Fagstein » CKX-TV http://blog.fagstein.com Can you think of a better name? Thu, 09 Feb 2012 22:54:01 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 CKX, the TV station nobody wanted http://blog.fagstein.com/2009/10/03/ckx-shuts-down/ http://blog.fagstein.com/2009/10/03/ckx-shuts-down/#comments Sat, 03 Oct 2009 20:12:23 +0000 Fagstein http://blog.fagstein.com/?p=7090

The final moments of CKX-TV (the complete newscast starts here).

The news came suddenly: Bluepoint Investment Corporation said on Thursday that it would back out of a deal to buy CKX-TV in Brandon, Man., from CTV. CTV, which had threatened the station with closure if it couldn't find a buyer, didn't waste any time, announcing that Friday's newscast would be its last and the station would go off the air at 7 p.m. All 39 employees are now unemployed, and the community of Brandon is left without a local commercial television station (only the cable community channel, and a community station in nearby Neepawa). While the Brandon Sun still provides reporting for the community, television news for the entire province of Manitoba now originates from Winnipeg.

The news is devastating and humiliating for CKX, which had been a pawn in a bad-faith sarcastic deal negotiated by way of newspaper advertisement between CTV and Shaw. The latter said it would buy the station and two others from CTV for $1 to convince the CRTC that local television did indeed have a profitable future. Then, when Shaw took a look at the stations, it decided it wasn't such a good investment after all.

In July, the station's hopes were raised again when Bluepoint came on the scene, with what seemed like a more serious offer (though for the same nominal amount of $1). But Bluepoint has come to the same realization as Shaw: small-market TV stations aren't worth it.

Bluepoint's official excuse is that they couldn't get carriage guarantees from satellite companies, and since most people in the area get their TV that way, they desperately needed that. I'll leave it as an exercise for readers to determine how much of the decision was satellite coverage and how much was Bluepoint realizing the true economics of conventional TV.

So CKX is off the air, its website replaced with a thank you message and a link to CTV's "Local TV Matters" site (as if a message to everyone that more stations will fall unless local TV is saved). CTV had two stories on the closure, both of which mention the larger issue of conventional television and fee-for-carriage.

For those keeping score, here's how the CTV and Canwest stations threatened with closure this year stand:

That's three stations sold, two kept running and three shut down.

You may not agree with fee for carriage, or that the conventional television model is even broken, but small-market stations are closing down, and nobody is moving in to even rescue them from the trash heap.

CKX logo

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]]> http://blog.fagstein.com/2009/10/03/ckx-shuts-down/feed/ 2 Mixed news at small Global, CTV stations http://blog.fagstein.com/2009/07/22/global-ctv-small-stations/ http://blog.fagstein.com/2009/07/22/global-ctv-small-stations/#comments Thu, 23 Jul 2009 01:57:08 +0000 Fagstein http://blog.fagstein.com/?p=6330 Canwest closes two, sells two, rebrands one

After putting the five conventional television stations comprising its secondary E! network (formerly CH) on the block for a "strategic review", the results are in:

Get the news from your favourite source:

The decisions mean the end to the E!/CH network.

CTV closes one, sells one, keeps one

Meanwhile, after Shaw backed away from buying three CTV stations for $1, there is similar mixed news at those stations:

This leaves six A-channel stations left, including CHWI and the cable-only Atlantic A network.

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]]> http://blog.fagstein.com/2009/07/22/global-ctv-small-stations/feed/ 8 CRTC Roundup: They saved local TV! http://blog.fagstein.com/2009/07/07/crtc-roundup-lpif/ http://blog.fagstein.com/2009/07/07/crtc-roundup-lpif/#comments Tue, 07 Jul 2009 22:33:05 +0000 Fagstein http://blog.fagstein.com/?p=6104 Well, not quite.

The CRTC on Monday decided to hike the fee (temporarily, at least) for its Local Programming Improvement Fund from 1% to 1.5% of cable and satellite provider revenues (revenues, not profits), which would give broadcasters an additional $32 million a year ($100 million total in the new fund) to devote to local programming.

You can see all its arguments in the official decision. It's less than the 2.5% that a parliamentary committee suggested in June.

It's a victory for broadcasters and a defeat for cable and satellite companies (and probably consumers). CBC is happy. Canwest is happy. CTV is happy. Bell is sad. Cogeco is sad (PDF). Rogers is sad. Videotron is sad. Bill Brioux is annoyed.

Especially when you consider how much the television industry is already subsidized through mandatory fees from cable and satellite companies (now 6.5% of their revenues) and funding from the government, all without us having a say in programming, you have to wonder whether it's all worth it.

Best of all, the broadcasters say they need more.

The CRTC also released its conditions of license for one-year renewals for the major networks:

Many of the decisions below come from these renewals.

Finally, the CRTC has kicked the fee-for-carriage can (which was in turn kicked to them by a parliamentary committee) and other issues down the road to a hearing in September, where it will discuss that and other issues affecting broadcast television. The indication, however, is that the CRTC supports a fee-for-carriage idea, provided the fees are negotiated with broadcasters and cable/satellilte companies.

Harmonized local programming minimums

And how much more local programming will we be getting for all this extra money? We won't! In fact, we're getting less! Thanks to new "harmonized" minimum requirements, most stations in the country will now have to produce less local programming.

For English-language stations, the minimums will be 14 hours a week for large markets (Toronto, Ottawa, Edmonton, Calgary, Montreal, Vancouver), and seven hours a week for smaller markets (including Halifax, Hamilton and Victoria), with some exceptions. This will mean reductions for CKMI (18 hours a week) and CFCF (15.5 hours a week). Stations with really high requirements might see massive cuts and layoffs. CHCH Hamilton, for example, has dropped from 36.5 hours to only seven, though they're going to make a go at more local programming, at least in the short term.

For French-language stations (effectively just TVA since TQS has a special exception), it's on a case-by-case basis:

  • CFCM (Quebec City): 18 hours a week, down from 21
  • CFER (Rimouski): 5 hours a week, up from 3:10
  • CJPM (Chicoutimi): 5 hours a week, up from 3:10
  • CHLT (Sherbrooke): 5 hours a week, up from 3:10

Independent stations owned by Radio-Nord (TVA Gatineau) and Télé Inter-Rives (SRC/TVA/TQS in Rivière du Loup, TVA in Carleton) maintain their current requirements.

Note that for French markets, only Montreal is larger than a million and is ineligible for LPIF funding.

In the same decision, the CRTC also rejected requests from broadcasters to eliminate requirements for priority programming (expensive dramas) and independent production (as opposed to in-house).

Global Quebec is now Global Montreal

After again rejecting union complaints that Global's produced-out-of-Vancouver plan violates local programming requirements for Global Quebec (not saying it wasn't in violation, only that there is "insufficient evidence" and it will "continue to monitor the situation"), the CRTC has approved a request to change CKMI from a Quebec City-based regional station to a local Montreal-based station.

CKMI-TV was once based in our provincial capital, but since it was purchased by Canwest and turned into a Global station it has effectively been headquartered in Montreal, with retransmitters in Quebec City and Sherbrooke (technically, the transmitter was in Quebec with a retransmitter, CKMI-TV-1, in Montreal). Global Quebec was licensed as a regional station, which meant it couldn't take any local Montreal advertising. The license change makes it a local station which opens up that door (as small as it is) and allows the station to compete directly with CFCF and CBMT for local advertising.

A similar move was made for CIII, which is de facto Global's Toronto station but was technically licensed to Paris, Ontario, which is west of Hamilton.

CJNT keeps ethnic minimum

A request from Canwest to relieve money-losing ethnic station CJNT Montreal of its ethnic programming requirement was denied. Canwest wanted 5 hours a week, but will be stuck at the original 13.5. Since the station is being sold, it won't sadden Canwest too much to lose this battle.

Mandatory digital transition (or not?)

The CRTC recognized that some broadcasters are lagging behind in transitioning to digital. U.S. broadcasters were forced to make the switch last month (in a deadline that was delayed from February), but Canadians have until August 2011. The CRTC's decision doesn't suggest that this deadline will change for smaller markets (though it suggests perhaps a "hybrid model" may emerge), but it does say it "expects" that major markets will make the transition. It released a list of markets larger than 300,000 it "expects" will do so without complaint, and says it will discuss the issue further in September. The list includes Montréal, Quebec, Trois-Rivières, Sherbrooke, Rivière-du-Loup, Saguenay, Ottawa-Gatineau, territorial and provincial capitals and large cities across Canada. Essentially any market with more than one station.

