The Canadian Radio-television and Telecommunications Commission (CRTC) has dismissed WildBrain’s undue preference complaint against Rogers Communications.

The complaint, filed in September 2024, argued that the telecommunications company had been putting WildBrain and its children’s services such as Family Channel at an undue disadvantage by showing undue preference to other kids’ content. In particular, Disney+ and services from Canadian competitor Corus Entertainment.

In a decision made public on Thursday (July 31), the Commission determined that Rogers’ actions do not violate the affiliation agreement with WildBrain or its regulatory obligations as a broadcasting distribution undertaking (BDU).

“BDUs are permitted to make business decisions that are consistent with the regulatory framework,” read the decision. “The Commission recognizes that some of these decisions may have an impact on programming services but that they do not necessarily constitute an undue preference or disadvantage. To find otherwise would fundamentally undermine the business model of BDUs, as well as the ability of BDUs to make affiliation agreements.”

WildBrain argued that its channels — Family Channel, Family Jr., WildBrain TV and Télémagino — are strongly branded and competitive in the Canadian marketplace and that Rogers had engaged in “a highly favourable distribution and marketing campaign to support the Disney+ service,” of which Rogers offers a standard ad-supported subscription for Rogers Xfinity cable subscribers.

WildBrain alleged that because of the inclusion of Disney+ in Rogers’ packages, it gives the company a clear incentive to disadvantage other children’s programming such as WildBrain’s in favour of Disney+ content. The company noted that it competes in a highly competitive space against other children’s services such as Corus Entertainment’s YTV, Treehouse and U.S.-branded channels Nickelodeon, Disney XD and the Disney Channel.

In its response to the complaint, Rogers maintained that it was treating services from WildBrain equally and that it must be permitted to make decisions based on the performance of content in order to remain competitive with other BDUs and foreign services.

The company also stated that “[WildBrain’s] aggressive strategy to make its children’s programming ubiquitous online through distribution on multiple platforms and through various third-party direct-to-consumer (DTC) service providers has cannibalized its linear audiences while building its business online.”

Last year, Corus filed a complaint against Rogers which similarly argues the company is showing undue preference to itself through its partnership with Disney+, favouring it over Corus’ Disney-themed channels. Corus confirmed to Playback Daily that the CRTC has yet to issue a decision for the complaint. Since then Corus unveiled it is closing five channels in September, including Nickelodeon, Disney Jr., Disney XD, La Chaine Disney and ABC Spark.

Both the Canadian Media Producers Association and the Shaw Rocket Fund filed interventions in response to the Part 1 application, expressing concern about the state of Canadian children’s programming and that regulatory action must be taken to ensure said content has a place in the Canadian system.

The CRTC said it recognized the importance of Canadian children’s programming, but found that the issues raised do not directly relate to the dispute between WildBrain and Rogers.

In its conclusion, the Commission encouraged the parties to continue pursuing a negotiated solution.

“We are pleased the Commission has dismissed WildBrain’s meritless complaint, while also recognizing that the undue preference mechanism should not be used to insulate services from the impacts of greater consumer choice, provide an effective access right or create leverage in negotiations,” a Rogers spokesperson told Playback Daily. “Rogers remains focused on remaining competitive with foreign streamers by responding to the demands of our customers and providing Canadians with the content they want on their platform of choice.”

WildBrain said that it is aware of the CRTC’s ruling and is not able to provide comments or updates as it reviews the decision.

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