TORONTO – After a query by the CRTC about an old tangible benefits package sent Corus Entertainment back into its files for a look-see, the company discovered a payout it never made – and so the Canadian Media Fund will soon be getting an additional $525,355.35.
Back in 2009, Corus bought SexTV: The Channel (now the Cooking Channel) and Drive-In Classics (which became the now-defunct Sundance Channel) for $40 million from CTV (which had purchased the channels when it acquired CHUM Ltd. in 2007). In order to approve such ownership changes, CRTC regs require the purchaser to create a benefits package worth 10% of the value of the deal.
According to a letter addressed to the company’s senior director of government relations and compliance, Karen Gifford, dated November 3rd and posted to the Commission’s web site Thursday, not all of the $4 million in benefits was paid out within the seven years it was supposed to be spent.
Corus, after the Commission asked it to check, discovered a payment shortfall of $525,355.35, 13% of the total benefits package. Of that amount, $500,000 was supposed to go to the “Communitech Rights Project, Early & Associates – Research and Development” and $25,355.35 to “Canadian programming.”
Since the Communitech Rights Project is no longer active, Corus proposed to the Commission it send the money to the Canada Media Fund, which the Regulator approved.
Corus is to send the funds by the end of this month and must show the CRTC it has done so in writing. “The Commission requires that this letter be appended to the licence and notes that it will re-examine Corus’ compliance with this decision in the context of Corus’ next licence renewal,” concludes the CRTC letter.
