Transcript Document

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%