Why the CRTC’s $25 ‘skinny basic’ package may not work

So Canadians will have “affordable access” to a bunch of network and educational and government TV channels they have shown less and less interest in watching anyway.

What a breakthrough! (That was sarcasm, in case you missed it.)

That was my first reaction when news came from the CRTC (Canadian Radio-television and Telecommunications Commission) on Thursday that by the end of 2016, cable and satellite providers will be forced to offer a “skinny basic” package costing no more than $25 per month.


 

Broadcasters to feel the pain from CRTC ‘pick-and-pay’ TV ruling

“This is essentially the government or the CRTC encouraging the industry to move towards an online distribution model,” said Greg MacDonald, head of research at Macquarie Capital Markets Canada. “What happens when that’s the case is that companies lose pricing power and the potential for subscriber risk also increases, because it increases the options customers have.”

Desjardins Securities’ Maher Yaghi suggested customers would gravitate toward the pick-and-pay model. “You’re going to have so many more options to get TV online that you don’t need to have your TV stocked up with all the channels,” Mr. Yaghi.

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