‘It’s going to be pretty tough’ for TVA Sports, say industry insiders

TVA Sports is expected to struggle in a market dominated by RDS, but industry observers say the station has opportunities to carve out niche sports programming, or better yet, prepare the groundwork to potentially air NHL games in Quebec City. Last month the CRTC approved an application by Quebecor Media Inc. subsidiary TVA Group to operate TVA Sports, a French-language, high-definition Category 2 specialty channel that will compete directly with RDS, owned by CTVglobemedia Inc. In its application, TVA requested that the CRTC permit TVA Sports to broadcast Montreal Canadiens’ games. But the commission turned down the request, indicating that it wouldn’t interfere with a broadcasting contract between the NHL and RDS. In a release, TVA said the CRTC’s decision wasn’t fair, and that “it is false to assume that TVA Sports can depend on market forces” when CTVGlobemedia is an investor in the Canadiens. But industry observers say the CRTC got it right. “The deal’s done. The Canadiens are with RDS,” said Jeremy Filosa, commentator with CKAC, an AM radio sports station in Montreal. “I don’t think you can backtrack now. But when the contract’s up, I think it’s up to TVA to go to the Canadiens and say, ‘We think we have a better product for you.’” RDS has exclusive rights to the Canadiens hockey games until the end of the 2012-2013 season. Even then, TVA would probably have trouble getting the rights to broadcast the matches, said a financial analyst who requested anonymity. “In Canada, hockey dominates the ratings, and in Quebec, the Montreal Canadiens dominate the hockey ratings,” said the analyst. The analyst suggested that CTVglobemedia strategically invested in the Canadiens to protect its broadcast asset. “It’s going to be pretty tough for them to generate meaningful viewership without the Canadiens, and they’re never going to get the Canadiens," the analyst said of TVA. RDS told The Wire Report that the CRTC made the right decision. “Like the CRTC, we think the CRTC does not have anything to do with a deal between two private companies—the Canadiens and CTV,” said Claude Deraiche, RDS’ communications manager. TVA would not comment, saying its sports channel is too new to discuss. Parent company Quebecor plans to release its fourth quarterly results next week. One potential market for TVA Sports is the possibility of a new NHL team in Quebec. News reports say Pierre Karl Péladeau, Quebecor’s president and CEO, is considering investing in a hockey team. That would put Quebecor in a similar competitive position as CTVglobemedia, and give TVA Sports exclusive broadcast rights to a second NHL franchise in the province. Observers say Quebec is ripe for a two-team rivalry, harkening back to the matches between Quebec City’s Nordiques and the Canadiens. The Nordiques moved to Denver, Colo., in 1995, as the Colorado Avalanche. The TVA program La Série Montréal-Québec—a reality show focused on the development of two amateur hockey teams—may be feeding the province's desire for another NHL rivalry. “The fact that they have a reality series on hockey showing Montreal and Quebec is setting the table,” Filosa said. Failing Quebecor's involvement in a Quebec City NHL team, market watchers say TVA Sports should look beyond hockey if it wants to make a mark. “TVA needs to get an audience that RDS isn’t serving right now,” Filosa said. “They’re so hockey focused, they’re not paying attention to people interested in soccer, European football, major-league baseball. NFL is a target I think TVA should go after.” Deraiche said RDS has secured a number of major properties, broadcasting NHL and Canadian Football League games, the Super Bowl, tennis and golf. Deraiche said RDS is not disclosing its plans for competitive reasons, but the station is taking the new competitor seriously. “The CRTC has said it would like to open the sports market,” he said. “It’s not a surprise. We’re not worried, but we’re not over confident.” TVA could also corroborate on content distribution with sister company Videotron Ltd., which operates cable TV, wireless and broadband access services. “I’m sure what Videotron will do with TVA Sports is try as much as they can to position it to differentiate their soon-to-be-launched wireless and existing broadband services—to try to take as much exclusive content as they can and make it available to their wireless and broadband subscribers,” the analyst said. Observers say RDS, for now, won’t have to make many changes to maintain its lead. “They just have to keep doing what they’re doing,” the analyst said. “They have the number-one property. They have the brand in the marketplace ... and Videotron is never not going to carry them.” news@thewirereport.ca

‘It’s going to be pretty tough’ for TVA Sports, say industry insiders

News | 03/05/2010 3:39 pm EST

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