MONTRÉAL, Feb. 16, 2018 /CNW
Telbec/ - Quebecor today filed an application for leave to
appeal the CRTC decision on TVA Sports to the Federal Court of
Appeal. Quebecor is seeking a review of the decision issued by the
CRTC on January 17, 2017 with respect
to the rate paid by Bell TV for distribution of TVA Sports.
Quebecor fails to understand the CRTC's position in this case.
TVA Group's offer was fully consistent with CRTC precedents, but
the Commission made a decision based on principles and
interpretations that depart from those applied in its previous
decisions. The process has therefore become arbitrary and there are
no longer any reference points or clear rules to follow.
Quebecor finds the decision particularly baffling in view of the
fact that TVA Sports, a relatively recent market entrant, has
carved out a strong position with nearly 1.9 million subscribers
and a market share close to that of RDS. For more than 20 years,
RDS enjoyed a monopoly position. The arrival of TVA Sports in 2011
entailed average annual investments in the order of $100 million and created close to a hundred jobs.
The channel carries high-quality content from top sports properties
such as the National Hockey League, including the playoffs, Major
League Baseball with Toronto Blue Jays games, Major League Soccer
with Montréal Impact games, the Rogers Cup, WWE and the 2016 World
Cup of Hockey. TVA Sports also produces more than 60 live
broadcasts per year from many of regions of Québec. TVA Sports has
thereby opened up the market to healthy competition and expanded
the available supply of sports content, for the benefit of Québec
television audiences.
An independent study produced in the fall of 2017 by DeepBlue
found that increasing numbers of viewers attach equal importance to
TVA Sports and RDS. A majority say it is important to have access
to both channels in their TV package. Moreover, 65% of Quebecers
who subscribe to both TVA Sports and RDS consider TVA Sports to be
equal to or better than RDS.
"TVA Group's offer was reasonable and reflected the fair value
of TVA Sports, without placing any undue burden on consumers,"
commented Pierre Karl Péladeau, President and CEO of Quebecor. "It
is unfair to leave such a wide and unwarranted gap between the
rates for TVA Sports and RDS. In an aggressively competitive
environment, in which our industries must fight global giants that
are not subject to any regulatory or fiscal obligations, the CRTC
ought not to mortgage local programming services that are
succeeding by innovating and carrying quality content, thereby
enriching both industry workers and the country as a whole. The
CRTC should issue clear guidelines about the application of each
relevant criterion in its decisions. Without consistency, CRTC
decisions will appear arbitrary and the credibility of its
proceedings will be undermined."
In its application, Quebecor argues that the Commission's
decision ignored the considerations deemed decisive in its past
arbitration decisions, such as proportionality of revenues to
subscriber base, penetration rate, and the rates paid by other
broadcasting distribution undertakings to carry TVA Sports and
similar services.
Quebecor also believes that arbitrary application of the CRTC's
decision-making criteria violates the principle of consistent
decision-making by which any administrative tribunal such as the
CRTC must be bound. Quebecor also contends that the CRTC exceeded
its authority by violating the doctrine of legitimate expectation,
whereby a party appearing before a public body is entitled to
expect that the body's decisions will be in keeping with the
expectations it has created by its past promises, commitments and
practices.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec. It
holds an 81.53% interest in Quebecor Media, which employs more than
10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports people
working with more than 400 organizations in the vital fields of
culture, health, education, the environment and
entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor