Specialty channels hope for stronger voice in merger with broadcasting association

Members of the Specialty and Premium Television Association (SPTV) are anticipating a stronger lobby when their organization is absorbed by the larger Canadian Association of Broadcasters (CAB). But they also don’t want to lose the benefits of belonging to a smaller group. "We are hoping that we will not get diffused in a much larger body. …There was a tremendous amount of input and sharing of concerns with each other (with SPTV), and we hope that will definitely continue," says Shan Chandrasekar, president and CEO of the Asian Television Network, a SPTV member. Alliance Atlantis Broadcasting president/CEO Phyllis Yaffe, whose specialty channels belong to both associations, says the SPTV’s greatest strength was its communications. "We had weekly updates (on industry issues), and even more regularly when necessary. We really got the information we needed and that made our membership (in SPTV) worth it," she told CCR. The CAB has assured that nothing substantial will be lost in the transition. The four staff members of SPTV are being offered jobs at the CAB’s Ottawa office, although Jane Logan, who was the CAB’s VP of radio before helming SPTV, has opted to move onto other things after participating in the joint CAB-SPTV transition task force overseeing the merger. At the CAB’s convention in Calgary this month, where the merger was announced publicly, CAB president and CEO Michael McCabe said it made sense for the interests of the specialty and pay sector to be amalgamated under a single force given ongoing industry consolidation. The amalgamation, which should be complete by year end, will see the CAB’s membership grow from 27 pay and specialty services to well over 60. The number is expected to balloon even more following the CRTC’s licensing of dozens of new digital specialty channels next month. Plans for the merger were set in motion following a conversation last June at the Banff Television Festival between Groupe TVA president and CEO Daniel Lamarre, who chairs the CAB board, and outgoing Vision TV president and CEO Fil Fraser, who chairs the SPTV board. Fraser says the board of the merged entity will include CEOs or high-level executives working hands-on with specialty services, and not "corporate officers who represent many parts of a big organization." There will also be "representation from all sectors of the industry on a balanced basis," he adds. For French-language and third-language specialty channels, which primarily belonged to the SPTV, that will mean representation on the new board. Finding common ground The idea, says Logan, is to combine the best practices of both organizations under one umbrella. In an interview last year – prior to any merger talks – she said SPTV distinguished itself by providing an independent proactive voice that takes tough stances on access and distribution issues, including undue preference. The SPTV and the CAB have not always seen eye-to-eye in the past. For example, the SPTV called for the licensing of both analog and digital channels in the latest round, while the CAB argued for new services to be licensed in digital only to push forward the roll out of digital. Over the last two years, the broadcasters’ association has taken a more proactive approach on issues related to specialty and pay TV services, which have increasingly been cutting into the viewership and advertising revenue of conventional networks. Backed by the more extensive resources and lobbying power of the CAB while retaining the hands-on approach of the SPTV, specialty service owners believe they will be more effective in having their voices heard by the CRTC and government. "We are hoping that with this strong foundation that has been laid (with SPTV), through this merger, we can build a nice roof and colourful windows," states Chandrasekar.

Specialty channels hope for stronger voice in merger with broadcasting association

Broadcast | November 23, 2000

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