Tag Archives: CRTC

| Montreal, Radio

Bell’s response to critics of CKGM language change

This was actually published by the CRTC in late August, but hasn’t been publicized much. It’s Bell’s response to comments filed with the commission against its application to transform TSN Radio 990/690 from an English station to a French one to meet its common ownership limits after the purchase of Astral Media (which owns CJAD, CHOM and Virgin Radio in Montreal).

There were hundreds of comments filed, many from individual listeners (so much that the CRTC put up a special link on its home page to guide people through the process), but Bell responded to three.

To summarize:

  • Why didn’t Bell request an exemption to keep four English stations? Bell doesn’t answer this very well, repeating that it has to follow the common ownership policy. But, of course, the point of an exemption is to get around that policy. It would be more sensical to point out that an exemption would give Bell four of the five English commercial radio stations in Montreal, and the commission is unlikely to grant that without a very good reason.
  • Why can’t Bell run a bilingual station? The CRTC wouldn’t allow it, Bell says. And they’re right. For various reasons, the commission does not licence bilingual English/French commercial stations.
  • Why doesn’t Bell sell the station? They could. They’re doing that to 10 other stations in markets where they’re going over the limit. But since they want an RDS radio station, they’re trying this so they don’t lose that key frequency. The official response is that “there is no certainty that a purchaser would commit to the all sports format over the long term; nor is there any way to enforce such a commitment, even if made, as the Commission does not regulate radio formats.” This is true, though it’s also true that Bell itself would not be committed to such a format.
  • Shouldn’t 690 be reserved for an English station? There’s nothing tying this frequency to a particular language. It was the Radio-Canada station for decades, then Info 690. Last November, the CRTC issued a decision turning the historically French channel English and the historically English channel of 940 French. The two are coveted clear channels, with no special restrictions on nighttime power. The only other such channel here is 730, being used for all-traffic at CKAC. That said, Bell’s application to move CKGM from 990 to 690 was based in large part around how poorly the signal reached its core West Island anglo audience at night, when the Canadiens games are on. The commission could decide that this, combined with the fact that the other two clear channels are French-language, would be enough to either reject the application or issue an open call for applications to use this frequency.

The entire response is republished below. Bell makes its presentation in the CKGM licence change Tuesday at 8am in Room 518 of the Palais des congrès, at which point it will release a separate document making its case for the change. The commission will hear from intervenors in favour and opposed until Friday, and then a response from Bell.

The hearing is streamed live at cpac.ca, and on the CPAC TV channel as of 10am.

2012 08 20

To: Mr. John Traversy

Secretary General

Canadian Radio-television and Telecommunications Commission

Subject: Application 2012-0573-2 – CKGM Montréal (the CKGM Application)

Dear Mr. Traversy,

This letter is filed by Bell Media Inc. (Bell Media) in response to the comments by Messrs. Pacetti and Scarpaleggia, the MPs for Saint-Léonard/Saint-Michel and Lac-Saint-Louis, respectively, and by Dufferin Communications Inc. (Dufferin) (collectively referred to as the Interveners).

In the CKGM Application, Bell Media seeks the Commission’s authorization to convert our English-language AM sports talk radio station (currently operating as TSN 990) into a French-language sports talk radio station (to be known as RDS Radio). As set out in the Supplementary Brief filed with the CKGM Application, this Application is dependent on the Commission’s approval of the application filed by Bell Media for the acquisition of control of Astral Media Inc. (the Astral Application). In the event the Astral Application is approved, the CKGM Application is the necessary means by which Bell Media will ensure that it is fully in compliance with the Commission’s Common Ownership Policy.

Before addressing the concerns of the Interveners, Bell Media would like to thank the many groups that filed interventions in support of the CKGM Application. As described in their comments, these interveners recognize that the conversion of CKGM from an English- to a French-language sports radio station will result in several distinct benefits to the Montréal radio market. With the Commission’s approval, CKGM will become Montréal’s Francophone sports authority, offering fans a radio option not currently available in the Montréal market.

In his intervention, Mr. Pacetti, the MP for Saint-Léonard/Saint-Michel, asks the CRTC to permit Bell Media “to operate both a Francophone and Anglophone all sports radio station simultaneously” or “allow for the possibility of creating a bilingual station” so that “one community’s loss should not be another community’s gain”. While we sympathize with Mr. Pacetti’s desire for two sports radio options in each official language, this is simply not possible given the strict limits set out in the CRTC’s Common Ownership Policy.

The Common Ownership Policy imposes a strict cap on the number of stations that Bell Media may own in Montréal and the conversion of CKGM is the means by which compliance with the policy can be ensured in light of the Astral acquisition.

Another potential option would be the divestiture of the station to a third party. However, in a divestiture scenario, there is no certainty that a purchaser would commit to the all sports format over the long term; nor is there any way to enforce such a commitment, even if made, as the Commission does not regulate radio formats.

Under these unique circumstances, we believe that transforming CKGM into a French-language sports talk radio station is the best option available to Bell Media at this point in time, as it will ensure that the Montréal market has the benefit of at least one all sports radio station, rather than leaving both the francophone and anglophone communities in Montréal without a sports talk radio station. It is also important to highlight that Montreal’s anglophone community will continue to receive coverage of sports in English as sports programming shifts from TSN Radio 990 to CJAD.

Mr. Scarpaleggia, the MP for Lac-Saint-Louis questions why Bell Media has not applied to the Commission for an exemption to the Common Ownership Policy, noting that the English-speaking community’s interests are better served by having CKGM serve anglophone communities in Montréal.

As set out above, Bell Media’s decision to convert CKGM from an English-language to a French-language sports talk radio station is required to ensure that Bell Media is in compliance with the CRTC’s Common Ownership Policy, which set outs very clear, unequivocal caps on the amount of radio stations that can be owned in one market. In the past, exemptions have been granted very sparingly.

In its intervention, Dufferin argues that approval of the CKGM Application would call into question the integrity of the Commission’s licensing process with respect to the use of the 690 kHz frequency, which was awarded to Bell Media in 2011.

In Decision 2011-721, the Commission approved our application for a technical amendment to move CKGM from 990 kHz to 690 kHz as a means of addressing severe reception problems caused by a defective signal. The primary purpose of the 2011 application was to rectify a severe signal problem by eliminating the need for CKGM to switch to a low-power night-time contour, which significantly reduced the signal’s coverage area. The technical amendment that was granted rectifies the signal problem, regardless of the language or format the station operates in. Thus, approval of the technical amendment, followed by a change in the station’s language of operation does not, in our submission, call into question the integrity of the Commission’s licensing process.

