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A joint complaint by two consumer advocacy groups to Canada's broadcast regulator is raising concerns over how CraveTV and Shomi sell their streaming video services.
The Public Interest Advocacy Centre and Consumers' Association of Canada say three of the country's biggest telecommunications companies are operating online video services which "unduly prefer" their own customers.
The document, filed to the Canadian Radio-television and Telecommunications Commission on Friday, says both services require subscribers to purchase TV or Internet from the telecom providers on top of the streaming video platform.
They argue that runs against rules put in place by the CRTC to promote competition and consumer choice.
Both services are "designed to favour legacy business models and to discriminate against customers who wish to only view programming through an Internet service provider of their choice," Geoffrey White, counsel to PIAC-CAC, said in a statement.
Canada's telecom providers unveiled video streaming products last year as an answer to the growing popularity of Netflix, which doesn't require its subscribers to pay for any other service.
In December, Bell Media launched CraveTV to Bell TV subscribers and a limited number of the country's other providers, including Telus, Bell Aliant and Eastlink. CraveTV's lineup includes HBO shows like "Sex and the City" and network hits including "Seinfeld" and "30 Rock."
Shomi hit the market last November as a partnership between Rogers Communications Inc. and Shaw Communications Inc. It has secured a number of exclusive deals on new series like "Jane the Virgin" and "Transparent," but is only being made available to viewers who pay for Internet or TV from either Rogers or Shaw.
Rogers spokeswoman Patricia Trott said Shomi is still in its "beta" test with Rogers and Shaw customers, but noted the companies are "evaluating various distribution models."
A representative for Bell did not immediately respond to a request for comment.
