CBC board approves international distribution deal

(CBC) - The CBC's board of directors has approved a deal to sell the public broadcaster's international sales arm to content distribution company Fireworks International.

In a teleconference on Wednesday, the board had its first official meeting with new CBC president Hubert Lacroix and, among other issues, discussed and then approved the controversial sale.

The financial terms of the deal were not disclosed.

The deal comprises the sale of the international rights to 135 active titles - encompassing about 700 hours of programming - to Fireworks, a division of British-based ContentFilm.

"We believe this represents a significant win for CBC, for Canadian taxpayers and for the producers, actors and others who have a stake in the programming, which will now have an opportunity for greater exposure and sales internationally," Lacroix said in a statement.

"Under the terms of the agreement, benefits will continue to accrue to rights holders of the programs, including the CBC."

Richard Stursberg, CBC's executive vice-president of English services, added that the decision was made after considering a host of issues, "including financial consideration that fully values the assets, the fact that it would minimize business disruption, be the best solution for affected employees and give us a strong partner moving forward."

Announced on Dec. 18, the deal provoked protests from Canadian producers and distributors who objected to the fact that CBC management did not give domestic firms a chance at a deal for the catalog.

Also, industry members have taken issue with the fact that the CBC-Fireworks deal was announced days before a Toronto-based firm - Peace Arch Entertainment - announced a takeover bid for parent company ContentFilm.