Sun News lobbying for mandatory carriage as CRTC looks at new applications

Quebecor Media Inc. hired firm Ensight Canada to lobby the federal government for mandatory distribution of its all-news specialty channel Sun News Network, the federal lobbyist registry shows. Ensight Canada consultant Michelle Mackenzie registered Oct. 10 to lobby the Heritage Department and members of the House of Commons to receive “mandatory distribution on analog and digital basic service in Canada” for Sun News, according to the registry and as first reported by The Lobby Monitor. In 2010, Quebecor originally applied to the CRTC to operate the channel, then branded as Sun TV News, as a national English-language Category B specialty television channel. In its application, the company effectively sought mandatory carriage by requesting “mandatory access” for the station for up to three years. That would require distributors to carry the channel and offer it to customers. In the fall of 2010, following criticism from competitors that said the company was seeking unfair regulatory protection, Quebecor dropped the request, and instead applied for a standard, Category B specialty channel licence. Quebecor had argued that CBC/Radio-Canada's CBC News Network and BCE Inc.'s CTV News Channel benefited from mandatory carriage licences for 21 and 13 years, respectively, putting its new Sun News Network at a disadvantage. The CRTC has since deregulated all-news and sports specialty channels, removing the mandatory carriage, or “must offer” privileges. Quebecor's Sun News channel would benefit from the “must offer” provision by receiving more revenues from a larger pool of subscribers. The CRTC did not publish the channel's revenues or subscriber numbers in its annual data for 2011. CBC NN reported subscribers of 11,165,366 in the 2011 broadcast year and total revenues of $82.2 million. CTV News Channel reported 8,612,204 subscribers and revenues of $23.7 million, according to the CRTC data. Citing BBM data, The Canadian Press reported this year that, of all-news specialty channels, CBC NN had the highest national audience share in Canada, at 1.4 per cent. CTV News Channel had 0.8 per cent audience share and Sun News attracted 0.1 per cent. The CRTC is now considering confidential, new applications for mandatory distribution under section 9(1)(h) of the Broadcasting Act. CRTC spokeswoman Patricia Valladao could not say which broadcasters, or how many, applied for mandatory distribution according to a June 1 deadline to do so. “We’d only be able to disclose that once we announce what would be the process ” Valladao said. Under section 9(1)(h), the CRTC can require broadcast distributors to carry some channels “on such terms and conditions as the Commission deems appropriate.” In decision 2010-629 issued in 2010, the CRTC said it was not, for the time being, accepting applications for mandatory distribution, and that companies “who wish to be considered for such carriage should file applications” by June 1, 2012. In a three-year plan released in September, the CRTC added that it will review those applications during the 2012-2013 broadcast year, which began Sept. 1. In a 2006 decision, 2006-23, the CRTC said it considers new applications for mandatory distribution “on an exceptional basis.” Broadcasters seeking mandatory distribution must demonstrate that its service is of “exceptional importance … to the achievement of the objectives of the Broadcasting Act,” the CRTC said at that time. Broadcasters must also “demonstrate that having mandatory carriage on the digital basic service will enable its service to contribute in meaningful ways to fulfilling the policy objectives of the Act.” news@thewirereport.ca

Sun News lobbying for mandatory carriage as CRTC looks at new applications

Broadcast | October 16, 2012

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Sun News lobbying for mandatory carriage as CRTC looks at new applications

Broadcast | October 16, 2012

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