OTTAWA – BCE is asking the CRTC to order Videotron to remove the service Vrai for its broadcasting distribution undertaking (BDU) offer, according to a Part 1 application filed by BCE last November that was posted by the Commission today.
In the application, BCE claims Videotron’s Vrai is non-compliant with the CRTC’s hybrid video-on-demand (HVOD) exemption order.
Videotron launched Vrai last August, which was initially only available to Helix customers. Soon after, BCE filed a Part 1 application with the CRTC that alleged Videotron was in violation of the exemption order by not offering any Internet direct to consumer (DTC) options for Vrai.
Videotron has since introduced a DTC option, and as such, in its new application, BCE said it is withdrawing its initial application and is now focusing on its concerns with the current DTC offer.
BCE’s application alleges the Internet DTC option for Vrai “is clearly and purposefully designed not to sell.”
The company makes this claim based on four factors. First, is the difference in pricing. “The retail price for Internet DTC ($15 per month) is more than double the price applicable to Videotron BDU subscribers ($7),” the application reads. (Videotron’s website, on Jan. 31, said Vrai costs $5 per month for Helix TV and Helix TV App customers and is included in the QUB app subscription, which is $15 per month.)
Second, BCE says the Vrai Internet DTC offering only allows customers to watch one stream at a time, compared to the five streams Videotron BDU subscribers are able to watch. Third, BCE says the Internet DTC version of Vrai is only available through the QUB site and app and as such cannot be watched on popular platforms such as Apple TV or via a set-top-box, options that are available to Videotron BDU subscribers, according to BCE’s application.
Lastly, BCE’s application claims Vrai’s “Internet DTC subscription experience is centred on Videotron BDUs and the Quebecor content ecosystem.” More specifically, customers who want to subscribe to the DTC offering “are automatically redirected to Videotron websites and promotional BDU subscription offers,” the application says. “Should potential DTC customers refuse those offers (and not subscribe to Videotron), Vrai internet DTC can only be purchased by also registering with the QUB platform.”
According to BCE, “Vrai is not being offered to any other BDU and its Internet DTC offers was not developed to act as a viable option. Rather than providing BDU distribution to expand the availability of Vrai, Videotron is attempting to use Vrai’s exempt status to establish a competitive advantage for its own BDUs,” the company’s application reads.
“As such, in our submission, the discrepancies in Videotron’s BDU and Internet DTC offers also contravene the spirit and intent of the HVOD Exemption Order.”
BCE argues Vrai cannot operate as an HVOD service until Videotron provides a viable DTC option. In the meantime, the CRTC “must order that Videotron immediately remove the Vrai service for its BDU offer,” BCE’s application reads.
BCE asked the CRTC to expedite the process. A CRTC procedural letter today indicates this request has been granted. Interventions and Videotron’s answer are due Feb. 10 and a reply by BCE is due Feb. 15.
Videotron has not yet responded to a request for comment from Cartt.ca. We will update this story if we do receive a response.
