TV Unbundling

An economic and consumer experience impact assessment of the CRTC’s proposed approach

The television industry is rapidly changing, with explosive growth in the pool of available programming and an ever-increasing set of formats and consumption alternatives for consumers—from a la carte channels, theme packs, time-shifting, and Video on Demand (VOD) to over the top (OTT) options such as Netflix and myriad other internet-distributed content.

This evolution is due partly to consumer demand for “anywhere, anytime, on any device” experiences, partly to technological advancements in digital distribution and device capabilities, and partly to increased competition and lower barriers to entry in both content production and distribution. In short, the marketplace is driving substantial change in the television experience.

This report presents the findings of a study conducted by Oliver Wyman, commissioned by Rogers Communications Inc. (Rogers) and Shaw Communications Inc. (Shaw), and draws from our work for various Canadian and U.S. distributors, studios, broadcasters and technology players. It focuses on the likely economic impact on both the consumer and the industry of the Canadian Radio-television and Telecommunications Commission’s (CRTC) proposed approach to unbundled packaging options for specialty and pay TV services in Canada, as well as the potential impact on the consumer experience. The proposed approach is designed to give consumers the option of subscribing to an entry-level “Small Basic” package, and adding other channels on an “a la carte” or “Build Your Own Package” (BYOP) basis.

This publication is available in English.

TV Unbundling