As many people know, OUTtv has had many problems with Shaw Cable, the nation’s second largest cable service, since launching as PrideVision in 2001. Our most recent problems came from changes in channel placement and other marketing of OUTtv by Shaw which we felt was unfair and harmful to OUTtv. A complaint was filed with the CRTC last Spring with the decision released today.

We consider the decision a huge victory for OUTtv and independent programming services. You can read it below.

http://www.crtc.gc.ca/archive/ENG/Decisions/2008/db2008-299.htm

With any luck we can now get together with our friends at Shaw and move beyond this.

BD

Big article today in the National Press about the upcoming CRTC hearings on the Broadcasting Industry.  Starting next week the CRTC is going to start hearings on recommended changes to the Regulations relating to the Broadcasting Act. I will be appearing with our Chairperson Joy MacPhail on the 24th of April.

At the heart of the matters being discussed will be role of the current broadcasting system in meeting the needs of Canadians.  The two opposing views come from the two main groups being the Programming Services such as OUTtv on one hand and the cable companies and carriers like Bell, Rogers, Shaw, etc. (known as Broadcasting Distribution Undertakings or “BDU”s) on the other. The current regulatory framework works to balance the interests of the BDUs with the interest of the Programming Services with varying degrees of success.

The opposition between the BDUs and the Programming Services really comes down the degree to which the regulations place limitations and restrictions on the BDUs. These restrictions are in relation to how they package, market programming services and in particular how Canadian Programming Services and Canadian Content is made available to the consumers.  I should say that many BDUs support much of the current system and some, like Bell, who own the CHUM channels are working hard to find a middle ground.

On the aggressive end of the spectrum are our friends at Shaw Cable. First, some disclosure.  It is no secret that Shaw Cable has been horrible to OUTtv since our PrideVision days.  PrideVision had to take Shaw before the Commission after we were denied a free preview of our channel.  Currently Shaw is still being horrible having moved the Channel placement twice last year, without notice, from 100 to 200 and now to 370 for (in their words) “No reason.”

Back to today.  In this mornings Globe and Mail you can read an article about how Canadian Cable companies want to bring US services in to Canada directly essentially by-passing Canadian programmers.  Right now you can get HBO shows on Showcase, Bravo! or others because they pick up the US programming. However last year Shaw tried to bring in the USA Network directly but the application was turned down for, among other reasons, the programs were available on other Canadian services.  Shaw president Peter Bissonnette lashed out at the CRTC, accusing it of “protectionism for the benefit of certain Canadian programmers at the expense of Canadian television customers.”

This is the thrust of the Shaw argument. They say they are for consumers.  They argues that THEIR consumers want the programming and they shouldn’t have to go through Canadian programming services to get them.  Let market forces rule.

Sounds simple enough but at the core of this argument is why Shaw is a Great Big Hypocrite.  He doesn’t want market forces at all.  He has a regulatory monopoly.  Free markets would kill him if he had to compete against the U.S. cable giants like Comcast and Time Warner who could offer more services for a better price.  Wouldn’t that be better for consumers?

I live in a Shaw serviced household and I have to use his cable service.  I have no choice.  I can’t wait for Telus to be available at my place so I can switch off Big Jim.

What is even worse is the notion that these are HIS CUSTOMERS.  No one orders cable television and says, “I think I will order Shaw cable, wonder if they have any programs.  Consumers order cable because they want the content. Shaw is in business because of they have been given a regulatory monopoly over that customer and the right to deliver the content to them.  To try and cut out the Canadian programming services in the face of such non-competition while pretending to be the champion of free markets is to be a great big hypocrite.  Shaw doesn’t want free markets, he wants more control.

More to come.