CRTC dismisses Bell complaint that Videotron Vrai HVOD service violates regulations

The CRTC has found that Quebecor Inc.’s Videotron did not contravene its regulations or video-on-demand exemption order, after BCE Inc. filed a complaint that the company was giving itself and advantage by offering its Hélix TV Vrai hybrid video-on-demand (HVOD) service at a lower price compared to its direct-to-consumer (DTC) version. In a Monday decision, the commission found that Hélix TV subscribers were given preference because of financial and technical advantages but that did not necessarily constitute an undue advantage. “The Vrai service provides greater choice for Canadian consumers and a new window of opportunity for Francophone producers and artisans, which benefits the Canadian broadcasting system. Moreover, there is nothing in the record to suggest that Videotron’s actions have had, or could have, a negative impact on achieving the objectives of the act,” the commission wrote. On Aug. 17, 2021 Videotron launched the Vrai HVOD service but did not offer it to other broadcast distribution undertakings (BDUs). A month later it offered Vrai as an online DTC service. On Nov. 17, 2021 Bell filed a complaint against Videtron and its Vrai on-demand streaming service. The incumbent argued that the DTC version of Vrai and the BDU version had significant pricing differences – $15 per month and $7 per month respectively – which violates the provision against undue preference in the Broadcast Distribution Regulations. Bell argued that Videotron was also violating the exemption order for video-on-demand services by distributing the Vrai service on an exclusive basis. It said that the service offered over the internet is limited to Quebecor’s new QUB web platform and application, while Hélix TV subscribers can access the service directly on their TV. DTC subscribers can only access content on one device at a time while Hélix subscribers can view content simultaneously on up to five devices. The CRTC opened up an official proceeding in February in which Quebecor responded that Bell’s complaint was “unfounded and deplorable.” It argued that its customers, and all consumers in Canada, can access the Vrai service through Quebecor’s QUB platform which is available to everyone and whose registration is free. Quebecor said that the offer of content is exactly the same no matter how a consumer chooses to access the service. In its reply Bell said Quebecor had not addressed “the glaring retail pricing differences between the internet DTC and Videotron BDU offers for Vrai.” “Instead, their comments are limited to casting aspersions on Bell Media and Bell Canada,” Bell wrote at the time. In its initial complaint, Bell asked the CRTC to have Videotron suspend the provision of the BDU Vrai service. The Public Interest Advocacy Centre (PIAC) supported Bell’s complaint but disagreed with the recommendation, according to its February intervention. PIAC said Videoton inappropriately benefits from its Vrai service being registered as an exempt HVOD service but that Quebecor should be allowed to “expeditiously” revise its DTC offering rather than having to remove the service. Section 12 of the exemption order, which Bell alleged Videotron violated states that “the undertaking offers its service over a broadcasting distribution undertaking provided that all of the programs for which the rights are held on an exclusive basis are also delivered and accessed over the internet.” The commission noted that section 13 is also relevant to the case because it is closely tied with section 12. It states that “where the service is delivered and accessed over the internet as described in paragraph 12 above, it shall not be offered in a way that is dependent on a subscription to any specific broadcasting distribution undertaking, mobile service or retail internet access service.” The CRTC found that both versions of Vrai are distributed and accessible over the internet, and the content offered is the same. In its decision it wrote that subscribing to the online DTC Vrai service is done independently and the creation of a QUB account is free and without obligation. “Sections 12 and 13 of the HVOD exemption order do not state that the rates or terms and conditions of delivery of the online and BDU must be identical, or even comparable,” it wrote. “The commission considers that BCE’s allegations of de facto exclusivity based on the terms and conditions of distribution of the service is more properly considered under the undue preference and disadvantage provisions.” The CRTC did find that Videotron was giving its Hélix subscribers a preference because they benefit from better pricing and technical advantages, but noted that its exemption order does not prevent BDUs and HVOD services from implementing business strategies to attract subscribers, provided that any preference or disadvantage afforded by these practices is not undue. The commission determined that the pricing difference between the services is not unreasonable and it is “comparable to those for other Canadian online streaming services.” “In the present case, Quebecor stated that the differences between the services offered on the two platforms are due to certain technical limitations as well as issues related to content rights negotiations. Quebecor, however, cited a few advantages that subscribers to the online service have, such as the fact that the QUB app is compatible with Airplay and Chromecast technologies, whereas this feature is not available with Helix,” the CRTC wrote. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC dismisses Bell complaint that Videotron Vrai HVOD service violates regulations

News | May 30, 2022

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CRTC dismisses Bell complaint that Videotron Vrai HVOD service violates regulations

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