OTTAWA-GATINEAU – It’s official – the CRTC has given its stamp of approval for BCE to buy CTVglobemedia Inc.
In an announcement late Monday afternoon, the Commission noted that the $3.2 billion transaction will improve access to local programming through the carriage of at least 43 additional conventional and community television stations on BCE’s satellite television service.
“We are pleased that BCE has addressed our questions regarding how this transaction would contribute to the vitality of the Canadian broadcasting system,” said CRTC chair Konrad von Finckenstein, in a statement. “BCE will provide stability to the CTV Television Network. It will also invest $245 million in the Canadian broadcasting system, of which more than $140 million will be allocated to new Canadian television and radio programming.”
The CRTC’s policy for ownership transactions in the broadcasting sector requires the buyer to make specific commitments to fund initiatives that will improve the broadcasting system. After reviewing the proposed benefits package, the CRTC said that BCE must spend $245 million over the next seven years to:
– allow for the carriage of at least 43 additional television services, including local, and regional conventional stations and independent community stations ($60 million);
– commission independently produced programs of national interest, such as drama and comedy series, documentaries and shows that promote Canadian culture ($100 million);
– enhance local news programming in Winnipeg, Regina, Saskatoon, Edmonton, Calgary and Vancouver ($28.8 million);
– sustain the A-Channel stations for at least three years, beginning on September 1, 2011 ($30 million);
– improve the accessibility of the Canadian broadcasting system through an independent fund of $5.7 million;
– support the development of Canadian musical and spoken-word talent ($17.5 million), and
– create an independent fund to help pay the costs of public-interest groups that participate in the CRTC’s broadcasting proceedings ($3 million).
In response to widespread industry concern over potential abuses of power, the CRTC also imposed a moratorium, through the completion of its upcoming vertical integration hearing, preventing BCE from completing any new exclusive agreements that would prevent it from making the rights to its television programming available to competitors for broadcast on mobile devices and over the Internet.
The CRTC also said that all other integrated communications companies must abide by this moratorium as well. The vertical integration hearing is set for June 20, 2011.
Click here for more on the decision.
