BCE ruling buoys Rogers by Chris Zelkovich

by Chris Zelkovich

Do not adjust your TV sets: The CTV Sportsnet picture is just as fuzzy as ever.

Of course, Rogers Communications Inc., which has coveted the all-sports specialty channel since it was orphaned when federal regulators ordered CTV to sell its 40 per cent stake in Sportsnet last March, is claiming otherwise.

When the Canadian Radio-television and Telecommunications Commission, or CRTC, approved BCE Inc.'s purchase of CTV yesterday, Rogers stood by its assertion that this would open the door for it to claim ownership of Sportsnet.

"Obviously it looks like the commission is allowing BCE, a distributor, to own content and that assists us in our interest in Sportsnet," Rogers spokesperson Jan Innes said.

The fact that the CRTC later said it would soon open up a discussion on the contentious issue of cable companies owning specialty channels was held up as further proof that Rogers is only steps away from finding a home for its latest acquisition, the Toronto Blue Jays.

"We take that as a real positive sign," said Janet Yale, president and chief executive of the Canadian Cable Television Association, which incidentally, gets a third of its revenues from Rogers.

At issue is the CRTC's policy of refusing to let cable giants like Rogers and Shaw Communications Inc. own more than 30 per cent of any analog TV channel. The fear is that, with a limited number of non-digital channel positions, the cable guys could be tempted to favour their own properties.

The CRTC contends that allowing BCE, which counts Bell ExpressVu satellite systems among its many assets, to own CTV and its specialty channels (TSN, Discover, The Comedy Network) is a different matter because satellites operate digitally. That means an almost unlimited number of channels, meaning less opportunity for favouritism.

The cable companies dispute that.

Yale even proposed last month that if the CRTC is so concerned about such influence, cable firms would agree to cease and desist from changing a channel's location or its packaging without CRTC approval.

At first glance, it appears the CRTC may be considering the possibility of bending.

"With the issuance of new digital channels and the whole universe changing, it's time for us to look at this," CRTC spokesperson Denis Carmel said.

"Could it lead to changes? Possibly."

That may or may not mean anything.

"Nothing they did with BCE is inconsistent with what they've done in the past," said Ian Morrison, spokesperson for the non-profit lobby group Friends of Canadian Broadcasting, which opposes cable ownership of channels. "The CRTC is not going to roll over and play dead for Ted Rogers."

But even if the CRTC opens the door for cable companies to control both content and delivery, Rogers isn't quite ready to walk into the room yet.

There's the sticky little problem of dealing with CTV, which has been reluctant to turn over its orphaned child to Rogers.

Relations between the two companies are so bad that Rogers wrote to the CRTC last month, urging it to force CTV to get serious about selling Sportsnet.

It's also possible that someone else might sneak in the door first. Corus Entertainment Inc. might be more to CTV's liking as a potential customer.

Then there's the issue of Rogers, a 29.9-per-cent stakeholder in Sportsnet with the right of first refusal. If Rogers doesn't see much chance of the CRTC changing its mind, it may hook up with a partner that could claim control of Sportsnet.

That could be CanWest Global, which is looking for some sort of sports content-sharing deal.

Then there's the CBC, Alliance-Atlantis Communications Inc. and a host of others that have expressed interest.

You'd better get used to that fuzzy picture.

© The Toronto Star