We note that following approval of the technical amendment, CKGM could have changed formats and there would have been no basis for claiming that such a change affected the integrity of the Commission’s process. Moreover, should the Commission approve the CKGM Application, French-language listeners in Montréal would benefit immensely from the enhanced night-time coverage and signal quality that will be realized as a result of the previously approved technical amendment, especially in light of the fact that there are currently no French-language radio stations dedicated to sports news and information in Montréal. Thus, regardless of the outcome, Montréal listeners will benefit from CKGM moving from a defective to a clear signal.

To support its position, Dufferin argues that approval of the CKGM Application and the Astral Application would allow Bell Media to operate six radio frequencies in Montréal and that this substantial concentration of ownership would redefine the playing field envisioned by the Commission in Decision 2011-721. We note that under the Common Ownership Policy, Bell Media is permitted to own the six commercial radio stations that would result from approval of the Astral Application and the CKGM Application. Thus the conversion of CKGM is entirely in compliance with the Common Ownership Policy and it is disingenuous for Dufferin to claim that ownership of a number of stations that is expressly permitted under the policy somehow constitutes excessive concentration of ownership. In fact, one party could technically own seven stations in Montréal (four French and three English) and still be in compliance with the policy.

Dufferin also argues that approval of the CKGM Application would result in a major financial impact on the Montréal radio market. This claim is simply not credible. As is evident from the financial projections filed with the CKGM Application, Bell Media is projecting that it will experience a cumulative loss of over $12.6 million over the first licence term if the CKGM Application is approved by the Commission. Further, as set out in the Supplementary Brief filed with the CKGM Application, a comparison of the total retail sales and radio advertising revenues in the Montréal and Vancouver CMAs indicates that Montréal radio is underperforming relative to retail sales. Thus, there is upside potential for radio advertising sales in the Montréal French-language market if more radio format choices are offered. Therefore, contrary to Dufferin’s assertion, the CKGM conversion would not have a major financial impact. Instead, all indications are that it would have a stimulative effect on the French-language radio market by increasing hours tuned to radio.

The decision to convert CKGM from an English-language to a French-language sports talk radio station has been a difficult one. Unfortunately, the limits imposed by the Commission’s Common Ownership Policy are such that the conversion of CKGM appears to be the best option available to Bell Media at this time, as it will ensure at least the ongoing presence of a sports radio format in Montréal. We are committed to continuing to provide Montréalers with a dedicated sports radio station and creating a vibrant Montréal radio market, while working within the parameters of the Common Ownership Policy.

We trust this responds to the Interveners’ concerns. A copy of this letter has been served on the Interveners, in accordance with the CRTC’s Rules of Practice and Procedure.

Yours truly,

Kevin Goldstein

Vice President – Regulatory Affairs

UPDATE (Sept. 11): Bell presented its case in person to the commission Tuesday morning. You can read its prepared notes here (PDF), and my story summarizing the hearing for The Gazette here.

| TV

Bell plans French all-news channel

As part of an expanded benefits package presented to the CRTC in its proposed purchase of Astral Media, Bell on Monday said it would create a French-language all-news specialty channel based in Montreal that would compete with LCN and RDI.

You can read more in this story I wrote for The Gazette. Nothing is set in stone yet. They haven’t even applied for a licence, and will wait until a decision comes on the Astral purchase to do so, since this would be contingent on the CRTC accepting the purchase.

But Bell’s plan, should the CRTC accept it, is to put $20 million of its tangible benefits package toward the creation of this channel. Bell Media President Kevin Crull clarified that the funding put into the network would be far higher than that, particularly at first.

The network would be the third French all-news channel in Canada, behind RDI and LCN. That alone has some wondering if the market can support it. Bell made it clear at the hearing that it had no plans to do this before Astral came into the picture. Apparently it was Astral’s idea, in fact.

Crull said that the channel might launch some time in 2013. Considering the delays involved, I would suspect no earlier than fall 2013, and even then I think that’s optimistic.

Good for CTV Montreal?

No plans are set as far as things like how many bureaus there would be or what kind of equipment they would have. We just know it would be based in Montreal. Either way, the addition would be good for CTV’s Montreal news operation if the two sides share resources like Radio-Canada and CBC do. The ability to get video from Quebec’s regions is one of CBC Montreal’s main advantages over CTV.

But this is all speculation at this point. If the CRTC rejects the Astral purchase, this project dies. And it’s not a given that CTV and this new channel would do resource-sharing, even if that would make a lot of sense.

Good for V?

This news also brings up some interesting thoughts about Bell’s future in Quebec. Bell was asked at the hearing how it would compete with Quebecor’s TVA, whose strength is in conventional television, if they don’t own conventional over-the-air TV stations in French Quebec. Bell said the line between conventional and specialty television is getting blurry.

A Bell takeover of the V television network, which is currently owned by Remstar as an independent player, might make sense with this new channel. The two could also share resources or even be co-branded, and V could go from being a non-factor in local news to being a serious competitor for TVA and Radio-Canada.

Bell potentially buying V has been rumoured and speculated for a while now, particularly since V started showing a profit. But Bell might be hesitant trying to justify another major acquisition before the CRTC.

Coverage

| Media, My articles, Radio, TV

Bell/Astral CRTC hearings: Day 1

This is it, folks. The Canadian Radio-television and Telecommunications Commission begins hearings at 9am into Bell’s proposed $3.38-billion purchase of Astral Media, and a related application to convert CKGM (TSN Radio 690) from English to French.

The hearings will be broadcast live at CPAC.ca and even covered live on the television channel as well. The CRTC also has its own audio feed of the hearings. Each is offered in both languages.

And, of course, I’ll be covering them as well. Stay tuned here for updates as they happen. Follow me on Twitter. That’s easier.

In the meantime, you can read my piece in Saturday’s Gazette about the war over specialty channel carriage contracts, and my other piece setting up the hearings.

| Montreal, My articles, Radio, TV

A big autumn for Montreal broadcasting

Man, there are a lot of radio stations in and around Montreal.

That’s what came to mind as I compiled a list of them for a story that appears in Saturday’s Gazette. “Story” might be an exaggeration there. It’s more like a charticle spread over two and a half pages, detailing the things that are changing at radio and television stations in the city.

And there’s a lot of stuff going on. A CRTC hearing this fall will decide on whether to approve a new station and whether to accept major amendments to the licenses of two others. Two other stations approved by the CRTC last November are gearing up to launch in the coming months. One frequency that currently sit vacant could be home to Hudson’s first local radio station if the CRTC gives it the okay. CBC Radio 2 and Espace Musique could see ads for the first time. And then there are all the staff movements, office changes and other things that don’t require CRTC approval.

To get it all straightened out (and include a few new pieces of information), I’ve compiled a list of radio and TV stations that can be tuned in from Montreal and talk about what’s happened there recently and what’s coming soon, on a station-by-station basis.

What’s going on in AM radio is probably the most interesting, because it involves the most fundamental change – two new radio stations, with a possible third to join them, and another station whose fate is in limbo.

