Tag Archives: CHCH

The day local TV died

CHCH, the superstation in Hamilton, Ont., was Canada’s last best hope for the idea of truly local television.

It failed.

On Friday at 4pm, the station aired a 90-second statement from Channel Zero CEO Romen Podzyhun, explaining that the station would be undergoing a major restructuring and would eliminate a large part of its local programming, and the jobs that go with that. The amount of local programming would reportedly drop from 80 hours to 17.5 hours a week, a little more than most large-market local TV stations in Canada. (Its licence requires a minimum of only seven.)

Rather than have local original programming from 4am (they prided themselves on being the first on the air weekday mornings) to 7pm weekdays, they’ll be left with 6pm and 11pm newscasts starting Saturday, and the morning show starting Tuesday.

Other, non-news programming gets cancelled.

The human cost: 129 full-time jobs, and 38 part-timers, according to the Hamilton Spectator. Of them, 58 full-time employees and 23 part-time will be offered new jobs. The cuts include the Niagara bureau, apparently in its entirety.

Channel 11 LP, the company that Channel Zero created to do its local news, and which technically employed CHCH’s news employees, has declared bankruptcy, with $1.6 million owed to employees. (This is being erroneously reported in the media as CHCH itself or its parent company declaring bankruptcy, which is not the case.) The consequence of this is that the company can wash its hands of its union obligations, and the union is not happy, though it focuses its blame on the CRTC and the government.

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Welcome to the new TV

This week has a lot of changes for television both local and nationally. Two main reasons for this: it’s September and the fall season is starting, plus CRTC broadcast licenses for conventional television stations end on Aug. 31.

This week’s Bluffer’s Guide (courtesy of yours truly) looks at the changes happening on the local television dial. The Globe and Mail’s Grant Robertson also has a piece this morning, looking particularly at the upheaval at small money-losing stations owned by Canwest and CTVglobemedia.

Here’s a timeline of what’s going on this week in television:

Today, Aug. 31

Tomorrow, Sept. 1

  • 12am: The CRTC begins billing cable and satellite companies 1.5% of their revenues for a Local Programming Improvement Fund, to help small-market television stations. Bell and Shaw, Canada’s satellite providers, have responded by adding a 1.5% fee to consumers’ bills beginning today. Videotron, Quebec’s main cable provider, hasn’t decided to follow suit yet.
  • At the same time, the CRTC lifts the cap on the amount of advertising conventional television stations can air. It had previously been at 15 minutes per hour. The CRTC believes that the market will self-regulate the amount of advertising (after all, a station with too many ads is going to lose viewers).
  • 1am (10pm in Victoria): CHEK-TV in Victoria goes off the air. See below.
  • 6am: As conventional broadcast stations across the country (at least the ones that are part of large networks like Global, CTV, CityTV and TVA) get new one-year licenses, new local programming requirements come into effect. They require 7 hours of original programming for small markets and 14 hours for large markets (the latter includes Montreal on both the anglo and franco side). TVA’s local programming numbers are defined on a case-by-case basis: 18 hours a week for Quebec City and 5 hours a week for Rimouski, Chicoutimi and Sherbrooke. TQS, because it got special consideration from the CRTC after going bankrupt, isn’t affected by these changes.
  • Three stations formerly of the E! network but owned by the Jim Pattison Broadcast Group – CHAT-TV in Medicine Hat, Alta., CKPG-TV in Prince George, B.C., and CFJC-TV in Kamloops, B.C. – begin airing programming secured from Rogers. It includes the Price is Right, the Tyra Banks Show and Judge Judy in daytime, and Hell’s Kitchen and Law & Order: SVU in primetime.
  • 6pm: Global Quebec CKMI becomes Global Montreal with a rebranded evening newscast after a CRTC decision this summer allowed them to relicense and accept local advertising. Global Ontario is similarly changing to Global Toronto.

Wednesday, Sept. 2

  • 1am (10pm in Victoria): CHEK-TV in Victoria goes off the air. See below.

Thursday, Sept. 3

Saturday, Sept. 5

Monday, Sept. 7

  • 5pm: Dumont 360, a talk show hosted by former ADQ leader Mario Dumont, premieres on TQS V.

Tuesday, Sept. 8

Wednesday, Sept. 9

  • 9pm: Télé-Québec premieres Voir, a show by the people behind the newspaper of the same name.

Also of note this week are the 25th anniversaries of MuchMusic (video, CP story) and TSN.

Did I miss anything? Suggest additions below.

CRTC okays CJNT, CHCH purchase

CJNT: SOLD!

The CRTC today approved the application from Channel Zero to purchase CJNT Montreal and CHCH Hamilton from Canwest.

You’ll recall Channel Zero and Canwest announced in June that they’d reached a deal to purchase the money-losing stations. It was a win-win for both Canwest (which is in debt trouble – it announced today it has gotten another extension from its lenders) and the stations, who would have otherwise faced the fate of other stations in the E! network: shutdown.

CRTC approval of the deal was the only question mark – Channel Zero wanted some license changes as part of the deal. There was an expedited approval process, including a hearing on Monday – a week before existing licenses expire and Canwest runs out of programming to air.

