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Fact sheet
Distribution of Cable TV Services in Canada
Cable television services in Canada are distributed either as part of the
basic service or on a discretionary basis.
Basic cable service is the standard package of services provided to
all subscribers within a cable company's service area. It consists of a number
of mandatory ('priority') Canadian programming services - including the CBC
English and French network services, local and regional stations, provincial
educational services and a community channel - as well as various optional
services, including Canadian specialty services and major U.S. networks.
Discretionary services are optional services offered for an
additional fee over and above the price of basic service. They are generally
grouped into various packages or tiers, according to strict 'linkage' rules
which govern the ratio of Canadian to foreign satellite services. Discretionary
services can be either scrambled (like pay TV) or unscrambled.
Unscrambled discretionary tier, purchased at subscriber's discretion
- The majority of cable companies serving 6,000 or more subscribers have
chosen to offer some of the Canadian specialty and foreign satellite
services in a discretionary tier, or tiers, where the signals are not
scrambled.
- Cable companies typically distribute these tiers in an unscrambled mode
throughout their entire systems, but then install a 'trap' or 'filter'
outside the premises of those subscribers who do not wish to receive the
package(s).
- These packages of services are added to basic cable and marketed by cable
companies under a variety of names, including 'Cable Plus' and 'Full Cable
Service'.
Pay TV
- Pay, or 'premium,' services are typically distributed in a scrambled
mode, requiring subscribers who wish to receive these services to have a
decoder on their television set.
- 'Pay television' services, which typically consist of movie channels, are
offered for a monthly fee.
- 'Pay-per-view' services offer subscribers the option of choosing among a
selection of movies and special event programs. They are billed on a 'pay
per program' basis.
Linkage rules
The CRTC's linkage rules define how cable companies are permitted to package
foreign satellite services with Canadian specialty and pay television services.
These rules are designed to give Canadian cable subscribers access to the most
popular foreign services and to ensure the maximum exposure of Canadian
specialty services. For instance:
- Cable licensees are not permitted to distribute a tier containing only
foreign satellite services.
- Foreign satellite services must be distributed on a discretionary basis,
in a package with Canadian specialty and/or pay television services.
- Canadian pay television services can be offered in a package with up to
five channels allocated to foreign satellite services.
- Each Canadian specialty service within a discretionary tier may be linked
with no more than one channel allocated to foreign satellite services.
Fair access
In April 1996, the CRTC announced new rules (Public Notice CRTC 1996-60)
designed to ensure there is fair and equitable access to television
broadcasting services. Under these new access rules, cable systems with 6,000
or more subscribers as well as direct-to-home (DTH) satellite distributors and
major wireless systems must generally distribute, in addition to priority
television signals, all Canadian specialty and pay television services
appropriate for their markets, such as those in the predominant official
language of that market. Smaller distribution undertakings, which often have
less channel capacity, are nonetheless encouraged to provide an access
comparable to that required of larger undertakings. The Access Rules also
contain criteria for access to distribution systems by exempt programming
services, such as homeshopping, real estate and advertising services. The
Commission has put in place mechanisms to resolve any disputes between
distributors and programmers in a quick and efficient manner.
CRTC cable rate regulation
The CRTC regulates the monthly rate for basic cable service provided by
companies with at least 6,000 subscribers.
Because of the choice already available to subscribers on the basic service
and the fact that discretionary services are optional, the Commission has
elected not to regulate the fees for discretionary tiers. Nevertheless, the
Commission expects discretionary service packages to be reasonably priced and
within reach of the large majority of Canadians.
This document is available in alternative format upon
request.
Date Modified: 2001-10-02 |