In FM radio, I notice a lot of the updates involve staff changes. That’s part of life in radio, and I don’t know if it’s unusually high – I suspect not – but when all compiled together there’s enough change to write home about. The departure of Planète Jazz in favour of Radio X is also a big change.

For television, I focused only on local programming, and, for the most part, on the anglophone stations. One (CJNT) has been bought out by Rogers pending CRTC approval (an application hasn’t been published yet). Global is getting ready to launch a morning show at some point in the late fall. CBC is getting ready to expand its late newscast from 10 minutes to half an hour, which will start Sept. 17 (the same day George Stroumboulopoulos moves to 7pm). And CTV is still making baby steps toward converting its local newscast into high definition.

I’m sure there’s stuff that I missed for whatever reason (it’s been pointed out that I don’t talk about adjacent-market AM stations, mostly due to lack of space). If you know of one, feel free to add it in the comments below.

| Radio

Campaign to save TSN 990 should focus on the CRTC

In the week since Bell’s application to switch CKGM from TSN Radio to RDS Radio became public, the station’s small group of loyal fans has mobilized. A Twitter account, a public protest set for Aug. 4, and lots of comments online. Many of those comments seem to be based on misconceptions about what’s going on. In particular, many blame the CRTC even though the commission has yet to make a single decision about Bell’s application (besides deciding to consider it).

As of Monday night, 456 interventions had been filed with the CRTC about this application alone. I haven’t been able to read all of them yet, but a handful selected at random are all from individual people, all opposed to the application.

People have been asking me if this number of interventions is high. It is. Very high. I don’t know what the record is, and it’s hard to compare this to other “average” applications in front of the CRTC, because not all applications are the same, and most are non-controversial. But even controversial ones don’t usually generate quite this much attention. As an example, RNC Media’s application to turn CKLX-FM (Planète Jazz) into a talk station modelled on Radio X – which is to be heard at the same hearing on Sept. 10 – has received only 76 interventions. (I compiled some highlights of those here.) The $3.38-billion acquisition of Astral Media by Bell has only generated 18 so far, and many of those are as much about TSN 990 as they are about Astral and Bell.

The biggest reason for this is probably social media. The link to file interventions has been passed around, published on this blog and others, retweeted and posted on Facebook with instructions telling people how to file. The CRTC, probably annoyed that so many people were using the complaint form instead of the intervention one, has taken the unusual step of posting a special link on its homepage telling people where to file interventions related to TSN 990. (The link, it should be noted, refers to the brand “TSN 990”, rather than the company name “Bell Media Canada Radio Partnership” or the station’s callsign CKGM, which are the more formal ways the commission usually refers to radio stations in public notices.)

The result of making this more accessible is yet more interventions. It’s something commissioners and commission staff love to see more of – individual people getting more involved in the process and making their opinions heard. But if those interventions just call on the CRTC to be dismantled or demand something not in the commission’s power, they won’t be very useful.

In an effort to give people a better idea of the regulatory hurdles in front of Bell Media’s application to change CKGM from English to French (and perhaps prompt some more insightful interventions with the CRTC, whether they’re for or against the application), I wrote a piece that appears in Tuesday’s Gazette: The five ways to save TSN 990.

Specifically, they are:

  • The Competition Bureau could reject the Astral purchase. Unlikely considering it hasn’t stood in the way of these kinds of acquisitions in the past. But still possible.
  • The CRTC could reject the Astral purchase. Also unlikely. Even if the commission finds serious issues of media ownership concentration, it would more likely order Bell Media to sell off assets that put it over a specific threshold.
  • The CRTC could issue an open call for applications. This is much more likely. CKGM was given the frequency of 690 kHz last fall (it’s moving there this fall, with 990 kHz going to Dufferin Communications for Radio Fierté) based on an application that argued, among other things, that the English sports-talk station needed a clear channel to better reach the anglophone community. If this station becomes French-language, that argument goes out the window. Additionally, the CRTC could concern itself with the fact that this switch would make all three clear-channel frequencies in Montreal (690, 730 and 940) French-language stations, disrupting a historic language balance. There’s precedent for issuing an open call: CKGM got 690 in the first place after people objected to an application by Cogeco to reactivate it and 940 kHz for (heavily subsidized) all-traffic stations. The CRTC responded by issuing an open call for applications for 690 and 940, and Cogeco was left empty-handed. (It cannibalized CKAC 730 for its French all-traffic station, and the status of the English all-traffic station is unclear.) Of course, if the CRTC does issue an open call, Bell could apply for this frequency for RDS Radio, and it would stand a good chance of succeeding. But the prospect of losing the frequency might scare Bell off. It said in its application that if the CRTC issued such an open call, it might reconsider.
  • The CRTC could deny the language switch. It’s the simplest thing. Bell has applied for a language switch, because it needs an amendment to its license (or a new license) to do so. The CRTC could simply deny this request, and say if Bell wants RDS Radio it needs a new application for a new radio station.
  • The CRTC could issue an exemption. This is the one everyone’s calling for, and it’s possible, though rumour has it Bell unofficially asked the commission if an exemption could be granted and were told it was highly unlikely. Bell would have to make a serious case that one of the four stations is so vital to the broadcasting system that an exemption is warranted, and make the case that the station simply couldn’t survive if it was sold to someone else. I don’t think most of the station’s listeners really care who owns the station, only that it stays on the air.

You can read more about these five options and the regulatory process in the Gazette story.

Interventions are still being accepted at the CRTC until 8 p.m. Eastern time on Aug. 9. The hearing is Sept. 10 at the Palais des congrès, and those who indicate a wish to appear in their interventions will be allowed to present their arguments in front of the commission in person.

UPDATE (July 17): Pat Hickey argues that the CRTC has a responsibility to keep CKGM running as an English station. Mike Boone adds that TSN 990 is such a small piece of the Bell empire that they couldn’t care less what happens to it and its employees. For more commentary about the application and the station, see the bottom of my previous post.

| Radio, TV

Bell’s purchase of Astral: The issues in front of the CRTC

While everyone’s attention here was naturally focused on what Bell’s plans are for CKGM, the bigger issue up in front of the CRTC on Sept. 10 is the overall $3.38-billion purchase of Astral Media by Bell Media.

The deal would be a straight purchase, gobbling up everything owned by Astral including non-broadcast assets like its outdoor billboard advertising business. Bell would sell off only those things it is required to.

It’s a deal that has prompted a lot of worries about media concentration (though you could say it’s far too late to worry about that). Quebec’s Option consommateurs has already come out against it, generating some media buzz, but otherwise there hasn’t been much organized opposition.

10 radio stations to be sold

As I noted in the post when the deal was announced, a look at the combined assets of both companies shows they would be over the limits (two AM, two FM, and no more than three total in markets with fewer than eight commercial stations) in six markets, and would need to divest itself of 11 stations to meet the limit. In its application, Bell says it plans to sell 10 stations, and convert CKGM to French.

