Article content continued

“We’re trying to accomplish twin objectives: To give more choice to viewers while ensuring the broadcast system remains healthy,” Kevin Crull, head of Bell Media, said in an interview.

The Canadian Radio-television and Telecommunications Commission decided Friday to adopt a proposal from Bell to allow its channels to be unbundled while rates for individual networks will fluctuate based on the number of subscribers who sign up.

[np-related]

Friday’s ruling rejected a plan from a group of smaller distributors that included Cogeco Cable Inc. and MTS Inc. to keep a fixed rate on channels regardless of penetration.

A key reason in accepting Bell’s model was the telecom giant’s relenting on its demand that cable partners distribute all 29 of its networks, which include channels like TSN, Discovery and MuchMusic. Instead, Bell will allow operators to sell services individually.

Those networks each generate hundreds millions of dollars annually in subscribers fees. To offset potential financial losses for Bell’s broadcast arm—which like other broadcasters must fund an assortment of subsidies that go toward Canadian content production— Bell will charge higher rates per channel.

“Fewer channels will mean unit costs for those channels will be higher than if you buy a bigger package,” the Bell executive said. “There’s a volume discount” for viewers who take bigger TV tiers with more channels.

If TSN for example costs a cable subscriber $2.50 month in a bundled package, individually, that fee could soar north of $10. Still, by opening up channels, consumers who want fewer channels at a lower cost will get their wish, Mr. Crull said.