The CJNT decision accepted the reasonable requests of Channel Zero, namely to relieve it of its requirement to air a minimum amount of French-language non-ethnic programming, and eliminate a requirement to make sure 25% of its films are Canadian. It will also be relieved of closed-captioning requirements until the fourth year of its license (and there is no requirement to closed-caption programming that is neither English nor French). CJNT is planning to keep all its ethnic programming (even slightly increasing its local ethnic programming requirement) and focusing its remaining schedule on ethnic music videos and other programming geared toward a younger audience.

For the CHCH decision, the CRTC got a promise (after a CTV intervention) that “local programming” would be that directed to the Hamilton/Niagara/Halton area, and that the station would not try to compete with local Toronto news stations. It accepted a request to relieve CHCH’s mandate to acquire “priority” programming (Canadian dramas and other expensive-to-produce shows) since it would now be a stand-alone station and not part of a national network (this is consistent with CRTC policy). The plan for CHCH is to become all news all day, with popular revenue-generating movies in prime time.

Both stations officially become part of Channel Zero on Sept. 1, with licenses that expire on Aug. 31, 2016 (it’s not clear how the handoff will happen – it won’t be smooth if they want to try it literally over the weekend). Both will be required to switch to digital broadcasting on Aug. 31, 2011. And Channel Zero will be asked to re-appear before the commission in 2012 to discuss programming for both stations.

Quickie analysis: Today is a good day for the two stations, and for Montreal and Hamilton. Whether these business models are sustainable, though, is a whole other question.

In Victoria, the news isn’t quite so happy. Despite a campaign from the 40 employees to buy CHEK Victoria from Canwest and run it themselves, Canwest said it wouldn’t work and the station will shut down as scheduled on Aug. 31.

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:

CRTC Roundup: They saved local TV!

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.

Channel Zero offers to buy CJNT Montreal, CHCH Hamilton

CJNT: SOLD!

The press releases came out Tuesday afternoon and has been rewritten everywhere: CP, Presse Canadienne, Reuters, Financial Post, CBC, Toronto Star, Hamilton Spectator, LesAffaires.com, Broadcaster Magazine.

Channel Zero (warning: website has sound you can’t turn off), which owns Silver Screen Classics and Movieola, but also AOV Adult Movie Channel, XXX Action Clips Channel and Maleflixxx Television (latter three are Wikipedia links), has agreed to purchase two of Canwest’s five E! stations, CJNT in Montreal and CHCH in Hamilton.

The sale, which is for an undisclosed price (but presumably better than the $1 a station that Shaw was offering in what apparently turned out to be a bluff) is contingent upon the usual CRTC rubber stamp, but also on Canwest wrestling a new deal out of unionized employees at CHCH that would switch from a defined-benefit pension plan to a defined-contribution pension plan eliminate the employee pension plan and replace it with a defined contribution plan, throwing retirees under the bus. (CJNT staff, a grand total of six, are not unionized.) According to my ears at CHCH, the station’s staff are excited by the offer (except for the pension thing) and of the prospect for producing more local news.

Channel Zero has an FAQ posted on its website which actually does a pretty good job answering the kinds of questions this would prompt from skeptics like me. (They promise not to air adult material on either station, though … would that be such a bad thing for CJNT?)

Programming

The plan for CHCH is to turn it into an all-news station during the day (5:30 am to 8 pm) with movies in the evening. This capitalizes on CHCH’s unusually high local programming requirement of 36.5 hours per week, which Channel Zero has promised to maintain (it says it wants to keep license terms “substantially similar”, which suggests some changes).

For CJNT, the plan is to air foreign-language movies and multicultural music videos. It’s not clear if that means there will be fewer of the foreign-language talk shows that currently air, or if the celebrity gossip and second-rate U.S. imports will be cut off.

And the rest?

Even if the deal goes through, and that’s a big if, the other three stations in the E! network, CHEK Victoria, CHBC Kelowna (B.C.) and CHCA Red Deer (Alta.) are still up in the air. Canwest has made it more clear that they won’t keep the stations running after this summer, and if they can’t find a buyer for them they’ll be shut down.

But will it work?

CHCH News has an analysis of the deal and an interview with Channel Zero’s Cal Millar, which both sound very positive. People say they want local news, and this company seems prepared to inject funding to create a new all-news station. But CHCH host Mark Hebscher insightfully compares this to Toronto One, which failed as a locally-focused station two years later became bottom-feeding Sun TV.

Call me a skeptic, but Channel Zero has zero experience in running conventional television stations and zero experience with local news. Taking on CHCH is a big challenge, and I think the company is being overly optimistic about its proposed business model, even with the cut to pension expenses. Two or three years down the road, we may very well see Channel Zero come back to the CRTC and ask for reductions in local programming requirements and other commitments as it starts bleeding money.

But, like CHCH employees and their union leaders, I hope I’m wrong.

UPDATE: The Hamilton Spectator is all over the sale with articles about the sale itself, reaction to it, and an opinion praising it.

UPDATE (July 18): Channel Zero tells the CRTC the price of the sale was $12, both stations included.

Can CHCH be saved?

If you aren’t up on the grassroots plan to “Save CHCH News”, the Toronto Star has a piece on a bold plan to reinvent the Hamilton station as a community television outlet again before it can be shut down.

There’s definite public support with Facebook groups and petitions to keep the station local, but the big question is whether ratings will drive enough local advertising to offset the costs of keeping such a station running. Local news, even when it’s popular, is almost always a loss leader, costing more in expenses than advertising surrounding it brings in. Making a station’s entire programming grid local content might be a recipe for quick bankruptcy.

Or it might be the most brilliant idea ever conceived.