GATINEAU — Shaw Cablesystems has put OUTtv at undue disadvantage by marketing it differently than other channels, according to a CRTC decision passed down on Tuesday.

The decision says Shaw violated distribution regulations by marketing the gay- and lesbian-aimed digichannel differently than other Category 1 channels. The commission found not only that OUTtv is the only service that Shaw requires subscribers to request specifically, but that the cable company also does not promote the channel or make it available as an option when subscribers inquire about Shaw’s ‘All In’ pack, which includes OUTtv.

‘It is a relief that the CRTC understood the issue and how difficult the current system is for independent broadcasters to survive without the cable companies doing their job,’ said Brad Danks, COO of OUTtv.

The commission also agreed with OUTtv’s assertion that its placement on Channel 370 — adjacent to adult programming services and not in the 95 to 129 range of other Category 1s — leads to the mistaken impression that OUTtv is an adult service. OUTtv did broadcast adult content at one time, but stopped in 2005. OUTtv’s owners filed the complaint against Shaw in April.

Also, the CRTC found that Shaw also violated regulations by not providing OUTtv with 60 days notice of moving the channel location. ‘Twice in six months we woke up in the morning and the channel was in a different place,’ said Danks.

As a result of what the CRTC has deemed to be unfair marketing practices, OUTtv has experienced a reduction in revenue because of lower subscription rates on Shaw. OUTtv’s penetration on Shaw is 0.49%, compared to an average of 10.7% on other BDUs.

The CRTC noted that this ruling follows other strikes against Shaw with respect to channel relocation and ‘non-compliance in other areas’ — leading to Shaw’s recent two-year licence renewal, down from the usual seven. APTN has also complained about channel re-assignment on Shaw.

Shaw has 30 days to respond with the steps it will take to comply with the regulations. The CRTC has also said that it will ‘closely monitor Shaw’s performance… and that it will consider this matter in the context of Shaw’s next license renewals.’

‘We just want to move forward with a normal business relationship with Shaw,’ said Danks. ‘We want to be in a position to properly market ourselves to our potential audience.’

Shaw execs were unavailable for comment.