GATINEAU – Broadcasting Regulatory Policy 2015-96 ushered in sweeping changes to the Canadian broadcast system, namely a skinny basic and an a la carte channel regime. But the Let’s Talk TV decision also modified rules and provisions governing exempt broadcast distribution undertakings (BDUs).
Now the CRTC wants to hear from industry about those specific changes.
The new rules are designed to not only give exempt BDUs more flexibility to operate and seek new customers, but also bring them in line with regulations that the larger broadcast distributors have to follow.
The CRTC is proposing, as was indicated in 2015-96, that exempt BDUs can now expand beyond their traditional territory and compete against licensed broadcast distributors. This, says the Commission, means that Canadians might be able to choose to get their TV service from a greater number of providers.
Unlicensed BDUs will also see a harmonization of their rules with those of the larger broadcast distributors, particularly as it relates to Canadian programming levels, US 4+1, the carriage of 9(1)(h) services and Cancon spending calculations. However, while being able to compete out of territory is good news, the smaller exempt BDUs will have to offer a preponderance of Canadian programming just as their larger brethren have to.
“Further, to ensure that Canadians have access to Canadian services, exempt BDUs will be required to offer more Canadian than non-Canadian services,” reads Broadcasting Notice of Consultation CRTC 2015-258. According to the consultation, this provision will take effect in March 2016.
When it comes to the carriage of the US 4+1 channels, exempt BDUs are currently able to carry two sets of these signals. This is different from the larger BDUs which are only allowed to carry a single set of US 4+1 signals. The CRTC is proposing to harmonize the rules for both sets of distributors.
“Given that exempt BDUs will be permitted to compete in markets with licensed BDUs, it is the Commission’s preliminary view that exempt BDUs should also be allowed to distribute no more than one set of US 4+1 signals as part of their basic service. Consequently, the Commission proposes to amend the BDU exemption order to this effect,” states the consultation.
The elimination of simultaneous substitution was one of the major changes brought in by another of the Let’s Talk TV decisions (Broadcasting Regulatory Policy 2015-25). This decision maintained simsub for over the air TV but eliminated it for specialty services and for the Super Bowl. As well, penalties for simsub errors by both broadcasters and distributors will be introduced through amendments to broadcast regulations. The Commission isn’t yet certain whether it will apply the new simsub rules to exempt BDUs. It says that once that framework has been implemented, it will decide what to do for simsub and the unlicensed distributors (This paragraph has been corrected from an earlier version which contained factual errors. Cartt.ca regrets the error).
In addition to having to carry 9(1)(h) services, the Commission is also proposing that exempt BDUs carry Nouveau TV5 (TV5/UNIS), AMI-tv Français and ARTV, which were granted mandatory distribution in Broadcasting Regulatory Policy 2013-372.
Harmonizing Cancon spending calculations is also on the agenda for exempt BDUs. The CRTC notes that since licensed BDUs are allowed to estimate spending contributions for each broadcast year based on the previous year’s revenue and then “true up” that amount at the end of the year, it makes sense that exempt BDUs be afforded the same capability.
“The Commission also proposes to amend the BDU exemption order as it relates to the calculation and payment of contributions to Canadian programming (i.e. 5% of the undertaking’s gross revenues derived from broadcasting activities in each broadcast year less any contribution to local expression),” says the consultation.
Comments are due by July 20.
