The CRTC is blocking companies from offering television programs exclusively to their mobile or Internet subscribers in new rules for cable and telecom operators that also own TV networks.
The regulator said Wednesday that any program broadcast on television, including hockey games and other live events, must be made available to competitors under fair and reasonable terms.
“Given the size of the Canadian market, there are benefits to integrating television programming and distribution services under the same corporate umbrella,” CRTC chairman Konrad von Finckenstein said in statement.
“At the same time, we felt that some safeguards were needed to prevent anti-competitive behaviour. In particular, Canadians shouldn’t be forced to buy a mobile device from a specific company or subscribe to its internet service simply to access their favourite television programs.”
However, the CRTC will allow companies to offer exclusive programming to their internet or mobile customers if it is produced specifically for the Internet or a mobile device.
This includes supplementary programming such as behind-the-scenes video clips of a television program, as well as original content.
The new rules come after six days of hearings in June during which the regulator heard from all of the major cable and telecom companies.
As Canadians turn to online sources and mobile devices like smartphones and tablets to watch television, availability is becoming an issue as consumers want to see the content using whatever device they have, regardless of who holds the rights.
During the hearings, both BCE and Quebecor, Quebec’s largest cable TV operator and owner of the TVA French-language network, called for fewer rules and for the regulator to allow exclusive deals for content on new devices like smartphones and tablets.
On Tuesday, BCE chief executive George Cope said real-time programming of sports and TV shows on mobile devices like smartphones and tablets will provide new revenue from consumers and other wireless providers.
BCE owns the CTV broadcaster and a host of websites, specialty channels and sports and entertainment properties as well as Bell Canada and the Bell TV satellite TV provider.
The Bell Media division said this week it will provide real-time content including prime time hits like Grey’s Anatomy, The Amazing Race, Criminal Minds and Desperate Housewives.
On the opposing side were Rogers Communications, which also owns broadcasting, magazine, wireless and cable TV operations, and Telus. They called for the regulator to block exclusive deals for content on the new devices.
Shaw Communications told the hearings the current rules are enough to prevent anti-competitive activity.
The new framework released Wednesday also adopted a code of conduct to prevent anti-competitive behaviour and ensure all distributors, broadcasters and online programming services negotiate in good faith as well as measures to protect independent distributors and broadcasters.
At least 25% of specialty services distributed by a large integrated company must be owned by an independent broadcaster.
The CRTC also strongly encourages television distribution companies to give Canadians more flexibility in choosing the individual services they want as part of their packages.
The regulator has called on Bell, Quebecor, Rogers and Shaw to submit a report by April 1 detailing the steps they have undertaken to respond to consumer demands.
The inquiry was called after Shaw Communications bought 11 local Global TV stations across Canada and a group of specialty stations such as HGTV and Showcase for $2 billion.
The regulator also imposed a moratorium on BCE using its dominant position as both broadcaster and carrier to discriminate against competitors until the conclusion of hearings.
