Cable / Telecom News

Commission lays out new rules for video-on-demand


OTTAWA – The CRTC has released its new rules for video-on-demand (VOD) services, plus exemptions for small VOD undertakings.

Highlights from the decision include:

– the definition of gross annual revenue for the purpose of calculating a VOD undertaking’s contribution to Canadian independent production funds;
– the competition of subscription VOD (SVOD) packages with Canadian linear discretionary services;
– the limits on advertising;
– the prohibition relating to the acquisition of exclusive program rights;
– the introduction of a reverse onus provision;
– the obligation to remit to rights holders of Canadian feature films 100% of revenues earned from the exhibition of these films; and
– the implementation of the Accessibility Policy.

These requirements will apply to new VOD undertakings, including services under consideration by the Commission whose applications have not been published as of the date of this policy.  The new regulations will also come in to effect for existing VOD licensees at their licence renewal.

The Commission also released an exemption order for small VOD undertakings owned and operated by a party that does not hold a BDU licence, that is not an affiliate of a party that holds a BDU licence, and that only provides VOD services using the facilities of exempt BDUs.

The exemption order comes into effect immediately, and licensed VOD undertakings that consider their operations to be eligible for exemption should submit applications for the revocation of their licence.

www.crtc.gc.ca