President says organization will submit a comprehensive application “promptly”
By Ahmad Hathout
The CRTC has denied Vues & Voix a three-cent increase in the rate broadcasters must pay to carry its 24-hour French-language radio station Canal M, saying there is insufficient evidence to justify it.
The discretionary service, which provides news and current affairs programming for the accessibility community and for people with disabilities, requested a three-cent rate increase – from four cents to seven cents per subscriber, per month – due to financial pressure. The not-for-profit said it has had to implement significant budget cuts, which resulted in the cancellation of several daily and weekly programs, as well as the elimination of key positions within the organization.
The regulator on Friday acknowledged the exceptional importance of the service, which must be carried by the broadcasters, but said “it does not have sufficient evidence to justify the rate increase requested.”
Acknowledging that Vues & Voix is a small company supported mainly by volunteers, the CRTC, still, said that “each applicant is responsible for submitting a complete and sufficiently substantiated file in support of its application,” adding the company did not respond to comments made by the broadcasters.
“In this case, although Vues & Voix described the urgency of the situation and the issues relating to retaining its specialized staff, the Commission notes that no detailed financial data was submitted,” the CRTC said. “The Commission notes that while it is sensitive to the challenges encountered by the applicant, its ability to assess the effectiveness and viability of measures implemented or planned is limited by the lack of budgetary figures, financial projections, or a breakdown of expenditures.”
And while the CRTC said it is “willing to examine a more complete application if Vues & Voix wishes to do so,” it also noted that it is currently undergoing a regulatory review which will address the long-term sustainability of these services of exceptional importance.
Marjorie Theodore, president and CEO of Vues & Voix, told Cartt that there is a reason for why their application wasn’t as comprehensive as the CRTC might have wanted.
“It is important to note that we had not received any increase since 2018, which was the time of our last approved adjustment,” she said. “In the years that followed, our licence renewals were handled administratively, and the information and guidance provided by the CRTC regarding the process became somewhat unclear and difficult to interpret.
“As a result, there was uncertainty on our end as to whether this would once again be an administrative renewal or whether we would go through a full hearing process before commissioners, as had been the case in previous years. Therefore, we submitted our application with the intention of completing it through the usual process, anticipating that CRTC staff would subsequently request additional supporting documents and information, as is commonly done during such proceedings.”
Therefore, the not-for-profit intends to “promptly” submit a complete application that “fully responds to the CRTC’s requirements,” Theodore said. “It is unfortunate that the information and guidance provided by the CRTC were not sufficiently clear in this regard. However, it is certain that we cannot remain with a decision that has such a significant impact on the survival and sustainability of our organization.”
Vues & Voix said Canal M will no longer be able to maintain its current level of production and service without the rate increase. It noted its current infrastructure is outdated and limits adaptation to new consumer habits, such more Canadians on mobile devices and social media.
“The Commission recognizes the significant efforts made by Vues & Voix to adapt to new consumer habits, notably by diversifying its broadcasting platforms, extending the reach of its programming on social media, and establishing partnerships,” the CRTC noted.
“That said, the Commission notes that the present application concerns a linear broadcasting service. However, Vues & Voix did not provide a detailed plan, broken-down financial data, or a formal commitment concretely demonstrating the need for an immediate rate increase in order for its linear service to continue making a significant contribution to the Canadian broadcasting system. Specifically, the applicant has not demonstrated how the requested additional funds would contribute to maintaining or enhancing Canal M’s programming in a way that would further the policy objectives of the Act.”
The major broadcasters – Rogers, Bell, Quebecor, Cogeco and Eastlink – have consistently argued that increasing their rate to carry these programs hurts them as well because they are losing subscribers, which is often cited as the reason for the need to increase the rate.
The denial comes after the CRTC approved rate increases for two other services – CPAC and TV5 – which, with Vues & Voix, made up the trio of applications that were initially deferred by the regulator to allow the new regulatory system to take effect. The rate bump did not stop CPAC from cutting two programs.
“Canal M equally needs an increase in royalties to continue fulfilling its mission, which is just as important and essential as the missions carried out by CPAC and TV5,” Theodore said. “Our work is also highly specialized and requires personnel with expertise in disability issues, accessibility, and diversity.”
