It will come as no surprise to you that Quebecor and Canada’s public broadcaster are not the best of friends. Quebecor’s controlling shareholder and CEO, Pierre Karl Péladeau, has complained about it many times in the past. (He also complains about La Presse, Bell, the Quebec Liberal Party, the Quebec government and others.)
This week, Quebec’s largest telecom and media company filed a complaint with the CRTC demanding that it order CBC/Radio-Canada to shut down its Tou.tv Extra streaming service. Not all of Tou.tv, just the $7/month premium version that charges for premium content.
I examine the application in this article for Cartt.ca subscribers. In short, Quebecor is arguing that:
- As a public broadcaster, it’s improper for CBC/Radio-Canada to charge for access to content paid for by taxpayers, and goes against its mandate.
- Since it licenses some content from other broadcasters (Télé-Québec, V, Canal Vie, TV5 and others), it is a de facto TV provider and should be licensed as such, including obligations to spend 5% of its revenue on Canadian programming funds.
- Its deal with Telus giving Telus’s customers free access to Tou.tv Extra is an illegal undue preference and against the rules for digital media broadcasters.
- CBC’s last licence renewal in 2013 included a note from the CRTC that said it does not charge for access to its streaming service (Tou.tv Extra launched in 2014), which Quebecor argues is a de facto condition of acceptance.
Quebecor lays it on pretty thick in the application, saying CBC/Radio-Canada is “short-circuiting the Canadian broadcasting system with taxpayer money” and “creating two-tier public television: enriched content, exclusives and offers first to the better off, and regular content and reruns to the masses.”
In a procedural letter, the CRTC says that issues related to CBC’s mandate should be dealt with in the CBC licence renewal proceeding, which is currently under way. Other issues of fairness can be dealt with in the context of an “undue preference” proceeding, which it will examine.
I could point out some of the obvious counter-arguments to Quebecor’s argument (Tou.tv Extra does not offer live streaming of cable channels, only some of their content on demand; there is no condition of licence requiring it to be free; it’s basically the same model as Quebecor’s own Club Illico; the deal offered to Telus was offered to others as well including Videotron, who choose not to take it; even if there is undue preference, it does not mean Tou.tv Extra needs to cease its operations), but what struck me today as I was doing some Google searching is a post I wrote 10 years ago just after Tou.tv first launched, when Péladeau complained about it then. Here’s a paragraph I excerpted from an open letter he wrote:
Furthermore, the CBC has launched the Tou.tv website without consulting the industry, a move that jeopardizes Canada’s broadcasting system by providing free, heavily subsidized television content on the Internet without concern for the revenue losses that may result, not only for the CBC but also for other stakeholders, including writers and directors.
So, in 2010 Péladeau argued that Tou.tv threatened the broadcasting system by not charging a fee.
And in 2020 Péladeau argues that Tou.tv Extra threatens the broadcasting system by charging a fee.
You have to give this to Péladeau: He’s got quite the ability to argue. It must be fun working in his regulatory affairs department.