Tag Archives: CTVglobemedia

CRTC Roundup: Details on CJNT/CHCH sale

The CRTC has called a hearing for Aug. 24 to hear Channel Zero’s proposal to buy CJNT Montreal and CHCH Hamilton. The application includes some goodies we didn’t hear about in the announcement in June.

The purchase price for both stations is $12, specifically:

  • Land $3.00
  • Buildings $3.00
  • Other Fixed Assets $3.00
  • Goodwill $3.00

The stations would be financed through a loan of $4 million from CIBC and Brian C. Hurlburt, and $3 million from Channel Eleven. That would go to increasing the size of CHCH’s newsroom and creating a new production facility at CJNT, plus eventually changing both stations to digital.

Canwest can pull out of the deal if CRTC approval is not given by Aug. 31. Channel Zero expects the CRTC will make a decision on the same day as the hearing, I guess.

The proposed programming grid for CHCH would be as follows:

  • Weekdays: News and local progamming from 5:30am to 7pm, followed by two movies, news from 11-12, a repeat of the prime-time movies and a really-late-night movie from 4am to 5:30am
  • Weekends: News and local programming from 6am to 1pm, followed by two movies, a one-hour 6pm newscast, two more movies, a one-hour 11pm newscast, and then three repeats of movies shown that day

The proposed programming grid for CJNT would look like this:

  • Local ethnic programming in the morning and during the evening supper hours (four hours a day total)
  • Music videos during the day
  • International ethnic movies during prime time
  • Movies (it’s not clear if this would be ethnic or not) overnight

On how they’ll bring the stations to get rich quick modest profit:

A short answer is that we will, if the application is approved, focus each of these stations on their core competency; news and local programming at CHCH and relevant and local multi-cultural programming at CJNT. We will not be relying on expensive first run U.S. programming and therefore we can bring the stations to modest profitability in a relatively short time frame.

A table of financial projections optimistically shows CJNT showing a profit as early as fiscal 2011, mainly due to the assumption that local advertising sales will have more than tripled by then, from $1.2 million a year to $4.3 million, despite the fact that they’re replacing first-run U.S. shows by less-expensive movies in prime-time.

Similarly, ad sales at CHCH are expected to recover to $43 million a year (on par with pre-recession levels, optimistic since more than 80% of that advertising came from non-news programming which Channel Zero would be getting rid of), which combined with spending $30 million a year less on programming expenses, and the CRTC’s new taxes on cable companies, would result in seven-figure profits beginning in fiscal 2012. Without its projected $4 million a year from fee for carriage (it predicts a “75% likelihood” for that “by 2011”), the station would stay in the red until 2014.

Channel Zero is also asking for changes to the licenses for CHCH and CJNT. Among them:

  • Deletion of a requirement for CHCH to have a minimum level of “priority programming” (things like Canadian dramas and news magazines). It argues such requirements are not asked of small stations, only of large broadcast groups.
  • Deletion of a requirement at CHCH for an independent monitoring committee, since these are related to Canwest’s cross-ownership of various media which Channel Zero does not have
  • Deletion of a requirement for CHCH to air four hours a week of described video (with the understanding that the station would use described video where available)
  • Removal of a requirement for CHCH to have distinct programming from Global’s CIII-TV Toronto, which becomes moot if CHCH isn’t owned by Canwest.
  • Deletion of a requirement for CJNT to make sure 25% of its films are Canadian (Channel Zero argues there aren’t enough foreign-language Canadian films to make that feasible – and it will abide by other Canadian content requirements)
  • Deletion of a requirement for French-language non-ethnic programming. Canwest twice asked to be relieved of this requirement, and was turned down twice by the CRTC. Channel Zero argues the station must focus on one market for non-ethnic programming, and the French market is already saturated here. It’s hard not to agree with that logic.
  • Increase in minimum requirements for local ethnic programming from 13.5 hours to 14 hours per week

The Canadian Media Guild’s Lise Lareau looks a bit skeptically at Channel Zero’s plans for CHCH in Hamilton, notably the requested license amendment to remove the requirement to air Canadian dramas and movies in prime time.

UPDATE: The CHCH union, which has agreed to support the sale in principle, is grieving Canwest’s plan to wind up its pension plan before the sale.

