GATINEAU – The CRTC said Friday the wholesale rate for French-language youth channel VRAK set by owner Bell Media is the right one for Cogeco Connexion to pay.
Cogeco had asked the Commission for Final Offer Arbitration over the long-running rate dispute but in the decision announced Friday, the Regulator said “The Commission selects Bell’s offer, thereby establishing the linear and multiplatform wholesale rates for distribution of VRAK by Cogeco. The Commission finds that the offer proposed by Bell is most appropriate when evaluated in light of factors relating to fair market value, taking into account their probative value.”
Cogeco argued “there is very little that is unique in VRAK’s programming as it stands today. Cogeco referred to the descriptions of Séries+, MAX and Addik TV and argued that they are very similar to that of VRAK,” reads the decision. “In addition, Cogeco submitted that there is little difference between those services and VRAK in terms of the ratio of television series versus movies, Canadian programming, and scripted versus unscripted programming. Despite these similarities to Séries+, MAX and Addik TV, VRAK has considerably lower viewership, while being paid higher wholesale rates.”
“Bell argued that, while Cogeco compared VRAK to other services, there are inevitable nuances in making such a comparison. It was of the view that no other service can be directly compared to VRAK. Bell submitted that a comparison to what other BDUs are willing to pay for VRAK is a more precise comparison and should be given much more weight in the Commission’s evaluation of the respective offers,” reads the decision.
Of course neither the rate nor the deal’s term were disclosed in the decision.
