MONTRÉAL, Nov. 29, 2019 /CNW
Telbec/ - Quebecor today filed with the Canadian
Radio-television and Telecommunications Commission (CRTC) its
intervention concerning the acquisition of the conventional network
V (V) and its digital assets by Bell Media (Bell). In view of
Bell's national dominance across Canada and the damaging repercussions of the
acquisition, including fragmentation of the advertising market, the
bidding up of content acquisition costs, and deterioration in the
general quality of French-language television in Québec, Quebecor
opposes the transaction and is asking the CRTC to deny it
outright.
"Why does Bell want to acquire V now, after selling it in 2008?"
asked Pierre Karl Péladeau, President and CEO of Quebecor.
"Clearly, Bell wants to rebuild its monopoly and achieve dominance
in the television industry, and more broadly the media sector in
Canada. It is therefore imperative
that Bell's acquisition of V be assessed in terms of its impact on
competition in the Canadian market as a whole. By weakening the
other industry players, this acquisition will undermine the quality
of information and diversity of voices that are the foundation of a
healthy democracy. The industry cannot allow this situation to
arise and the competent bodies must refuse this transaction.
Denying the serious consequences of this acquisition would be
short-sighted indeed."
"TVA takes pride in offering Quebecers the best content but the
fact remains that the television market is shaky and is dependent
on advertising revenues for its survival," said France Lauzière,
President and CEO of TVA Group and Chief of Content of Quebecor
Content. "If Bell uses its national market power in Canada to crush competition in Québec, this
will certainly cause significant revenue losses for the other
players and jeopardize our ability to deliver compelling
French-language television offerings. Québec viewers and cultural
workers are the ones who stand to lose out."
To those who claim that Bell's acquisition of V will create a
balance with Quebecor:
Popularity should not be confused with market dominance, as Bell
appears to do. A large audience share means that a channel is
popular with viewers, which is the case with TVA. However, market
dominance is measured by share of national revenues and media reach
relative to other players. With almost six times the total revenues
of Quebecor and an 80% reach in Canada's television market, Bell is dominant
and enjoys a position that cannot be matched by any other industry
player. The addition of a French-language conventional channel such
as V would only accentuate Bell's hegemonic stature and the risk
that it will abuse its power to crush all competition.
To those who believe that adding a conventional channel will
not increase Bell's power and influence in the industry:
The addition of V would fill in the only missing piece that Bell
needs in its portfolio in order to consolidate its position in the
Québec market. This transaction would give it near-total control
over the entire industry, thus increasing its bargaining power and
purchasing power in the national advertising and content
acquisition markets.
With V, Bell would control 42% of total advertising revenues in
Canada and more than 48% of the
advertising revenues of Canada's
private conventional television stations. This would be a totally
untenable situation. Bell could use its monopoly to dictate
advertising rates and exert crushing pressure on other players,
which would have to lower their rates to compete. The resulting
decrease in their revenues would have a detrimental effect on
Canadian programming and local news. In addition, with V, Bell
could also throw in Québec at a discount in advertising agreements
for its English-language channels across Canada. The television ecosystem is already
under serious threat; there is no need to further undercut the
position of broadcasters for the benefit of a giant such as
Bell.
As the largest buyer of content in Canada's English-language market, Bell could
use its acquisitions of English rights to pressure content
providers to sell it French-language content at the same time,
short-circuiting competition in the French-language market. Bell's
ability to block other players' access to content would cause
significant revenue losses for its competitors, and the variety and
quality of their French-language television programming would be
impaired as a result. Ultimately, it is the consumer who would lose
out.
To those who claim that Bell's acquisition of V will benefit
the entire Québec television ecosystem:
The acquisition of V would take Bell another step closer to
reclaiming its monopoly position. Allowing a single player to
exercise such immense power could have a domino effect, with
serious consequences for the rest of the industry: an exponential
increase in Bell's bargaining power, control over the advertising
and content acquisition markets for Bell, less media diversity, a
general deterioration in the quality of French-language television
in Québec, and job losses.
To maintain healthy competition and the industry's
sustainability, Quebecor intends to vigorously defend its position
at the CRTC public hearings scheduled to begin on February 12, 2020.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Québec-based Quebecor (TSX: QBR.A, QBR.B) employs more than
10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports more
than 400 organizations in the vital fields of culture, health,
education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor