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Research Results Omnibus Survey April 2011 Research Approach Total 1,008 Region Atlantic Canada Quebec Ontario Manitoba/Saskatchewan Alberta British Columbia Field dates Margin of error 2 102 251 326 102 101 126 April 14 - 17, 2011 +/- 3.1%, 19 times out of twenty CRTC Policy on Content & Distribution • Very broad support for current CRTC policy of availability of content across all distribution channels – Endorsed by 89% – Cuts across all regions, demographic groups • Strength of response notable as well – “very good” policy say 43% • 78% oppose changing the policy to allow integration – Including 46% strongly opposed – Large and strong majorities in all regions, demographic groups 3 Current Rules: Good or Bad Policy? In Canada’s regulatory system, the companies that provide telephone, wireless, satellite, Internet and cable services, are referred to as distribution companies. Companies that produce and offer TV programs, such as CTV, CBC, Global as well as specialty channels like TSN, Much Music, and the Discovery Channel are called content providers. Currently, under the rules established by the federal government, all content must be made equally available to all distributors, so that as consumers, you can watch any program you like, no matter which company you buy your TV, internet or wireless service from. In your opinion, is this a very good policy, a good policy, a bad policy or a very bad policy? Very good policy National 0% 4 Good policy Bad policy 5% 46% 43% 20% Very bad policy 40% 60% 80% 2% 100% Current Rules: Good or Bad Policy? Good policy National 89% 7% National Male 88% 8% <$40k Female 90% AC 6% 94% QC 3% 84% ON 93% MB/SK 91% 11% 6% 90% 5% 18-24 90% 6% $40k-$60k 91% 5% $60k-$80k 90% 7% 25-34 90% 8% 93% 89% 55-64 87% 65+ 86% 0% 5 20% 40% 6% 93% $80k-$100k $100k+ 90% 6% Urban 90% 6% 7% 8% 60% 80% 7% 89% Conservative Liberal 94% 4% NDP 92% 6% 13% 79% 7% 92% Green 100% 11% 83% BQ 6% 6% 91% English 6% 9% 86% French 45-54 11% 85% Rural 10% BC 35-44 7% 89% 5% 82% AB Bad policy 0% 20% 40% 60% 80% 100% Vertical Integration: Support or Oppose Change? Recently, some cable and telephone companies have been buying companies that provide content. They want the regulations changed so that they can offer preferred access to the content that they now own to customers who buy their cable, satellite, internet or wireless services. Would you strongly support, support, oppose or strongly oppose changing the rules so that distribution companies could limit access to their content in order to promote the purchase of their own cable, telephone or internet services? Strongly support National 4% 0% 6 Support Oppose 46% 32% 13% 20% Strongly oppose 40% 60% 80% 100% Vertical Integration: Support or Oppose Change? Support National 17% 78% National Male 18% 78% <$40k Female 16% 18% QC 19% 76% 16% MB/SK 17% 79% AB 18% 77% BC 15% 25-34 15% 35-44 16% 45-54 7 Urban 15% 83% 80% 73% 21% 79% 16% English 85% 79% 76% 78% 17% 0% 15% French 20% 75% Conservative 20% 74% 82% 15% 65+ 90% $100k+ Rural 85% 20% 55-64 77% 16% 78% 11% 18-24 75% 19% $80k-$100k 7% 74% ON 72% 23% $60k-$80k AC 78% 17% $40k-$60k 78% Oppose 72% 20% 40% 60% 14% NDP 14% 84% BQ 16% 81% 100% 71% 24% Green 80% 80% Liberal 0% 20% 40% 60% 80% 100% Reaction to Vertical Integration Scenarios • Several potential scenarios were explored in terms of what could result from vertical integration • Each scenario found widespread consumer resistance • Consumers broadly oppose – Having their choices curtailed – Facing extra costs for access to favourite content 8 Reaction to Integration Scenarios I’d like to read you some scenarios that could occur if the rules were changed to allow distributors to control access to content that they now own. For each, please tell me if the federal government should change the rules and allow this to happen, or should prevent this from happening? Ottawa should prevent this Ottawa should allow this to happen You may be asked to pay extra for the content you enjoy the most, because the service provider would know you can't get it anywhere else 86% 10% You would not have access to your favourite TV programs if your service provider did not own it 81% 13% You may have no choice but to buy multiple services in order to have access to all the content you would like to be able to watch 79% 16% You may be required to pay an extra charge to get your favourite TV programs if your service provider did not own the content 79% 16% Service providers might start to bundle their content so that you were required to buy packages of content you really want with content you don't want 0% 9 76% 20% 40% 18% 60% 80% 100% Reaction to Integration Scenarios Here are some illustrations of specific examples of the kind of thing that could occur if the rules were changed to allow distribution companies to limit access to their content. In each case, please tell me if you would find this development totally acceptable, acceptable, unacceptable or totally unacceptable? Totally unacceptable Unacceptable If Bell Canada, who owns the rights to broadcast NHL games, made streaming coverage of NHL games only available to people who buy Bell's wireless, satellite TV or internet services Acceptable 43% Totally acceptable 41% 11% 3% (QC Only) If Videotron, which is owned by the same company that owns the TVA network, Canal Nouvelles, and Canal Evasion, made those channels available only to customers of Videotron's cable TV, internet or wireless services 38% 45% 11%2% If Shaw Cable, which owns the Food, History, HGTV, and other specialty channels, restricted access to certain specialty channels so that only subscribers to their cable or internet could get them 38% 43% 13% 2% If Shaw Cable, which owns Global TV and a number of TV channels, and thus holds the rights to popular TV shows like House, Survivor, and Entertainment Tonight, limited access to those programs to customers of their Internet and cable services 37% 43% If Rogers, which owns the rights to broadcast NFL football games, made access to NFL games available only to subscribers to their Cable TV, internet or wireless services 37% 0% 10 20% 39% 40% 60% 12% 3% 16% 3% 80% 100% Surrounding Attitudes • While about half support the idea of laissez faire policy approach in principle • Much larger numbers feel, in this situation, that consumers need protection from effect of integration • Most assume prices will rise, choices will be reduced • 86% see federal duty to protect consumers and ensure equal access, at same price, to content they like 11 Surrounding Attitudes Please tell me if you strongly agree, agree, disagree or strongly disagree with each of the following statements. Strongly agree Agree Disagree I hope someone stands up for consumers and fights hard against allowing distributors to control access to their content 44% The government has a duty to protect consumers and ensure that everyone has equal access, at the same price, to the content they like 0% 12% 4% 41% 24% 20% 37% 13% 38% 20% 10%1% 48% 26% There is too little choice and competition as it is, when it comes to TV services 7%3% 47% 30% If the government allows content and distribution to become tied together, eventually there will be less competition, less choices and higher prices 12 44% 39% I would be drawn to any company that decides to stand up and fight against allowing distributors to control access to their content Government should promote a free market, and let companies offer whatever combination of content and distribution services they choose to invest in Strongly disagree 29% 30% 40% 60% 8% 6% 15% 80% 100% Ottawa’s Duty: Equal Access to Content The government has a duty to protect consumers and ensure that everyone has equal access, at the same price, to the content they like. Agree Disagree National 87% 11% National Male 85% 14% <$40k 89% 9% 8% $40k-$60k 90% 8% Female 89% 