Becoming the Broadest-caster: The Regulatory Hurdles of Canada’s Radio Deal of the Decade

Becoming the Broadest-caster: The Regulatory Hurdles of Canada’s Radio Deal of the Decade

In July 2013 The Canadian Radio-Television and Telecommunications Commission (CRTC) approved an unprecedented merger between Bell Canada Enterprises (Bell Media) and Astral Media. Bell Media, a telecommunications giant, bought Astral’s radio, television and outdoor advertising properties for $3.8 Billion (CAD) in Canada’s largest ever purchase of legacy media by any company. To meet strict ownership regulations Bell Media would auction ten popular English radio stations while gaining several new stations in French speaking Canada from Astral, a key motivation behind the takeover strategy. The deal met plenty of resistance, first from incumbent broadcasters and eventually by the CRTC, who shut down Bell Media’s first application on the grounds that the transaction was not in the interest of Canadians. Bell Media significantly restructured their second proposal to include substantial benefits to Canadian radio and the broadcasting industry as a whole, pleasing both regulators. The merger confirms the coveted position that traditional content represents in a highly unstable and unpredictable digital media environment.