CRTC chooses DHX’s offer for children’s programming rates over Rogers in final offer arbitration

In a dispute between Rogers Communications Inc. and DHX Television Ltd. over the wholesale rate for the carriage of a pair of linear channels, the CRTC selected DHX's offer in final offer arbitration (FOA). The dispute related to a pair of DHX, which does business as WildBrain, discretionary services called Family and a multiplex service called Family Jr. In July of 2022, Rogers requested the commission initiate FOA related to distribution of the two channels, afterwhich the commission determined in September that it would use FOA to establish linear wholesale rates for the two services. In its brief to the CRTC, Rogers argued that there is data that shows that while viewers have valued services like Family and Family Jr. in past years, their interest is waning. Viewers are selecting the services as part of their packages less and less across its platforms. Rogers pointed out that more Canadians are migrating to online streaming services for children's programming, and that Corus Entertainment Inc.'s launch of Disney, Disney Jr., and Disney XD has resulted in the "oversaturation" of the children and youth programming markets, according to the CRTC's summary of Rogers' arguments. Rogers also argued that DHX had made its programming available on Alphabet Inc.'s YouTube through its WildBrain Spark channel, and further pointed to the emphasis placed on consumer choice in the CRTC's Let's Talk TV proceeding. DHX, on the other hand, argued for "historical rates, given that the services have been maintaining viewership levels over time and that a degree of rate continuity is necessary to support longer-term investment in quality children’s programming," according to the commission's summary. While the commission acknowledged that Rogers' offer better reflected "the historical rates of the services given the historical investment trends that impact their programming content," it found that ultimately broadcast distribution undertakings like Rogers were more to blame for the decline in viewership for children's programming on DHX. The two channels' "apparent decline in popularity has been accelerated by Rogers’ approach to flexible packaging," the CRTC wrote. "Indeed, the commission finds this decrease to be most attributable to overall decreases in BDU or linear children’s programming subscribers, whereas the absolute number of viewers for the services has remained relatively stable." "Factoring in the ownership composition of the market for Canadian linear youth and children’s services and the commission’s related public policy objectives, the commission finds that WildBrain’s offer better reflects the service’s relative market value," the regulator wrote, and ultimately chose DHX's offer for the programming. -Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

CRTC chooses DHX’s offer for children’s programming rates over Rogers in final offer arbitration

News | December 20, 2022

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CRTC chooses DHX’s offer for children’s programming rates over Rogers in final offer arbitration

News | December 20, 2022

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