Bell’s application indicates it has provided the CRTC with a list of the 10 stations it plans to sell, but it wants that kept confidential so that those stations don’t become lame ducks, losing staff and morale. Knowing what markets it needs to sell stations in (two FM in Ottawa, one FM in Calgary, two FM in Toronto, two FM in Winnipeg, and two FM and one AM in Vancouver) and what the ratings are for those markets, it wouldn’t take a rocket scientist to find the likely castaways.

Because most of those markets have many English FM stations and multiple independent players, the concern about market concentration isn’t as high there as it is for Montreal’s English market.

Two calculations for TV viewing share

On the TV side, the CRTC’s concern isn’t so much the number of TV services (cable channels are a dime a dozen these days), but viewing share. Specifically, it says it will not allow any one player to control more than 45% of the overall viewing share in either language, and will closely scrutinize any purchase that gives a player between 35% and 45% of the viewing share.

Where Bell fits in depends on how you calculate that share. If you include Canadian viewing of American and overseas TV channels (like PBS, CNN and Spike TV), it falls just under that 35% threshold (33.5%). If you include only Canadian services, it’s just above (38.7%). Naturally, Bell believes U.S. services should be included in the calculation (they represent about 10% of Canadian viewing hours), which makes sense, but also means that one player could own 100% of Canadian television channels so long as 65% of Canadian television viewing is of foreign services. In addition, Bell argues that part of that share is its CTV Two network, which it has agreed to keep operating even though it loses money as part of a commitment made in the purchase of CTV by Bell.

There are also qualitative arguments that Bell uses. For one, Astral has no news or public affairs departments at its TV properties, so there would not be a reduction in diversity of voices here. (Bell conveniently ignores the fact that Astral has many radio newsrooms, and in a market like Montreal it means controlling the biggest TV newsroom and the biggest radio newsroom.) And Astral’s English-language television is limited mainly to its pay TV services like The Movie Network and Family Channel. It doesn’t own many specialty channels in English.

On the French side, because of the dominance of Quebecor and Bell’s virtually nonexistent presence (aside from RDS), combined they would represent only 24.4% of the overall TV viewing share.

Two B.C. stations

It’s a footnote in any discussion of Astral, but it does own two conventional television stations in tiny markets in northern B.C. – CJDC in Dawson Creek and CFTK in Terrace. Both are CBC affiliates with local newscasts. Bell’s application says they would remain that way “for the immediate term” but that this could change. “Following closing, we will determine if, when and how these stations will be integrated into the broader Bell Media conventional television group.”

Disaffiliating from CBC requires a separate CRTC application. But it’s hard not to see them eventually being converted into CTV network stations. Neither is anywhere close to an existing CTV station.

Tangible benefits

Aside from CKGM and other concerns about concentration of ownership, the biggest debate over this acquisition is probably going to be over what’s called the “tangible benefits” package. When ownership of a television service or radio station changes hands through a purchase, the CRTC requires that what can best be described as a sales tax be spent to improve the broadcasting and cultural system in some way. Usually (and particularly for radio stations), this means giving money to an organization that develops Canadian music talent. Or it could be some increase to Canadian programming beyond the minimum requirements of broadcasting licenses.

Tangible benefits packages are usually calculated as 6% of the purchase price for radio and 10% for television. In cases where the purchase price is effectively negative (such as when Channel Zero bought CJNT and CHCH for $12), tangible benefits packages don’t apply.

Bell’s proposal is for $200 million in tangible benefits, breaking down as $140 million for television (based on a $1.4-billion value), and $61 million for radio (based on a $1-billion value). The latter is to be adjusted based on the value of radio assets it will be forced to divest in the deal. Both, bell proposes, would be paid over 10 years instead of the usual seven, mainly because Bell is still paying off the tangible benefits packages from CTV’s acquisition of CHUM and Bell’s acquisition of CTV.

In case you’re doing the math in your head, the two purchase prices add up to about $2 billion. The rest of the acquisition price includes non-broadcast assets like outdoor advertising, as well as 50% stakes in Teletoon, Teletoon Retro, Historia and Séries+, which Bell feels should be exempt from this calculation because it would not mean an effective change in control of those channels. (Judging by correspondence on this matter, the CRTC might not accept this argument at face value.)

The biggest chunk of Bell’s proposed benefits package is $96 million that will go to “programming of national interest” (comedy, drama, documentary and certain awards shows), the majority of which will be spent on French-language programs because of Astral’s French-language skew. Then there’s the $61 million in radio benefits that will go to developing Canadian music talent and community radio funds.

It’s the other two chunks that are causing some consternation, though. About $40 million is being pledged to “support Canadian programming by making it more widely available in Canada’s North through the extension of next-generation broadband wireline and wireless service.”

That sounds fantastic, doesn’t it? The problem, aside from how odd it is that Bell associates upgrades to 4G wireless service as somehow helping the television broadcasting system, is that this is essentially a network upgrade for Northwestel, the main telco in the territories. And as if we need to point this out, Northwestel is a subsidiary of Bell.

This has not gone unnoticed for Northwestel’s competitors, who call the blatantly self-serving investment “shameful,” particularly since Northwestel has been heavily criticized for failing to modernize its system. The fact that the CRTC has just opened up local phone service to competition only makes such an investment in one company seem even more anti-competitive.

Another chunk of the package getting noticed is $3.5 million over seven years that would go to Bell Let’s Talk Day, which is an annual campaign to raise money and awareness for treating mental illness. I’ve written before about how Bell seems fine with ordering its assets (and even local news departments) to participate in and cover this campaign.

It’s hard to come out against such a charity campaign, but what does this have to do with broadcasting? The CRTC’s goal with tangible benefits is pretty clear, and though such causes are laudable, there’s no provision for essentially donating part of this package to a favourite charity.

The CRTC asked Bell to justify this expense, and here’s their response:

The proposed benefits initiative will be used to help raise money and awareness to help battle mental health issues through the development of PSAs and educational materials, among other things, and will yield measurable improvements to the communities served by BCE and by Astral by contributing to the earlier identification and better management of mental illness in those communities. That is why so many municipalities and provincial governments devote significant funding to pursuing exactly those goals. This multi-platform media initiative will leverage the merging parties’ unique expertise in broadcasting, a different sphere of endeavour than that in which municipalities and provincial governments work.

These improvements are also significant and unequivocal benefits to the Canadian broadcasting system itself. Parliament left no doubt as to the importance of this policy goal, which it required the Commission to pursue, when it declared that the Canadian broadcasting system should strengthen the social fabric of Canada; serve the needs and interests, and reflect the circumstances and aspirations, of all Canadians; provide information and enlightenment; and expose the public to differing views on matters of public concern. As a result, we respectfully submit that making space in the Canadian broadcasting system to address key social issues, which include mental health, and that raise both money and awareness in support of those issues, is the very epitome of the significant and unequivocal benefits to which the tangible benefits policy was directed.

