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The CRTC approved an application permitting the TVA Group to operate a new Category 2 specialty television station, TVA Sports, which will compete directly with RDS.
The licence will allow TVA, a subsidiary of communications giant Quebecor Media Inc., to broadcast TVA Sports in high-definition for a seven-year period.
In its application, the TVA Group requested the right to play Montreal Canadiens hockey games.
RDS, a division of CTVGlobemedia, has paid about $20 million a year for exclusive French-language television rights to Montreal Canadiens hockey games until the end of the 2012-2013 NHL season.
The commission decided it was "not convinced that it would be appropriate to intervene in existing private contractual relations."
The decision means the CRTC will not force RDS to give up the rights to games.
Quebecor Media owns cable provider Videotron, which is likely to carry the new TVA Sports channel.
"Contrary to what the CRTC says, it is false to assume that TVA Sports can depend on market forces to negotiate broadcast rights when there exists a situation of undue preference given that CTVGlobemedia, owner of RDS, is an investor in the Montreal Canadiens hockey team," a French language release from TVA said.
Source: The Wire Report, 02/26/2010
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