Campus/community radio review

The CRTC is undergoing a broad-based review of its policies for campus and community-based radio stations. Among the questions it’s asking:

  • Should campus and community stations be treated differently?
  • Should high school stations be licensed?
  • What kind of programming requirements should they have?
  • Should low-power “micro” radio stations be licensed or exempt from license?
  • How much advertising should they be limited to?

The deadline for comments is Sept. 11. The hearing is Nov. 30 in Gatineau.

Not so bold

After being slapped on the wrist for violating terms of license, the CBC has made good on its promise to request an amendment to change the nature of its specialty channel known as Bold. Formerly called Country Canada, the channel was licensed as a network for rural Canadians from a “rural perspective”, but since its transformation into bold (they don’t capitalize the B, so as to remain edgy or something) it’s basically been a network to throw leftovers at. It airs everything from drama reruns to soccer games.

The CBC’s argument for the change boils down to this:

There is insufficient programming from a “rural perspective” to program the service.

Sorry farm people, but you’re just not interesting enough for a whole channel, even with Heartland and Corner Gas.

New programming categories

Since the CRTC announced that it would allow specialty networks access to all programming categories when asked, they’ve gotten some requests for exactly that.

Astral Media is asking for access to all programming categories for Canal Vie, Canal D, Historia, MusiMax, VRAK.tv, Ztélé and MusiquePlus

TVA has received approval for Les idées de ma maison to air up to 10% animated programming. Argent and Mystère have access to a slew of new programming categories, everything from religious programming to feature films and music videos, so long as they fit with the channels’ themes and don’t compete with other networks and don’t go above 10% of the broadcast day. Prise 2 also gets categories added (see below)

Prise 2 must keep its CanCon

Prise 2 can now air TV programs that are as little as 10 years old (the previous minimum was 15) and movies as little as 15 years old (previously it was 25), as well as access more programming categories (documentaries and live sports, limited to 10% of the broadcast day). A request to reduce their CanCon requirement from 35% to 30% was denied.

Télé-Québec, Canal Savoir stay on the air

While the major networks (TVA, CTV, Global) got one-year license renewals as they sort out that fee-for-carriage thing, the smaller non-profit networks are being renewed for the full seven years.

CFTU (Canal Savoir) has been renewed for seven years with no changes to its conditions of license (except a reminder that it will need to transition to digital by August 2011).

CIVM Montreal (Télé-Québec) and its retransmitters across Quebec were also renewed until 2016, with some considerations about representation of minorities but otherwise no changes.

Corus gets more steamy

Corus Entertainment has come to an agreement to buy Sex TV and Drive-in Classics, two specialty channels, from CTVglobemedia. The next day Corus reported a $145-million quarterly loss. Last year Corus bought CLT from CTV and rebranded it VIVA.

In other news:

Low on cash? Just ask the gummit

The federal government, apparently spooked enough by Canwest and CTVglobemedia’s cries that the mediocalypse is here, is reportedly considering a $150-million fund that would help small-market television stations. This would be in addition to the Local Programming Improvement Fund which has the same goal.

As much as I’m not a fan of consumers paying for local TV stations they already get for free, even that would be preferable to a government bailout with who knows how many strings attached.

CRTC roundup: broken television

Canadian television network breakdown

The big news this week is the release by the CRTC of submissions from major Canadian private television broadcasters whose licenses are up for renewal in August. This includes CTV/A, Global/E!, TVA, Sun TV, Citytv and OMNI. (TQS is the notable exception since it had its own dealings with the CRTC after it went bankrupt).

The CRTC has suggested having one-year license renewals (instead of standard seven-year ones) and dealing with the TV financial crisis in the meantime. The networks have gone along with that and are recommending status quo until August 2010.

The private networks (especially CTV Globemedia and Canwest) are re-repeating all of the please-give-us-money talking points they’ve been sending toward the CRTC for years now, including bringing up their pet project of forcing cable and satellite companies to give them money for putting their free over-the-air channels on their systems, mainly because they can’t find a way to make a profit off advertising and say the system is broken.

