Shaw argues for no ‘blanket’ rule on exclusivity

GATINEAU, QUE.—Shaw Communications Inc. says there should not be a “blanket rule” prohibiting content exclusivity on all platforms, but the rule should continue to apply to linear content. Shaw CEO Brad Shaw said at the commission’s vertical integration hearings Wednesday that not all content should be regulated under the same model. “I think from a linear content point of view, we believe in non-exclusivity right across,” he told reporters outside the hearing room. “But I also believe in innovation, creativity in the Internet and everything it’s done ... Can we find a mix, can we find a balance that takes care of both those things?” Astral Media Inc. told commissioners Wednesday that while exclusive programming rights are essential to the broadcast system, exclusive content deals on ancillary platforms like mobile and the Internet are not in its interest. John Riley, president of Astral Television, said that while a distributor might request exclusives on mobile content, “it’s not something we’d be interested in granting.” Internet service provider MTS Allstream also called for all programming to be distributed on all platforms on a non-exclusive basis. Earlier this week, BCE Inc. and Quebecor Media Inc. said exclusive rights drive competition and innovation. But Rogers Communications Inc. and Telus Corp. called for all content to be available on all ancillary platforms, so that consumers are not required to own multiple devices and plans in order to access different content. Joanne Deer, public policy and communications director for the Alliance of Canadian Cinema, Television and Radio Artists’ (ACTRA), asked the commission Wednesday to make non-exclusives a permanent regulatory measure, saying that exclusivity does not benefit the broadcasting system. “What does benefit the system … is to ensure there are as many markets as possible in which to buy and sell Canadian creative content,” she said. “This will help to maximize audiences and to put more money back into our system so our creators can keep bringing Canadian stories to our screens.” With support from the Writers Guild of Canada, Deer said content funded by Canadian taxpayers should be available to all Canadians regardless of their service provider. She also said exclusivity could deliver an unintended consequence by leading to piracy. “People will find a way to get the content they want, and not always through legal means, and that hurts everyone in the system,” she said. On Tuesday, Telus said vertically integrated companies have the incentive to sacrifice revenue from selling rights to content in favour of more lucrative distribution revenues—helped by exclusive rights. Shaw president Peter Bissonnette said Wednesday that his company doesn’t operate that way. “We don’t believe in that at all. It doesn’t make sense,” he said. “We didn’t buy Canwest to lever, if you will, the BDU with respect to that kind of approach. We bought it to make content available across all platforms and all distributors.” mburgess@thewirereport.ca

Shaw argues for no ‘blanket’ rule on exclusivity

Broadcast | June 22, 2011

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