Corus seeks CRTC intervention, accusing Rogers Communications of "predatory behaviour" as it faces major setbacks in content rights
Corus Entertainment Inc. has lodged a complaint with the Canadian Radio-television and Telecommunications Commission (CRTC), accusing Rogers Communications Inc. of “predatory behaviour” aimed at suppressing competition and violating regulatory obligations.
According to a report by BNN Bloomberg, Corus outlined these allegations in a letter dated July 26, authored by Matt Thompson, Corus's vice-president, and associate general counsel.
The company has requested regulatory intervention to mitigate what it describes as a “significant adverse impact” on its television and radio operations.
Corus claims that Rogers is using its considerable size and influence to undermine Canadian competitors through exclusive rights agreements with foreign content providers. The complaint specifically references Rogers' deals with Warner Bros. Discovery and NBCUniversal’s Bravo channel.
As part of a multi-year agreement, Rogers will secure the Canadian rights to Warner Bros. Discovery’s prominent lifestyle and entertainment brands, including HGTV, Food Network, Cooking Channel, Magnolia Network, and OWN, beginning January 1.
This development means Corus will lose access to these key brands at the end of this year, representing a major loss for the company.
Additionally, Corus accuses Rogers of discouraging subscriptions to its Disney-themed channels by promoting the Disney Plus streaming service on its cable and streaming platforms.
Rogers has responded by dismissing the allegations as “baseless.” In a statement, Rogers spokesperson Sarah Schmidt argued that Corus is attempting to use regulatory mechanisms to protect what she described as a “broken business model.”
She added that Corus is trying to force service providers and customers to pay for channels that no longer align with viewer preferences, stating, “They need to compete in a fair system and earn each customer, just like every other company.”
Corus is also grappling with challenges within its own operations. On Wednesday, its 900 CHML radio station in Hamilton, Ontario, announced its closure, attributing the decision to a shift in advertising revenue towards unregulated foreign platforms and a challenging regulatory and competitive environment.
Corus has yet to disclose how many employees will be affected by this closure or whether additional radio stations are at risk.
In its most recent financial report, Corus revealed a third-quarter loss of $769.9m, a significant increase from the $495.1m loss reported during the same period last year.
The company also announced that it expects to have reduced its full-time workforce by 25 percent by the end of August, compared to the start of its 2023 fiscal year. This follows Corus's earlier decision to shut down legacy AM radio stations in Edmonton and Vancouver.
