Corus files complaint to CRTC over Rogers’ Disney, WBD deals

Corus Entertainment is alleging that Rogers has given itself undue preference after adding the Disney+ ad tier to existing plans.

Corus Entertainment is taking aim at Rogers Communications’ deals with the Walt Disney Company and Warner Bros. Discovery (WBD) in a complaint to the Canadian Radio-television and Telecommunications Commission (CRTC).

In a Part 1 application filing made public on Monday (Aug. 12), Corus alleged that Rogers has given itself undue preference and subjected Corus to an undue disadvantage, largely through Rogers’ deal to offer the ad-supported tier of Disney+ to Rogers TV customers.

The filing claimed Rogers’ Disney+ deal, as well as the multi-year licensing agreement with WBD for brands such as HGTV and Food Network, constitute a breach of section nine of the Broadcasting Distribution Regulations and condition of service two of the Conditions of Service for Carrying on Online Undertakings.

Corus alleges that Rogers has “actively favoured Disney+” over Corus’ three Disney-themed channels (Disney Channel, Disney Junior and Disney XD) in search results, promoted Disney+ under those channels’ listings in its electronic program guide, and “attempted to push traffic to the Disney+ ad-supported tier … for which [Rogers Sports & Media] manages advertising sales in Canada.”

The company claims the Rogers deals are “part of a larger, predatory strategy to ‘cut out the middle company,’ which affects all Canadian independent programming services.” The filing cited remarks from Rogers executives in a recent investor call, where they said that offering content through direct deals with studios is more cost-effective than channel subscriptions.

Corus also argued that Rogers has ignored expectations outlined by the CRTC in its approval of the Rogers-Shaw merger to “treat independent undertakings fairly.”

“Sadly, Corus has not kept up with the demands of Canadians and is now looking for the regulator to protect their broken business model while we’re focused on meeting our customers’ changing viewing habits,” said a Rogers spokesperson in a statement to Playback Daily. “This baseless complaint is designed to prevent us from providing Canadians with the content they want on their platform of choice. They’re trying to force service providers to carry and our customers to pay for channels they no longer want to watch. They need to compete in a fair system and earn each customer, just like every other company.”

The spokesperson also pointed to data disclosed by Bell as part of a separate undue preference/disadvantage complaint from WildBrain from last year. The reasoning for the complaint was redacted, as well as much of Bell’s response.

In its filing, Bell stated that linear viewership of children’s programming has declined by 68% since 2018-19, which Bell attributed to a large market shift to streaming.

Corus has stated that it will cut down on its investment in children’s programming, following a decision from the Commission to reduce its programs of national interest spend requirement to 5% of its annual revenue, from 8.5%. The company has also paused development at Nelvana amid ongoing layoffs.

The move is the latest in legal action around Rogers’ dealings. Bell filed for an injunction and damages against WBD and Rogers Sports & Media over the use of Discovery channels. Corus co-CEO Troy Reeb told investors last month that the company was actively exploring legal and regulatory avenues to fight the deal.

Image courtesy of the Walt Disney Company

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