Quebec’s television industry is about to lose a voice.
On Monday, the CRTC approved the proposed acquisition of Groupe Serdy, owner of French-language specialty channels Évasion (travel) and Zeste (food) by Quebecor’s Groupe TVA for $21 million.
The acquisition was challenged by V, on the grounds that TVA already has too much power in the market, but the CRTC said the increased market share would be minimal, and in any case still lower than the 45% limit above which it would normally deny such applications.
The application to transfer the licences was supported by dozens of interveners, including many producers.
In addition to $1.8 million in tangible benefits, split between the Canada Media Fund, the Quebecor Fund and Telefilm Canada’s Talent Fund, the transaction will also result in an increase in Canadian spending quotas for both channels, as they’re integrated into the TVA group licence. Évasion must spend 40% of its revenues on Canadian content, while Zeste has no quota. As a condition of approval, both must now come up to the TVA group quota of 45%. And 15% of their revenues must be spent on “programs of national interest” (scripted drama and comedy, documentary and award shows) for the TVA group.
A similar transaction, involving Bell attempting to buy Historia and Séries+ from Corus, was blocked by the Competition Bureau.