I don’t know about that.

As the Globe and Mail’s Simon Houpt explains, all this stuff might be boring financial policy stuff, but it’s important. We’re talking about hundreds of millions of dollars being injected into Canadian broadcasting. It’s the CRTC’s job to ensure Bell is spending it properly to benefit the system more than itself.

Correspondence between the CRTC and Bell that forms part of the public record on the application makes it clear that the commission is challenging Bell on all of these matters. Expect them to get discussed in depth at the September hearing.

The CRTC hearing into Bell’s proposed purchase of Astral Media is scheduled to begin Sept. 10 at the Palais des congrès. People wanting to file comments with the CRTC or appear at the hearing can file an intervention here (the application number is 2012-0516-2: Astral Media inc.). The deadline is Aug. 9. Note that comments – including names and contact information – are on the public record.

UPDATE: In a somewhat unrelated press release about winning an old lawsuit against Bell related to its ExpressVu satellite service (now Bell TV satellite), Quebecor CEO Pierre Karl Péladeau made it very clear he and his company are against the Bell-Astral merger, using language you don’t usually see from bosses of big companies:

Bell puts forth considerable efforts to obtain a virtual monopoly of French specialized channels through the acquisition of Astral Média, that would give it 8 of the 10 most popular French specialized and pay TV channels, as well as 67% of the audience and 80% of ad revenues in this market. In the Canadian market, in both languages, over 41% of monthly subscription fees paid by specialized channel viewers would go to Bell, as would 45% of these channels’ advertising revenues. Of the 51 specialized and pay channels that would be controlled by Bell as a result of this transaction, 28 are genre-protected and 30 are must-carry channels in their respective markets. The situation is equally problematic in radio, where Bell would own 117 radio stations across the country, while also exerting total control over all specialized music television channels.

“We call on the CRTC to refuse to approve this transaction on the basis that Bell’s business practices do not meet the ethical standards expected from a company that has the privilege to exploit broadcasting services through licences granted by the CRTC for the benefit of all Canadians. If such practices were to go unsanctioned, Canadians’ slowly eroding confidence in its regulatory authorities would only be further undermined. It is essential for anyone concerned with a healthy and competitive TV industry to take a look at these judgments and oppose Bell’s takeover of Astral. Only by staying vigilant and by denouncing Bell’s unacceptable practices by all possible means will we be able to prevent it from recreating the monopolistic model it relied on for so long,” concluded Mr. Péladeau.

Despite this rather inflammatory statement, Quebecor has not, as of July 25, filed a formal intervention with the CRTC about this case.

| Montreal, TV

CTV Montreal to reduce (but continue) local news during Olympics

CFCF’s anchor desk will sit empty until 6pm during the Olympics

Television changes during the Olympic Games. It’s like the usual rules get thrown right out the window. Canadian television stations relying mainly on rebroadcasting American shows in primetime? Not during the Olympics. NBC provides Olympic coverage, but CTV is doing its own thing entirely, focusing on Canadian athletes. TSN and Rogers Sportsnet in fierce competition? Not during the Olympics. They’re coordinating their coverage to give Canadians more choice, and some events (like the opening and closing ceremonies) will be carried on both simultaneously. Spending the bare minimum on Canadian content? Not during the Olympics. CTV and the other broadcasters are spending millions creating their own live, remote, high-definition programming that will dominate the airwaves throughout the Games.

It’s this domination of the schedule that has led to one change that requires approval by the broadcast regulator.

CTV asked the CRTC to temporarily relieve it from some local programming requirements during the Olympics. Currently, CTV’s stations in large markets (Toronto, Ottawa, Montreal, Calgary, Edmonton and Vancouver) are each required to air 14 hours of local programming during each week. Other stations are required to air seven hours of local programming a week. CTV asked the commission to, in light of how much time it needs to devote to the Olympics on its schedule, reduce that to seven hours a week for the entire network.

The CRTC agreed to this in a ruling issued June 27. That ruling lowers the minimum of local programming to seven hours for all stations, solely during the period of the Olympics (July 27 to August 12), and says it expects CTV to make up for the shortfall later in the year. (CTV said it would do so.)

CTV also asked for relief from a license condition requiring four hours a week of described video programming. Since described video is usually applied to things like dramas, sitcoms and documentaries, which won’t air much during the Olympics, the CRTC also relieved the CTV network from this obligation, again with the expectation that CTV would compensate for the reduction with an excess during the rest of the year.

No noon newscasts during Games

CTV Montreal (CFCF) normally airs 16 hours of local programming every week, including commercials (all of which is its newscasts – noon, 6pm and 11:30pm weekdays, 6pm and 11:30pm weekends).

The Olympic broadcasting schedule released Wednesday shows Games coverage throughout the day between the opening and closing ceremonies. Because the Olympics are in London, which is five hours ahead, live coverage begins as early as 4am and ends around 5-6pm Eastern time. This is the opposite of the Vancouver games, which were three hours behind and meant a lot of live broadcasting in the evening.

With the exception of the opening and closing ceremonies, the 6-7pm Eastern hour is left clear on CTV’s network, which leaves room for local news. This is followed by a four-hour Olympic Primetime recap of the day’s events from 7 to 11pm, which can then be followed by CTV National News and late local newscasts.

Mary Anne Gyba, programming manager at CTV Montreal, confirms to me that local newscasts will air daily from 6pm to 7pm and at 11:30pm throughout the Olympics, with the exception of the opening ceremony (Friday, July 27) and the closing ceremony (Sunday, August 12), which both run through the 6pm hour.

This means it will air 11 hours of local news the first full week and 10 hours the second week, far exceeding the reduced minimum requirement. (An alternative way of meeting the quota would have been to repeat local newscasts at 6am the next day, which CTV and Global both use regularly in underperforming markets, but with Olympic coverage starting at 4am, even this option doesn’t work for them.)

V stations get similar relief

In a similar decision issued the day after the CTV one, the CRTC also offered relief to two television stations – CFGS in Gatineau and CFVS in Val d’Or/Rouyn Noranda – from local programming during the Olympics. Both stations are affiliates of the V network, which is the French-language conventional television broadcaster in the consortium, and both are owned by RNC Media.

In its brief application, RNC said it was “highly likely” that V would not offer enough free time in its schedule during the Games for local programming, even though each station must broadcast only one hour and 15 minutes a week of local programming, which averages to about 10 minutes a day.

V’s Olympic schedule is much like CTV’s, with nothing scheduled during the 6-7pm hour (except during opening and closing ceremonies), and nothing after 11pm. V normally offers entertainment programming at 6-7pm instead of local news, to set itself apart from Radio-Canada and TVA. Still, it seems a bit incredible that such stations can’t find 75 minutes a week for local news.

