Netflix, Apple TV threaten industry, says Peladeau

Source: Calgary Herald

What's good for Netflix should be good for the entire telecommunications industry, Quebecor Media Inc. head Pierre Karl Peladeau said Thursday.

Speaking to reporters after the company's annual general meeting, Peladeau explained that services like Netflix and Apple TV are new models to deliver television and movie content online, and therefore do not fall within the regulations outlined by the Canadian Radio-television and Telecommunications Commission for television broadcasters.

Netflix is American owned, whereas television companies must be majority-owned by Canadians. The company is also exempt from paying into the Canada Media Fund.

But rather than regulate Netflix, as television operators suggested in a letter to the CRTC last month, Peladeau said all existing regulations should be eliminated to make the playing field more fair.

"How can the CRTC regulate all these services that deliver content over the Internet? We think the other way around that it should all be deregulated so there is a level field," Peladeau said.

He said Netflix and Apple TV represent a real threat to television networks.

Quebecor is the owner of TVA Group, which comprises many French-language television stations. It also owns Sun Media, which produces many newspapers and an allnews television channel.

Quebecor reported flat first-quarter earnings Thursday of $34.3 million, or 53 cents a share, in the three months ended March 31, compared with $34.9-million, or 54 cents a share, in the same quarter a year ago.

Revenues across all lines of business, including the company's telecommunications provider Videotron as well as Quebecor's nationwide publishing and media operations, came in at $990 million, up 4.5 per cent year over year, slightly below analyst expectations. Recurring earnings from operations was 56 cents a share, in line with Street estimates.

© Calgary Herald