All about consumers

Three press releases in quick succession from the CRTC might be viewed as a signal that there is a renewed focus on consumer issues at the regulator.

First was the CRTC’s reminder last Thursday that new rules regarding TV commercial “loudness” were coming into effect over the Labour Day holiday weekend (the rules were actually set 4 months ago).

The following day came the announced appointment of the CRTC’s first Chief Consumer Officer, charged with ensuring “that consumer issues are integrated into all aspects of the CRTC’s work and that its decisions are more relevant to Canadian consumers.”

And then yesterday’s Communications Monitoring Report was released with the following statement by the Chair:

This report is used to gauge whether the communications industry is meeting the needs of Canadians as consumers, citizens and creators. The information it contains will help them make more informed decisions in the marketplace and enhance their participation in our public proceedings.

Taken together, these appear to signal that the CRTC is placing a renewed focus on the impact of its work on consumers.

The first major proceeding under new Chair JP Blais will be the Bell-Astral review, with the hearing opening on Monday in Montreal. Among the issues has been the variety of market share numbers getting debated by the parties. The CRTC rules from the “Diversity of voices” proceeding distinguish between less than 35% and more than 45%, with good debate on transactions that fall in between 35% and 45%:

The Commission, as a general rule, will not approve applications for a change in effective control that would result in the control, by one person, of a dominant position in the delivery of television services to Canadians that would impact on the diversity of programming available to television audiences. Specifically,

  • as a general rule, the Commission will not approve transactions that would result in the control by one person of more than 45% of the total television audience share – including audiences to both discretionary and OTA services;
  • the Commission will carefully examine transactions that would result in the control by one person of between 35% and 45% of the total television audience share – including audiences to both discretionary and OTA services; and
  • barring other policy concerns, the Commission will process expeditiously transactions that would result in the control by one person of less than 35% of the total television audience share – including audiences to both discretionary and OTA services.

So what is there to debate? Take the total numbers from the various broadcasters under Bell and divide by the total market, right?

Not really. The opposing parties can’t agree on either the numerator or denominator for that calculation.

According to  press release from Bell, data from the newly released Communications Monitoring Report supports Bell’s view. The coalition opposing Bell read the same CRTC report and issued their own release saying the numbers support their view.

In the oral hearing leading to the Diversity of voices decision, among the key issues upon which the Commission asked parties to focus their comments:

The plurality of commercial editorial voices in local and national markets and the most effective means of ensuring that Canadians are exposed to an appropriate plurality of these voices.

Again, we see a consumer focus. Post merger, do I have access to a plurality of voices?

In examining the various number, I expect the CRTC to ask what are the choices from a Canadian consumer perspective?

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