The issue (which also includes whether there should be U.S.-style subsidies for converter boxes) will be dealt with again in September.

CTV-Shaw rejects get renewed

Even though Shaw's offer to buy them has fallen through, the CRTC has renewed licenses for CKX-TV in Brandon, Man., CHWI-TV in Wheatley/Windsor, Ont., and CKNX-TV in Wingham, Ont., for another year, despite CTV's request that they be terminated. They're still expected to shut down in August, although CTV says it is "reviewing" CHWI in light of the new funding. UPDATE: CTV says it will continue operating CHWI until Aug. 31, 2010. CKNX will be converted into a retransmitter, and CKX is still being shut down.

Other CTV stations which had the bare minimum of local programming have been relicensed as strictly retransmitters only:

  • CKCO-TV-3 Oil Springs (Sarnia), Ont.
  • CFRN-TV-3 Whitecourt, Alta.
  • CFRN-TV-4 Ashmont, Alta.
  • CFRN-TV-6 Red Deer, Alta.

No copy-copy

Separate requests from Canwest and Rogers to allow them to duplicate content on E!/Global and City/OMNI respectively were denied by the CRTC. The stations (CHAN-TV Vancouver/CHEK-TV Victoria, CIII-TV Toronto/CHCH-TV Hamilton, and City/OMNI pairings in Toronto, Calgary, Edmonton and Vancouver) are currently limited to 10% overlap since they are stations with the same owner in the same markets. Requests to be relieved of that restriction were denied.

City stays special

In addition to allowing more overlap between City and OMNI, Rogers asked to be allowed to redirect "priority programming" money (money for expensive Canadian dramas) into local programming, and remove an unusual requirement at City to air Canadian feature films. Both were denied. The Globe has a story.

CHOI News Talk?

RNC Media has applied to the CRTC for a license amendment for CHOI-FM in Quebec City, which would change it from an alternative rock format to 50% spoken word. CHOI has a rather rocky past with the CRTC.

Radio was doing OK last year

The CRTC has released financial statistics of Canadian radio stations (taken as a whole). Looking at all of Canada and Quebec in particular, the numbers are fairly stable on both sides of the balance sheet. Of particular note is AM radio in Quebec, which shows significant losses year after year while the rest of the country just about breaks even.

Asians Asians Asians!

Asian Television Network has gotten approval for a slew of new specialty channels:

Another two networks - ATN Multicultural Channel and Commonwealth Broadcasting Network - were denied, as their nature was judged to be too broad for a specialty service.

ATN announced on Tuesday that nine channels, including some of the ones above, will premiere on Rogers Cable in the fall. The channels are being renamed to more interesting names.

CHEAR!

Ultimate Indie Productions has received authorization to start a specialty channel devoted to emerging Canadian Artists called CHEAR! (and CHEAR! HD)

Ashes to ashes, SCREAM to DUSK

Corus is rebranding its SCREAM! horror channel to DUSK, and expanding its niche to include "paranormal" and "supernatural" stuff that might not be so scary. I guess this means more X-Files? The change takes effect on Sept. 9 (09/09/09, as if that's scary or paranormal or something).

In other news

  • TVA got a slap on the wrist (hell, not even that) for failing to meet expectations regarding airing of Canadian films and closed-captioning. The CRTC "expects" they'll meet those requirements in the future, or else they're going to get a sternly-worded letter, I guess.
  • The Globe and Mail is reporting that Al-Jazeera English may be close to approval as a specialty channel.
  • CPAC has gotten approval for a license amendment that would allow it to broadcast non-CPAC-sounding stuff like music on Canada Day every year. Now it can let loose in an explosion of patriotism on July 1.
  • Vision TV has given up and is now asking viewers to figure out its programming.
  • Cogeco has asked to move its transmitter for CFGE-FM (Rhythme FM) in Sherbrooke and increase its transmitter power to improve reception.
  • MusiquePlus has gotten authorization to hand over its 3.4% of revenues required for the production of Canadian music videos to MaxFACT instead of VideoFACT. The difference is mainly that MaxFACT is what MusiMax gives its money to and this would simplify things for them. The request got an intervention from ADISQ which was concerned that there would be less money for youth-oriented music videos as well as those from Quebec anglophones. MusiquePlus responded that it has no control over the procedures used by MaxFACT to allocate it money.
  • The CRTC is mad at CHRC in St. Catharines for violating a number of conditions of its license. There is, of course, no actual penalty associated with such violations as long as you promise not to do it again.
  • The Canadian Broadcast Standards Council has dismissed a complaint against CJMF-FM in Quebec City regarding a promotion related to driving while on a cellphone. The CBSC concluded that the station was not, in fact, advocating that people drive while illegally talking on a cellphone without a hands-free device.