The CRTC’s decision relieves them completely of the requirement to air local programming during the Olympics.

UPDATE (July 16): The CRTC has issued a similar decision relieving Télévision MBS Inc., which owns the V affiliate in Rivière du Loup (CFTF-TV), of its local programming obligations during the Olympics.

UPDATE (July 24): And finally, a decision relieving the owned-and-operated stations of the V network (CFJP Montreal, CFAP Quebec, CFKM Trois-Rivières, CFKS Sherbrooke and CFRS Saguenay) from their obligations. That application prompted a letter in opposition by SCFP union executive Denis Bolduc, saying that there was plenty of time in the schedule for V to air local news, that it should have asked for this exemption during its license renewal hearing last fall, and that the CRTC should maintain some minimum of local programming during the Olympics.

| Montreal, Radio

TTP applies for English news-talk station at 600AM

Nicolas Tétrault, Rajiv Pancholy and Paul Tietolman

It got buried under all the hoopla about Bell, Astral and CKGM, but at the same hearing where the CRTC will consider Bell’s purchase of Astral and the proposal to turn TSN Radio into RDS Radio, it will also consider an application by three independent millionnaires to start up an English-language news-talk station to compete with CJAD.

The application – by Paul Tietolman, Nicolas Tétrault and Rajiv Pancholy, together under 7954689 Canada Inc. – is very similar to one they made last year for clear channel 940AM, which I’ve summarized here. The station would be a news-talk format, with 100% local programming, 24 hours a day, seven days a week, with its own team of journalists. It would act as a sister station to a French-language one that has already been approved for 940.

Because 690AM went to CKGM (the station is changing frequencies this fall, before its format change), it has to choose an alternative. At first, the group said if it was not given one of the two clear channels (690 and 940) that would allow it to broadcast at 50,000 watts day and night, its business plan would not be viable. It also said the CRTC had to approve both stations or reject both, because their business plan requires both station to share resources.

The CRTC called their bluff, and TTP backtracked, accepting the French station and now trying for an English one on a different frequency.

Continue reading →

| Montreal, Radio

Bell to convert TSN Radio to French

Well, this is a shock.

As part of its acquisition of Astral Media, including CJAD, CHOM and CJFM in Montreal’s English market, Bell Media has decided that rather than sell one of the four English stations it would own here, it is going to keep all four of them but convert one to French.

As such, Bell announced Tuesday that it has applied to the CRTC to convert CKGM (TSN Radio 990) to a French-language all-sports station named RDS Radio 990. (Actually it would be RDS Radio 690, since the station is moving to that frequency.) Bell expects the switch to happen by Jan. 1, 2013, though that’s dependent on how fast the CRTC makes a decision. It says it is prepared to make the change within 120 days of the CRTC’s decision.

The CRTC’s competition rules require that a common owner control no more than three stations in a market of fewer than eight commercial stations (English Montreal has five), and no more than two AM and two FM stations in a market of more than that (French Montreal has eight). Since neither Astral nor Bell have a French-language AM station in Montreal, converting the station to French would allow them to keep it.

TSN Radio 990, formerly The Team 990, has always struggled as a low-rated station, but there was a feeling over the past few years that it had finally found a niche that worked after various other failed attempts at different formats.

Continue reading →

| TV

CRTC looks at ending MuchMusic/MusiquePlus monopoly

Want to sit down and watch a TV channel that just airs music videos all day? Your options are actually artificially limited, but the CRTC could soon be making it a lot easier for people to start up music-based specialty channels.

In April, the CRTC opened a call for comments about allowing more competition in channels devoted to popular music, in the same way it opened up competition for two other genres it deemed mature enough – sports and news.

Continue reading →

| TV

Vanessa sex channel wants to be bilingual

Vanessa, the French-language pay TV channel launched by Anne-Marie Losique in 2010, is having trouble getting television distribution services to add an English-language counterpart to their systems. Cable and satellite services, it says, are reluctant to devote a second channel as more and more specialty services (particularly those in high definition) are taking up a finite space on their networks.

Its solution, as detailed in an application to the Canadian Radio-television and Telecommunications Commission that was published on Thursday, is to turn its existing channel into a bilingual one, with all programming in one language subtitled in the other.

Jokes about how much translation of pornography is required would naturally go here. The channel only offers porn between 11pm and 6am, with the rest of the day devoted to programming about sexuality. (Or, you know, so I’m told.)

A bilingual license isn’t unprecedented. Pelmorex has one for The Weather Network/MétéoMédia, and Corus and Astral share one for Teletoon/Télétoon, but those involve one actual channel for each language. CPAC also has two channels to serve each language. One example of a single specialty channel that offers programming in both languages is IDNR-TV, the natural resources channel, which has low distribution.

Vanessa was approved as a French-language service in 2007 and an English-language service in 2009, so the only real issue is whether the CRTC would accept it as a bilingual channel. It has scheduled the application as a Type 1 application, meaning a hearing has not been called to consider it.

It took three years for Vanessa to launch in French, and the channel had only 6,790 subscribers in 2011, according to data submitted to the CRTC. Even though it’s among the top 10 in terms of revenue per subscriber at $45 a year or $3.75 a month (Bell and Videotron charge about $15 a month for the channel), its total subscription revenue was $305,538 in 2011, or about 1% that of the Weather Network or 0.2% that of TSN. With $700,000 in total revenue but $2.1 million in total expenses in 2011, the service lost more than twice what it made, making it one of the worst performing specialty channels in Canada.

People wanting to comment on the application have until July 9 to do so. They can read the application and write to the CRTC through its website.

| Montreal, Radio

Cogeco applies for big power boost to The Beat, 98.5FM

Existing (purple lines) and proposed (black lines) coverage areas of CKBE-FM 92.5, as prepared by SpectrumExpert. The map for CHMP-FM 98.5 is identical.

Cogeco wants more power.

Its broadcasting arm, Cogeco Diffusion, has applied to the CRTC to more than double the power output of two of its stations, CKBE-FM 92.5 (The Beat) and French-language talk station CHMP-FM 98.5, so they reach their maximum of 100kW effective radiated power, from the current 44.1 kW and 40.8 kW, respectively.

The move comes, the applications say, because of a new antenna installed by CBC/Radio-Canada on the Mount Royal Tower for CBF-FM (Première Chaîne 95.1). Cogeco wants to put both stations on this antenna, and replace their ~20kW transmitters with ~40kW transmitters, leading to a 100kW ERP for both.

At 100kW, the stations would match CBF-FM and CBFX-FM (Espace musique 100.7) as the most powerful FM radio transmitters on the tower. Only CKOI, which transmits 307,000 watts from the CIBC tower downtown, has more power, because it was approved for that power before the 100kW limit was set in the 1960s and the right was grandfathered in.

