News Releases
December 7, 1999
CTV/NetStar Merger Not in Best Interests of Canadians: CBC Calls on CRTC to Allow Merger Only if One of Major Sports Properties Divested
Hull — CBC Executive Vice-President and COO, James McCoubrey, presented CBC's position on the proposed merger of CTV and NetStar as hearings into the merger continued today in Hull.
"The merger should only be allowed to proceed if CTV is required to divest itself of one of its two major sports properties, TSN or SportsNet," said Mr. McCoubrey. "Further, we believe that to allow beneficial partnerships to continue between broadcasters and sports specialty channels, the divestiture should not be to an over-the-air broadcaster."
CBC believes that the acquisition of Netstar by CTV will result in a monopoly over sports programming in the Canadian marketplace. The new entity would control 95% of the airtime for Canadian sports programming.
CBC's main area of concern is that the merger will give CTV undue market power. "CBC is by far the largest broadcaster of sports programming on over-the-air free television in Canada today, and getting out of sports programming is not part of CBC's plan," said Mr. McCoubrey. "Our professional sports programming brings large audiences to CBC, allows us to mount amateur sports coverage, and permits us to channel our full parliamentary appropriation to drama, children's programming, performance and news and current affairs. This proposed merger jeopardizes our future in sports, and all the benefits that flow to Canadian audiences from it."
CBC is also troubled by the potential impact on sports communities and particularly sports viewers. "A significant portion of Canadian audiences will either be deprived of, or forced to pay for, programming they now enjoy on free television, and this means that Canadians will be disenfranchised in large numbers," continued Mr. McCoubrey.
The control that the minority shareholder, ESPN, will exert over the operations of the merged entity, coupled with the presence of Fox in an ownership position, represent another significant concern for CBC. "Increasingly Canadian sports rights could be packaged on a North American basis through and for mega-American corporations," Mr. McCoubrey said.
The CBC is of the view that if the Commission approves this transaction, it should direct CTV to divest itself of one of the two major sports properties. "We believe that as it stands the negative impact of the proposed transaction outweighs the benefits accruing to the system," commented McCoubrey in closing.
About CBC/Radio-Canada
CBC/Radio-Canada is Canada's national public broadcaster and one of its largest cultural institutions. CBC/Radio-Canada reaches Canadians through eight national radio and television networks, its full-service Web sites, local/regional stations and affiliates, as well as the digital television channel Country Canada and the continuous music network Galaxie. In addition, CBC/Radio-Canada has forged partnerships with other broadcasters and is a partner in the satellite radio service SIRIUS Canada as well as in the specialty television services ARTV and The Documentary Channel. Through this array of activities, CBC/Radio-Canada brings diverse regional and cultural perspectives into the daily lives of Canadians in English, French and eight aboriginal languages. (2006)
For additional information, please contact:
Katherine Heath-Eves
Media Relations
CBC/Radio-Canada (Ottawa)
Tel: (613) 288-6235
heathevk@cbc.ca
www.cbc.radio-canada.ca
