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08-20-2012, 06:37 PM
Join Date: Mar 2010
Originally Posted by
Having dropped close to $1.7B on MLSE, they could use a shot of cash in the form of indemnification fee's not to mention gobbling up the local broadcast rights to both new teams along with possibly knocking CBC off its block in 2015 & swallowing the National rights as well.
Theyre' on record as saying that the acquisition of MLSE is all about content.
...said Rogers’ president and CEO Nadir Mohamed, in a statement. “This investment fits squarely into our strategy of securing premium content...
“Bell's ownership in MLSE supports our promise to deliver the best content to Canadians across every screen”, said Bell and BCE president and CEO, George Cope. “With our advanced broadband network investments, next generation Bell TV, Mobility and Internet services, and leading sports networks TSN and RDS, the Bell team looks forward to bringing the Leafs, the Raptors, the Marlies and Toronto FC to fans in new and innovative ways."
Scotia Capital analyst Jeff Fan said the transaction makes sense in terms of sports broadcast rights, the fastest growing content cost category in North America.
“The transaction should help limit the impact of rising sports content cost on BCE and RCI and eliminates the risk of MLSE creating a regional sports network similar to YES or MSG, protecting the value of BCE's TSN and Rogers' Sportsnet”, he wrote in a research note on Friday.
Canaccord Genuity analyst Dvai Ghose concurred, though questioned the long term value for Rogers and Bell.
“(W)e have never seen a cableco or telco show discernible value from sports franchise ownership...
Bell President & CEO George Cope on Friday said, "We believe that increasingly live content is going to be more and more important in the technology world and there is no better live content than the professional sports." Cope and Mohamed indicated that they "will be able to deliver a variety of core programming as well [as] digital extras such as multiple camera angles that can be played on computers, tablets and smartphones" (CP, 12/10).
And just the other day, the CRTC approved the purchase...
As part of the approval, BCE and Rogers will be required to spend $7.5 million over the next seven years on new sports-themed programming by Canadian independent producers.
The federal broadcast regulator also repeated its assertion that companies are prohibited from offering television programs on an exclusive basis to their mobile or Internet subscribers.
"When deciding whether or not to approve a proposed ownership transaction, the Commission must be persuaded, in light of the application and the public record that an approval is in the public interest," CRTC chairman Jean-Pierre Blais said.
"In this case, we have been convinced that the transaction benefits Canadians as it will lead to the creation of new home-grown sports programming."
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