By comparison, other stations like CHOM, CFGL (Rythme FM), CITE (Rouge FM) and CJFM (Virgin Radio) operate around 40 kW ERP, as does CKMF (NRJ), though it has been authorized to go up to 75 kW. CBC Radio One and Radio Two operate around 25 kW.

As you can see from the map above, though it more than doubles the radiated power of both stations, the impact on the coverage area is minor. Cogeco’s application estimates an increased potential audience of 1.5% or 5%, depending on how you measure it.

That said, those who receive either station with some noise or difficulty will probably find it easier if the CRTC approves this change.

Interference

The CRTC’s decision on this matter won’t just take into account Cogeco’s needs, but will also look at how this increased power will affect other radio stations. Coordination rules set limits in terms of how much stations on the same channel can interfere with each other, as well as how stations protect other stations on adjacent frequencies. Cogeco’s applications see no interference problems in which another station’s needs would take priority over its own.

Here’s what the engineer’s report lists as potential issues:

For CKBE:

  • Co-channel interference: The station would risk interfering with four U.S. station allocations on 92.5 FM, none of which have an operational station. The station would also graze the coverage area of CBCD-FM, a retransmitter of CBC Radio One Ottawa in Pembroke, Ont. (An application is also under consideration for a 300W station on that frequency in Clarence-Rockland, Ont., east of Ottawa.)
  • First-adjacent channel interference (92.3 FM, 92.7 FM): The biggest concern here would be CBF-FM-12 (92.7), a 130-watt retransmitter of Sherbrooke’s Première Chaîne station in Victoriaville. It could also increase interference with WPAC in Ogdensburg, N.Y., but only if that station were expanded to its maximum allowable parameters.
  • Second-adjacent channel interference (92.1 FM, 92.9 FM): There’s a slight overlap near St. Jean sur Richelieu for Burlington’s WEZF (Star 92.9), so there might be trouble for people on the fringe of WEZF’s coverage area near Montreal.
  • Third-adjacent channel interference (91.9 FM, 93.1 FM): Only real concern here is CKLX-FM (Planète Jazz 91.9), which might get more interference for people who live near the Mount Royal tower. But being three channels away, and because it also transmits from that tower with a lot of power, it’s unlikely to result in significant interference.
  • Harmonic interference: The engineers predict a potential interference problem on TV channel 8, which is used by the analog TV retransmitter of CJOH in Cornwall, Ont. The audio frequency of that channel is at 185 MHz, which is twice 92.5. The station is required to solve any harmonic interference problems that come up.

For CHMP:

  • Co-channel interference: The biggest concern here is CJWL-FM (The Jewel) in Ottawa, which would not be fully protected. There’s also a potential for some interference with WCKM-FM in Lake George, N.Y.
  • First-adjacent channel interference (98.3 FM, 98.7 FM): Potential interference with CIAX-FM, a community station in Windsor, Quebec.
  • Second-adjacent channel interference (98.1 FM, 98.9 FM): No interference issues. The closest station is CFGE-FM 98.1, a Rythme FM transmitter in Magog, which is also owned by Cogeco.
  • Third-adjacent channel interference (97.9 FM, 99.1 FM): No issues here either. There’s an American frequency allocation, but CHMP interference would not carry anywhere near the U.S. border.
  • Fourth-adjacent channel interference (97.7 FM, 99.3 FM): The engineer mentions CHOM-FM in its report, but notes no likelihood of interference between the two.
  • Harmonic interference: Engineers note a potential interference issue with TV channel 10, which is used by the digital transmitter CFTM-DT (TVA), also on the Mount Royal tower. The second harmonic of 98.5 MHz is 197 MHz, which is part of Channel 10. CHMP is required to solve harmonic interference issues if they come up.
For all the listings of interference problems, Cogeco’s application notes that CKBE and CHMP would be operating within their maximum allocated coverage area, which means it would not need to coordinate with these stations. And in any case, these stations are already operating, so most interference issues would already exist. It’s unlikely too many people are going to have problems they didn’t have before picking up stations.

Rubber stamp?

I haven’t seen enough applications like these to judge their chances of getting through the CRTC. But the fact that they are Part 1 applications (no notice of consultation, no hearing date set) suggests the commission sees this as a minor change. Unless one of the stations listed above files an intervention and makes a case that the power increase would negatively affect their station (and that their station’s needs are more important), these changes are likely to pass.

If you wish to file a comment or intervention in these cases, the deadline is May 14. You can view the applications or submit comments via the CRTC website.

| TV

CRTC sides with Bell Media in dispute with cable companies

The title of the decision is “Request for dispute resolution by the Canadian Independent Distributors Group relating to the distribution of specialty television services controlled by Bell Media Inc.” – but its boringness hides how much of an effect it could have on your cable or satellite television bills.

The case involves a complaint to the Canadian Radio-television and Telecommunications Commission from a group of independent telecom groups about their attempts to come to a deal with Bell Media over its specialty services like TSN, Discovery Channel and Space.

The cable companies formed an alliance called the Canadian Independent Distributors Group. Its members are:

  • Bragg Communications (EastLink)
  • Cogeco Cable
  • Manitoba Telecom Services
  • Telus
  • The Canadian Cable Systems Alliance, which represents more than 100 independent distributors including dozens of small-town companies and cooperatives

Of note is that none of these companies are vertically integrated – they don’t have specialty channels of their own. They argue in their complaint that Bell is using its ownership of some of Canada’s most popular specialty channels as leverage to give its affiliated television services better deals than it gives to independent cable companies.

Giving undue preference to an affiliated company is not allowed by CRTC rules. What’s more, when it became clear that mega mergers would create giant corporations with significant holdings in both television services and the cable and satellite companies used to distribute them, the CRTC set up a framework to ensure they weren’t abusing their positions.

The framework set rules for these companies, which include:

  • forbidding them from setting “unreasonable” wholesale rates for specialty channels
  • forbidding them from requiring minimum subscription numbers that would force people to pay for services they didn’t want
  • requiring them to make services available on a stand-alone basis
  • forbidding them from establishing an “excessive” activation fee
  • in general, offering conditions to affiliated companies that are not offered to competing companies

This is all well and good in theory, but would it work in practice? Bell’s purchase of CTV and Shaw’s purchase of Canwest/Global certainly gives the impression that they believe they can gain an advantage through this vertical integration and that they believe there are benefits to controlling both sides of the equation.