Among their other money-grabbing and money-saving ideas:

  • More access to the new Local Programming Improvement Fund (deigned to help with local programming at small-market stations) by expanding them to larger markets (Canwest even argues that CJNT Montreal should have access to the fund even though it doesn’t provide any local news.)
  • Having the ability to own their own production companies instead of being forced to use independent production houses
  • That the proposed 1:1 ratio of spending on Canadian vs. non-Canadian programming is “not viable” because it would mean cutting back on the very thing that is generating the revenue to keep the networks afloat (and besides, CTV argues, they’ve already signed contracts for the 2009-2010 broadcast year)

Canwest proposes a “5 and 10” rule that would require 5 hours a week of local programming for stations serving markets of under a million viewers, and 10 hours a week for stations serving markets of over a million. Since most Canwest stations already have local programming requirements far in excess of 10 hours a week, this would save it a lot of money. (It counts only four stations as being in large markets – even Global Quebec is considered small because it only counts English-speaking viewers, which means it would drop from 18 hours a week of local programming to only five)

Even Quebec’s TVA, which does plenty of local (or at least regional) programming, wants to cut back. It’s asking to reduce the amount of local programming at its Quebec City station from 21 hours a week to 12 UPDATE: They now say they only want to cut it to 18 hours a week.

Canwest even proposes going further than its continued demand for money from cable companies, and throw out some new ideas that nobody has suggested before, including:

  • Non-simultaneous substitution, which would replace U.S. signals with Canadiens ones showing the same programming, even if they’re not being broadcast on both channels simultaneously.
  • Banning commercial advertising from CBC
  • Government assistance for digital conversion
  • Tax cuts

UPDATE: More coverage from the Globe and Mail, which also looks at how much the networks are spending on Canadian versus foreign content.

Canwest wants Global Quebec to become Global Montreal

As part of its submission to the CRTC on license renewal, Canwest said it wants to convert only primary transmitters of its 15 major stations to digital by 2011, and as part of that it wants to convert regional networks Global Ontario and Global Quebec into local stations in Toronto and Montreal, respectively. CKMI-TV is actually based out of Quebec City (and also serves the Eastern Townships through a transmitter in Sherbrooke), but all its programming, including its newscasts, originate in Montreal.

The change wouldn’t affect programming but would allow CKMI to attract local advertisers, even though Canwest says they would not be taking advantage of this much.

CTV wants to pull the plug on CJOH-8

In its submission to the CRTC, CTVglobemedia put forward a long list of television transmitters it said it would not apply for licenses to renew past August. Included in that list is a retransmitter for CJOH Ottawa in Lancaster, Ont., on Channel 8. Montrealers and off-islanders with good TV antennas will note that this transmitter serves southwestern Quebec since it is just across the border. Shutting the transmitter down means those near the Ontario/Quebec border will have to tune into CJOH’s Ottawa transmitter or CFCF-12 in Montreal.

The Obituary Channel?

The CRTC has granted approval for a regional Quebec cable channel called Je me souviens, which will be devoted essentially to obituaries and related public notices. The CRTC did not agree to a request to carry local advertising in addition to the obits, however.

The channel (which is a private venture unconnected to the major broadcasting companies) is interesting because it’s an original idea and because it’s a regional network (most cable networks are national in order to reach as broad an audience as possible).

But if Astral Media couldn’t keep its TATV shopping channel on the air, does a regional channel of nothing but obituaries stand a chance?

UPDATE: I see CJAD reads this blog.

Pay up, CFAV

The CRTC has denied a request from Laval radio station CFAV 1570 AM, which wanted to be excused from the $8,000 a year it has to pay to promote Canadian artists. Its excuse is that it’s not making a profit. The CRTC says rules are rules.

Rogers wants carte blanche on OLN

Rogers has asked for some very radical amendments to its license for the Outdoor Life Network (OLN). Among them, it wants to be able to use sitcoms, comedy shows and animated shows, reduce its restriction on televising live sports, and reduce requirements for Canadian content. The proposal was so radical it caught the eye of the Globe and Mail.

TVA wants carte blanche on specialty channels

Speaking of radical amendments, TVA has filed requests to add more programming categories for three of its specialty channels: Mystère (mystery), Argent (financial news) and Idées de ma maison (home/living). While some might make sense in a world where various forms of programming blend together (say, a game show about science), it’s hard to see some of these categories as being requested solely so that TVA can stretch the envelope and provide programming that has only a tenuous connection to the mandate of the channel.

Among the categories they’d like to add:

  • Religion programming
  • Professional and amateur sports, including live sporting events
  • Drama, sitcoms, comedy programming, animated programs
  • Music videos

I’m all for flexibility, but can you imagine a program that has music videos about mysteries? Or a sitcom about financial news?

The Weather/Emergency Network

Pelmorex, the strangely-named owner of the Weather Network/MétéoMédia, is asking for the CRTC to require that all cable and satellite companies operating in Canada have the networks as part of their basic digital services (it’s already required on analog cable). In exchange, the networks will act as “a national public alerting aggregator”, distributing emergency information.

To sweeten the deal, Pelmorex gives idle threats about how their existence will be in “jeopardy” if they can’t force that $0.23 per subscriber out of us, even though most Canadians already (happily) get the Weather Network by default.

Still, having the Weather Network distribute emergency information makes sense, if only because many such emergencies are weather-related and TWN already deals with emergency weather alerts.

The only problem is: Shouldn’t it be the broadcast networks (like, say, CBC/Radio-Canada) who distribute emergency information, so it’s over the air where everyone can receive it?

HD vs. SD

While Canal Évasion wants to start an HD version of the channel, the owners of three HD-only networks – Oasis HD, Treasure HD and Equador HD – want to distribute those channels in standard definition. This isn’t the first request of this kind I’ve seen, and is probably a reflection of the fact that while most Canadians have cable or satellite service, the number with HD service and sets is not as high as they had expected by now, and offering a downgraded SD signal will allow them to reach a larger audience.

And finally

The CRTC has approved a request to add five networks, all of third-language programming originating from east and southeast Asia, to the list of eligible channels for satellite providers.

CTV/Rogers announce Olympic lineup

The consortium of private broadcasters headed by CTV has announced a huge lineup of play-by-play announcers, news anchors, former Olympians and other analysts who will travel to Vanvouver and Whistler for the 2010 Winter Olympics. It also tells us what networks coverage will appear on.

In English, the team is headed by Olympic veteran Brian Williams, who left CBC in 2006 after CTV won the rights to the 2010 Games. English Games coverage will be carried on CTV’s main network, CTV-owned TSN, Rogers Sportsnet, Rogers-owned OMNI, Rogers-owned OLN (Outdoor Life Network), and ATN, along with Rogers radio stations, CTVOlympics.ca and the Globe and Mail.

There’s also, I’m sorry to say, entertainment (eTalk/Ben Mulroney) and music (MuchMusic) reporting to go along with it. (I’m not quite sure how much music-related coverage there can be of the Olympics, but whatever…)

In French, the team will be headed by Canadiens play-by-play man Pierre Houde and Olympic broadcasting veteran Richard Garneau. French Games coverage will be carried on RDS, RIS Info-Sports, the Aboriginal Peoples’ Television Network and … TQS.

There’s a certain irony in TQS being part of the deal. Its participation predates its bankruptcy and change in ownership, going back to when it was part-owned by CTVglobemedia. At the time (2005), TQS was supposed to be the primary broadcaster of French Olympic coverage. Now it seems clear that, even if TQS is going to have original Olympic programming and priority for the big-ticket events like hockey, the main network behind coverage in French is RDS.

TQS also has another problem: Unlike Radio-Canada (and to a lesser extent TVA), it doesn’t broadcast outside Quebec. So francophones outside Quebec who don’t get TQS or RDS on cable or satellite (let’s for the moment assume this is a nontrivial figure) are out of luck. On the plus side though, apparently a deal has been worked out to give cable users outside Quebec free access to RDS and TQS during the Games.

Meanwhile, advertisers are noting the highly inflated rate card CTV is using to make up for the $150 million it spent to secure rights to the 2010 and 2012 Games.

Debt crisis hurts HugeMediaCorps

After Canwest announced it was cutting jobs and CTV announced it was cutting jobs, Rogers is now announcing it is cutting jobs, about 100 of them, including staff at Maclean’s, Sportsnet and CityTV.

You know what these three megacorporations have in common? They all thought they could get rich by acquiring other media companies.

Canwest was still paying off the debt it took on when it bought the Southam newspaper chain (which includes my employer, The Gazette) when it decided it needed more cable channels and acquired Alliance Atlantis. This gave them channels including Showcase.

