SASKATOON – In Wednesday’s throne speech, the Tories made what many call a lot of “consumer-friendly” promises. Lowering cell phone and cable bills were on the menu.
David Williams, an associate professor with the University of Saskatchewan’s Edwards School of Business, said bundling cable could mean increased prices per channel for consumers.
“At the moment, they’re probably subsidized by some of the lower-cost channels which are bundled towards them,” he said.
The professor also said if bundling were taken away, some stations may not survive.
“Some of the channels that get very low viewing, they may not get sufficient viewers to be profitable, so they may not be aired,” said Williams.
According to a report published by Needham Insights in July, the cable industry would stand to lose up to $7 billion, or half its revenue, if cable channels were “unbundled”.
“It’s good in principle. Like most things, we’re going to have to see what happens in practice,” said Williams.
The opposition is accusing the Tories of trying to draw attention away from the lingering senate expense scandal.
“Stephen Harper is obviously continuing his attempts to change the channel,” said NDP Opposition Leader Thomas Mulcair.
“It’s going to take more than a few of his watered-down attempts to copy NDP policies on consumer issues to get Canadians to believe that he’s actually changed his mind,” said the NDP leader.
Industry experts say it could take the CRTC years to go through with this proposed “a la carte” cable channel option. With the federal election only two years away, many say it’s a tall order.
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