CMPA asks for ‘competitive safeguards’ in Shaw-Corus deal

The Canadian Media Producers Association (CMPA) asked the CRTC to put in place “competitive safeguards” as part of its approval of Shaw Communications Inc.’s sale of its media division to Corus Entertainment Inc. The CMPA argued that “requiring Corus to agree to such safeguards is the only way to mitigate the substantial harm that a merged would inevitably have on the Canadian independent production sector and, ultimately, on the range and quality of content available to Canadian audiences.” Those safeguards could be a renewed terms of trade agreement, a code of practice, or a similar agreement, the CMPA said Thursday in its intervention in the CRTC’s consultation on the proposed $2.65 billion acquisition, which was announced in December. The CRTC eliminated terms of trade agreements, which govern contracts between independent producers and large broadcasters, in 2015. The CMPA’s attempts to appeal that decision were unsuccessful in both federal court and in front of cabinet. The CMPA said the CRTC included safeguards for independent producers when BCE Inc. bought Astral Media and when Corus acquired Teletoon Canada. If the deal is approved, the CMPA said, “there will be one less, unique (and very large) ‘door’ for producers to knock on, and one less team of programmers working to differentiate their program choices to attract and benefit audiences.” It added that “the new and much larger Corus would have substantially more negotiating power both because of its greater size and because it would become one of only four competitive program buyers in the English-language market. The result would be an effective oligopsony of buyers for Canadian independently-produced content.” The CMPA said that while such “reduced competition among program buyers would impact negatively on all independent producers,” those who make lifestyle and women’s programming would be most affected. It argued “they would join producers of children’s programming in effectively being left with a handful of buyers for their shows. Corus would then be able to exploit its market dominance by dictating the terms of program deals to its commercial advantage.” It said that “should the merged use its size and strength to impose unreasonable and inequitable program licensing terms on independent producers, then Corus’s post-transaction strategy for success will come at the of expense of the independent production sector and its ability to make a significant contribution to the Canadian broadcasting system.” The Public Interest Advocacy Centre (PIAC) echoed the CMPA’s call for a public hearing, and said that the transaction would negatively affect the broadcasting system. PIAC said it was concerned that “this transaction will have a negative impact on the diversity of voices through ownership concentration in the Canadian broadcasting system.” It also said CRTC should require the payment of tangible benefits. The Wire Report reported last month that it’s unclear how tangible benefits will apply to the deal, which could warrant about $265 million in payments. PIAC argues that while Shaw has argued that the deal is necessary partly in order to “achieve scale,” scale “has not provided Canadians with better television or lower prices, and on the telecom side of the vertically-integrated house, fewer but larger players has not resulted in lower prices and more competition, but higher prices for the same levels of service.” — With reporting by Shruti Shekar at sshekar@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CMPA asks for ‘competitive safeguards’ in Shaw-Corus deal

Broadcast | February 22, 2016

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

CMPA asks for ‘competitive safeguards’ in Shaw-Corus deal

Broadcast | February 22, 2016

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

CRTC dismisses WildBrain undue preference complaint against Bell; Rogers facing new complaint

After months of dispute, Rogers & Corus take fight over channel placements, repackaging to Federal Court of Appeal

OPINION: Preparing to effectively engage & consult with Indigenous communities a necessary step

Bell, Telus wholesale rates for pole access in certain provinces now interim rates

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us