EDMONTON – Super Channel, Canada’s only national pay television network, is pleased with last weeks CRTC ruling confirming their complaint that Rogers has been undermining the network’s growth by abusing their position as gatekeeper to one of the country’s largest group of potential subscribers.

The CRTC found Rogers Cable Communications has subjected Allarco Entertainment 2008 Inc. to an undue disadvantage in regard to marketing of Super Channel contrary to section 9 of the Broadcasting Act.

Super Channel pointed out to the CRTC that Rogers is the only BDU with dismal results in terms of reaching audiences. Rogers reports a Super Channel penetration rate of less than 1/3 of 1 per cent compared to rates ranging from 5 to a high of 11 per cent with Canada’s other large BDUs.

Strengthening the argument was documented evidence of Rogers customer service representatives aggressively selling competing services even when customers called specifically to sign up for Super Channel.

In its finding the CRTC considers that Rogers’ CSRs are not promoting Super Channel as vigorously as they are promoting TMN, since they are only identifying Super Channel as an alternative movie service in about four per cent of the cases (based on a sample of 320 telephone calls) when a customer requests any movie service. In their view, Rogers’ conduct falls short of affording Super Channel comparable distribution.

“After almost two years we fail to understand why Rogers has not been more proactive in working with us to provide its customers with another choice in pay television. We have worked very hard to ensure we are offering Canadian’s first class programming – and to make that offer even more attractive – programming that is extremely complementary to existing pay television services,” said Malcolm Knox, President and COO, Super Channel | Allarco Entertainment 2008 Inc.

“Super Channel is airing some of the top rated cable shows in the U.S., such as Burn Notice The Closer, Sons of Anarchy, Party Down and Head Case, and outstanding Australian and British series like Skins. Despite an extremely competitive market we have been able to pick up programming from just about every studio in the U.S,” added Knox. “We are also the only pay service offering Canadians exclusive LIVE Showtime Strikeforce MMA and boxing matches with Showtime and Hennessy Sports. As we see it, we are the icing on Canadian entertainment and consumers who have the chance to see our service like what they see and stay with us.”

Super Channel launched Canada’s only national pay television service in November 2007 after receiving a “must carry” licence from the CRTC. Since the launch it has struggled to form an effective working relationship with the Rogers group. Following poor penetration reports and an investigation taken on by Super Channel, it appeared that Rogers was intentionally undermining Super Channel’s growth. Despite fees of hundreds of thousands of marketing dollars paid by Super Channel to Rogers, Rogers focused their efforts on promoting other services.

Super Channel is pleased that in its finding the CRTC agreed that “it is reasonable to conclude that Rogers’ marketing of Super Channel, including its decision not to offer Super Channel in the VIP Ultimate with Movies package or in any other similar package and the lesser promotion of Super Channel by Rogers’ CSRs, have contributed to a lower penetration rate on Rogers’ systems compared to other BDUs, resulting in lower revenues for Super Channel than would otherwise be achieved.”

The CRTC notes it cannot pinpoint the exact amount lost but “that Super Channel would have received significantly higher revenues than it did in fact receive and that this situation is likely to continue unless Rogers’ conduct with respect to the marketing of Super Channel changes.”

The CRTC emphasized that Rogers conduct has likely had a negative impact on the achievement of the objectives of the broadcasting policy for Canada.

The CRTC has given Rogers until Oct. 19, 2009 to outline in writing how it will “ensure that, in future, its marketing of Super Channel does not result in the service being subjected to an undue disadvantage.”