Canadian Media Giants Play Musical Chairs With Popular U.S. Brands Amid Streaming Competition

Warner Bros. Discovery Moves Canadian Rights To Popular U.S. Brands

 

The Canadian media landscape is undergoing a significant transformation as Warner Bros. Discovery (WBD) reshuffles the rights to some of the most popular U.S. lifestyle brands. Major players like HGTV, Food Network, and OWN are moving from Corus Entertainment and Bell Media to Rogers Media and Sports. This strategic realignment is part of a broader effort by Canadian broadcasters to adapt to the rapidly evolving television industry, driven by the relentless rise of streaming services like Netflix.

A Competitive Media Environment

At the recent upfront presentations in Toronto, Canadian broadcasters showcased their latest U.S. series acquisitions. However, beneath the surface, these networks are fiercely competing to keep pace with the shifting landscape. Increased cord-cutting and a persistent downturn in linear TV advertising revenue are pushing local players to chase viewers online with expensive American series to remain competitive against giants like Netflix.

Major Realignments in Canadian Broadcasting

Ahead of the Banff World Media Festival, WBD struck deals to transfer popular lifestyle and entertainment brands from Corus Entertainment to Rogers Media and Sports. This move includes channels like HGTV, Food Network, Cooking Channel, Magnolia Network, and OWN. Corus, however, retains the kids' channels Adult Swim and Cartoon Network. Additionally, channels such as Discovery, Motor Trend, Science, Animal Planet, and I.D. will shift from Bell Media to Rogers.

These multi-year deals, particularly with Rogers, which lacks its own streaming platform, will see these channels integrated into NBCUniversal’s Bravo channel, launching in Canada later this year. This reshuffling aims to enable local broadcasters to follow TV viewers online and target Canadians who prefer catch-up viewing on streaming platforms.

Strategies and Statements from Industry Leaders

Executives at Rogers Media and Sports have been tight-lipped about their deal-making. However, network president Colette Watson stated, “We’re evolving our business to reflect where consumers are going, bringing the best mix of U.S. and Canadian content to audiences in the way they want to watch it. This investment also advances our position as a strong Canadian broadcaster that can compete with foreign streamers.”

Bell Media, which operates the CTV linear TV network and its Crave streaming platform, emphasizes acquiring U.S. shows that can also be offered on Crave. Justin Stockman, VP of content development & programming at Bell Media, mentioned, “Anywhere where we could get Crave rights for series we were buying for CTV, we did. So you’ll see this year we picked up more Crave rights than we have in previous years.”

The Impact of Streaming Giants

The advent of streaming services like Netflix and Amazon Prime Video has significantly impacted Canadian TV networks. Ad revenues have shifted from traditional TV to online video platforms, and Canadian broadcasters, lacking the scale of major U.S. studios and networks, are struggling to survive and thrive in this new era.

Canadian broadcasters are pivoting from serving cable customers to increasingly focusing on online TV viewers and subscribers. This shift is essential for surviving the effects of cord-cutting and a weak linear TV ad market. Troy Reeb, executive VP of networks and content at Corus Entertainment, noted, “They [American streamers] have caused a disruption in the ad market, just as they did in the subscription television market, and that creates new competitive challenges for us.”

Adapting to the New Media Landscape

To counter competition, Corus offers Stack TV and partners with Pluto TV in Canada. This partnership aims to fend off new rivals like Netflix and Prime Video, which are introducing ad-tiers that cut into ad revenue previously directed to Canadian broadcasters. Reeb highlighted the challenge of securing and renewing digital rights from major studios that are expanding globally with their streaming platforms.

Despite these challenges, the transition has a silver lining. As Reeb explained, “The bigger our streaming ambitions have gotten with Stack TV, the more we have seen people watching TV in the old school way.” This means that Canadian networks can still attract viewers by airing U.S. series in sync with the U.S. primetime schedule and then offering catch-up viewing online.

Conclusion

The realignment of American channels in Canada represents a crucial step for local broadcasters to adapt to the streaming era. By securing popular U.S. brands and expanding their digital offerings, Canadian networks are striving to remain relevant and competitive in a landscape dominated by streaming giants. As these networks navigate the complexities of digital rights and viewer preferences, the future of Canadian broadcasting will undoubtedly continue to evolve.

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Source: Hollywood Reporter

Photo Credit: Courtesy Of Warner Bros Discovery

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