Tag Archives: CRTC

Posted in TV

Videotron appoints advisory council for MAtv

Two weeks after the fact, Videotron announced today that it has met the March 15 deadline set by the CRTC in February to set up an advisory committee for community channel MAtv in Montreal. The commission made the requirement in response to a complaint that MAtv was not properly representing the community it serves.

The nine-person committee, which will serve in an advisory capacity but won’t be making the decisions about what goes on air, is composed of members of the arts, business and cultural communities, as well as a member of the English-speaking community, which presumably means we should start seeing English programming on the channel some time soon.

The members are as follows:

  • Fortner Anderson, English-Language ARTS Network (ELAN)
  • Éric Lefebvre, Director of Development, Quartier des spectacles Partnership
  • Annie Billington, Coordinator, Communications and Community Relations, Culture Montréal
  • Martin Frappier, Director of Communications, Chantier de l’économie sociale
  • Marie-Pier Veilleux, Director, Strategic Forums, International Leaders, and Special Projects, Board of Trade of Metropolitan Montreal
  • Cathy Wong, President, Conseil des Montréalaises (consultative body on gender equality)
  • Philippe Meilleur, Executive Director, Montreal Native Community Development Centre
  • Aïda Kamar, CEO, Vision Diversité
  • Vanessa Destiné, student, Université de Montréal; regional coordinator, Communautique; volunteer, MAtv
Posted in Media, My articles, Radio, TV

CBC holding its first public consultation for English-language minority in Quebec

The CBC wants to hear from you, not just because it wants to, but because it’s required to by a condition of licence.

In fact, it’s the very first condition of licence for CBC’s English and French-language services in a new CRTC licence approved in May 2013: The public broadcaster has to consult with minority-language communities: Francophones in Atlantic Canada, Ontario, Western Canada and the North, and anglophones in Quebec. It has to happen once every two years and it has to be reported to the CRTC.

As CBC Quebec Managing Director Shelagh Kinch explains in this story I wrote for the Montreal Gazette, this is merely a formalizing of regular consultations the CBC did with anglophone community groups in Quebec and collection of audience feedback.

The consultation takes place Tuesday (Feb. 24) from 6:30pm to 8pm at Salle Raymond David of the Maison Radio-Canada in Montreal. You can also tune in via live webcast and participate on Twitter using the hashtag #CBCconsults.

In addition to Kinch and a panel of local journalists (All in a Weekend/Our Montreal host Sonali Karnick, C’est la vie host and political columnist Bernard St-Laurent, Shari Okeke and Raffy Boudjikanian, plus travelling journalist Marika Wheeler), there will also be two bigwigs from CBC who can make a real difference: Jennifer McGuire, editor-in-chief of CBC News (who is also responsible for local radio across the country) and Sally Catto, general manager of programming for CBC Television. (Sadly, there isn’t anyone from national CBC radio, nor is CEO Hubert Lacroix on the panel.)

The CRTC imposed this condition of licence among several changes in the last licence renewal to ensure CBC is fulfilling its mandate toward minority language communities that aren’t large enough to have commercial broadcasters catering to them. And while Montreal is big enough that we have four English TV stations and several commercial radio stations, the rest of Quebec is pretty underserved. The only major broadcaster catering to them directly is the CBC Radio One station in Quebec City.

So if you have some beef with CBC’s programming, or feel as though it needs to better reflect your reality, whether you live on the Plateau or in Gaspé, this is your chance to make yourself heard.

And yeah, the just-shut-down-the-CBC suggestion has already been made.

The Facebook event for the discussion is here.

I can’t make it because of a meeting I have to be at, so I won’t get a chance to ask why our public broadcaster took a pass on the only English-language Canadian scripted drama series that’s actually set in Montreal.

Posted in TV

CRTC finds MAtv failed to fulfill its community TV mandate, denies additional funding for English-language channel

In a victory for those who feel community TV channels run by cable companies are using loopholes to get around the spirit of the rules, the CRTC has ruled that Videotron’s MAtv community television channel has not complied with its obligations, but will be given a chance to do so.

In short, the CRTC agreed with the complaint by Independent Community TV, an independent group that wants to replace MAtv with its own grass-roots service, that MAtv isn’t providing enough community access programming, and instead counting shows created and hosted by professionals as access programs.

It also found some programs MAtv counted as “local” aren’t specific enough to Montreal.

The regulations require community channels to be 45% access and 60% local, but found MAtv was, during a sample week studied, only 30% access and 39% local.

The CRTC held up an application for an English-language version of MAtv in Montreal as it dealt with this complaint. That decision was also released today, and it allows Videotron to start up the service but denies the additional funding necessary to do so.

Cable companies start community channels because the CRTC allows them to deduct that funding from the 5% of gross revenues that they must spend on Canadian programming (mainly contributions to the Canada Media Fund). The rules allow up to 2% of gross revenues to be used for a community channel. But recently the CRTC has been allowing some companies to deduct a further 2% to create a second channel in another language — Rogers has this in Ottawa, Moncton, Fredericton and Saint John, while Bell has this for its Bell Local service in Montreal.

But because of the non-compliance, and because it felt MAtv already had enough funding, the CRTC says Videotron must start this new service without any additional funding. That severely lessens the chances of it happening.

In addition to a general requirement to come into compliance by the time its licence is up for renewal in August, Videotron must establish a citizen advisory board for MAtv by March 15.

The commission notes that the community TV policy will be reviewed in the coming year, and presumably the discrepancy between Videotron and Bell will be addressed through that.

I have reaction from the parties in a story in the Gazette. La Presse also has a story, as does Le Devoir, with commentary from ICTV.

You can read more background on this issue here and here.

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Posted in Opinion, TV

CRTC says Canadians will get to watch U.S. Super Bowl ads as of 2017

It’s a decision that surprises me somewhat, though it’s consistent with the more populist pro-consumer approach taken by chairman Jean-Pierre Blais: simultaneous substitution, the rule that allows Canadian TV stations to force cable companies to replace U.S. network feeds with their own when they air the same program simultaneously, will be eliminated — only for the Super Bowl, and only as of 2017.

It’s weird to make an exception for a specific event, but the Super Bowl really is an exception. It’s the only time during the year when people actually want to watch the U.S. ads, and every year it’s the most common complaint the commission gets from consumers.

But this decision comes at a cost. Bell Media pays big money for NFL rights. We don’t know how much, or how long those rights are for (it was a “multi-year” deal signed in 2013), but we do know that the Super Bowl had 7.3 million viewers on CTV last year, and the Globe and Mail says the network can charge up to $200,000 for a 30-second spot during the game. With about 50 minutes of commercial time available, that’s several million dollars in revenue at stake. (UPDATE: Bell puts it at about $20 million for each year until its contract runs out in 2019.)

It’s hard to say what the fallout of this will be. Bell Media buys NFL rights as a package, so it’s not as simple as saying they’ll just give up rights to the Super Bowl. And the rest of the season, including the January playoffs, are still subject to substitution, and that still means a lot of money for the network.

Some people have suggested that CTV could get creative as a way of keeping viewers. Offering value-added content, or getting Canadian advertisers to improve their ads. The network has certainly tried the latter, but the economics just don’t work in its favour. A national Super Bowl ad in the U.S. costs 20 times as much as it does in Canada, which means advertisers’ budgets are 20 times higher. And as for value-added content, CTV can’t compete with the big U.S. networks. Plus, this whole exemption is so that we can watch the U.S. ads. How does CTV show the game and the U.S. ads and find space for its own advertising without cutting anything off?

Medium-term, it will be interesting to see how this changes the economics of NFL rights. Will Bell get a discount on its next deal (or does it have a clause that gives it a discount on this deal if it extends beyond 2016)? Will the U.S. network broadcasting future Super Bowls have to pay more to the NFL because their ads make it into Canada now? And will that result in higher rates on the U.S. broadcast?

Or will any of this even matter in a few years when we stop watching linear TV the way we used to?

Quality control — and red tape

For the rest of the year, the CRTC decided it would put in place measures to punish broadcasters and providers who screw up substitution, resulting in Canadians missing programming. We don’t care about the U.S. ads during these times, but we do care if Saturday Night Live comes back late or the Oscars cut out early.

Blais said the commission would adopt “a zero-tolerance approach to substantial mistakes” which sounds like an oxymoron. Broadcasters who make mistakes could lose the rights to substitute programs in the future. Distributors who make mistakes would be forced to provide rebates to customers.

Those both sound great, but how do you manage such a system? The CRTC suggests it would be done through its usual complaint resolution process:

To ensure procedural fairness to all broadcasters and BDUs, the Commission’s findings on such matters will be determined on a case-by-case basis and in the context of a process during which parties will have an opportunity to present any explanation for the errors, including whether the errors occurred despite the exercising of due diligence by a broadcasting undertaking.

In other words, if you lose 30 seconds of a Saturday Night Live sketch, you’ll have to complain to the CRTC, who will then launch a proceeding asking the two sides for comment. The broadcaster and the distributor will proceed to blame each other, and a few months later issue a decision that might result in three cents getting deducted from your next cable bill.

This sounds like an awful lot of red tape and extra work for everyone involved.

OTA stays

In its other decision on local television today, the CRTC said it would not allow local TV stations to shut down their over-the-air transmitters while retaining all the privileges of local stations, such as simultaneous substitution and local advertising. To emphasize the point, Blais gave his speech in front of large TV receiving antennas that consumers can use (but most are unaware of) to get local stations for free.

Beyond a takedown of arguments by Bell and the CBC, there isn’t much to this decision. It essentially keeps the status quo intact. But the CRTC says it will look more closely at the issue of local programming when it reviews its community television policy in the 2015-16 year. The scope of this review will be expanded to look at local TV in general, and the implication is that the commission may get more serious about forcing local TV stations to be more local.

More coverage of today’s decisions from the Globe and Mail and Cartt.ca. You can also watch the livestream of Blais’s speech here.

Reaction

Kevin O’Leary says this decision is “completely insane”, for what it’s worth, saying the CRTC is working against Canadians and Canada is like North Korea or Cuba. You know, his usual understated style.

Michael Hennessy of the Canadian Media Production Association looks at the downside of this decision for the industry, both directly and indirectly.

Diane Wild of TV Eh? says the CRTC should eliminate simsub entirely so Canadian broadcasters are encouraged to create their own content.

Michael Geist defends the decision, pointing out that simultaneous substitution is on the out anyway and the Canadian television industry is already too reliant on the government.

Meanwhile, Bell apparently sought a private meeting with the commissionners to get them to reverse their decision, a request the CRTC turned down.

And at Cartt.ca, suggestions that this could be the beginning of the end of vertical integration in Canada.

Posted in My articles, Radio

CRTC denies CJLO transmitter at 107.9 FM

Vermont Public Radio fans in Montreal can exhale. At least for now.

On Monday, the CRTC denied an application from Concordia’s CJLO to add an FM retransmitter at 107.9 FM, which would block out VPR in downtown Montreal and an arguable radius around it.

But the commission makes it clear that objections from VPR and its fans had nothing to do with the decision: “because VPR operates a U.S. station, its station was not considered in the examination of this application.”

This is consistent with a previous decision allowing CHLT-FM in Sherbrooke to move to 107.7 FM despite interference problems it might cause VPR listeners in the townships.

Instead, the CRTC determined that CJLO had not presented a compelling technical need to get the new allocation, particularly since 107.9 would be one of the last frequencies available for a station in Montreal.

More about this decision below and in this story in the Montreal Gazette.

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Posted in Radio

CRTC approves purchase of CJMS 1040 AM

CJMS

CJMS 1040 AM St-Constant, Montreal’s French-language country music station, has been given the go-ahead for a new life.

On Thursday, the Canadian Radio-television and Telecommunications Commission approved a change in ownership of the station, from 3553230 Canada inc., a company owned by Alexandre Azoulay, to Groupe Médias Pam inc., owned by Jean Ernest Pierre. The latter also owns Montreal Haitian station CJWI 1410 AM, CPAM Radio Union.

The sals is for $15,000 plus an hour’s worth of advertising airtime a week for a year (52 hours total). Because it’s a purchase of a station that was losing money, and will require investments to bring it into compliance with its obligations, the CRTC did not impose additional tangible benefits on the transaction.

Much of what the station will look like under the new owners has already become evident. It launched new branding and a new website, and is simulcasting a news show from CJWI during rush hours (6-9am and 4-6pm weekdays). The new owners promise that the rest of the schedule will be unique to CJMS, that it will not air ethnic programming, and that it will continue to serve the community of St-Constant.

The new owner also told the commission that the plan is to modernize the music at CJMS and bring in more contemporary country.

The sale follows a bizarre hearing last year in which Azoulay blamed serious and repeated failures to comply with CRTC licence obligations on his father’s dementia, a statement that left commissioners dumbfounded.

The commission responded by imposing mandatory orders on CJMS requiring it to come into compliance with its licence, with the threat of contempt-of-court charges if they don’t. Those orders have been maintained under the new owner.

The change in ownership comes with a new licence and de facto renewal until Aug. 31, 2017. The three-year licence term reflects the fact that CJMS has repeatedly failed to meet its regulatory obligations.

Posted in Opinion, TV

24 myths about the CRTC, TV and Netflix

CRTC chairman Jean-Pierre Blais has had to answer for decisions that the CRTC hasn't made or positions it hasn't proposed.

CRTC chairman Jean-Pierre Blais has had to answer for decisions that the CRTC hasn’t made or positions it hasn’t proposed.

Over two weeks of CRTC hearings over the future of television in September, I monitored discussion over Twitter. And I saw a lot of crazy ideas being thrown out about the commission, some of which I might simply disagree with, but much of which is just plain inaccurate or misinformed. Since then, the volume has died down, but the same points keep getting brought up.

So to try to clear things up, here are some things people are saying about the CRTC and how television is regulated in Canada that could use a reality check.

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Posted in TV

Bell files CRTC complaint over GamePlus feature on Rogers NHL GameCentre Live

One of Rogers’s attempts to use its $5.2-billion NHL rights purchase to drive subscriptions to its telecom services has prompted competitor Bell to file a complaint with the CRTC.

The complaint is about GamePlus, a feature of the new Rogers NHL GameCentre Live online streaming app. While GameCentre Live is available to anyone for purchase (though free for Rogers customers until the end of the year), GamePlus is exclusive to Rogers Internet, TV, home phone and wireless subscribers. It offers additional camera angles like the ref cam (a camera mounted on a referee’s helmet), sky cam (a wide-view camera that goes up and down the length of the ice at the Air Canada Centre) and star cam (a camera always focused on an individual player).

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Posted in Radio

CRTC denies application for FM retransmitter for CHOU 1450 AM

Realistic pattern of the new CHOU retransmitter

Realistic pattern of proposed CHOU FM retransmitter

An application from Radio Moyen-Orient (CHOU 1450 AM) to improve its reception in St-Michel and St-Léonard by adding a 50-watt FM retransmitter at 104.5 FM has been denied by the CRTC.

The reasoning didn’t relate to interference with other stations, but rather the commission finding the station did not meet the requirement of showing a compelling technical need for a second transmitter. The commission found that many of the complaints about poor coverage came from areas at the edge or outside of CHOU’s secondary service contour, which were never expected to receive the station well, and that local interference to AM signals is to be expected.

The application only had one opposing intervention, from CHCR, the owner of FM ethnic stations CKDG 105.1 and CKIN 106.3. That group warned that the new transmitter would cause interference to CKDG and would impact their advertising. Both those arguments were essentially ignored by the commission because the two stations are far enough in frequency to not have any interference problems and because CHOU is already a licensed station and market issues have already been dealt with.

Interesting, though, is that the CBC, which owns CBME-FM-1 at 104.7, did not intervene in this case, even though there was a big potential for interference. This could open the door to another application for 104.5, provided it only interferes with 104.7 in the eastern part of the island where people could hear CBC Radio One better on 88.5 anyway. (Such a transmitter would still have to protect Boom FM at 104.1 in St-Jean-sur-Richelieu and Espace Musique at 104.3 in Trois-Rivières.)

Posted in Montreal, Radio

TTP Media says news-talk stations are six to nine months until launch

From left: Paul Tietolman, Nicolas Tétrault and Rajiv Pancholy, partners in 7954689 Canada Inc., aka Tietolman-Tétrault-Pancholy Media

From left: Paul Tietolman, Nicolas Tétrault and Rajiv Pancholy, partners in 7954689 Canada Inc., aka Tietolman-Tétrault-Pancholy Media

Every now and then people ask me about the Tietolman-Tétrault-Pancholy group, which has licenses for three high-power AM talk radio stations in Montreal, the first one granted in 2011, but hasn’t made any announcements in more than a year.

Rumours abounded that something was wrong. That the group had bitten off more than it could chew. That there was a problem with the three-way partnership and that one or more partners would be bought out by the others. It’s been a year since I posted a story because people were wondering what happened to them.

Now we have some more news. On Sept. 19, the CRTC approved applications from the group for extensions on the deadlines to launch its two news-talk stations, a French one at 940 AM and an English one at 600 AM, for another year.

Because the group had already asked for an extension on the 940 station last year, this extension is the last one the commission will give. If the station does not launch by Nov. 21, 2015, its license becomes void.

The English station, which was first approved in 2012, gets an extension until Nov. 9, 2015. That extension could be extended another year if needed, consistent with CRTC precedent on these matters.

The group also has a license for a French-language sports talk station at 850 AM. That licence was granted in June 2013, so they have until June 2015 to launch it or ask for a first extension.

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Posted in TV

CRTC approves making Videotron’s Canal Indigo bilingual as Viewers Choice PPV shuts down

Only 13 hours before Viewers Choice Pay-Per-View shuts down for good, the CRTC has approved an expedited application from Videotron to convert its Canal Indigo into a bilingual pay-per-view service to replace it.

The service would meet all of the regulatory requirements for bilingual pay-per-view systems, with one notable exception: Rather than adhere to a 3:1 ratio of English to French channels that is clearly designed for bilingual pay-per-view services operating in English Canadian markets, Indigo would reverse that ratio, offering four French channels for each English one, not including barker/preview channels. And it would offer at least two English channels. Videotron said in its application it planned to operate eight French-language and two English-language channels, which would fit its proposed ratio.

Since Videotron operates almost exclusively in Quebec, having more French channels makes sense for its pay-per-view service. The CRTC agreed, implementing the exception.

But it didn’t like the idea of reducing the number of channels that much. Indigo currently offers 11 standard-definition and three high-definition channels, while Videotron carries eight SD and one HD channel of Viewers Choice. Under Videotron’s proposal, the total number of PPV channels would drop from 23 to 10.

“So to maintain a number of signals comparable to that currently offered, the Commission requires that Indigo offer at least 3 English-language signals. With this minimum of English-language signals, Videotron must offer at least 12 French-language signals to meet the ratio. Accordingly, Videotron will be able to maintain a level of service comparable to that currently offered by its French-language service.”

(This whole system seems to be unnecessarily rigid. It’s one thing to impose minimum ratios to protect minority-language markets, but the ratio as it’s worded isn’t just a minimum, but a maximum as well. And setting a minimum number of English channels on top of that means the CRTC has imposed a minimum of 15 channels for Videotron’s pay-per-view service.)

English channels could start “very quickly”

The CRTC’s alteration of Videotron’s application is a bit of a curve ball. Videotron had already begun trimming Indigo, taking away six of its 11 SD channels. With this decision, it will need to start four of them back up (or start up four new HD feeds).

But adding English service to Indigo won’t take that long, Videotron president and CEO Manon Brouillette told me. For movies, “we already have all the rights in English,” she said. It’s just a question of getting deals done for PPV events like wrestling and UFC events. But “it wouldn’t be that complicated.”

With the rise of paid video-on-demand services on digital cable, the appeal of pay-per-view for events that aren’t live has diminished significantly. “When we look at the tendencies of consumption of cinema, it’s much more on demand,” Brouillette said. “So the Indigo channels, the rate of orders is not very high, it’s a segment in decline.”

“The potential for us, and the reason the channel is doing well financially, is because of events, sports, concerts, etc.”

Brouillette pointed to the Quebec City amphitheatre, which Videotron has a management contract for once it opens next year, with everyone hoping it will one day be home to an NHL team.

“There won’t just be sports in this theatre,” she said. “There will be concerts, events. We’d like to broadcast live shows on Indigo like we did for Céline Dion (on the Plains of Abraham in 2008). It’s an event channel.”

Videotron has a bit of time to get its English service running. It’ll be about three weeks until the next major UFC and WWE pay-per-view events.

Viewers Choice goes out with a whimper

There’s no big fanfare for the end of Viewers Choice, which began in 1991 and is being replaced by in-house services run by Bell and Rogers. On its straight-from-the-90s website, a simple notice is posted:

Dear Viewers Choice Customers — As of September 30, 2014 Viewers Choice Pay Per View will no longer be broadcasting.

Thanks to all of you for allowing us into your homes for so many incredible events and making the last 23 years successful and memorable

Sincerely, The Viewers Choice Team

The service’s programming will go dark starting around 10:30pm, and the last movies will end at midnight. Those final movies include Winter’s Tale, The Quiet Ones, The Grand Seduction, The Other Woman, Rise of an Empire and, of course, porn.

UDPATE (Oct. 23): Videotron has re-applied to the CRTC to reduce the minimum number of channels from three English channels to two (and hence French channels from 12 to 8). It argues that information the commission used in its decision was erroneous. The CRTC quoted Videotron’s website saying there were 14 French-language Indigo channels, but in fact there were only eight in use. This new application is open to comment until Nov. 21.

 

Posted in TV

Global News 1 would add 100 journalists, 8 new local newsrooms including Quebec City

Updated with a correction about stations being offered to participate.

After being tight-lipped about it for months, Shaw Media has made the first announcement about its plan for a new national news channel called Global News 1, first mentioned in a CRTC filing in June.

In a press release issued Monday, Shaw Media says it has submitted its application for the new all-news channel to the CRTC (which hasn’t published it yet, so we don’t have details). The timing is deliberate, coming just after the commission concluded its Let’s Talk TV hearing. Reeb said the submission was made several weeks ago, but Shaw wanted to wait until the proceeding was over to respect that process.

Hybrid format

Shaw explains its unique blend of national and local news this way:

Global News 1 will feature a national newsfeed bookended by local news segments tailored specifically for each of the markets it serves. Using next-generation technology, the service will be framed by a continuous data feed of hyper-local headlines and community events. With the ability to cover live, breaking news at the local, regional or national level, Global News 1 will be like no other service on the dial.

Shaw says that each of the 12 markets with owned-and-operated Global stations (Vancouver, Kelowna, Calgary, Edmonton, Lethbridge, Regina, Saskatoon, Winnipeg, Toronto, Montreal, Saint John, Halifax) will have its own feed, but there will also be eight additional communities getting “local newsrooms” — places with “either no local television news or limited competition”:

  • Fort McMurray, Alta.
  • Red Deer, Alta.
  • Sault Ste. Marie, Ont.
  • Niagara, Ont.
  • Mississauga, Ont.
  • Ottawa, Ont.
  • Quebec City, Que.
  • Charlottetown, P.E.I.

And on top of that, “Shaw Media is also proposing to open the channel to eight small-market, independent broadcasters who would have the opportunity to add their own local content to the service and retain all local advertising in their markets.”

Troy Reeb, senior vice-president of Global News, tells me these stations are:

  • CKPG in Prince George, B.C. (Jim Pattison Group) — City affiliate
  • CFJC in Kamloops, B.C. (Jim Pattison Group) — City affiliate
  • CHAT in Medicine Hat, Alta. (Jim Pattison Group) — City affiliate
  • CKSA/CITL in Lloydminster, Alta./Sask. (Newcap) — CBC and CTV affiliates, respectively
  • CHFD in Thunder Bay, Ont. (Dougall Media) — already a Global affiliate
  • CHEX in Peterborough, Ont. (Corus) — CBC affiliate
  • CKWS in Kingston, Ont. (Corus) — CBC affiliate
  • CJON in St. John’s, N.L. (NTV)

(An earlier version of this post also listed CHEK in Victoria, B.C. Reeb actually referred to CHEX, the Corus station. CHEK is not on the list because it competes directly with Global B.C.)

Reeb specifies that there has been no discussion with these stations. Rather, the offer is being made because Global does not want to compete with them. “We didn’t want to threaten any of the small stations that are already struggling,” he said. “We didn’t want to go in and say hey we’re going to open up a competitor. We’re looking for a solution not just for us but for the system overall.”

Assuming it adds all of these stations, that would mean up to 28 different markets getting a hybrid national/local news channel.

Notably absent from this list is CJBN, a station owned by Shaw (but separate from Shaw Media, its acquisition predated the Global purchase) in Kenora, Ont. Its tiny market and limited local programming means it doesn’t have the resources to contribute to this service, Reeb said.

Reeb told me that, if the proposal is approved, Global would add about 100 journalists across the country, between those working at the regional newsrooms and those working nationally. This would mean about a half-dozen people working in each regional newsroom.

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Posted in Radio

Two new radio stations to launch in Montreal region by end of 2014

The last regulatory hurdle to the Montreal area getting its newest commercial radio company has finally been passed. On Thursday, the CRTC approved a technical change for CHSV-FM Hudson/St-Lazare, a new English-language music station first approved two years ago.

As a result, it and a sister station, Radio Fierté (approved in 2011), will launch by the end of 2014, owner Evanov Communications says.

Former (orange line) and new (red line) pattern of CHSV-FM 106.7 Hudson, with interference zones of 106.9 Ottawa (Jump) and 106.7 Burlington, Vt. (The Wizard)

Former (orange line) and new (red line) pattern of CHSV-FM 106.7 Hudson, with interference zones of 106.9 Ottawa (Jump) and 106.7 Burlington, Vt. (The Wizard)

CHSV-FM 106.7 St-Lazare (The Jewel)

Evanov (through its subsidiary Dufferin Communications) had applied for the change to CHSV-FM because the Bell tower it had planned to use in Hudson had run out of space and would have required expensive upgrades to support another antenna.

So Evanov proposed to move to a Rogers-owned tower on Chemin Sainte-Angélique near Rue des Liserons, about 5.3 kilometres southwest of the Bell tower. In order to still cover Hudson, the change also meant a power increase, from 500W to 1420W average ERP.

Some competitors, such as CJVD Vaudreuil (a French-language station which serves the same region and wanted to use CHSV’s frequency) and Groupe CHCR (which owns CKIN-FM 106.3 in Montreal and was worried about interference), objected to this change as deviating from what was originally approved.

But the CRTC didn’t buy those objections. While the new pattern is significantly stronger toward the west and southwest, it is about the same toward Montreal, and so can’t be seen as some back-door way into getting into the Montreal market. And the situation that led to the application, and the proposed solution to it, are perfectly reasonable.

In its application, Evanov said the station, which will carry easy-listening music and the Jewel brand used at six other stations in Ontario and another in Winnipeg, would be ready to launch “within weeks of approval as all our other infrastructure and equipment are in place.”

Carmela Laurignano, vice-president and radio group manager for Evanov, said they won’t waste any time now. “It is our intention to get started on making preparations next week. It will require us to schedule installation of the transmitter, going through a testing phase to satisfy all requirements by Industry Canada and then sign-on air. We expect to be signed on by Christmas!”

When it does go on the air, for testing and then at launch, The Jewel in Hudson will cover the western off-island area, Ile Perrot, areas on the north shore around Oka, and the extreme West Island. Areas further than that may be able to pick up the station, but may experience interference from WIZN (The Wizard) from Burlington, Vt., or CKQB-FM (Jump) in Ottawa. Reception from downtown Montreal or points east of there will be very difficult because of interference from both WIZN and the Boom FM station at 106.5 in St-Hyacinthe.

CHRF 980 AM Montreal (Radio Fierté)

Evanov is also the licensee of Radio Fierté, a new French-language AM station serving Montreal’s LGBT community. The station was approved in 2011 on TSN Radio’s former frequency of 990 AM. Last December, the CRTC approved a technical change for that station, moving it to 980 AM and allowing it to have a less restrictive pattern at night.

Radio Fierté has proposed a mixed music and talk format. It’s based on Proud FM (CIRR-FM), an English-language station in downtown Toronto. Because Fierté is on AM, it will likely be more focused on talk.

Though they operate in different languages, in different cities, and have different formats, Radio Fierté and The Jewel will share overhead, including management. So this CRTC decision allows Evanov to move forward on both stations.

Laurignano said Radio Fierté should be on the air by mid-November.

Posted in Radio

CPAM owner agrees to buy CJMS 1040 for $15,000, keep it country

Almost a year after a bizarre CRTC hearing in which the owner of CJMS 1040 AM in St-Constant blamed the station’s failure to meet its regulatory obligations on his father’s dementia and announced before a surprised panel of commissioners that the station had been sold to an unnamed buyer, the details of that transaction have been published by the commission.

The CRTC has called a hearing for Nov. 12 (a technicality; the parties aren’t being asked to appear) to discuss two applications related to CJMS: Its licence renewal, which was in grave danger of not being accepted because of the repeated management failures, and a proposed sale of the station to Jean Ernest Pierre, the owner of CPAM Radio Union (CJWI 1410 AM), the Haitian community station in Montreal.

The identity of the buyer is no surprise. The two stations share an antenna in St-Constant, and after the CRTC hearing, during which CJMS’s lack of news was brought up as an issue, the station began simulcasting morning and afternoon programs from CJWI.

Documents filed with the commission show that Alexandre Azoulay, who owns CJMS, agreed on Oct. 9, 2013 (a month before the hearing) to sell it to Groupe Médias Pam Inc., a company entirely owned by Pierre, who is also the sole owner of CPAM. The purchase price is $15,000, as well as an hour a week of airtime for a year, for Michael Azoulay’s talk program connected with his family’s chiropractic business.

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Posted in TV

CRTC approves V’s purchase of MusiquePlus/MusiMax

The last piece of the Bell-Astral divestments was approved today by the CRTC: the sale of MusiMax and MusiquePlus to V Media, the owner of the network formerly known as TQS.

Even though the sale has only been approved now and hasn’t yet closed, the companies are already acting as if it’s a done deal. V and MusiquePlus/MusiMax are promoting each other, to the point where a new MusiquePlus show is a behind-the-scenes look at a show on V.

The purchase price is $15.52 million. In 2007, Astral bought a 50% of these two channels from CHUM Ltd. for $68 million, giving them a value of $136 million.

In order to raise money to pay for the channels, V itself will take on new investors: The Caisse de dépot et placement du Québec and the Fonds de solidarité FTQ will each take a 15% stake in V Media (which also includes the conventional TV network). A third “institutional investor” will take another 15% stake, and the Rémillard family will retain the other 55%, with the possibility of raising that stake up to 59% of the company performs well.

The board of directors of V would be composed of four representatives of Remstar and one representative each of the three 15% investors.

