After failing to secure the federal regulator’s blessing for their first nuptials, BCE and Astral Media are trying again.
Acknowledging that they heard Canadians and the CRTC “loud and clear” in their need for assurances that a merged Bell/Astral Media would directly benefit consumers and creators, the companies announced today that they have submitted a revamped proposal to the CRTC for Bell’s planned acquisition of Astral’s collection of conventional and specialty TV channels, 84 radio stations and out-of-home assets.
“We’re ready to deliver more choice for listeners and viewers, more opportunity for content creators, and more competition for the broadcasting industry,” said Bell president and CEO George Cope in a statement.
The new proposal, said Cope, “benefits all Canadians, in both official languages… with new ideas, new funding and new choices.”
Bell contended that cable rivals like Quebecor – which partnered with cable counterparts Cogeco and Eastlink to form an alliance called Say No to Bell – played a key role in killing the original deal. In their renewed attempt to secure CRTC approval for the deal, Bell and Astral are fighting back with their own informational tool, CanadiansDeserveMore.ca.
The site indicates the benefits a merged Bell/Astral will confer, including more choice for consumers; more competition in Canada, Quebec and against foreign broadcasters; more investment in Canadian TV and radio content and more commitment to local radio and television news.
While the two companies did not provide specific details about the revised deal – which at $3.38 billion is roughly equivalent to the original deal announced in March – they said it addresses the CRTC’s primary concerns and indicates the steps they would take to comply with “relevant viewership thresholds,” which were at the core of the CRTC’s original decision.
Bell also announced that it has formally withdrawn its request to the federal Cabinet for a policy direction to the CRTC in the wake of last month’s rejection of the original Bell/Astral merger.
The face Bell showed Monday is far more contrite than the one that said it was “shocked” by the CRTC’s decision in mid-October to turn down the deal because it would give the combined Bell/Astral entity “an unprecedented amount” of revenue and viewing. At the time, the CRTC said Bell failed to sufficiently demonstrate the benefit of the transaction to either the public or the Canadian broadcasting system.
Bell responded by attacking the decision as reflecting a “bygone era” based on “antiquated” working papers in the 1970s and 1980s that have little bearing on modern broadcasting. It also charged the CRTC with ignoring its own policies in reaching its decision.
The new proposal also includes a revised package of tangible benefits to support the creation of “exceptional” Canadian TV and radio content.
Bell also indicated that it has abandoned its original plan to convert Montreal’s CKGM (TSN Radio 690) to a French-language station in order to comply with the CRTC’s Common Ownership Policy for radio. In the release, the company acknowledged “passionate listener response” to the proposal and said it has asked the CRTC for an exception to the policy.
“The Canadian broadcasting industry is undergoing rapid change, and Astral and Bell are committed to making sure that the consumer always comes first,” said Astral Media president and CEO Ian Greenberg in the release. “Considering the rapidly changing media landscape, including the accelerating impact of foreign broadcasters on the Canadian media scene, constant investment and innovation is required to develop and showcase the best content and ensure TV viewers and radio listeners are entertained in the ways they want.
“Together, Astral and Bell Media have the scale to invest, compete and deliver on the opportunities ahead for all Canadians.”
The companies said that details of the new proposal would be made available when the CRTC launches its public consultation on the application. The outside date for the closing of the transaction has been extended to June 1, 2013, with each company having the right to further postpone the deal another month.
