CALGARY – Shaw Communications executives told the CRTC today that it has no plans to hoard all of its content when it gains control of Canwest Global – and that when it comes to the digital transition, it would rather upgrade all of its transmitters, not just the ones in mandatory markets.
Commissioners were happily caught off-guard by the some of the commitments the big MSO/ISP/home phone/future wireless provider made this morning in Calgary.
When asked by CRTC chairman Konrad von Finckenstein what the company planned to do in the unregulated spaces of mobile and broadband and how much content it planned to keep just for its own customers on its own platforms, Shaw president Peter Bissonnette said it would be made available to everyone.
“It will be available to anyone who wants that content,” he said.
Von Finckenstein pressed further, calling exclusive online and wireless content the elephant in the room or “the big fear”, where Canadians wouldn’t be able to get access to video content on the platform of their preference unless they were a customer of Shaw.
(Intervenors such as Telus have pressed this issue and Bell Canada has made it a major plank in its decision to purchase CTV.)
“It’s funny you mention Telus, noting they have a CFL arrangement that’s exclusive on mobile,” said EVP Brad Shaw in response to von Finckenstein, adding there will be “no exclusivity on our behalf on any of the Canwest services,” either in the regulated space or mobile or broadband.
Left unsaid is what the “commercially negotiated” rates for access to the content might be and whether or not the CRTC might find itself arbitrating such disputes in the future.
Von Finckenstein (and some others in the room) were a little surprised at what they heard and he asked again, citing Bell’s 2010 Winter Olympics exclusive on mobile as a recent, concrete example. Moving forward 10 years if Canwest buys the rights to the Olympics, Canadians “will not have to be a customer of Shaw’s to see the Olympics (on mobile)? You are open to making those deals?”
“That’s 100% correct,” said Shaw.
When the discussion turned to the digital transition and taking Global Television’s over-the-air signal from analog to digital, Shaw said it will hit the deadline of August 31, 2011 in the 20 mandatory markets where it must switch to digital – and that it intends to upgrade the other 67 to digital using $23 million worth of the benefits package from the transaction since without that money, those transmitters likely won’t be upgraded.
Shaw president Peter Bissonnette said up to 400,000 people get Global Television off air (a few as their only TV source and many using second or third TVs not tied to a cable or satellite package) and the company wants to continue to serve those customers and TVs (but how we get digital off-air converters to those people is another issue).
Commissioner Rita Cugini asked whether or not Shaw believes this commitment will force other broadcasters to make the transition in small markets, too.
“We do think it’s an incentive,” said Bissonnette. “It’s a good way to get things going.”
“May your words be prophetic,” added von Finckenstein.
Also key to Tuesday morning’s brisk pace was the fact Shaw agreed to the valuation of the deal at just over $2 billion, meaning a 10% benefits package would be set at about $200 million. Intervenors will were pleased to hear that and are revising their Wednesday presentations, but expect them to quarrel with some of what Shaw proposes to be in the package, such as the money for digital transmitters, which some say is a cost of doing business for a broadcaster.
