Monthly Archives: December 2019

| TV

CRTC rules Bell TV unfairly packaged TVA Sports

So Quebecor was right all along.

Kinda.

In a decision published on Thursday, the CRTC ruled that Bell TV unduly showed preference to its related channel RDS to the detriment of competitor TVA Sports by choosing to put the former in its most popular package in Quebec, but not the latter.

It gives Bell until Feb. 5 to tell the commission how it will rectify the situation. The two obvious options are to either add TVA Sports to the package, or take RDS out of it.

Like most TV providers, Bell offers discretionary channels on an à la carte basis, but most people have them as part of larger packages. With Bell, these larger packages are organized in tiers: Good, Better and Best in English, and Bon, Meilleur and Mieux in French. The data show that the lowest-end package of that group is by far the more popular. In Quebec, about 90% of subscribers with one of these packages has the “Bon” package, which has RDS but not TVA Sports.

Bell had argued that its contract with Quebecor only required TVA Sports to have similar packaging to RDS2, and that even that clause doesn’t apply anymore. Quebecor, meanwhile, argued that TVA Sports has greatly transformed since it launched in 2011, and is now on par with RDS, particularly since it picked up the national rights to NHL games.

The CRTC sided with Quebecor, and said “Bell deprived TVA Sports of a significant number of subscribers and several millions of dollars per year of subscription and advertising revenues, resulting in a significant loss of income.”

Quebecor’s back-of-the-envelope calculations suggested that if Bell TV treated TVA Sports the same as RDS (including paying the same per-subscriber rate), TVA Sports would not be in deficit. The rate isn’t part of this decision, but rather was decided as part of final offer arbitration in a separate case (Quebecor is mad about that one too, since the CRTC sided with Bell).

This apparent unfairness was the major reason Quebecor decided in April to cut the TVA Sports feed from Bell, until ordered by the court to re-establish it.

We’ll see what Bell does to rectify the situation. Quebecor would obviously prefer more subscribers to TVA Sports, but Bell could choose to take RDS out of the “Bon” package instead, especially if it can get away with grandfathering those who already have it.

Bell complaint dismissed

In a separate decision also released Thursday, the CRTC also sided with Quebecor in a case over packaging of Super Écran on Videotron. The decision, in response to a Bell complaint, found that Videotron did treat Super Écran differently from Quebecor’s own Club Illico when it removed Super Écran from the “Premium” group of channels, but that there was insufficient evidence that Super Écran suffered financially because of it.

Videotron’s pick-your-own-package model, which is the main way they’re selling TV services these days, invites customers to choose a certain number of channels. Separate from that are “Premium” services that cost more. Most Videotron packages allow one or two “Premium” selections from a list of services, that used to include Super Écran and The Movie Network (now Crave), plus Super Channel, the over-the-top service Club Illico, and a package that includes FX, AMC and U.S. super stations.

Videotron removed Super Écran and Crave from the “Premium” offer after Bell increased its per-subscriber fee. It argued it was just too expensive to continue to be a throw-in like that. Instead, you have to search under “other specialties” to find them among the ethnic channels and pay an extra $17 (Super Écran) or $20 (Crave/HBO) a month.

The decision seems to suggest the issue could be revisited if Bell can prove there was significant financial impact on Super Écran as a result of this change.

| TV

Supreme Court overturns CRTC order banning ad substitution during Super Bowl

After three years of Canadian cable TV subscribers having access to American ads during the Super Bowl, we’ll be going back to the previous system after all.

On Thursday, the Supreme Court of Canada ruled that the CRTC exceeded its authority when it issued an order that required cable and satellite TV companies to not substitute U.S. feeds with Canadian ones during the Super Bowl, in response to demands from Canadians to be able to watch the U.S. Super Bowl ads.

The 7-2 decision explicitly leaves open the possibility that the CRTC could use its authority under other sections of the Broadcasting Act to possibly reach the same result. The most obvious way would be under article 4(3) of the Simultaneous Substitution Regulations, which state that the CRTC can declare a condition whereby simultaneous substitution would not be in the public interest, and prohibit it accordingly.

But that won’t happen before the next Super Bowl less than two months away.

Specifically, the court found that article 9(1)h of the Broadcasting Act, the same article that allows the CRTC to require TV distributors to include certain channels in their basic packages and collect fees from every subscriber for them, “does not empower the CRTC to impose terms and conditions on the distribution of programming services generally,” and since the order the CRTC issued in 2016 does not require these companies to distribute the Super Bowl, its wording is invalid.

The article states that the CRTC may “require any licensee who is authorized to carry on a distribution undertaking to carry, on such terms and conditions as the Commission deems appropriate, programming services specified by the Commission.”

The majority found that this wording can’t be stretched to give the CRTC a bunch of powers it doesn’t say it has. The CRTC can order providers to carry certain channels, but that’s not what the Super Bowl order does.

This is notably the third time that an order issued under article 9(1)h has been rejected for this reason. Previous orders invalidated the CRTC’s “value for signal” regime that would have required providers pay for local TV stations, and a requirement for TV providers to abide by the Wholesale Code.

