The CRTC Risks the Future of Television in Approving the Shaw-Global Deal

October 22, 2010, Vancouver BC – In an act that OpenMedia.ca, a national media-policy watchdog, has called a threat to the integrity of local broadcasters, the Canadian Radio-television and Telecommunications Commission (CRTC) has just approved Shaw Communications Inc.’s (Shaw’s) takeover of Canwest Global Communications Corporation’s (Canwest Global’s) conventional television stations and specialty channels.

In its submission to the CRTC on this matter, OpenMedia.ca expressed its concern that a cable company such as Shaw in control of content poses a risk to the future of television and the Internet. Shaw is now more able to unfairly limit the availability of Global’s stations via over-the-air broadcasts, for the purpose of persuading audiences to subscribe to content through their cable services. The deal also provides Shaw with an economic incentive to discriminate against the open Internet in favour of television services, which can be more easily manipulated.

Giving Shaw control over television, the Internet, and the content therein without strong rules that protect citizens’ interests plays dice with Canadians’ access to diverse news and information.

Though the Commission has stated that it expects Shaw to fulfill its commitment to the principle of programming non-exclusivity, Shaw has made sure that its ‘promise’ to make the rights to its television programming available to its competitors is not a condition of the license it received today.

Moreover, the CRTC decided not to act on OpenMedia.ca’s proposition that Global sell off their local broadcasters as a condition of their transaction with Shaw, an action that would help to maintain a firm separation between content and providers. This action would have helped to ensure diversity in Canada's broadcasting industry and prevent corporate consolidation from impacting news and other programming being produced by local services.

Though the CRTC has assured citizens that Shaw, like any buyer, is expected to make commitments to improve the Canadian broadcasting system, OpenMedia.ca is unconvinced that that the transaction will help improve Global’s worrisome financial situation, or reinstate jobs and projects that have been sacrificed in recent years.

OpenMedia.ca considers this to be a blow to the diversity of Canada’s media environment, which will add yet another impetus for Shaw to tilt its Internet and TV distribution towards its own commercial media interests.

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More Information
Broadcasting Decision CRTC 2010-782: http://www.crtc.gc.ca/eng/archive/2010/2010-782.htm
Broadcasting Notice of Consultation CRTC 2010-783: http://www.crtc.gc.ca/eng/archive/2010/2010-783.htm

About OpenMedia.ca
OpenMedia.ca is a national, non-partisan, non-profit public engagement organization working to advance and support an open and innovative communications system in Canada. Our primary goal is to increase public awareness and informed participation in Canadian media, cultural, information, and telecommunication policy formation.

Contact
Lindsey Pinto
Communications Manager, OpenMedia.ca
778-238-7710
[email protected]