This week’s CRTC mandatory distribution hearing has placed the spotlight on a fascinating disconnect between the Commission and the Canadian broadcast community. Despite months of telegraphing its intent to promote consumer choice over broadcaster revenues, the first two days of the hearing have featured repeated presentations from groups who have not gotten the message. CRTC Chair Jean-Pierre Blais could not have been clearer in a speech last October:
In our decision, we noted that consumers increasingly expect to be in control of what they watch. It makes sense that consumers and the distributors who serve them should have more flexibility in packaging choices. While we acknowledged the value of predictable revenues to the programming services, we decided that the days of guaranteed wholesale rates are over. Programming services cannot expect to remain completely insulated from the growing demand for greater choice by Canadians.
He followed that up in March by telling the production community that it “will need to compete, just like any other sector.”
Despite the messaging, many of the groups seeking mandatory distribution evidently don’t get it.
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The CRTC has issued the question to the Federal Court of Appeal regarding the applicability of the Broadcasting Act to ISPs.
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The CRTC has released its 2009 new media decision (full decision here) and it looks not unlike the 1999 new media decision. Days of hearings, thousands of pages of submissions and the Commission has side-stepped the pressure to "do something," by maintaining its hands-off approach. It concluded that regulatory intervention would get in the way of innovation and that a compelling case was not made that additional support through an ISP levy was needed. Indeed, the decision notes that "the Commission is of the view that parties advocating repeal of the exemption orders did not establish that licensing undertakings in the new media environment would contribute in a material manner to the implementation of the broadcasting policy set out in the Act."
There is at least one very noteworthy change to the new media exemption, however. The CRTC was clearly troubled by allegations of undue preferences being granted by wireless providers (the issue raised by the Weather Network and discussed in this March column). It has therefore proposed amendments prohibiting such practices:
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