Describing it as a “roadmap to maximize choice and affordability,” the CRTC announced Thursday that Canadian TV viewers will be able to purchase TV channels on a “pick-and-pay” basis.
The federal broadcaster regulator said by December – and regardless of their service provider – Canadians will be able to obtain an “affordable” entry-level TV package costing no more than $25 a month, and supplement it with additional channels on either a pick-and-pay basis or in small “reasonably priced” bundles of either five or 10 channels or themed packages such as sports, lifestyle and comedy.
U.S.-based channels that are currently free over the air in most major Canadian markets near the border — so-called 4-plus-1 channels — will also be included.
It’s the first time television service pricing has been regulated in Canada since 1999 and makes it the only jurisdiction in the industrialized world to require that TV distribution companies offer a basic selection of channels.
The national broadcast regulator said the requirement to offer a trimmed-down basic package will take effect by March 2016.
In the latest ruling stemming from last fall’s “Let’s Talk TV” hearings, the CRTC said the entry-level bundles would prioritize local and regional news and information programs, noting that many Canadians spoke of their importance during the two-week hearings.
“During the ‘Let’s Talk TV’ conversation, Canadians were clear they wanted choice in the marketplace. Today’s decision gives them the ultimate choice,” said the CRTC in its ruling. “It supports those who want to subscribe to fewer channels, more channels, or who like the bundles of channels they already have.”
It said combined with previous regulatory decisions, including 30-day cancellation policies, consumers are now further empowered to shop around and negotiate favourable deals.
In a statement, CRTC chairman Jean Pierre Blais said the ruling enables Canadians to find “the right value proposition” for their household, and create an “even more dynamic” marketplace.
The federal regulator also announced a new wholesale code of government governing the wholesale agreements negotiated by broadcasters and TV service providers.
Among its provisions, the new code of conduct — which comes into effect in September — will ensure that independently owned channels are included in at least one pre-assembled cable package and that channels cannot by “unduly withdrawn” from consumers by BDUs as a result of a commercial dispute at the wholesale level.
