BDUs fight back against OUTtv must-carry proposal

Canada’s broadcasting distribution undertakings (BDUs) are continuing their fight against a proposal by OUTtv Network Inc. that would see them forced to carry the LGBTQ+ channel. The CRTC proceeding has been going on since last fall. Currently, OUTtv has “must-offer” status, which requires cable companies and satellite services to make the network available as an optional choice for viewers. OUTtv wants that changed to “must-carry” status, which would see it required on BDUs, like news channels and weather networks. BDUs opposed the notion when the first interventions were due last November. Now they have reiterated that viewpoint in the reply stage of the proceeding. “OUTtv’s most recent distribution request simply ignores the commission’s guidance from decision 2022-223, which encouraged OUTtv and distributors to come to commercially negotiated agreements,” BCE Inc.’s Bell Canada wrote. “Failing the successful completion of a commercial agreement, the commission identified that OUTtv could request commission intervention by declaring a dispute under the auspices of the Wholesale Code.” The Code has provisions on packaging and pricing arrangements. Bell says OUTtv should be linked with similarly-themed channels on its satellite and Fibe TV packages. Bell is accusing OUTtv of using the proceeding to avoid negotiating with BDUs. OUTtv has alleged the BDUs, with one unnamed exception, are mistreating it. Bell denies this. “While we cannot speak to OUTtv’s treatment by other BDUs, we can unequivocally state that we have and continue to treat OUTtv fairly,” the company remarked. It also said OUTtv’s proposed rate of 12 cents per subscriber is excessive, a point also taken up by Rogers Communications Inc. “Based on the record of the application, it is abundantly clear that OUTtv has asked for the wrong remedy to address its concerns,” Rogers argued. “OUTtv is improperly seeking mandated carriage and a regulated rate as a means of bypassing the commission’s dispute resolution regime, which is the appropriate mechanism to establish terms of carriage for the service where OUTtv is unable to negotiate them.” Rogers argues that OUTtv’s presence online provides it with enough revenue that it does not need the 12 cents per subscriber it is seeking from BDUs. Any loss of television subscribers can be attributed to the gains made online, the carrier asserted. Eastlink, a division of Bragg Communications Inc., argued OUTtv’s application is based on faulty premises. BDUS are not hindering OUTtv’s subscribership, it stated “OUTtv’s application is premised on the notion that its declining subscribership and revenue are primarily attributable to malicious actions on the part of BDUs,” it wrote. “However, Eastlink submits that OUTtv’s issues are the inevitable result of the significant changes that are occurring in the Canadian broadcasting industry.” Since 2019, BDUs have lost 800,000 subscribers and $1.4 billion in annual revenue, the eastern carrier said. Fewer subscribers equals fewer potential viewers for OUTtv, it added. The Canadian Communication Systems Alliance (CCSA) also rejected the network’s proposals. The group, which represents more than 100 smaller players, says they cannot afford the costs of the OUTtv suggestion. The CCSA has exempted members–those with subscriber ranges between 2,001 and 20,000–and licensed members, whose larger subscriber base still pales in comparison to Bell or Rogers. It says technology changes have affected the marketplace. “Audiences can watch streamed content on phones, tablets, and even fridges,” the CCSA notes. “The children who started playing video games on the Nintendo Entertainment System generation are now in their 40s and have had three decades of video games as an alternative to traditional TV.” The group wonders if granting OUTtv must-carry status would result in the LGBTQ+ channel getting lost in the crowd of all the other mandatory networks. Cogeco Communications Inc. opined that OUTtv’s fiscal forecasts of what would happen to it were its demands not met are too pessimistic. Quebecor Inc. cautioned the CRTC from setting an unnecessary precedent if it granted OUTtv’s request for mandatory carriage. ppark@thewirereport.ca

BDUs fight back against OUTtv must-carry proposal

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By Paul Park
| February 25, 2025

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BDUs fight back against OUTtv must-carry proposal

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