TORONTO — It’s been a bruising five years on the TSX for Corus Entertainment, one of Canada’s major audio and visual entertainment companies. The company’s stock value has plummeted by 93.4%; today in 2019 shares finished at $6.49 CDN per share.
On Monday, “CJR-B” slid by a stunning 29.6% from Friday’s closing price, to just $0.3450 CDN, on exceptionally high trading volume of 4.94 million shares, pushing the company to a new low for its shares. What drove the latest dip? Come 2025, “some” Warner Bros. Discovery programming will not be renewed.
That’s because a big competitor is getting the rights.
For the owner of 39 radio stations including “102.1 The Edge” and “Q107” in Toronto and News/Talk “QR Radio” in Calgary, the news is particularly worrisome for its television brands.
In Canada, Corus owns and operates the Global television network and a host of cable channels linked to U.S. networks, including HGTV, Food Network, History, National Geographic, Adult Swim, Disney Channel, Nickelodeon, CMT, and Cartoon Network.
The WBD news impacts this segment of the company. And, Corus made it clear that it was “informed” by WBD on Friday (6/7) that some of its programming and trademark output arrangements will not be renewed upon their expiration date of December 31, 2024.
“This affects content on certain Corus-operated specialty channels,” Corus confirmed, while also reiterating that it does not “currently” expect changes to the programming of the channels until 2025.
Corus President/CEO Doug Murphy was blunt in his reason as to why WBD’s relationship with his company for certain programming is coming to a conclusion at year’s end.
“This is an unfortunate example of inequitable structural relationships in the Canadian media and telecom industries, particularly affecting independent broadcasters like Corus,” Murphy said. “It highlights the urgent need for regulatory reform, including to rules affecting how market-dominant players interact with suppliers and competitors. Corus intends to explore all potential remedies. We look forward to adapting and advancing our strategies while we pursue new opportunities through our other content suppliers.”
Murphy did not elaborate on why it is the CRTC, and not Corus, that is to blame for the WBD programming cessation in under six months.
Meanwhile, Corus EVP of Networks and Content Troy Reeb took a moment to “reinforce Corus’ intent” to continue operating its channels channels “based on the strength of top-rated Canadian programs and alternate foreign content supply. We have an exceptional fall schedule coming in September and a vast amount of Canadian and U.S. content to carry us into the future.”
Nevertheless, the loss of WBD-supplied content opens the door for this vast array of U.S.-based programming to end up at a Corus competitor. Bell Media‘s Crave already has an established relationship with HBO, and in May 2023 inked a “landmark long-term and exclusive licensing agreement” that at the time was limited to French-language episodes of “Friends” in addition to HBO and Max Originals; the DC universe; the Wizarding World of Harry Potter; new cable series; library television series; pay and post-pay window rights for Warner Bros. films.
However, it was confirmed on Monday morning that Rogers that will get the WBD content Corus is losing, in addition to NBCUniversal content.
This means Rogers will launch Bravo in September 2024 as HGTV, The Food Network and other networks associated with WBD content essentially shift from Corus to the multiplatform giant.
Colette Watson, President of Rogers Sports & Media, commented, “We’re evolving our business to reflect where consumers are going, bringing the best mix of U.S. and Canadian content to audiences in the way they want to watch it. This investment also advances our position as a strong Canadian broadcaster that can compete with foreign streamers.”
Rogers has 76% reach with its television content platforms, comprised of CityTV, Bravo, Tubi, SportsNet+, Disney+, FX, MLB.TV, and CityNews.
RBC on Tuesday lowered its price target on Corus Entertainment shares to $0.50 CDN.
