Search

Broadcasting Decision CRTC 2016-491

PDF version

Reference: Part 1 application posted on 27 October 2016

Ottawa, 20 December 2016

MTS Inc.
Winnipeg and surrounding areas, Manitoba

Application 2016-1117-9

Terrestrial broadcasting distribution undertaking serving Winnipeg and surrounding areas – Licence amendment

The Commission approves an application by MTS Inc. for its broadcasting distribution undertaking serving Winnipeg and surrounding areas to be relieved of the obligation to distribute the exempt independent discretionary programming service The Cult Movie Network in a package of programming services.

Background

  1. Section 23(1)(b) of the Broadcasting Distribution Regulations (the Regulations) specifies that, except as otherwise provided under a condition of licence, all Canadian discretionary services that are offered by a licensee shall be offered on a stand-alone basis and in packages of up to 10 programming services as of 1 December 2016.
  2. Section 7 of the Wholesale Code specifies that where a broadcasting distribution undertaking (BDU) offers pre-assembled or theme packages, independent programming services, with the exception of programming services identified in sections 25 and 26 of the Regulations, shall be offered in at least one package in addition to being offered on a stand-alone basis.

Application

  1. MTS Inc. (MTS) filed an application for its BDU serving Winnipeg and surrounding areas, Manitoba, to be relieved of the obligation to distribute the exempt independent discretionary programming service The Cult Movie Network in a package of programming services. To do so, MTS requested that its BDU be subject to the following condition of licence:

    As an exception to section 23(1)(b) of the Broadcasting Distribution Regulations and section 7 of the Wholesale Code, the licensee is not required to place The Cult Movie Network in a small package of programming services.

  2. According to MTS, when it began distributing The Cult Movie Network in 2010, it offered the service on a stand-alone basis and as part of a package. However, after receiving complaints regarding the content of the programming a few days later, MTS decided to offer the service only on a stand-alone basis.
  3. MTS argued that it should not be required to carry The Cult Movie Network in a package, as required by section 23(1)(b) of the Regulations and section 7 of the Wholesale Code, because the programming on The Cult Movie Network made it inappropriate for being included in a theme package. MTS noted that adult services and single or limited point-of-view religious specialty services are currently exempt from these packaging requirements due to the nature of their programming.
  4. According to the applicant, approval of the amendment would not affect consumer choice since The Cult Movie Network is offered to all of its BDU customers on a stand-alone basis for C$1.99 per month and is available online to all consumers for US$2.99 per month.
  5. Further, as part of its application, MTS included a letter from The Cult Movie Channel Inc., which operates The Cult Movie Network. In that letter, The Cult Movie Channel Inc. agreed that the service should be distributed only on a stand-alone basis. The letter stated that the service's niche programming often portrays violence and nudity in a highly graphic manner that may be offensive to viewers and that many of the programs shown would not be suitable for inclusion in a package of programming services that did not offer similar content.
  6. The Commission did not receive any interventions regarding this application.

Commission's analysis and decision

  1. As set out in Let's Talk TV – A World of Choice – A roadmap to maximize choice for TV viewers and to foster a healthy, dynamic TV market, Broadcasting Regulatory Policy CRTC 2015-96, 19 March 2015, requiring BDUs to offer discretionary services on a stand-alone basis and in small packages serves to provide consumers with greater choice when it comes to the selection and packaging of their television services.
  2. Given the nature of the programming broadcast on The Cult Movie Network and the current structure of MTS's theme packages, and since MTS does not offer subscribers the option of creating their own packages, the Commission finds that MTS does not offer any packaging options that would be suitable for the inclusion of The Cult Movie Network.
  3. Further, the Commission finds that consumers already have a reasonable opportunity to subscribe to The Cult Movie Network on a stand-alone basis for $1.99 per month and that requiring the service to be offered in a small package would not necessarily make it a better value proposition for consumers.
  4. The Commission also highlights the exceptional nature of this application in which The Cult Movie Network agreed with MTS to be distributed only on a stand-alone basis.
  5. In light of all of the above, the Commission approves the application by MTS Inc. for its BDU serving Winnipeg and surrounding areas to be relieved of the obligation to distribute the exempt independent discretionary programming service The Cult Movie Network in a package of programming services, pursuant to section 23(1)(b) of the Regulations and section 7 of the Wholesale Code.
  6. MTS Inc.'s BDU serving Winnipeg and surrounding areas will be subject to the following condition of licence:

    As an exception to section 23(1)(b) of the Broadcasting Distribution Regulations and section 7 of the Wholesale Code, the licensee is not required to place The Cult Movie Network in a package of programming services.

  7. If MTS decides to offer user-created packages, the Commission will expect that The Cult Movie Network be included as one of the programming services that could be chosen to assemble such a package.

Secretary General

This decision is to be appended to the licence.

Date modified: