News Release

July 6, 2000

OTTAWA-HULL — In a decision made public today, the Canadian Radio-television and Telecommunications Commission (CRTC) has approved the purchase of WIC Western International Communications Ltd by CanWest Global Communications Corp., and that of WIC Premium Corporation by Corus Entertainment Inc. On June 30, the Commission also approved the purchase of Canadian Satellite Communications Inc. (Cancom) by Shaw Communications Inc.

"In today’s decisions, the CRTC has recognized the importance of consolidating the Canadian radio and television industries, while at the same time promoting the diversity of voices and choices. The stronger our companies, the more they can contribute to achieving the cultural objectives set out in the Broadcasting Act", said Commission chairperson, Madame Françoise Bertrand.

According to Madame Bertrand: "In approving the transaction between CanWest and WIC, with certain conditions, the CRTC is allowing the company to consolidate. In so doing, it will be able to both create new synergies and make a more effective contribution to the Canadian broadcasting system. The company now has a greater capacity to spotlight local artists and to stimulate the production of quality Canadian programming, particularly in Western Canada."

The Commission’s desire to build on the strength of the large television networks in order to help achieve the objectives of the Broadcasting Act is very much in the spirit of the television policy it adopted a year ago.

In its decision today, the Commission is departing from its policy which allows a company to own, in the market it serves, only one television station broadcasting in a given language.

In effect, the Commission is authorizing CanWest Global to maintain ownership of the English-language stations CIII-TV and CHCH-TV in the Hamilton (Ontario) market, and CHAN-TV and CHEK-TV in the Vancouver-Victoria market. This is because the Commission is of the view that these two large markets are already well-served by a good number of media outlets, and that the plurality of voices and fora for expressing them is not compromised by having one owner for two television stations. The Commission also took into account the fact that CanWest Global has committed to substantially increasing local programming, both on CHCH-TV and CHEK-TV, by emphasizing the production and broadcasting of programs that reflect the concerns and interests of the people of Hamilton and Victoria.

To make these commitments conditions of licence, the Commission is requiring that over the next four months, CanWest submit a licence amendment application. This will allow CanWest to begin broadcasting a minimum number of local news bulletins, local programs other than the news, and eight hours per week of original Canadian programs from the various categories of priority programming as soon as possible on its new stations.

Over the next four months, CanWest Global must also submit to the Commission an application to divest itself of television station CKVU-TV (Vancouver) in order to minimize the risk of undue competitive advantage. If it does not present such a request within the required timeframe, CanWest must place CKVU-TV in trust.

Finally, the Commission refuses to allow CanWest to act as vendor of CFCF Television Inc., formerly owned by WIC and licence holder for the English-language television station CFCF Montreal. Consistent with its decision last February, the Commission believes that it is in the public interest that responsibility for the sale of CFCF Television to a third party remain with the trust to which it has already been confided.

In its decision to approve Corus’ acquisition of 12 new radio stations, the Commission emphasizes that the transaction is in complete accordance with the fundamental principles set out in its commercial radio policy (April 1998).

"The consolidation of its position will provide Corus with the strength it needs to increase the diversity of radio programs on its stations, in all the markets it serves, and to give each a distinct voice that reflects its daily realities", said Madame Bertrand. Moreover, the Commission believes that these objectives can be achieved while maintaining the competitive dynamic that exists in the markets where Corus’ stations broadcast, and preserving the variety of choice offered to listeners by many other broadcasters.

The Commission approves Corus’ acquisition of WIC Premium’s discretionary pay services, such as MovieMax, SuperChannel, and Home Theatre, because they are, for the most part, distributed in digital mode. In its new licensing framework for pay and specialty digital television services (January 2000), the Commission authorizes cable distributors to invest in such services.

However, the Commission requires that over the next six months, Corus sell half of its shares in The Family Channel, which is part of the WIC Premium portfolio.

The Family Channel is a discretionary pay television service, distributed by cable, mainly in analogue mode across the country. Analogue cable capacity in Canada is limited. For that reason, the Commission established a policy in its 1995 Convergence Report prohibiting any company affiliated with a cable distributor from acquiring or increasing its interest in discretionary programming services until such time as the capacity of cable distribution systems had sufficiently expanded to distribute all of these services.

The Commission maintained this policy in its recent decisions concerning TVA, Cancom-StarChoice and the Food Network. The Commission requires today that Corus, an affiliate of Shaw Cable, give up 50% of the Family Channel.

Reference documents:  Decisions CRTC 2000-221, 2000-222 and 2000-213
                                   Information:

1. Division of WIC’s various broadcasting undertakings and unregulated assets between CanWest Global, Corus and Shaw
2. Acquisition by CanWest Global Communications Corp. of the ownership interests held previously by WIC Western International Communications Ltd.
3. Sale of WIC Premium Corporation to Corus Entertainment Inc.

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General Inquiries:
     Ottawa, Ontario K1A 0N2
     Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
     Toll-free # 1-877-249-CRTC (2782), eMail: info@crtc.gc.ca
Media Relations:
     Denis Carmel, Tel: (819) 997-9403, eMail: denis.carmel@crtc.gc.ca

Copies of today’s documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the public examination room of any CRTC office. These documents are available in alternative format upon request.