating operational restructuring and significant cost-saving measures. Despite AMI's intention to address revenue concerns during its 2023 licence renewal, the CRTC administratively renewed the licences until 2026, further delaying the resolution of financial challenges. The current wholesale rates for AMI-tv and AMI-télé have remained unchanged since their inception in 2007 and 2013, respectively, failing to keep pace with inflation. The proposed rate increase, which AMI argues is modest in nature, is expected to generate additional revenue for its programming initiatives while having minimal impact on BDUs. AMI pledges to reinvest all additional revenues into producing original Canadian content that reflects the diversity and experiences of the disability community. During its 2018 hearings on the matter, TV service providers told the CRTC that cord-cutting by Canadians shouldn’t be the reason to give channels with mandatory carriage on basic packages higher monthly carriage fees. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca

Accessible Media seeks to increase rates for mandatory carriage

Broadcast | March 5, 2024

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Accessible Media seeks to increase rates for mandatory carriage

Broadcast | March 5, 2024

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