The CRTC has released its determination from last month’s expedited hearing to settle a dispute between the Canadian Independent Distributors Group (CIDG) and Bell Media.

The solution: direct negotiations between the two parties.

The regulator concluded that the CIDG and Bell Media must sit across a table to hammer out an agreement, adding that CIDG members are entitled to negotiate and participate in a final offer arbitration as a group, if they choose.

CIDG members Bragg Communications Incorporated, Canadian Cable Systems Alliance Inc., Cogeco Cable Canada LP, MTS Inc. and Telus Communications took exception to the the flexibility in distribution and packaging of Bell services demanded by Bell Media.

Specialty TV services subject to the dispute include Bravo!, Comedy, Discovery World HD, MTV, Space and TSN.

The CIDG in its Jan. 17 application argued that Bell Media’s approach was “restrictive and conflicts with the principles set out in the Vertical Integration Framework and Code of Conduct,” and further that CIDG members should be offered the same flexibility in creating packages and choices for their customers without having to seek Bell Media’s approval in advance, as is the case for other BDUs affiliated with Bell.

The CIDG also argued that non-linear rights, which would benefit the linear programming service by expanding potential viewership, were excluded from the proposed affiliation agreement with Bell Media, and sought non-linear rights to programming on the same terms Bell Media would offer to other BDUs and end-users.

For its part, Bell Media argued that its proposed affiliation agreement provides flexibility to CIDG members while ensuring stability for the company’s revenues, noting that 159 BDUs, which service more than 80% of all BDU households in Canada.

According to the CIDG, its members service approximately 18% of all BDU subscribers in Canada.

Bell Media also stated that its intention to monetize all non-linear rights separately had been made clear, adding that negotiations for carriage of linear and non-linear programming rights are different because non-linear rights are unregulated.

The CRTC recognized that a balance must be struck between allowing a BDU to provide its subscribers with more flexibility, while also providing programming undertakings with reasonable revenue levels for each of their services.

The regulator determined that the fixed and variable packaging options that were proposed over the course of the hearing are reasonable, in that a BDU can’t expect flexible packaging for a given service while also insisting that it be provided with similar rates offered under a set packaging option.
With files from Etan Vlessing