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RENEWAL ANNUAL INFORMATION FORM Fiscal Year Ended August 31 RENEWAL ANNUAL INFORMATION FORM Fiscal year ended August 31, 2007 Corus Entertainment Inc. November 28, 2007 RENEWAL ANNUAL INFORMATION FORM - CORUS ENTERTAINMENT INC. Table of Contents FORWARD-LOOKING STATEMENTS...............................................................................................3 INCORPORATION OF CORUS ...........................................................................................................3 Organization and Name............................................................................................................................................... 3 Subsidiaries and Affiliates ............................................................................................................................................ 4 GENERAL DEVELOPMENT OF THE BUSINESS ...........................................................................5 Historical Background.................................................................................................................................................. 5 Significant Acquisitions and Divestitures.................................................................................................................. 5 DESCRIPTION OF THE BUSINESS...................................................................................................6 Radio................................................................................................................................................................................ 6 Description of the Industry.................................................................................................................................. 6 Business Overview................................................................................................................................................. 7 Operating Strategy ................................................................................................................................................. 9 Competition Conditions....................................................................................................................................... 9 Television........................................................................................................................................................................ 10 Description of the Industry.................................................................................................................................. 10 Business Overview................................................................................................................................................. 12 Operating Strategy ................................................................................................................................................. 13 Competition Conditions....................................................................................................................................... 15 Content............................................................................................................................................................................ 16 Description of the Industry.................................................................................................................................. 16 Business Overview................................................................................................................................................. 16 Operating Strategy ................................................................................................................................................. 18 Competition............................................................................................................................................................ 18 ADDITIONAL INFORMATION CONCERNING CORUS’ BUSINESSES ......................................19 Intangible Properties..................................................................................................................................................... 19 Seasonality and Cycles .................................................................................................................................................. 19 Economic Dependence................................................................................................................................................ 20 Environmental ............................................................................................................................................................... 20 Employees ...................................................................................................................................................................... 20 Foreign Operations ....................................................................................................................................................... 20 Lending ........................................................................................................................................................................... 20 Bankruptcy...................................................................................................................................................................... 21 Reorganizations.............................................................................................................................................................. 21 Social or Environmental Policies................................................................................................................................ 21 Risk Factors.................................................................................................................................................................... 21 CANADIAN COMMUNICATIONS INDUSTRY – REGULATORY ENVIRONMENT ..................... 21 Canadian Radio-television and Telecommunications Commission ...................................................................... 21 Industry Canada............................................................................................................................................................. 22 Restrictions on Non-Canadian Ownership............................................................................................................... 22 Broadcasting Services................................................................................................................................................... 22 Radio Undertakings....................................................................................................................................................... 23 Specialty and Premium Television Undertakings..................................................................................................... 24 Local Television Undertakings.................................................................................................................................... 24 Pay Audio Services........................................................................................................................................................ 25 Cable Advertising Services........................................................................................................................................... 25 Canadian Content Requirement for Broadcasters ................................................................................................... 25 Film and Television Tax Credits and Grants............................................................................................................ 25 International Treaty Co-Productions ......................................................................................................................... 25 Competition Act Requirements .................................................................................................................................. 26 Investment Canada Act ................................................................................................................................................ 26 Copyright Act Requirements....................................................................................................................................... 26 CAPITAL STRUCTURE ........................................................................................................................27 Description of Capital Structure ................................................................................................................................. 27 Share Constraints........................................................................................................................................................... 31 2 Ratings............................................................................................................................................................................. 31 MARKET FOR SECURITIES................................................................................................................31 Marketplaces................................................................................................................................................................... 31 Trading Price and Volume........................................................................................................................................... 32 DIVIDEND POLICY..............................................................................................................................33
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