Licence changes — more flexibility, but not too much more

As part of the transaction, V had asked for some amendments to the licences for the channels. Some of them relate to the fact that they’re no longer owned by large media companies (particularly a requirement to spend a percentage of that group’s revenue on so-called “programs of national interest”). Others are meant to give them more flexibility in programming.

V had proposed that MusiquePlus and MusiMax have a minimum requirement of 75% of their programming be devoted to music-related programming. Currently MusiquePlus has a 90% requirement and MusiMax has no minimum. The CRTC didn’t like that number and imposed an 80% requirement for both services.

V wants to use comedy, a genre that isn’t being exploited much in French-language television (there’s no French equivalent to the Comedy Network), to draw audiences to MusiquePlus, particularly in its target demographic of people age 18-34. For MusiMax, it’s lifestyle and reality shows to draw women 35-54. But it also says it wants to have more live musical performances in studio, and more concert programs.

There were also proposals related to program categories. Both services can now include “music video programs” in the 30% of their programming month they have to devote to pure music video programs. This would allow them, I believe, to add a count a program like Cliptoman (MusiquePlus’s version of Much’s Video On Trial, where comedians make fun of music videos) toward that quota.

V also proposed to reduce the Canadian content exhibition requirement from 55% of the broadcast day and 55% of the evening (6pm to midnight) period to 45% for those two periods. The CRTC also felt this was too much, and decided on 50% for both periods for both services. This is still higher than services like Canal D and Historia, which have profit margins around 50%.

In terms of Canadian content spending, the CRTC agreed with a 31% level for the services combined, so that it must spend 31% of its revenue on Canadian programming, just slightly above what it was before.

Finally, MusiquePlus and MusiMax also have a special condition that requires them to pay 3.4% and 5% of their revenues respectively to MaxFACT, a fund that helps create and produce Canadian music videos. V proposed to create its own fund, the Rémillard Fund, that would take this money instead. The CRTC approved of this, provided it is satisfied with the new fund’s operations and independence.

Sale valued at $22.9 million, includes ad revenue guarantee

The sale price is $15.5 million, but comes with a guaranteed ad buy of up to $1.5 million (excluding commissions), which brings the net price down to $14 million. There’s also a guaranteed ad revenue floor for two years.

These guarantees make determining the actual value of the transaction difficult, because how much it will actually be depends on certain factors.

According to documents submitted in the application, the guarantee of at least 80% of 2013 revenues, or about $6.6 million a year, would last until August 2016. But this would be adjusted if viewership drops by more than 5%.

The contract also allows V to cancel the ad buy and get half of that, or $750,000.

On top of this, Bell Media would also sell third-party ads for these two services and V, for which it would earn a commission. That commission has minimums and maximums that put it in the high six-figures annually.

In fact, Bell Media would become the exclusive ad agency of MusiquePlus and MusiMax until August 31, 2016. V would be able to enter barter agreements and other exchanges, but actual ad sales would have to go through Bell.

As if that didn’t sweeten the deal enough for V to take over the money-losing services, Bell also agreed to pay off an outstanding debt imposed on Astral in 2007 when it bought the 50% of the company that owns the networks from CHUM Ltd. (which at the time also owned MuchMusic). This is $40,476 a month to be paid to the Harold Greenberg Fund. But since those payments ended Aug. 31, it’s a moot issue.

The CRTC didn’t agree that the guaranteed ads should be deducted from the purchase price, calling it “the normal course of business”. Adding in things like assumed leases, the CRTC evaluated the total value of the transaction at $22,872,086.

Hope for a turnaround

Because of the tangible benefits policy that requires that 10% of the value of the transaction goes to funds and projects that benefit the broadcasting system, V now has to propose a new tangible benefits plan. The CRTC has given them 30 days to do so. (It notes that it recently changed some policies relating to tangible benefits, and this proposal should follow those new guidelines.)

The acquisition makes sense both for V and for the two struggling music channels. The Rémillard family bought TQS out of bankruptcy in 2008, and while the decision to effectively abandon all news programming was very controversial at the time, it also helped them bring the network into the black after decades of bleeding money.

Now, people are hoping that they can do a similar turnaround with MusiquePlus and MusiMax. MusiquePlus made $867,851 in pre-tax profit in 2012-13, but lost almost $6.5 million in the four previous years. MusiMax is in the black, but has had a pre-tax profit margin of under 1% over the past three years.

The drop in revenue has come with a drop in ratings. MusiquePlus went from a 1.1% rating overall in 2006 to a 0.7% share in 2012. Both services have seen drops in subscriptions as well, of 10% for MusiquePlus and 13% for MusiMax in only three years.