Alliance Atlantis gets go-ahead to buy film channel, but it must stay in Atlantic region

The CRTC is requiring Alliance Atlantis Communications Inc. to maintain the headquarters of The Independent Film Channel Canada (IFCC) in Halifax as part of its approval of the broadcaster’s acquisition of the digital specialty channel. The move signals a possible new tough stand by the commission regarding commitments made by broadcast licensees in applications. "The commission requires Alliance Atlantis to adhere to…(its commitments), in particular its promise to locate and maintain the offices of the IFCC in Halifax," the CRTC states in Decision 2001-752, released December 13. The IFCC was originally licensed to Halifax-based Salter Street Broadcasting Ltd. late last year. But a few months later, the channel coveted in digital channel licensing hearings by Alliance Atlantis was included in a $78 million agreement the Toronto-based broadcaster and producer reached to buy Salter Street. The sale of the channel and some Category 2s owned by Salter Street needed regulatory approval (CCR, Feb. 14/01). The CRTC’s requirement placed on Alliance Atlantis comes on the heels of Corus Entertainment Inc.’s decision to move the Women’s Television Network (WTN) to its Toronto facilities from Winnipeg just days after securing regulatory approval for its purchase. On November 23, the CRTC fired off a letter to Corus requesting information relating to its decision to move the operation. The CRTC had urged Corus "to maintain and build on WTN’s orientation as a Western-based service," but did not make it a requirement of approval of the purchase (CCR, Dec. 6/01; CCR Update, Nov. 28/01; CCR, Nov. 22/01). While the CRTC is continuing its investigation of the WTN situation, the CRTC’s acting director general of communications says that the two cases are different. "As we mentioned when we licensed the independent film channel, one of the reasons that Salter Street got it was because they were based over there (on the east coast)," says Denis Carmel. "I’m not sure that was the case with WTN. W didn’t stand for Winnipeg. In the interventions in the case of Corus buying WTN, there was only one about the west. Here, a lot of them raised the fact about Halifax." Decision 2001-752 notes, "the commission gave particular emphasis to the fact that this was to be the first specialty service based in Atlantic Canada" in setting the licensing terms for IFCC. Trafficking of licence ruled out In interrogatories to Alliance Atlantis during the approval process, the regulator posed questions on the subject of whether the purchase of Salter Street constituted "trafficking" of a licence (CCR, Aug. 2/01). In its decision, the CRTC concludes that it would be "unreasonable to infer that the primary motivation of Salter Street’s owners in selling the company’s shares was to divest themselves of the regulated assets of IFCC and the other specialty services." However, the commission stated that although it was "unable to conclude that this particular transaction constitutes an inappropriate sale of broadcasting assets, it remains very much concerned by what it sees as an increasing incidence of business dealings involving the sale of new or recently licensed broadcasting properties such as these."

Alliance Atlantis gets go-ahead to buy film channel, but it must stay in Atlantic region

Broadcast | December 19, 2001

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us