The court did not make decisions on other arguments, such as whether the CRTC has the power to regulate individual programs, or whether the CRTC’s order conflicts with the Copyright Act.

The two dissenting judges found that Bell and the NFL had not met their burden to prove that the CRTC decision was unreasonable, and generally deferred to the CRTC and its expertise in interpreting the section of the Broadcasting Act it was citing. It also found the CRTC’s decision was not invalidated by the Copyright Act.

The decision probably only accelerates a process that was coming anyway, as the Canadian government had already agreed as part of negotiations on a new trade agreement with the U.S. and Mexico to overturn the CRTC’s order.

And, of course, there are still other ways to watch the U.S. Super Bowl ads.

| Radio

Radio Centre-Ville lawsuit ends with dissidents dropping case at trial

The legal battle between Radio Centre-Ville (CINQ-FM 102.3) and a group of dissidents over control of the community station is over. But the emotional repercussions of the bitter three-year dispute will likely continue for some time to come.

The case was finally heard on Monday before judge Marc St-Pierre at Quebec Superior Court. But after hearing from only two witnesses, the plaintiff, representing the dissidents, proposed abandoning the lawsuit, which was quickly accepted. (Both sides pay their own legal costs.)

The dispute started in the fall of 2016, with a proposal by station management that, to control a financial crisis that risked pushing the station into bankruptcy and losing its building on St-Laurent Blvd., it begin selling airtime to independent producers. That proposal may or may not have been rejected at a general assembly of members in September 2016, depending which side you talk to.

Two other general assemblies followed, one in December 2016 and one in January 2017, to elect members to the station’s board of directors, and each side says the other one was illegal. Since then, the two have continued to battle for control, each with its own board — General Manager Wanex Lalanne and his allies remained in control of the station itself, while the dissident group was the one listed on Quebec’s business registry, and had control of the station’s Facebook page. The dissident group also often got its messages broadcast on the station, as well as through other media like CKUT.

Radio Centre-Ville General Manager Wanex Lalanne addresses listeners during an on-air press conference on Tuesday, Dec. 17, 2019.

To say the battle has been acrimonious would be an understatement. During a press conference broadcast live on-air on Tuesday, Lalanne and his supporters talked about defamatory statements made against him, and Lalanne did not discount the possibility of a civil lawsuit for defamation. (The threat of such a countersuit may have been a factor in the dissidents deciding to drop their case.) Lalanne said he would take some time to recover from this ordeal before taking such decisions, and it’s up to the station’s board of directors as far as the next steps on behalf of the organization.

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| Radio

TTP Media’s 600 and 940 stations go off the air

Damage to the transmitter caused by a wind storm caused TTP Media’s two Montreal radio stations to go off the air, and the need to order parts means it will be early in the new year before they’re transmitting again, co-owner Nicolas Tétrault tells me.

CFNV 940 AM and CFQR 600 AM have been on the air since 2016 and 2017, respectively, each taking five years to get on the air after getting their licences from the CRTC.

For nearly a decade, Montrealers unsatisfied with commercial talk radio stations have been eagerly anticipating what was promised. But that eagerness has faded as year after year brings no news about programming (except for a deal CFNV reached with the similarly-named CNV to provide mainly music programming).

Tétrault says talk programming is coming soon, and they are very proactive on setting it up. Talk programs on CFQR, the English station, could start as early as February, he told me.

Considering past promises of launching soon, it’s best not to hold your breath waiting for it.

UPDATE (Feb. 19): CFQR 600 AM is back on the air.

| Radio

Fall radio ratings: Could The Beat surpass CJAD?

Numeris released its quarterly ratings report for metered markets on Wednesday, and for Montreal the only surprising thing is how much The Beat continues to dominate over Virgin Radio. With a 21.5% share, it has more than twice the average listeners than Virgin Radio at 9.4%. And not only it it the fourth straight quarter that The Beat has been more than twice Virgin’s share, it’s the third straight where Virgin has fallen behind CHOM for third place among English music stations.

The 21.5% share is The Beat’s highest since it launched in 2011, and less than four points below perennial leader CJAD 800. Could we see a future where The Beat isn’t just the most popular music station and the most popular among that advertiser-friendly 25-54 audience, but among all ages and formats as well?

The book is more bad news for Virgin Radio, which tried to turn things around by letting go of program director Mark Bergman (he’s now at The Beat) and morning hosts Freeway Frank and Natasha Gargiulo and stealing Vinny Barrucco back from The Beat to lead its new morning show. The Beat’s morning show, headed by Vinny’s former co-host Nikki Balch, is still ahead. It’s still early — this is the first full book with Barrucco hosting the morning show with Shannon King — but they have a lot of ground to cover, and Virgin has lost a lot of ground that it has to make up.

TSN 690 is at the bottom of the anglo commercial radio pack, but it had its best share since 2017. CBC Radio One, meanwhile, which had good numbers from 2017 until this spring, has fallen back below 7% in market share.

On the francophone side, the top line hasn’t changed much, except for a rebound for CHMP-FM 98.5 (which always tends to dip in the summer with replacement hosts and less news), and a drop for CKOI 96.9.

Bragging rights