December 11th, 2024

Rogers says Corus’ business model ‘broken’ after being accused of ‘predatory’ action

By The Canadian Press on August 14, 2024.

The new Corus logo at Corus Quay in Toronto is photographed on Friday, June 22, 2018. THE CANADIAN PRESS/ Tijana Martin

OTTAWA – Corus Entertainment Inc. has filed a complaint with Canada’s broadcasting regulator alleging Rogers Communications Inc. is “engaging in predatory behaviour” to suppress potential competition.

In a July 26 letter to the CRTC, posted online in redacted form this week, Corus vice-president and associate general counsel Matt Thompson asks for regulatory intervention to prevent a “significant adverse impact” to the television and radio broadcaster.

Corus alleges Rogers is using its “dominant size and scale” to undercut Canadian competitors through rights deals to foreign programming, as evidenced by pacts with Warner Bros. Discovery for the rights to its popular lifestyle and entertainment brands and NBCUniversal’s Bravo channel.

It also accuses Rogers of using its cable and streaming platforms to discourage subscriptions to Corus content, such as its Disney-themed channels, by offering promotions for the Disney Plus streaming service.

In a statement, Rogers spokeswoman Sarah Schmidt called the complaint “baseless,” adding that Corus “has not kept up with the demands of Canadians and is now looking for the regulator to protect their broken business model.”

Schmidt says Corus is attempting to force customers to pay for channels they no longer want to watch and service providers to carry them.

This report by The Canadian Press was first published Aug. 14, 2024.

Companies in this story: (TSX:CJR.B, TSX:RCI.B)

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