CRTC may pull plug on pick-and-pay cable packages when Blais departs, expert predicts

April Fong, BNN Bloomberg

CTRC Chairman Jean-Pierre Blais speaks to media at the CRTC offices in Gatineau, Que., on March 19, 2015. As of today, Canadian TV viewers have a choice between their beefy cable or satellite services or a slimmed-down service dubbed "skinny basic." pick-and-pay pick and pay , The Canadian Press

Canada’s broadcast regulator will likely cancel its so-called pick-and-pay cable rules after current chairman and CEO Jean-Pierre Blais’ term ends in July 2017, broadcast lawyer and consultant Peter Miller predicts.

The Canadian Radio-television and Telecommunications Commission mandated that cable and satellite TV service providers offer basic cable packages capped at $25 per month, and allow consumers to add small bundles of their favourite channels or individual a-la-carte choices, as of March 1. The next phase takes effect on December 1, when all channels must be offered individually and in small bundles.

But the new regime – which was designed to provide more choice and help Canadian consumers save money on their TV bills – hasn’t lived up to its hype, according to Miller.

“What I’m not surprised about is that people are not happy,” Miller told BNN in an interview. “That’s partly because the whole [pick-and-pay system] has been oversold.”

While the skinny basic cable package has to be priced at $25 or less, many consumers are complaining that their cable bills actually become more expensive after adding installation and equipment fees, Miller said.

On Tuesday the CRTC announced it will hold a public hearing in September to evaluate the implementation of pick-and-pay services. The regulator said it wants to make sure service providers’ offerings are “consistent with its regulations and the spirit of its policy” as part of the license renewal process for many companies.

The introduction of the pick-and-pay rules could have a detrimental effect on Canada’s broadcast system, and that could lead the CRTC to rethink its decision as soon as next year when a new chairman takes over, according to Miller.

“You have a regulator that’s decided it’s got to have a $25 price point for basic cable, you’ve got to have pick-and-pay in there, and they’re imposing all of these regulations to achieve it,” Miller said.

“At a time when you should be pulling back and encouraging competition, we’re actually going back in and regulating more. So, philosophically I think it’s the wrong direction, and I think it will be reversed – not by this commissioner, but by a future commissioner.”

Since March, nearly 100,000 people have subscribed to the basic cable package, the CRTC said.