Bell Canada responded to Canwest’s consolidation by planning a megacorporation of its own. Bell acquired CTV and the Globe and Mail and eventually most of CHUM’s assets. In exchange for the latter, BCE sold shares in the company to the Ontario Teachers’ Pension Plan, Torstar and the Thomson family, and BellGlobeMedia became CTVglobemedia.

A lot of Rogers’s acquisitions have been in the form of CTV’s sloppy seconds (oh wait, can I not use those words?). This includes Sportsnet, which CTV had to dump when it acquired TSN, and City TV ($375 million), which CTV had to dump when it acquired CHUM. It also acquired the Blue Jays, Fido, as well as specialty TV networks and radio stations within the past decade.

I’m no financial expert, and I don’t have a very clear idea of the balance sheets of these three companies, but this is a really bad time to have debt, especially risky debt (say, holding a bunch of assets in an industry that might disappear entirely in 10 years). The economic downturn that the mortgage debt crisis precipitated is certainly affecting these companies and worrying their management, but I think the debt problem is more significant here than the advertising or subscription revenue problems.

Perhaps this might serve as a warning that consolidation isn’t always the best way to go.

Or perhaps not.

UPDATE (Dec. 9): The New York Times, which I can only assume got the idea from this blog post, has a similar analysis of U.S. newspapers (though in that case, it was taking on debt to acquire other newspapers that got them into trouble).

Corporate executives dishonest, oh my!

The Globe and Mail accuses Canwest head Leonard Asper of talking out of both sides of his mouth, telling the CRTC that Canadian television is in financial peril and telling shareholders that Global TV is making a gazillion dollars with profit margins going up.

On the one hand, it’s true. On the other hand, it’s neither surprising nor is it unique to Canwest. As the article points out, Globe owner CTVglobemedia made the same statements to the CRTC, and I don’t think that company is telling its shareholders that it’s near bankruptcy.

CTV is drunk with cable power

Just when you thought concentration of media ownership wasn’t such a bad thing, CTVglobemediaempire is asking the CRTC for the power to threaten to pull its cable channels off the air as a negotiating tactic with cable and satellite providers. This includes channels like Bravo!, the Comedy Network, CTV NewsNet, Discovery, MuchMusic (and the entire Much family), Space and TSN/RDS.

Aside from the outrageousness of punishing viewers as a negotiating tactic (as well as the legal ramifications of not giving us something we’ve paid for), most of these channels are licensed in a way that prohibits direct competition from other specialty channels.

You can’t have your cake and eat it too. If CTV wants to treat these channels like they’re private property to do with as it pleases, then the CRTC should allow free competition from other services.

Big media mergers remind us of past mistakes

The CRTC has approved two big media ownership changes:

Astral Media, owners of The Movie Network, Teletoon, Astral Photo, and lots of radio stations in Quebec and Atlantic Canada including the Énergie (CKMF 94.3) and Rock Détente (CITE 107.3) networks, will take over Standard Broadcasting, which owns stations in Western Canada, but also three English Montreal stations — CHOM 97.7, CJAD-800 and CJFM Mix 96. Montreal is the only market where there’s any overlap, and even then they work in two different languages.

Rogers (telecom, Maclean’s, Rogers Sportsnet, OMNI and 51 radio stations) will buy Citytv (5 stations in Toronto and Western Canada) after CTVglobemedia (Globe and Mail, CTV, TSN/RDS, Discovery Channel Canada, Comedy Network, MuchMusic, Bravo! Canada, A-Channel, your first-born child) was ordered to divest itself of the competing TV network in its acquisition of CHUM Ltd.

More details in this Wikipedia article.

Neither decision is particularly bad for competition in Canada. The radio deal involves two companies that weren’t really competing, and the TV deal gives Rogers a foot in the door to network television.

Of course, it’s the deals that preceded these that are cause for concern. The fact that CHOM and Mix 96, which should be highly-competitive stations, are owned by the same company is troublesome. And CTV’s takeover of CHUM was ushered through without any apparent concern that their mega cable channel powerhouse has only gotten bigger. It now includes, for example, two all-news stations: CTV NewsNet and City’s CP24, which for some insane reason they were not required to sell off as part of Citytv.