Saturday, 21 March 2015

CRTC Cable Unbundling

Currently, TV channels in Canada are offered in bundles; you cannot "pick-and-pay" for individual stations.  For instance, if the only station you are interested in are TSN, and your provider is Rogers, you must subscribe to the "Digital Plus" package, which costs $64 a month (not including hardware rental and taxes).  The cheapest cable package, by comparison, is about $40 per month.

In a recent decision, the CRTC announced that it would require $25 per month "basic" cable, and pick-and-pay channels, by the end of 2016.  This question is meant to forecast the extent to which this decision will actually lead to lower cable rates at that time.

Q80: By the beginning of 2017, will the minimum price for a Rogers cable subscription including Sportsnet and TSN be less than $60 per month?
Yes: 60%
No: 40%
(The price used used will be the non-promotional price in Ottawa, exclusive of taxes and hardware rental but inclusive of all other fees)

It is possible that the implementation date of the CRTC decision will be delayed, so that rates are not lower by the end of 2016.  It is also possible that the decision will be changed or interpreted so that it does not actually lead to lower rates in the scenario devised.  Either of these things seem quite possible.

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