Shaw Communications Inc. has responded to competitors who have gone before the federal regulator asking for safeguards against the company using the TV content it owns to give itself an unfair advantage.
Shaw rival Telus Corp. told the Canadian Radio-television Telecommunications Commission on Wednesday that there should be official conditions to prevent the company from making its stations' content exclusive to its own distribution platforms.
Shaw said on Tuesday that it has no plans to do such exclusive deals. It is making final submissions Thursday in the process to seek approval for its $2-billion deal to buy the television assets of CanWest Global Communications Corp. To make a prohibition against exclusivity an official condition of the deal would be "discriminatory," the company said.
"What's motivating Telus may be more competitive in nature," Shaw president Peter Bissonnette said Thursday. "The more our arms are tied behind our back..."
Telus also raised concerns on Wednesday that Shaw would not sell advertising on its TV stations to companies that compete with Shaw on the cable and satellite distribution side of the business. Shaw also rejected that claim.
"We like money," said executive vice-president Brad Shaw. "We like it Canadian and green. If Telus is worried about us stripping out ads, you know, we're in to grow the business. We'll take their money as soon as anyone."
"And all our call centres are in Canada," chief executive officer Jim Shaw added wryly.
Shaw has moved somewhat on its original proposals to the CRTC, however. In its original submission, it asked for a discount on its "tangible benefits," a rule that requires companies who buy a broadcaster spend the equivalent of 10 per cent of the value of a deal to improve the Canadian broadcast system. Shaw originally proposed a benefits package of 4.1 per cent of the deal. On Thursday it put forward a new plan more than doubling that amount. Shaw is now offering to spend 8.8 per cent, or $180.1-million, on benefits.
Those benefits include free satellite broadcasting to communities where the transition to digital transmitters will not occur; the production of new morning newscasts across Canada; spending on new programming by independent producers and new media content; and constructing digital TV transmitters beyond the mandatory markets where the CRTC has required broadcasters transition to digital TV by August 2011.