Videotron takes Wholesale Code dispute with Rogers to CRTC

Quebecor Inc.’s Videotron has filed a Part 1 application with the CRTC over a disagreement with Rogers Communications Inc. concerning carriage of some sports-focused TV channels. It’s accusing Rogers of violating the CRTC’s Wholesale Code by insisting the carriage agreement include stipulations expressly forbidden by CRTC rules. In a French-language filing dated Sep. 27 and posted to the CRTC’s website Thursday, Videotron said it filed the complaint because some of the propositions put forward by Rogers concerning affiliation agreements around Rogers’ NHL Centre Ice channel package and the now-defunct NFL Sunday Ticket violated the Wholesale Code, given they demand Videotron pay a minimum revenue level. NFL Sunday Ticket is no longer available for broadcast, after Perform Group’s sports streaming service Dazn purchased the rights. The code, which took effect in January 2016, governs the business relationships between TV-service providers and channel operators. Rogers’ demands expressly violate section 4(g) of the code, Videotron argued, which forbids provisions regarding “minimum penetration, revenue or subscription levels.” Videotron asked the CRTC to order Rogers to offer reasonable tariffs that don’t set any minimum revenue levels. “We have attempted, multiple times, to negotiate with Rogers on different bases than guaranteed minimums, especially given that practice is forbidden” under the code, Videotron said in the application. “Nevertheless, Rogers has continually insisted on a minimum amount,” and the two companies have found themselves at an impasse, it added. Videotron said that Rogers’ interpretation of the issue is that section of the Wholesale Code doesn’t apply to the case at hand, and even if it does, Rogers isn’t demanding any guaranteed revenues. Videotron added it wanted to put an end to the impasse quickly, and asked for the case to be expedited. The current deadline for replies is Nov. 6. The Wholesale Code was controversial when it was first proposed, with consumer groups asking the CRTC to ban minimum penetration and revenue guarantees, while Rogers objected to such a ban at the time, arguing there “may be instances where flat fees or minimum guarantees are fair and reasonable.” BCE Inc., which is both a TV provider and broadcaster, is currently challenging the code in court, arguing it violates both the Copyright Act and the Broadcasting Act because its purpose is to govern the commercial arrangement between broadcasters and broadcast distributors. Telus Corp. and Cogeco Inc. — telecoms without broadcasting divisions — are opposing that appeal, while a group of broadcasters including CBC/Radio-Canada and Blue Ant Media Inc. argued Bell isn’t entitled to a court remedy. That court case is ongoing, with a hearing scheduled in Ottawa on November 14. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Bryson Masse at bmasse@thewirereport.ca

Videotron takes Wholesale Code dispute with Rogers to CRTC

News | October 5, 2017

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Videotron takes Wholesale Code dispute with Rogers to CRTC

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