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CRTC Consultation: Wholesale Code for Specialty and Pay TV

8K views 42 replies 13 participants last post by  jaxon9032 
#1 ·
In the thread discussing the CRTC decision on Pick and Pay TV and the creation of skinny basic some of the discussion has centred around the fact that a competitive retail TV market is dependent upon a healthy wholesale market.

The CRTC recognised this and launched a proposed Wholesale Code and invited comments by 4 May, and parties to file replies by 14th May.
http://www.crtc.gc.ca/eng/archive/2015/2015-97.htm

As reported by the CBC:
http://www.cbc.ca/news/politics/crt...portant-for-smaller-cable-companies-1.3003817
"In our view it's probably the most critical part of the decision," said Chris Edwards, vice-president of corporate and regulatory affairs with the Canadian Cable Systems Alliance, a group representing more than 100 independent cable companies servicing more than 700,000 customers.

"These are the very things that potentially stand in the way of the CRTC being able to deliver customers choice and flexibility, as long as those sorts of provisions are allowed to stand," he said.
As such, given that it is arguably the most critical part of the CRTC decision and to avoid confusion with the retail market discussions on the other CRTC threads, I would like to create this thread for discussion specific to the working of wholesale TV market (if that is okay with the mods).

As well as being key to the interests of the more than 100 existing independent cable companies it is also key to the development of more new independent IPTV providers.
 
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#29 ·
so any actual measurement could be more accurate if done properly, even if not every cableco and device is included.
Anyone with even a basic understanding of statistics knows that is a fallacy. The sampling must be taken from all members of the population to be measured, not a skewed subset. A greater sampling of a single BDU's customers would be more accurate only for that BDU and then only if all customers were sampled, regardless of the capabilities of their equipment, or lack of it. 1% may not sound like a large sample but, if done correctly, can be quite accurate, much more so than a larger, badly chosen sample. Just using data from certain models of desktop receivers that are capable of providing such data would only be accurate for owners of those receivers and not for all customers.
 
#30 ·
The trouble is that the existing measurements are already skewed. Only a certain type of person will agree to take part, and that type a person may not accurately represent the whole population.

My family took part back in the 80s and it was a ton of work filling in the written diaries. It also wasn't completely accurate, since some family members didn't always bother to record things, or want to admit to what they were watching (eg TQS late night).

I don't know the measuring methodology nowadays, but the 80s diaries were not conducive to good statistics.
 
#31 ·
They diary is still there, but the primary method Numeris uses is a pager like device. You wear it, and it listens to hidden audio codes embedded in shows to know what you're watching. Accuracy is dramatically improved because it doesn't require you to remember to fill out the journal, it's automated.

http://en.numeris.ca/participants/overview

One of the interesting side effects was that sports ratings went up when this system came into effect. The likely reason is that it captured people who watched at a bar or a friends house and just plain forgot to fill in the diary. Other channels and shows went down because they were being over represented before.

Really, this is even more accurate than using the STB to do it, since this can tell if you're watching a show in an empty house or if five people are in the room with you, and the STB has no way to determine that.
 
#32 ·
ExDilbert, I was thinking of you when I put this phrase in:
so any actual measurement could be more accurate if done properly
My understanding is that all devices that are capable of providing stats would be included and all the BDUs would be included, except for maybe the very small ones.

Numeris uses a sample size much less than 1%, but I'm not sure what the number is.

I think the STB measurement would be a supplement to what Numeris currently does, not a total replacement. The people-meters have the advantage of measuring individual viewing habits and out-of-home viewing.
 
#33 ·
smallmj
"or want to admit to what they were watching (eg TQS late night)."

You mean Blueu Nuit. ;)


How will this benefit let's say a new IPTV provider. Ebox asked for a license. Vertically integrated companies will try and charge more for their channels to make up for the lost revenue. Can the CRTC say, Hey wait a minute. Based on Numeris your channel is worth this much.
 
#34 ·
Based on Numeris your channel is worth this much.
Such a pricing system would merely create a new race to the bottom for TV content. The holy grail of TV is a popular show that is cheap to produce. Content like Here Comes Honey Boo Boo is a network's dream program. Pricing by number of viewers will force stations that carry higher quality, higher cost programming that requires higher pricing off the air. Better say goodbye to HBO and your favourite niche channels now. Letting stations determine the price is the best method. Then let consumers decide which channels they think are worth the money and which are not. BDUs should be out of the loop with regard to station pricing and carriage. They should be treated as common carriers who must deliver all channels at cost and simply charge a fair rate for delivery.
 
#37 ·
Wholesale Code announced by CRTC

The CRTC announced the new Wholesale Code will take effect 22 January 2016.
The Wholesale Code governs certain aspects of the commercial arrangements between broadcasting distribution undertakings (BDUs), programming undertakings, and exempt digital media undertakings. It will ensure that subscribers have greater choice and flexibility in the programming services they receive, that programming services are diverse, available and discoverable on multiple platforms, and that negotiations between programming services and BDUs are conducted in a fair manner.
The Wholesale Code will be applicable to all licensed undertakings and shall serve as a guideline for all other parties, including exempt BDUs, exempt programming undertakings, exempt digital media undertakings, and non-Canadian programming services distributed in Canada. The Commission will also apply the Wholesale Code in resolving disputes.

Broadcasting Regulatory Policy CRTC 2015-438
 
#41 ·
The Wholesale Code governs certain aspects of the commercial arrangements between broadcasting distribution undertakings (BDUs), programming undertakings, and exempt digital media undertakings.
Since OTT services do not sell their programs to BDUs, the Wholesale Code doesn't apply to Film-On or Netflix and they aren't relevant to this thread.

OTT services like shomi or CraveTV that do sell their services to BDUs would be classified as exempt digital media undertakings (wholesalers) and are covered by the Wholesale Code.
 
#39 ·
A step in the right direction, but not far enough. Programming undertakings should be required to set a single per-subscriber price that applies to all subscribers across all BDUs, and BDUs should be required to make that price transparent to subscribers and use the same mark-up calculation method for every channel and every subscriber. Programmers should be competing with each other on the value of their content relative to their subscription fee, and BDUs should be independently competing on service and price. There should be no linkage or cross-promotion between the two business categories.
 
#40 ·
Airlines, retail outlets, professional service provider, etc., etc., are not required to have one set price for all of their customers (BDU being the customer in this case), why should programming undertakings be required to have one set price for every customer? And how many retailers make their wholesale price available to all of their customers? The ones that claim to (auto dealers for example) tend to leave out the volume incentives they get.
 
#42 ·
Airlines, retail outlets, professional service provider, etc., etc., are not required to have one set price for all of their customers (BDU being the customer in this case), why should programming undertakings be required to have one set price for every customer?
Broadcasting in Canada is a protected industry and, as such, submits to regulation in exchange for its protected status. The high degree of concentration and protection for the broadcasting industry lends itself to unfair competition practices and price fixing on the part of Canadian broadcasting companies. If, like the other industries cited, broadcasting was open to open to global competition, I would agree that prices and practices should be unregulated.
 
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