The independent distributors group complained that Bell Media, in negotiating a new contract for its services, made unfair demands of them. Among them:

  • Making no changes to how they package Bell Media’s specialty channels without first gaining Bell Media’s consent
  • Setting minimum penetration levels so high, particularly for TSN and RDS, that the cable companies would be forced to force customers to carry those channels whether they wanted to or not
  • Requiring high fees and interest be paid when new contracts are agreed to after the previous one has expired
  • Refusing to include “non-linear rights” (i.e. video on demand and mobile) in the agreements

Bell Media responded by saying its services required a certain amount of revenue predictability, but offered an option called a penetration-based rate card, which adjusts wholesale rates based on the number of subscribers. The more subscribers, the lower the wholesale price per subscriber (the retail rate is at the discretion of the distributor). With that option, the cable companies would be free to offer services à la carte (but Bell would still require at least 50% of customers carry the most popular Category A channels like TSN and Discovery).

It also pointed out that more than 150 other distributors had signed an agreement with them.

Bell wouldn’t budge on “non-linear” rights, saying it isn’t regulated and has a high market value. Bell said it currently isn’t offering those rights to other distributors, but would be willing to provide the rights at commercially reasonable rates once they do.

The cable companies responded to Bell Media saying that while the penetration-based rate card makes sense in theory, if the price is much higher than the rates with minimum penetration guarantees, it wouldn’t solve the problem.

A win for Bell Media

The CRTC’s decision came down mostly on the side of Bell Media. While the commission has pronounced itself strongly in favour of consumer choice and à la carte subscription options, it said the older, bigger-budget specialty channels “will need time to adapt to an increasingly consumer-focussed environment.” It endorsed the variable rate system proposed by Bell, with the caveat that it would be unacceptable “if it had the effect of making flexible packaging options commercially unviable or resulted in a company that offers programming services using its market dominance so as to insulate it completely from the effect of consumers exercising choice.”

On the issue of what Bell called “incentives” to sign contracts on time, the CRTC agreed that such practices are commercially reasonable and did not order Bell to cease using them or to stop charging interest on retroactive balances.

And in the debate over “non-linear” programming rights, the CRTC also sided with Bell, saying it did not have to include those rights in negotiations with the cable companies and could negotiate them separately when it is prepared to do so.

The next stage, if the groups can’t come to an agreement before then, is arbitration. The arbitration process used here is called final offer arbitration, also referred to as “baseball arbitration” or “pendulum arbitration“. Both sides present final offers and the arbitrator chooses which one he or she thinks is more reasonable. The idea behind this form of arbitration is that it encourages both sides to be reasonable in their demands, and is likely to reward the side that is seen as being more conciliatory.

What does it all mean for me?

A lot still has to be determined at the arbitration stage. If the wholesale rate on the penetration-based rate card is too high, small cable companies won’t take advantage of it to offer consumers more choice. If it’s low enough that it makes sense to offer more packaging choice, we might see other cable and satellite providers try à la carte models. Currently choosing channels that way is available only in Quebec, and really only because of competitive pressure from Videotron that has forced Bell and Cogeco to do the same in Quebec but not elsewhere. Bell and Rogers both come out against more packaging flexibility for consumers, saying it’s either too complicated or consumers aren’t interested in it. (Bell Media even said at the hearing, when speaking of allowing Videotron to move to an à la carte model: “In hindsight, I wish that horse could be put back in the barn”)

But while the CRTC could have taken a strong stand in favour of consumer choice, it decided instead to stay on the side of some of the biggest money-makers in Canada. Channels like TSN, Space and Discovery are hardly in financial distress. Instead, they are the most profitable specialty channels and each make millions of dollars every year. Still, the CRTC has decided that it’s okay for big companies like Bell Media to impose minimum levels of subscribers for these channels, which means if not enough consumers choose them, cable and satellite companies can be forced to add them to basic packages and charge people for the channels whether they want them or not.

If there’s one bright spot, it’s that the CRTC believes that there’s an adjustment period here, and that eventually these specialty services will have to stand on their own two feet without this crutch of a minimum subscriber base. By the time of the next contract in a few years, all cable and satellite companies could be entirely free of contractual headaches that put limits on packaging flexibility, and consumer choice could reign.

Assuming we haven’t all moved to Netflix by then.

| Montreal, Radio

Tietolman interested in buying CJAD

Paul Tietolman

Paul Tietolman, the son of former Montreal radio magnate Jack Tietolman and one of three partners in a new French-language talk radio station that received CRTC approval last fall, says that he would be interested in buying CJAD or any other station Bell Media is forced to put up for sale in Montreal to get approval for its takeover of Astral Media.

The $3.38-billion purchase announced last Friday would give Bell control of four out of the five English-language commercial radio stations in Montreal, which would go against a CRTC policy that no more than three commercial radio stations in a market with fewer than eight total can have a common owner. Unless the CRTC grants an exception, that would mean one of CJAD 800, CKGM 990, CHOM 97.7 or CJFM 95.9 would be on the block.

Tietolman and partners Nicolas Tétrault and Rajiv Pancholy received CRTC approval last fall for a French-language news-talk station on one of two clear channels available in Montreal – 940 kHz. But a similar application for an English-language news-talk station was rejected because the group would not accept the more restricted channel of 990 AM. The other clear channel, 690 kHz, went to CKGM, which plans to change frequency within the next few months (probably after the Canadiens’ season is over), with 990 going to Dufferin Communications for a French-language music/talk station targeted at the LGBT community.

Though the group said at the time that no other frequency would be acceptable and they would not proceed with one station unless it got approval for both, they’ve essentially folded on both those points. Plans are under way to launch the French news-talk station this fall, and the group is preparing a submission to the CRTC for an application for an English version that would use a frequency of 600 kHz. The only thing left is to find a transmitter site.

Tietolman said his group is in negotiation with Cogeco for use of their former CINF/CINW site in Kahnawake. The towers there have stood unused since Info 690 and 940 Hits went off the air in January 2010. A final transmitter site for their French-language station also hasn’t been chosen yet – they may want the two to use the same towers to save money.

Of course, Cogeco is also looking to submit an application for a new AM radio station in the Montreal area, to revive their plan for an English all-traffic station. At last report, Cogeco was still in discussions with the Quebec transport ministry to determine an agreeable frequency and coverage pattern to submit to the CRTC. I haven’t been told what frequencies they’re considering (a multiple-transmitter system may be among them), but 600 would be a strong contender. It’s the former frequency of CFCF AM and CIQC, and has adequate coverage in anglo areas, probably better than any other available AM frequency.

Tietolman said he’d be interested in any stations Bell would have to divest itself of, but seems to have a particular eye on CJAD, whose news-talk formula could easily be converted into the radio station they have in mind (and, of course, would provide instant listener loyalty as well as eliminating their proposed station’s main competition).

With the Bell-Astral deal having just been announced and no CRTC hearing even set yet, much less a decision on what if any stations they would have to sell, nothing formal is on the table yet.

But if CJAD is the station that goes on the table (and some insiders believe that will be the one they decide to get rid of), there’s at least one party interested in taking it over.