MONTRÉAL, April 9, 2019 /CNW
Telbec/ - Notwithstanding Bell's claims in recent days, the
solution to the current situation in the broadcasting industry lies
in an equitable redistribution of carriage rates for all specialty
channels. Bell and its specialty channels enjoy unfair advantageous
rates based on historical criteria rooted in its former monopoly
status. This inequitable situation does not reflect current
realities in the television industry. Quebecor is therefore calling
for carriage rates to be based on performance criteria that reflect
viewers' interests. Bell must surrender its historical
privileges.
Quebecor's goal in making this case is to enable specialty
channels to innovate and offer original content, without increasing
the bill for consumers. At the end of the day, this will mean
fairer sharing of the revenue pie from the subscription fees paid
by broadcasting distribution undertakings for all specialty
channels.
When Bell increases the carriage rates for its specialty
channels even as their ratings are declining, does it benefit
viewers? When Bell offers RDS at no extra charge but makes its
customers pay an extra $14 for TVA
Sports, does that benefit viewers?
TVA Sports and RDS: comparable channels
TVA Sports and RDS are two comparable sports channels: similar
viewing hours per subscriber, similar spending on content and
similar viewer satisfaction levels.
With respect to consumer appreciation, which is an important
criterion, a recent Léger survey found that 85% of respondents
consider TVA Sports and RDS to be of equal value.*
While RDS has a larger subscriber base than TVA Sports because
of its history as a monopoly for more than 30 years and unfair
distribution practices, viewing hours per subscriber are
practically identical and are in fact higher for TVA Sports during
some periods. While Bell claims there is a 67% gap, the difference
is actually 2%.
Bell gives RDS an undue advantage over TVA Sports by excluding
TVA Sports from its "Good" package, which is its most popular one,
while RDS has been included since its launch. Why does Bell give
the two English-language sports channels, Sportsnet and TSN, equal
treatment in every province of Canada, while unjustly depriving
French-speaking sports fans in Québec?
Regarding programming investments, RDS spends $122 million on content and TVA Sports spends
$112 million, a 9% gap even though
RDS' revenues are 63% higher. The numbers are indicative of the
importance TVA Sports attaches to bringing its subscribers the best
possible content.
Innovating for Québec consumers
It is time for the industry to innovate and adapt to current
realities. Innovative capacity has always been a central concern
for Quebecor, Videotron and TVA. Eight years ago, Videotron broke
new ground by launching its own mobile network, creating healthy
competition and giving Quebecers some of the lowest mobile rates in
the country. Videotron also pioneered pick-and-pay packages, which
are more economical for consumers and meet the growing demand for
choice and flexibility. For its part, TVA broke open a monopolistic
market by launching a number of specialty channels at the beginning
of the new millennium, offering viewers a wider selection of
innovative content. These are just some concrete examples of the
ways in which Videotron and TVA have brought positive change to
Québec's competitive landscape and allowed consumers access to the
best products on the market.
Given its gigantic stature, Bell has no interest in any change
or improvement to the rules. The status quo works in its favour.
However, Bell's intransigence is jeopardizing the survival of
specialty channels and their programming. Quebecor is sounding the
alarm in order safeguard the diversity of television offerings and
protect viewers.
"We don't want to increase the bill for consumers," says Pierre
Karl Péladeau, President and CEO of Quebecor. "What we want is to
redistribute subscription fees based on performance rather than
historical criteria. Consumers are paying too much for Bell's
channels. Those fees should be redirected to channels, including
TVA's, that have been able to innovate and create competition, for
the benefit of television viewers."
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.
Québec-based Quebecor (TSX: QBR.A, QBR.B) 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 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
Sources:
Numeris – Quebec Franco, September 1, 2017 to August 31, 2018, Mo-Su, 2a-2a, t2+
CRTC, French language specialty and pay services, Discretionary
and On-Demand Services - Statistical and Financial Summaries," 2017
data, residential / TVA Group data
Léger – Survey of 1,006 Quebecers aged 18 and over, February 2019.
SOURCE Quebecor