Quebecor and CRTC clash over “regulatory straitjacket”

Quebecor Media Inc. is asking the CRTC to remove some of the conditions of licence (COL) and reporting requirements for its subsidiary Groupe TVA Inc., calling the current framework a “regulatory straitjacket,” according to a translation of one of its French-language part 1 applications. Two submissions, dated June 2, were immediately followed by an announcement from TVA that it will be ending its CRTC mandated weekend newscasts in Quebec City, starting Monday. “Staff is greatly concerned by TVA’s announcement, as it ignores the ongoing public process, the authority of the commission, as well as the interest of citizens who keep themselves informed by watching the newscast in the Quebec City region,” said the CRTC in a June 16 letter to Quebecor. In its applications to the CRTC, the broadcaster requested certain investment requirements and local programming obligations to be lifted including the network’s requirement to devote five per cent of the previous year’s revenues to investing in or acquiring of locally reflective news, and the requirements of specific stations and transmitters to broadcast a minimum amount of local programming and locally reflective news each week. TVA also asked for less stringent reporting requirements, saying the numerous reports they are obligated to provide to the commission bog the company down and take up a considerable amount of resources that could be better spent on producing quality content. Such “outdated” requirements are not suited for the current economic and competitive broadcasting environment, said TVA, pointing to an unfair competitive advantage afforded to unregulated platforms and public broadcasters. These demands are reflective of a larger trend among Canadian broadcasters calling on the CRTC to change its regulatory framework, motivated by foreign streaming platforms and their growing market share in Canada. For similar reasons, BCE Inc. recently laid off 1,300 employees, Corus Entertainment Inc. saw job cuts in March, as did Quebecor in February, which according to this application, cut 240 positions mostly at TVA. Corus, the Canadian Association of Broadcasters (CAB) and Rogers Communications Inc. expressed support for TVA’s request to remove some of its requirements. “The old regulatory bargain is broken,” said CAB in an intervention, which also included comments on Corus’ similar request. The association called for immediate operational and regulatory flexibility, stating that private Canadian broadcasters are facing an “unprecedented, even existential, disruption in the Canadian broadcasting system.” An intervention from Bell stated it recognizes the need for regulatory relief, but argued that “is not a sufficient reason for a broadcast licensee to abandon its COLs without prior commission approval,” referring to TVA’s announcement. The Alliance des Producteurs Francophones du Canada (APFC), Association Quebecoise de la Production Mediatique (AQPM), Forum for Research and Policy in Communications (FRPC), and Canadian Union of Public Employees (CUPE) all opposed the request. The groups made similar arguments to those made against Corus’ relief request. According to a translation, AQPM pointed to its “inappropriate” and “premature” timing, considering the CRTC’s ongoing consultations to implement a new regulatory framework that would rope in streaming platforms. CUPE even submitted its own application requesting the CRTC issue an order prohibiting Quebecor and TVA from withdrawing its weekend newscasts. According to the French-language document, this decision would “blatantly contravene TVA Group's conditions of licence, and its mere announcement flouts the commission's authority.” In response to the union’s request, the CRTC stated, “In general, commission staff notes that the commission does not issue orders to incumbents as a precautionary measure, as requested by CUPE. The commission may, however, impose corrective measures considering a proven situation of non-compliance, following a public process in good and due form.” TVA was also critical of the changes made to CBC/Radio-Canada’s COL, arguing the regulatory relief granted to the public broadcaster is not balanced and should also be afforded to private broadcasters due to their “commercial imperatives.” AQPM said it understands TVA’s concerns and deemed CBC/Radio-Canada’s COL flawed, however, that means “the premises on which they are based should not be used as a basis for requesting similar treatment.” “Any change could create a chain reaction on the part of other broadcasters, introducing instability into an ecosystem whose elements are highly dependent on one another,” the association finished, urging broadcasters to wait until their administrative renewal term ends or the new regulatory framework is implemented. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Quebecor and CRTC clash over “regulatory straitjacket”

Broadcast | June 19, 2023

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Quebecor and CRTC clash over “regulatory straitjacket”

Broadcast | June 19, 2023

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Canada needs more Indigenous voices in broadcasting, summit told

Telus seeks clarity on undue preference allegations against Rogers

CRTC issues final conditions of Online Streaming Act

Digital media leads the way in CRTC broadcast survey

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us