According to Rogers Communications CEO Guy Laurence, customers appear to be keeping their plans rather than selecting a cheaper package.
"We've now given customers the chance to buy a basic
hamburger and fries separately and some do,” Laurence said
on a conference call. “But most customers stick with the meal option ...
because they are better value for money.''
However, Jean-Pierre
Blais, chairman of the CRTC, suggests that the public should be
negotiating with their service operator to receive a preferred deal.
“People may have thought,
mistakenly, that the CRTC was going to reduce everybody’s cable bills – that’s
not what we promised. We said we’re going to give you more choice,”
Blais told
The Globe and Mail. “Canadians will have to do some work. They will have
to be ready to at least threaten to change providers.”
Additionally, market analysts believe that many businesses are not fully informing consumers of their options, and in some cases may be attempting to make the skinny bundle unpalatable.
Additionally, market analysts believe that many businesses are not fully informing consumers of their options, and in some cases may be attempting to make the skinny bundle unpalatable.
"The $25 packages are essentially all the over-the-air
stations, which can also be accessed by using an antenna, a cheaper
alternative," said
Brahm Eiley, president of the Convergence Consulting Group.
Bell Canada’s $25 package does not have U.S. networks, and
10 of the 26 channels are French-language only. Videotron’s package also
features mainly French-language networks, and no American offerings.
Meanwhile, Rogers’ bundle includes 30 channels, and has NBC and PBS, and Shaw’s selection involves 40 channels, with CBS and ABC.
Meanwhile, Rogers’ bundle includes 30 channels, and has NBC and PBS, and Shaw’s selection involves 40 channels, with CBS and ABC.
"I don't think [skinny bundles have] ended up all that
attractive an offer. The companies have tried to give this stuff a
stillbirth," said Dwayne Winseck, a professor at Carleton University’s
School of Journalism and Communication.
Blais has recognized that “concerns have been raised,” and CRTC spokeswoman Patricia Valladao has also noted that “a lot of people complained they’re not getting what we promised.”
Blais has recognized that “concerns have been raised,” and CRTC spokeswoman Patricia Valladao has also noted that “a lot of people complained they’re not getting what we promised.”
The skinny bundles are just the first part of the CRTC
mandate. On December 1, Canadian TV operators will be required to offer “pick-and-pay,”
or full-on a la carte television. It will be interesting to see if the lessons from the
first part of this year are applied later in the winter season.
Author: Brian Cameron
Image via Shutterstock.
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