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]]> http://blog.fagstein.com/2009/07/07/crtc-roundup-lpif/feed/ 7 Shaw renegs on promise to save TV stations http://blog.fagstein.com/2009/06/30/shaw-wont-buy-ctv-stations/ http://blog.fagstein.com/2009/06/30/shaw-wont-buy-ctv-stations/#comments Wed, 01 Jul 2009 00:13:17 +0000 Fagstein http://blog.fagstein.com/?p=6089 Hey, remember a couple of months ago when Shaw said it would buy three endangered CTV-owned stations for $1 each in what seemed like the most insincere offer in the history of mankind?

Yeah, turns out it was a giant bluff. After going over the books for the three stations, Shaw determined that they are, indeed, losing quite a bit of money and it's not worth the CRTC brownie points and good PR to sink more cash into the stations. CTV issued a brief statement Tuesday afternoon saying Shaw reneged. Media outlets have repeated the statement, but Shaw and CTV aren't commenting further yet, and the stations can't comment because they don't know what's going on.

This comes (coincidentally?) on the same day Canwest announced it will offload two stations onto Channel Zero.

So CKX-TV in Brandon, Man., CHWI-TV in Wheatley (Windsor), Ont., and CKNX-TV in Wingham, Ont., go back to being endangered and unless another buyer can be lined up they won't last past the summer.

The optimism they had when the deal was announced now flies right out the window.

UPDATE: Canadian Press is the only outlet that finally tracks Shaw down to get comment. They say they expected real television stations but saw hollowed-out shells where much of the work was done in London and Toronto. Meanwhile, CTV says it will keep CHWI running for another year after getting more money from the CRTC.

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]]> http://blog.fagstein.com/2009/06/30/shaw-wont-buy-ctv-stations/feed/ 1 Worthless stations sold sarcastically for $1 (UPDATE: NOT!) http://blog.fagstein.com/2009/05/02/worthless-stations-sold-sarcastically-for-1/ http://blog.fagstein.com/2009/05/02/worthless-stations-sold-sarcastically-for-1/#comments Sat, 02 May 2009 05:45:23 +0000 Fagstein http://blog.fagstein.com/?p=5289 This post has been updated. See below.

I feel bad for the people at three television stations: CKX-TV in Brandon, Man., CHWI-TV in Wheatley (Windsor), Ont., and CKNX-TV in Wingham, Ont.

The background

In February, CKX found out that owner CTVglobemedia was putting it up for sale. The station is actually a private CBC affiliate, running mainly CBC programming, but the CBC decided not to renew its affiliation agreement which sees the public broadcaster pay the station to air its programming. So CTV offered to sell the station to CBC for the nominal price of $1. CBC refused, because the cost of operating the station outweighs its potential for earnings or its usefulness. Without someone to take it over, the station would be shut down.

At CHWI and CKNX, both underperforming A-Channel stations in southern Ontario, it was the same deal. CTV would not renew their license, and the stations would be shut down when their current licenses expire in August.

Although I don't doubt that these stations were losing money, there was also a political reason for pulling the plug. CTV was about to step in front of the CRTC and ask for a third time that it require cable and satellite distributors to pay conventional broadcasters to carry their over-the-air signals. The argument is that the advertising model for conventional TV is broken, mainly because of the proliferation of specialty cable channels who get advertising and subscriber fees, and don't have to produce local programming.

Announcing that it would close these stations was a "See what you're doing?" move intended to be an example for what could happen across the network if the CRTC refused.

