News Article: RDS is paying a whopping $68 million per year to Habs

Scriptor

Registered User
Jan 1, 2014
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RDS overpaying (?) for what they could keep in terms of Habs games is equivalent to the team of broadcasters (including Videotron) that overpaid for the remaining NHL rights (playoffs, weekend Habs and Canadian team games, etc…).

It's all in a larger war for their All Sports networks and their broadcasting fees charged to subscribers. Bell certainly used it's influence as a partner to be able to overpay for the games they got. An open bidding war would've seen Peladeau overpay for those as well and wipe Bell's French All Sports package off the map in Quebec.

I doubt Bell will lose money on the deal and, besides, the deal raises the value of their 18% participation in the Habs ownership group. It's a bit of a money shuffle that serves the greater purpose, the continued relevance of part of their broadcasting package (RDS) Bell gets royalties off of Videotron subscribers as well since they get RDS as part of the regular package….

A useless RDS package may have seen the channel dropped from the bundle…..

Now, RDS gets some royalties and Peladeau charges a premium to add TVA Sports for those who want weekend games for the Habs. Not a win-win for both but, under the circumstances, the best case scenario for Bell.
 

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