OTTAWA-GATINEAU, Aug. 16, 2012 /CNW/ - Today, the Canadian
Radio-television and Telecommunications Commission (CRTC) approved the
sale of sport television channels owned by Maple Leafs Sports &
Entertainment (MLSE) to BCE and Rogers Communications. While this $1,
32 billion transaction, involved several sports-related properties such
as professional teams, the CRTC's review was limited to the five
television services owned by MLSE : Leafs TV, Gol TV and NBA TV
Canada, as well as two services that have not yet launched, Mainstream
Sports and Live Music Channel.
"When deciding whether or not to approve a proposed ownership
transaction, the Commission must be persuaded, in light of the
application and the public record that an approval is in the public
interest", said Jean-Pierre Blais, Chairman of the CRTC. "In this case,
we have been convinced that the transaction benefits Canadians as it
will lead to the creation of new home-grown sports programming."
The CRTC's policy for ownership transactions in the broadcasting sector
requires the buyer to demonstrate clear tangible and intangible
benefits associated with the approval of a proposed transaction. In
particular, applicants are expected to make specific incremental
commitments to fund initiatives that will enhance the Canadian
broadcasting system. The applicants had proposed a $3,8 million in
tangible benefits. After a review of the value of the transaction, BCE
and Rogers will be required to spend $7,5 million over the next seven
years on the creation of new sports-themed programming by Canadian
independent producers.
Finally, the CRTC is committed to ensuring that Canadians have access to
a wide choice of programming on different platforms. In 2011, the CRTC
prohibited companies from offering television programs on an exclusive
basis to their mobile or Internet subscribers. Any program broadcast on
television must be made available to competitors under fair and
commercially reasonable terms.
Broadcasting Decision CRTC 2012-443
http://www.crtc.gc.ca/eng/archive/2012/2012-443.htm
The CRTC
The CRTC is an independent public authority that regulates and
supervises broadcasting and telecommunications in Canada.
Reference document:
Notice of Consultation CRTC 2012-295
Broadcasting Regulatory Policy CRTC 2011-601
SOURCE: Canadian Radio-television and Telecommunications Commission