MONTREAL – In a joint announcement about their response to interventions filed with the CRTC about the proposed Bell-Astral merger, BCE and Astral Media dismissed the complaints of their competitors.
Bell and Astral downplayed the concerns of its competitors, describing them as “large vertically integrated corporations” that compete directly with Bell, who contend that the merged company, if approved, would control too much of the market. In its release, Bell Media says that the two companies are merely “eager to inject fresh ideas, significant new investment, and more competition into Canadian media, especially in Québec.”
Québec and the French-language media market is a primary focus for Bell Media, said Kevin Crull, president of Bell Media. “Even after the sale of half of Astral’s French-language specialty TV services, Bell Media would increase its viewing share in this market to 22.6% – still less than the 31% viewing share enjoyed by Québecor, but a significant enhancement to market competition nevertheless.”
“All of these remaining English and French-language TV services are part of the Astral and Bell Media plan to increase consumer choice and service innovation in Canadian media,” Crull added. Bell also rejected the claim that the merger would restrict competitors’ access to content since both Astral and Bell Media already have long-term distribution and affiliation agreements in place with them.
As part of an agreement with the Competition Bureau and their amended application to the CRTC, Astral and Bell Media will sell several Astral TV services, including 100% of Astral's English-language specialty TV services and 50% of its French-language specialty TV. After selling a total of 11 Astral TV services, Bell Media would retain eight Astral pay and specialty TV services: the French-language Super Écran, Cinépop, Canal Vie, Canal D, VRAK TV, and Ztélé, and English-language services The Movie Network, which includes HBO Canada, and TMN Encore.
Is today’s announcement from Bell a glimpse of more competitor bashing to come? We’ll find out when the CRTC hearing begins in Montreal May 6.
