Canada: French-Language Pay-TV Competition: Cancelled Due To Lack Of Interest?

French-language television viewers hoping for the option of a second national pay-television channel will not be getting their wish anytime soon, as the CRTC recently announced that it would not open up the French-language general interest pay television service genre to competition due to a lack of applicants for a new service.

However, while closing a proceeding due to lack of applications seems understandable, the more interesting question may be why no such applications were forthcoming.

Currently, Super Écran is the only French-language general interest pay channel. It broadcasts primarily films and premium television series, making it comparable to English channels like The Movie Network and Movie Central, except that these English-language services are already subject to competition.

Following a long period of regional monopolies, the CRTC introduced competition to the English-language pay sector in 2006, by licensing SuperChannel, a new national general interest pay television service. In licensing the new competing service, the Commission cited both the health of the existing pay licensees and the increase in support for Canadian programming that would result from competition.

Subsequently, in 2008, the CRTC also permitted competition between specialty services licensed for the genres of general interest sports and national news, including French-language services like Le Réseau des sports (RDS), Le Réseau de l'information (RDI) and Le Canal Nouvelles (LCN).

However, at the same time, the Commission indicated that it would generally maintain its policy of programming genre exclusivity for most other pay and specialty services, unless convinced that a competitive environment would not significantly reduce either the diversity of services available to subscribers or the contribution of such services to the creation of Canadian programming. To help determine the ability of a programming genre to sustain competition, the CRTC indicated it would consider the economic health of the existing services, the popularity of services, the availability of programming suitable for the genre, the existing diversity within a genre and other consequences that might result from relaxing genre exclusivity.

In 2010, the CRTC received an application to open the general interest pay television genre to competition in the French-language market. Following a public proceeding, the Commission ultimately determined that the applicant had not demonstrated that opening up the genre to competition would serve the objective of providing consumers with greater diversity. Although the Commission considered Super Écran to be both financially health and popular, the regulator expressed concern that the library of Canadian feature films was not large enough to support more than one service focused on recent box-office hits, and that two competing French-language services might needlessly compete for the rights to foreign - and particularly U.S. - feature films dubbed in French, driving up the amounts paid to foreign rights holders without benefitting Canadians. Finally, the CRTC expressed concern about undue preference in favour of the proposed new licensee, which would have belonged to the same ownership group as the dominant broadcasting distribution undertaking in the French-language market.

At the same time as it denied this application, the CRTC announced that it would consider opening up the airwaves and allowing a second French-language pay channel to operate, on the condition that the potential new channel would provide programming complementary to, but not directly competitive with that provided by Super Écran – although the new service would also have been authorized to broadcast feature films. Applicants were also required to address a number of other issues, including how their proposed new channel would help achieve the objectives of the Broadcasting Act, particularly with respect to the production and exhibition of Canadian programming.

In February 2011, a few short months after the CRTC's initial call for applications for a "complementary" service, a lack of response to its initial call led the Commission to extend the application deadline and announce that it would even entertain applications for channels that would compete directly with Super Écran – despite its rejection of the idea only 3 months before. Unfortunately for the French-speaking television fans, even the CRTC's more generous approach to potential applications was not enough to spark the interest of any broadcasters.

Observers can only speculate as to why there were no takers to either of the Commission's calls for applications. The "completition" approach initially proposed by the CRTC may simply not have been attractive to potential operators, particularly when targeted to Canada's smaller French-language market. Moreover, the Commission's strong statements in its rejection of the 2010 application likely still resonated within the French language broadcasting industry, notwithstanding the CRTC's apparent openness to reconsidering direct competition only a few months later. In this regard, the concerns about undue preference that the Commission had expressed in 2010 may have been particularly off-putting to entrenched interests in the early part of 2011, as the CRTC was in the midst of a public proceeding to consider whether new safeguards and other requirements should be imposed on broadcasting ownership groups operating in both the programming and distribution sectors. Those new safeguards were introduced earlier this fall.

Whatever the reason, the CRTC has now closed its consideration of the issue and Super Écran will remain the only French language pay-television channel for the time being.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions