Analog cable. Remember that? According to the latest statistics from the CRTC, only 11% of television subscribers get their TV that way. For Videotron, that number is higher. According to Quebecor’s latest quarterly report, 82.9% of its television customers were digital, leaving 17.1% of them using analog-only setups.
Since about 2000, the groundwork has been built for the phasing out of analog cable. The CRTC has since licensed new television specialty channels as digital-only. In 2012, Videotron stopped selling new analog cable subscriptions. And it’s expected that within the next few years it will be phasing out its analog cable network, much as other providers are, in order to free that bandwidth for more data and high-definition channels.
I bring all of this up because of an interesting situation that’s come up. The Broadcasting Distribution Regulations, the rules that apply to cable, satellite and other television providers, have a priority list of which channels must be distributed on the basic service. At the top of that list is CBC/Radio-Canada, then educational channels, then all other local television stations, then those special services like CPAC and APTN that the CRTC requires everyone receive and pay for.
The lineup of analog cable channels hasn’t been added to in the past decade. The last new channels added to it here were APTN and Avis de recherche, because of distribution orders for those channels. And with a virtual ban on new channels being forced onto analog, it seemed destined to stay that way.
But in December, a new television station launched in Montreal. ICI, an ethnic station, began broadcasting on Channel 47. And according to the rules, it needs to be added to the systems of all cable distributors operating in Montreal, on both analog an digital.
This issue doesn’t come up often because it’s so rare that a new over-the-air television station starts up. The last real expansion of over-the-air television through new stations was in 1997, which was when Global Quebec and CJNT (what is now City Montreal) went on the air. So cable companies haven’t had to add many new services to analog cable since they started the slow move to digital.
But the rules say that Videotron needs to distribute local stations, and so it needs to put ICI on its analog grid somewhere, at least in the Montreal area.
Except Videotron says it doesn’t have the room to do that. So it has applied to the CRTC for an exception to the distribution rules that would allow it to not have to carry ICI this way.
In its submission, Videotron’s owner Quebecor Media says the commission’s clear intention is to move away from analog television distribution, and that its recent decisions have made it clear it doesn’t want to add new services to analog.
“The analog programming grids for the greater Montreal region are at their maximum capacity and no space is available to add a new station to the basic service,” Quebecor’s Peggy Tabet writes. “In fact, any additional analog channel would require the removal of a channel that’s currently distributed in this format. This type of change has important consequences at the client level and on a financial and technical level. Adding ICI to the analog basic service would result in depriving our subscribers of a service they have always had access to.”
Moreover, Videotron says, removing a service from analog cable would require a 60-day notification period, and its contracts with broadcasters do not allow Videotron to remove those channels from its analog service.
Finally, Videotron says that 93% of its customers in the greater Montreal region have digital set-top boxes, and those subscribers receive ICI in standard and high definition.
Videotron’s explanation is mostly half-true. It definitely has space limitations on its network, and adding a new analog channel would take up a lot of space. And it’s right that removing analog channels is tricky because of customer complaints as well as contractual obligations.
But Videotron isn’t absolutely prevented from adding ICI to its analog network. Assuming there was no analog channel that it could part with to make room for ICI, it could repurpose a digital channel and make it analog again. That might mean fewer HD channels, or more compressed HD channels, but it’s doable.
It would probably be more accurate to say that Videotron simply doesn’t want ICI on its analog network because it would add to its bandwidth management problems and won’t be that popular among its customers.
That kind of explanation usually doesn’t sway the CRTC. But should the commission force Videotron’s hand, requiring it to start fiddling around with an analog network it’s in the slow process of dismantling? Videotron hasn’t set a date for bringing down the analog network in Montreal. It may be a small minority that still has analog cable, but many of them do for a reason, and it will be quite a process to transition all of them at the same time. Plus there are all the people who might have a digital box on their main television but analog cable going into other TVs in the house. Those will also need to be dealt with.
I suspect the CRTC will deny Videotron’s application. But it may grant the exception if it feels that the reins of analog cable need to be let loose so the format can be put out to pasture.
ICI hasn’t commented on the application. Its general manager Sam Norouzi said it will be filing a response opposing it, but didn’t want to comment further.
Videotron’s application can be downloaded here (.zip). It’s open to comment until 8pm ET on Monday. Comments can be filed here. Note that all information provided, including contact info, goes on the public record.
UPDATE (Sept. 3): The CRTC has granted Videotron’s request, despite ICI’s objections.