Shaw 2012 Annual Report Download - page 17

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
including acquisition costs. Also during 2010, the Competition Bureau cleared Shaw’s
acquisition and the Ontario Superior Court of Justice issued a sanction order approving the
related consolidated plan of compromise, arrangement and reorganization. In late October 2010
the CRTC approved Shaw’s application to assume control of Canwest’s broadcasting business
and the outstanding portions of the acquisition closed on October 27, 2010. The total
consideration, including debt assumed, was approximately $2.0 billion.
In 2011 the Media results were equity accounted until October 27, 2010, at which time the
balance sheet and results of operations were consolidated.
The acquisition of Shaw’s Media business included the Global Television Network (“Global”)
and a leading portfolio of Specialty services. Technology is driving change in the Canadian
Broadcasting system, transforming content distribution and viewership. This strategic
acquisition allows Shaw to unite broadcasting services and content with its advanced
distribution platforms to offer customers strong choices in this rapidly evolving landscape.
The Canadian television broadcasting market is comprised of a number of English, French, and
third language stations and services that operate in different segments of the market. The
“Conventional” broadcast sector includes government owned public networks, such as the
Canadian Broadcasting Corporation (“CBC”), as well as privately owned station groups and
networks, such as Global and the CTV Television Network (“CTV” owned by BCE Inc.). The
“Specialty and Pay” sector includes Specialty television services, such as Showcase, History,
HGTV Canada, TSN (owned by BCE Inc.), and Sportsnet (owned by Rogers Communications
Inc), which provide special interest programming including news, sports, arts, lifestyle and
entertainment programming.
Global reaches 96% of Canada’s population through 12 over-the-air (“OTA”) conventional
television stations. Global offers a programming mix of entertainment programs and news that
includes hit programs such as Bones, Glee, NCIS:LA, Hawaii Five-O, Rookie Blue and the
reality series Survivor and Big Brother. Global offers news through its early-evening network
newscast Global National and delivers local news programs to a number of markets. Global
expanded its news line-up in 2012 with the launch of morning news programming in Toronto,
Regina, Saskatoon and Winnipeg, and plans to launch morning news programming in Montreal
and Halifax in 2013.
The Specialty television services owned and operated by the Media division comprise 18
channels, including Showcase, History, HGTV Canada, Food Network Canada, Slice and
TVtropolis. The Company also has an interest in several non-operated channels including two
French language specialty television services and one English language specialty television
service. In 2012, Media launched National Geographic Wild, a channel dedicated to wildlife
programming, and rebranded two existing channels as Lifetime and H2. Media also acquired
the remaining equity interest in Mystery during the year. Media plans to launch a dedicated 24
hour all news Specialty channel in the province of British Columbia in 2013.
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