TORONTO and OTTAWA – Shaw’s acquisition of the TV assets formerly controlled by Canwest Global garnered cautious approval from a number of industry stakeholders.
After the Commission gave its official thumbs up to the deal on Friday, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) issued a statement saying that while it welcomed “the stability (the acquisition) will being to Canada’s broadcasting sector”, it said that the deal’s tangible benefits package “falls short”.
The group, which represents professional performers working in the English-language recorded media in Canada, also said that it is “wary of the extreme level of convergence in Canadian media”.
"The Commission is right to be concerned about the level of convergence in our broadcasting system – it’s unprecedented in the world – we look forward to participating in the study announced (Friday)," said Stephen Waddell, ACTRA’s national executive director, in the statement.
The Canadian Media Production Association (CMPA) expressed relief that content producers will still have a partner in Shaw/Canwest, and said that it is “encouraged” that the CRTC “has signalled its willingness to take measures to rebalance the relationship between powerful broadcasters and independent producers”.
“The CRTC has sent a strong message directly to Shaw/Canwest, and indirectly to other large broadcast groups”, said president and CEO, Norm Bolen, in a statement. “It expects the broadcasters to complete so-called Terms of Trade agreements with independent producers as a way of rebalancing the relationship between large broadcast groups and producers by the time of their licence renewals next year.
"Failing this, the Commission will take matters into its own hands. We hope this will provide the necessary incentive for broadcasters to take Terms of Trade negotiations more seriously and come to an agreement that works for all parties and for the Canadian broadcasting system as a whole.”
Terms of Trade negotiations began many years ago between producers and broadcasters to secure the fair and equitable allocation of content rights on multiple platforms.
The CMPA did, however, express disappointment that the CRTC did not impose specific safeguards “to immediately mitigate the significant market power that Shaw/Canwest will have over independent producers”.
“The regulator failed to ensure that Shaw/Canwest and Shaw affiliate Corus Entertainment Inc. continue to operate truly separately and competitively”, the CMPA’s statement continues. “However, we look forward to participating in the CRTC’s upcoming consultation on the possible effects of consolidation in the Canadian broadcasting industry, and making specific recommendations to ensure that large, vertically integrated companies such as Shaw do not engage in anti-competitive behaviour.”
The Writers Guild of Canada (WGC) said that it welcomed both the transaction and its benefits package, which it says “will mean a significant influx of money directed to high-quality Canadian programming”. Noting $79.1 M to be directed to independently produced high-quality dramas and documentaries, and the $18 M earmarked for associated new media content, the organization said that it was pleased that the benefits will be spent in a schedule set out over the next 7 years, rather than the 10 years that Shaw had proposed.
“The CRTC focused on the big picture, insisting that Shaw live up to its obligation as one of the largest consolidated media companies in the country”, said executive director, Maureen Parker, in a statement. “The money directed toward production will enable us to create new high-quality Canadian entertainment.”
Not surprisingly, a coalition representing Canadians with disabilities said that it “condemned” the Commission’s approval of the transaction “because the CRTC ignored both the expertise and the clear, detailed and cost-effective proposal made by the organizations to increase the level and quality of all types of accessibility throughout the Canadian broadcasting system”.
“The CRTC’s dismissal of recommendations that would have increased and improved accessible television content across Canada for all Canadians with visual or hearing disabilities, means that this country has lost a rare opportunity to make real and permanent progress towards a 100% accessible broadcast day," said Beverley Milligan, acting president and CEO of Media Access Canada (MAC), in a statement.
Led by MAC, the coalition appeared at the transaction’s hearing in Calgary last month and recommended that the CRTC adopt ten proposals to increase the quantity and quality of accessible programming content, through funding from an endowment worth 0.5% of Shaw’s $2 billion purchase of Canwest.
– Lesley Hunter
