Cogeco Communications

Press release details

Growing Chorus asks Ottawa to Say No to Bell Canada’s Acquisition of Astral Media Inc.

NEWSRELEASE COMMUNIQUÉDEPRESSE
GrowingChorusasksOttawatoSayNotoBell Canada’s
AcquisitionofAstralMediaInc.
SAYNOTOBELL.CAWEBSITELAUNCHEDTOALERTPUBLICTORISKSFROMUNPRECEDENTED
CONCENTRATIONOFMEDIAOWNERSHIP
Ottawa,August7,2012Canadiansareaskingthefederalgovernmenttodisallowtheproposed$3.38
billiontakeoverofAstralMediaInc.byBellCanada.
Fromindividualconsumerstomajorcommunicationscompanies,Canadiansareincreasinglyworried
abouttheconcentrationofmediaassetsunderoneroofandthemarketdominationthisdeal
represents.Tothisend,anationalcoalitionhascometogethertoopposethetransaction.
Today,thewebsiteSayNotoBell.cawaslaunchedtopromoteanational campaignwithtwoobjectives:
first,warnthepublicoftheriskstothemasconsumersandofthepotentialharmtotheCanadian
televisionindustryifthisunprecedenteddealisapproved;andsecond,encourageCanadianstocontact
theCompetitionBureauandtheCanadianRadioTelevisionandTelecommunicationsCommission
(CRTC)andvoicetheirconcerns.
Ifthedealisapproved,BellCanadawouldcontrol:
42%ofCanadianprivatecommercialtelevisionprogrammingrevenues;
45%ofEnglishlanguagetelevisionaudiences;
35%ofFrenchlanguagetelevisionaudiences;
79TVchannels,107radiostations,morethan100websites,whichistwiceasbigasitsnearest
competitor.
38%oftotaladvertisingrevenuesfromtelevisionand31%fromradioprogramming;andamong
nationaltimesales,40%and38%,respectively.
Theleadersofthecoalitioncommentedontheproposedmerger:
“AscommunicationsindustryleadersandconcernedCanadians,weviewitasourresponsibilityto
informthepublicofthedangersinherentinthisproposedmergerandtoopposethisanti
competitivegambitbyBellCanada,”saidLouisAudet,PresidentandCEOofCogecoCableInc.“This
dealisnotinthepublicinterest.”
“Fewoftheworld’smajoreconomiespermitasingleprivatebroadcastertoacquiresucha
dominantshareofTVviewing.BellCanada’sTVaudiencesharewouldbe50%greaterthanthe
audienceshareofthelargestprivatefirmsintheUSA,Japan,UK,Australia,FranceorevenRussia,”
saidLeeBragg,CEOofEastlink.“Givingoneprivatebroadcastersodominantashareofthe
televisionmarketisbadforconsumersandbadforCanada.”
EmilyWehbi EmilyWehbi
emily.wehbi@saynotobell.ca emily.wehbi@ditesnonabell.ca
+1.613.762.4207 +1.613.762.4207
NEWSRELEASE COMMUNIQUÉDEPRESSE
EmilyWehbi EmilyWehbi
emily.wehbi@saynotobell.ca emily.wehbi@ditesnonabell.ca
+1.613.762.4207 +1.613.762.4207
“BellCanada’sproposedmergerwithAstralMediaInc.posesaseriousthreattothehealthofthe
Canadianbroadcastingindustry,”saidPierreKarlPéladeau,PresidentandCEOofQuebecorInc.
“CompetitionwillbeseverelyreducedandthebroadcastmarketasweknowitinCanadawillbe
handcuffed.”
BellCanadaalreadyownsCTVandTSNandhasadominantpresenceinallsectorsofbroadcastingand
telecommunicationsinCanada,withannualrevenuesofover$19billion.Inanefforttoboostitsmarket
shareevenfurther,thecompanymadeanofferonMarch16,2012toacquireAstralMediaInc.for$3.38
billion.AstralMediaInc.currentlyprovidesHBOCanada,TheMovieNe twork, ViewersChoice,and
manyotherpopularTVchannels.Thefederalgovernmentwillconsiderthisproposedtransactionover
thenextfewweeksandadecisionisexpectedbytheendofthisyear.
Historydemonstratesthatwhentoomuchpowerisconcentratedinonecompany,itleadstohigher
pricesandpoorerchoices.ThecoalitioniswarningconsumersthatifBellCanadacontrolsallofthemost
populartelevisioncontent,theycouldchargeconsumersanypricetheywanttowatchit.Togetpopular
channels,youcouldfacepressuretopayforotherBellCanadachannelsthatyouarenotinterestedin
watching.Towatchpopular programs,youmaybepressuredtobuyotherBellCanadaphone,wireless,
InternetandTVservices.
ThedealcouldresultinthecreationoffeweroriginalCanadianprograms,andfewerjobsinCanadianTV
production.Finally,advertisingratescouldincreasecoststhatareeventuallypassedontothe
consumer.
ConcernedCanadianscanvoicetheiroppositiontothedealbyvisitingwww.saynotobell.ca
and
submittingaletterthroughthewebsitetoCanada’sMinistersofHeritageandIndustry,theCompetition
Bureau,theCRTCandtheirownMemberofParliament.
AboutthewebsiteatSay NoToBell.ca
SayNoToBell.caisbroughttoyoubyCanadianswhoareconcernedaboutincreasingmedia
concentrationinCanada.Westandin oppositiontotheproposed$3.38billionBellCanadaacquisitionof
AstralMediaInc.andwishtoinformthepublicandlimittheriskposedbythemerger.Wecallonthe
CompetitionBureau,theCanadianRadiotelevisionandTelecommunicationsCommission(CRTC),and
theGovernmentofCanadatoblockthisdeal.
30
Formoreinformation:EmilyWehbi
emily.wehbi@saynotobell.ca
6137624207