87% $60k-$80k AC 91% QC 8% 88% ON 10% 86% MB/SK 9% 80% $80k-$100k Urban 87% 11% Rural 86% 11% English 86% 11% French 88% 17% 89% 25-34 87% 35-44 85% 12% Liberal 45-54 86% 12% NDP 87% 0% 13 20% 40% 7% 13% 18-24 65+ 92% 85% 87% 88% 13% $100k+ BC 55-64 85% 11% 90% AB 11% 12% 10% 11% 12% 11% 80% 82% 100% 16% 90% 9% 85% BQ 13% 97% Green 9% 60% Conservative 3% 94% 0% 20% 40% 4% 60% 80% 100% Attitudinal Statements If the government allows content and distribution to become tied together, eventually there will be less competition, less choices and higher prices. Agree National 68% 28% National Male 67% 30% <$40k Female 68% AC 69% QC 25% 54% ON MB/SK 26% 72% BC 64% 22% $60k-$80k 74% $80k-$100k 75% 21% 24% 73% 23% Urban 68% 28% Rural 68% 27% English 72% French 68% 25-34 33% 24% 74% 18-24 37% 22% 68% AB 28% 58% $100k+ 42% 73% 68% $40k-$60k 26% Disagree 23% 52% 43% 30% 77% 21% Conservative 69% 27% 35-44 68% 28% Liberal 68% 27% 45-54 68% 27% NDP 69% 27% 55-64 66% 31% BQ 71% 26% Green 72% 24% 65+ 60% 0% 14 20% 30% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Potential for Market Disruption • Half of these interviewed say they would switch suppliers in order to have access to the programs they like best • Churning behaviour would be widespread in all market segments, even heavier with people over the age of 35 • Few scenarios we have ever tested that have similar potential to create sweeping disruption 15 Potential Switching Behaviour (RESPONDENTS WERE ASKED TO NAME FAVOURITE PROGRAMS) If you could no longer get those programs, except by switching from [your current provider] to a major competitor, which would you be more likely to do: stay with your current provider or switch in order to get access to the programs you like? Stay with your current provider National 37% 0% 16 20% Switch to a major competitor 54% 40% 60% DK/NR 8% 80% 100% Switching Behaviour Stay with current provider National 37% 54% Male 37% 56% <$40k Female 38% 53% $40k-$60k National 36% QC 32% ON 43% MB/SK 55% 49% 42% 25-34 48% 46% 30% 34% 55-64 32% 65+ 20% 40% 60% French 30% Conservative 31% 100% 61% 50% 55% 37% 70% 28% 48% 47% Green 80% 65% 42% BQ 53% 51% 39% NDP 58% 59% 34% Liberal 59% 36% 0% 17 61% 53% 38% English 18-24 45-54 57% 32% Rural 52% 29% 35-44 55% 40% Urban 50% 40% BC 53% 43% 50% 37% AB 61% 32% $100k+ 63% 50% 44% $80k-$100k 58% 54% 37% $60k-$80k AC Switch to major competitor 0% 20% 40% 60% 80% 100% Conclusions • Very broad support for current CRTC policy • 78% oppose changing the rules to allow integration – Including 46% strongly opposed • Belief that consumers would be victims, not advantaged • Desire for government to protect consumers is strong • At the same time, if integration is allowed: – Consumers acknowledge how disruptive this would be – Many would consider churning relationships 18 Sample Details Omnibus Survey April 2011 Primary Service Provider - TV Please tell me which company is your primary service provider for TV service in your home. TELUS 4% Bell 16% Rogers 17% Videotron 13% ShawLook TV 13% Star Choice / Shaw Direct 9% Cogeco 6% Other 10% Don't have service 9% 0% 20 5% 10% 15% 20% 25% Primary Service Provider – Cellular/Wireless Please tell me which company is your primary service provider for cellular or wireless phones for your personal use. TELUS 18% Bell 21% Rogers 22% Fido 4% Virgin 4% Videotron 2% Solo 1% Koodo 1% Other 9% Don't have service 16% 0% 21 5% 10% 15% 20% 25% Primary Service Provider – Internet Please tell me which company is your primary service provider for Internet service at home. TELUS 9% Bell 19% Rogers 15% 12% Videotron ShawAOL 11% Cogeco 5% Other 18% Don't have service 9% 0% 22 5% 10% 15% 20% 25% Smart Phone Do you have a smart phone or tablet such as an iPad or similar device? Yes National 27% 0% No 73% 20% 40% 60% 80% 100% (AMONG THOSE WITH A SMART PHONE) Do you watch streaming video from the Internet on your smart phone or tablet? Yes National 32% 0% 23 20% No 67% 40% 60% 80% 100%