Saturday, March 21, 2015

Corus shares dip 10 per cent in waske of CRTC announcement

Shares in independent producers were under pressure Friday after the federal regulator ordered the unbundling of cable channels and mandated a basic service that is absent homegrown specialty offerings, the Star's Michael Lewis reports.
Corus Entertainment's B shares closed down more than 10 per cent at $18.41. Analysts said ye company faces valuation risk due to high exposure to specialty broadcasting, especially children’s programming.
Quebec’s TVA group is also seen as vulnerable while analysts said the integrated publicly traded distributors such as Bell Media can “manage” the earnings hit from a requirement that they cap basic bundles at $25 per month.
The Canadian Radio-television and Telecommunications Commission (CRTC) also announced Thursday that consumers will have the choice of selecting individual channels or small theme packs on top of the entry bundle once changes are phased in over the next 18 months.
The full story

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