CRTC lifts local expression conditions for Quebecor, Bragg on-demand services

The CRTC approved applications by Quebecor Media Inc.’s Videotron and Bragg Communications Inc.’s Eastlink, to amend their on-demand broadcasting licences after the companies considered removing locally-relevant programming to avoid having to comply with burdensome local expression requirements. In a decision issued Thursday, the CRTC said Illico sur demande and Eastlink OnDemand will be relieved from the requirements regarding local expression, set out in the CRTC’s Broadcasting Regulatory Policy. According to the policy, “if a licensee elects to offer an outlet for local expression, the licensee shall offer the programming at no charge to its subscribers and shall not offer any programming service other than… community programming” among other stipulations. At least 60 per cent of a licensee’s community programming must be offered as local expression among other requirements. Quebecor and Eastlink submitted that since their video-on-demand services are not their main outlet for community programming, the services should not be subject to those conditions of licence, and that conditions were intended to apply to broadcasting distribution undertakings (BDUs) that only offer community programming services on demand. “Quebecor stated that… the commission did not make a clear distinction between community programming originally aired on a community channel and offered to subscribers on-demand on a complimentary basis and community programming produced by or for the on-demand community programing service that has a condition of licence allowing it to operate this particular service,” according to the decision. Quebecor told the CRTC that it offers some community programming on an on-demand basis as a complementary service for its subscribers but if it does not get relief to the local expression requirements, “it would be compelled to remove the complementary community programming offered.” “According to Quebecor, removing community programming on Illico sur demande would have the undesirable consequence of limiting the visibility of the content, which would be contrary to the commission’s objectives,” the CRTC decision stated. Eastlink also argued that BDUs distribute content from their linear community channels on their on-demand platform as a convenience for their customers. “Eastlink added that compliance with these conditions of licence would create a financial burden on its BDUs as additional resources would have to be allocated to producing separate community programming logs for its on-demand community programming service and labelling or organizing content based on its community of origin,” the CRTC noted in its decision. The CRTC found that both companies’ concerns were similar and merged the applications. Eastlink and the Conseil provincial du secteur des communications du Syndicat canadien de la fonction publique (CPSC-SCFP), along with Quebecor and BCE Inc. submitted interventions in the two separate applications. Bell opposed Eastlink’s initial application arguing that “it would create an uneven competitive playing field between BDUs.” Bell argued “that approving Eastlink’s application would create competitive asymmetries and questioned how the commission would determine a BDU’s primary outlet for BDUs delivering community television programming on multiple platforms.” It further suggested that only community television content from the last two years be subject to the requirements to provide flexibility so “Eastlink would only have to reorganize a portion of its on-demand community television program titles.” CPSC-SCFP argued against Quebecor’s proposal, claiming that the future of broadcast distribution is closely tied to on-demand services and that the CRTC should “aim to ensure that all Canadian programming is available on-demand” and online. Quebecor replied to the concerns noting that some of its live programs on its linear community channel do not lend themselves to an on-demand platform, and complying with the obligations would add increased costs and administrative burdens. “Given that the continued offering of community programming on-demand by Quebecor and Eastlink is a desirable outcome, the commission finds that the relief sought by the applicants is reasonable and consistent,” it wrote in its decision. The CRTC also pointed out that, regarding Bell’s concerns, other BDUs with other secondary outlets can apply for relief which would remove any asymmetries in the market. However, “the commission considers it appropriate to impose an expectation on the applicants to ensure that the programming offered on-demand is relevant to and reflective of the communities they serve and that it includes access programming,” the CRTC wrote in its decision. As a result the commission said that it may, at any point during the licence term, request information regarding local and access programming “should there be any concerns that the licensees have not made reasonable efforts to include local and access programming on their on-demand platforms” even if the programming is offered on a complimentary basis. -- Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC lifts local expression conditions for Quebecor, Bragg on-demand services

News | November 4, 2021

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CRTC lifts local expression conditions for Quebecor, Bragg on-demand services

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