Canadian channels are raising the alarm after the Canadian Radio-television and Telecommunications Commission (CRTC) deferred a decision on wholesale rate increase requests from CPAC, TV5 Québec Canada’s TV5/Unis, and Vues & Voix’s Canal M.

CPAC and Vues & Voix both requested an increase of $0.03, which would bring their mandatory monthly rate per subscriber to $0.16 and $0.07, respectively. TV5 Québec Canada requested a $0.02 increase to bring its rate to $0.30 in French-language markets and $0.26 in English-language markets.

Those rates are paid by Broadcasting Distribution Undertakings (BDUs) to services according to the amount of BDU subscribers. However, the revenues from wholesale rates have declined as more Canadians move away from cable subscriptions.

In its Nov. 21 deferral, the Commission cited its ongoing examination of the Canadian broadcasting system and decided to postpone a decision as it “reassesses, among other things, the various regulatory levers available to the Commission concerning financing and distribution.”

Yann Paquet, CEO of TV5 Québec Canada, tells Playback Daily that, without a rate increase, the company will not be able to support as many producers, particularly those outside Montreal. The company has seen a 16% decline in cable distribution revenue since its last CRTC renewal in 2019.

“A lot of producers rely on TV5 Québec Canada to provide regular funding for projects,” he says. “The impact of the decline on our revenues will be directly on our capacity to invest in productions.”

TV5 Québec Canada recently reduced its workforce by 20%. Paquet says that, outside of production, the company has no more costs left to cut.

CPAC, in its own published statement, said the postponement “jeopardizes the service.” The organization asked for a clear timeline on the deferral process, adding that it will continue to advocate for solutions towards predictable and reliable funding.

The CRTC’s decision to defer was by majority, but the vote was not unanimous.

Vice-chairperson of telecommunications Adam Scott and commissioner Bram Abramson were of the opinion that a decision should be made. They agreed that the regulatory framework is in transition as the Commission modernizes the Broadcasting Act, but argued that the CRTC applicants are facing a transition as well.

“On these three applications, given the record before us, and given the pressures these exceptionally important services face today, we should decide today,” wrote Scott and Abramson in their dissenting opinion. “Should something different be needed down the road, we can adjust down the road.”

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