TORONTO — As lunchtime arrived in the GTA on June 11, a major announcement from two of the nation’s largest media companies sent shock waves across Canada. Come 2025, “some” Warner Bros. Discovery programming will not be renewed, Corus Entertainment shared. A short time later, Rogers Sports + Media will get the WBD content Corus is losing, in addition to NBCUniversal content.
Now, Corus Entertainment is going to the Canadian Radio-television and Telecommunications Commission (CRTC) to complain about it.
A “Part 1” application was filed on Monday (8/12) by Corus against Rogers, with an allegation of “undue preference/disadvantage.” Rogers has until September 11 to submit its response, per CRTC regulatory policy.
Of particular issue, however, is the CRTC’s approval of Rogers’ acquisition of Shaw Communications, resulting in the operation of Canada’s largest broadcasting distribution undertaking, or “BDU.”
Much of the document posted to the CRTC’s website is redacted. However, it is clear that Corus, which professes to be Canada’s largest independently owned broadcast company with 39 radio stations and 15 local television stations, believes Rogers since the April 2023 closing of its Shaw deal “has largely ignored the Commission’s expectations” as outlined in the CRTC approval of the transaction.
“Instead of dealing with independent undertakings fairly as the Commission instructed it to do, [Rogers] has weaponized its more dominant position by aggressively targeting Corus and other independents with unduly disadvantageous treatment,” Corus says.
Corus then took aim at the WBD deal and NBCU arrangement, in addition to an agreement with The Walt Disney Co., arguing that Rogers’ BDUs, virtual BDUs and Rogers Media Inc. “have undertaken a coordinated plan to favour affiliated services and platforms and those operated by foreign media companies with whom it has partnered to the detriment of competing Canadian undertakings.”
Unless the Commission “proactively addresses” Corus’ issues, it fears that ensuring “that Canadian independent broadcasting undertakings continue to be able to play a vital role within [the Canadian broadcasting] system” may not be possible. “Indeed, Rogers’s actions toward the Corus Services are clearly part of a larger, predatory strategy to ‘cut out the middle company,’ which affects all Canadian independent programming services.”
The “cut out the middle company” statement Corus seeks to tie to a comment made by Rogers’ Chief Financial Officer.
But the damning language offered to the CRTC is that, in Corus’ view, “Rogers is attempting to imperil Corus in every market.”
It’s been a punishing 12 months for Corus Entertainment, the owner of 39 Canadian radio stations including “QR Calgary” and CILQ “Q107” in Toronto and television brands including the Global network. With today’s closing bell on the TSX, “CJR-B” finished at $0.1550 CDN, a far cry from its 52-week high of $1.42 CDN. An attempt to simulcast CFQR-AM 770 in Calgary on CFGQ-FM 107.3 didn’t work, as the CRTC said it was against Canadian simulcast rules for AM and FM services in the same signal contours; CFGQ is now using the “Edge” brand as a Classic Alternative station.
On July 15, Corus Co-Chief Executive Officer Troy Reeb remarked on the company’s fiscal third quarter results by saying they reflect “the ongoing impacts of a challenging advertising environment.”
Television revenue was off by 17%, to $308.2 million CDN, from $371.16 million CDN.
Radio revenue in fiscal Q3 declined by 10%, falling to $23.6 million CDN from $26.18 million CDN.
Segment “profit” for Corus’ radio and TV stations dipped to $67.54 million CDN from $96.9 million CDN.
Add it all up, and Corus’ net loss mushroomed to $769.9 million CDN (-$3.86 per diluted share) from $495.07 million CDN (-$2.48).
Reeb’s counterpart as co-CEO is Corus Chief Financial Officer John Gossling, and the two assumed the top role at Corus following the fiscally challenged company’s June 17 announcement that former CEO Doug Murphy “made the decision to take an early retirement after over 30 years in broadcasting and media,” including 21 years with Corus.
— Reporting by Adam R Jacobson in Boca Raton, Fla. Additional analysis and research by RBR+TVBR in Vaughn, Ont.
