CRTC sending Cogeco and Wildbrain to mediation over channel drop dispute

A dispute over Cogeco Inc. dropping children’s television content creator Wildbrain Ltd.’s programming will now go through a mediation process after the CRTC has opted to suspend a Part 1 application filed by the production company. Cogeco and Wildbrain -- formerly known as DHX Media Ltd. -- have been fighting over whether or not Cogeco breached the Wholesale Code and the CRTC’s standstill rule when it decided to stop carrying Wildbrain’s cable family programming channels while the two companies were still in related negotiations. The standstill rule requires broadcasters to continue offering programming that is under negotiation. The CRTC said in a recently published Aug. 11 letter to executives with each company that the two sides have not put enough “constructive” effort into figuring out the fight themselves, so they’ll be participating in mediation assisted by Bernard Montigny, a senior director of alternative dispute resolution with the CRTC. “The purpose of this direction is not to force the parties into any particular resolution; it is rather to facilitate open and collaborative dialogue,” the commission wrote. “The commission’s policy framework and previous decisions recognize that there will be circumstances in which distribution undertakings may legitimately cease distribution of programming services,” the CRTC wrote in its letter. “In the present case, however, the commission considers that it is appropriate and that the public interest would be better served by affording these parties a further opportunity to resolve their outstanding issues themselves.” If the mediation doesn’t work, either side can file a request to reopen the proceeding. If mediation does work, the CRTC “would simply close the application.” It won’t make any ruling until there is “further engagement” between the two sides and the standstill rule remains in place until the dispute is resolved or a decision is made by the commission. Wildbrain claimed in a January Part 1 application Cogeco’s actions “short-circuited what might otherwise have been fruitful discussion,” and argued it was subjected to an undue disadvantage. The company asked the CRTC to direct Cogeco to continue negotiations and to force it to take part in final offer arbitration (FOA) to establish terms for the continued distribution of its channels if they can’t come to an agreement through mediation. Meanwhile, Cogeco called the company’s attempts to invoke the standstill rule “a glaring abuse of the commission’s process,” and asked that the application be dismissed. Among other arguments, Cogeco wrote in a reply to the application that the standstill rule is not applicable in this situation because there were no ongoing negotiations and it doesn’t wish to continue carrying Wildbrain’s channels, saying their “inferior performance” compared to similar services supports its decision. It also said much of the content they aired is readily available through other services such as Netflix Inc. Cogeco disputed the argument that it violated the Wholesale Code and argued that Wildbrain invoked the standstill rule inappropriately, in order to retain continued access to Cogeco’s cable subscribers, in the absence of an ongoing negotiation or dispute. Telus Corp. and Quebecor Inc. filed interventions in support of Cogeco. Telus warned that a decision in favour of Wildbrain could set an unreasonable precedent for broadcasting distribution undertakings (BDUs). Wildbrain has the support of the Canadian Media Producers Association -- which cautioned the CRTC against allowing Cogeco to drop a Canadian content producer -- and the Independent Broadcasters Group. -- Reporting by Hannah Daley at hdaley@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

CRTC sending Cogeco and Wildbrain to mediation over channel drop dispute

News | August 18, 2021

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CRTC sending Cogeco and Wildbrain to mediation over channel drop dispute

News | August 18, 2021

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