The broadcast regulator will be focusing on issues ranging from Canadian content to online video streaming
What’s the issue?
Beyond “basic” TV packages, television providers tend to offer their channels in bundles, which frustrates viewers who want to pay only for channels they actually watch. The CRTC is considering forcing companies to offer all channels beyond a basic package à la carte, plus build-your-own bundles and a stripped-down, cheaper basic package.
What’s at stake?
Ottawa has said it wants to give consumers a pick-and-pay option. But broadcast distributors say they will take a major financial hit if it is implemented, and argue that the choice will actually end up costing consumers more because bundling spreads out fixed costs. It could also signal the death of a number of specialty channels that rely on fees from subscribers who buy their channels in packages.
What’s the issue?
Revenues for local television stations are tumbling as their viewership declines amid growing competition from online streaming services. To control costs, some networks say the costly over-the-air transmitters they maintain to broadcast local stations on free signals should be shut down.
What’s at stake?
The survival of some local news and programming, which is still popular and vital to a host of Canadians, but bleeding millions in revenue. Many people still watch over-the-air TV, particularly older and lower-income viewers. BCE Inc. has suggested charging a wholesale fee for local channels to generate revenue to support them, but so far the CRTC does not seem inclined to agree.
What’s the issue?
To ensure Canadian programs aren’t squeezed off the dial by popular American shows, the CRTC has rules mandating how much broadcasters and distributors must spend to help create Canadian content in both official languages, and how often they must air those shows– it varies, but some companies have to broadcast at least eight hours a week between 7 p.m. and 11 p.m., for example.
What’s at stake?
Broadcasters and distributors are looking for Canadian content rules to be relaxed as pressure grows on their stations’ profitability. But producers want CanCon rules strengthened.
What’s the issue?
With the consolidation of the Canadian television sector – five companies account for 85 per cent of Canadian broadcasting revenues – the CRTC enforces a code of conduct for large, vertically integrated companies that own and distribute media. That framework helps shape the way cable and satellite companies negotiate rights with programmers.
What’s at stake?
The CRTC is proposing that the code be extended to fit a pick-and-pay system, adding new restrictions on the tactics that can be used to negotiate broadcast rights, to protect abuse by vertically integrated giants and smaller players. BCE Inc. wants existing rules loosened so market forces can drive negotiations, but the Competition Bureau argues that5 such safeguards are necessary. Ultimately, these deals help set the costs to consumers.
What’s the issue?
The growing popularity of online video and American-owned TV and movie streaming services like Netflix are the elephant in the hearing room. The CRTC says 29 per cent of English speakers had subscribed to Netflix as of 2013, and Canadian TV companies fear their subscribers may cut the cord on conventional television in favour of cheaper online options.
What’s at stake?
Television networks and distributors made a combined $15.5-billion in revenue last year, and must combat the streaming threat to keep subscribers loyal. Last month, Rogers and Shaw jointly launched an ambitious streaming competitor, called Shomi. But some, including the CBC, want foreign services like Netflix to fork over some of their revenue to support Canadian content – an idea Netflix flatly rejects.