Similarly, Canwest Global (my employer) said it was looking at "exploring strategic options" for its secondary E! network, which includes Montreal's ethnic station CJNT. That's managementese for "they're up for sale," though it wasn't a firm commitment to sell or shut down.

The fact that these both involve secondary network stations, which tend to get second-rate U.S. programming, isn't a coincidence.

Some communities have taken it upon themselves to save their stations. In southwestern Ontario, rallies are planned to convince CTV to change its mind. In Hamilton, a "Save CHCH" campaign that would put the E! station in community hands.

Cable and satellite providers, meanwhile, aren't crazy about this fee-for-carriage idea. In a bid to get consumers on their side, they say they'd just pass the fees on to them instead of eating in to their record profits. They also argue that conventional television broadcasters are exaggerating their financial situation, which they argue will recover when the current recession ends.

Shaw's move

So on Thursday, CTV's Ivan Fecan was before the CRTC using these three stations as examples of how the conventional television model was broken, adding that it might reconsider closing CHWI-TV if additional money were to come through.

Shaw Communications (which owns a single television broadcasting station but more importantly a large cable company and the direct-to-home satellite network StarChoice) decided that it would try to shut CTV up by offering to buy the stations for $1 each.

As part of the move, Shaw bought a full-page ad in Friday's Globe and Mail to make its case:

Shaw ad in the Globe and Mail (May 1, 2009, Page A6)

Shaw ad in the Globe and Mail (May 1, 2009, Page A6)

It certainly doesn't mince words. Not only does it repeat the "hostage" and "ransom" metaphors, it bolds them.

Of course, the ad is misleading in two ways:

  • This would not be a direct tax on consumers. It would be a direct tax on Shaw. It would be an indirect tax on consumers if Shaw chose to make it that way.
  • Shaw's contribution to Canadian programming is not by choice. As a satellite provider, it's required to contribute to the Canadian Television Fund and to a community service.

CTV's response

The Globe interviewed Shaw (who said its offer was genuine), and CTV got wind of the plan somehow (either because the Globe asked it for comment, because Shaw let CTV know of the offer or because CTVglobemedia owns the Globe and the advertisement was shown to head office). So it immediately agreed to the sale, took out a half-page response ad facing Shaw's and hastily put this together:

CTV ad in the Globe and Mail (May 1, 2009, Page A7)

CTV ad in the Globe and Mail (May 1, 2009, Page A7)

Well, OK. I guess that makes it official. Though both sides will have to sign contracts and get approval from the CRTC for the change in ownership.

In a press release issued at the same time, CTV CEO Ivan Fecan was similarly sarcastic:

"I think it's great. We've accepted their offer of $1 per station. Cable is rolling in money and can obviously afford to underwrite the losses. Good for them. I'm sure they will live up to the existing conditions of licence placed on these stations which is wonderful news for the employees and for the people of Windsor, Wingham and Brandon."

And that, ladies and gentlemen, is how three Canadian television stations were sold though sarcastic press releases and mean-spirited newspaper advertisements.

Shaw says the same offer is on the table for Canwest's five E! stations, including CJNT. But Canwest says Shaw hasn't talked to them directly.

A genuine offer?

So there is rejoicing in Windsor and Brandon (subscription link), though they're not quite sure what to think of it all.

After all, Shaw could have stepped up two months ago, but it didn't. Shaw has no interest in running TV stations. It just wants to embarrass CTV and Global and convince the CRTC not to approve fee-for-carriage.

Canadian Press analyzes the move, which it says could be a win-win if Shaw succeeds at creating a lean operation that draws a modest profit. The Globe and Mail's Derek DeCloet also suggests that this move is a transparently ungenuine one solely designed to ward off more expensive carriage fees.

Anything is better than a shutdown, and an acquisition by Shaw is a mild decentralization of broadcast television. So even though there will be inevitable layoffs, there is hope for these communities.

I just wish these stations, and the dozens of jobs they represent, weren't tossed around angrily like worthless pawns in a high-stakes game of media chess.

UPDATE: The Globe reports that neither CTV nor Canwest have received so much as a phone call from Shaw.

UPDATE (June 30): Two months later, CTV announces that Shaw will not, in fact, buy their stations. So it was all a giant bluff after all.

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