CHUM, Craig disagree over impact of new TV stations in Calgary, Edmonton

CRTC commissioners are left to separate fact from fiction in the current process to license a new over-the-air television broadcaster in Calgary and Edmonton, with a retransmitter in Red Deer (CCR, April 25/03). Commissioners must have felt a sense of déjà vu as CHUM Ltd. in its bid for the stations adopts many of the arguments made by rival Craig Media Inc. when it was successfully licensed for a Toronto station during a similarly raucous process last summer. On the other hand, Craig officials trying to block the move found themselves making many of the arguments that CHUM made when it opposed Craig’s Toronto application (CCR, June 7/02, May 23/02). CHUM, which would dearly like a new toehold in the two Alberta cities, told the regulator on June 16 during a public hearing in Edmonton that its schedule would be unique in western Canada. That contention was refuted by Craig. In the early days, Craig relied on CHUM programming when it established stations in Calgary and Edmonton back in 1997. But CHUM executives told the CRTC that its programming on Craig’s over-the-air channels in Alberta had fallen to around 6% of the overall schedule. CRTC commissioner Andrew Cardozo asked if there was a place for CHUM programming in Western Canada, particularly since Craig had moved away from it. CHUM responded it had a place in the market and that, if licensed, it will bring much-needed diversity and regional programming to the province. CHUM president and CEO Jay Switzer noted that Craig “had migrated from what it was when it first launched to chasing the big (U.S.) networks.” But Craig Media executives protested, saying that CHUM provides at least one-quarter of the prime-time schedule on its Alberta stations. Such CHUM programming as StarTV, MovieTV, FashionTV and MediaTV runs on Craig’s stations, they noted. Moreover, Craig Media president and CEO Drew Craig noted that CHUM’s stations would be going after the same 18-34 demographic and that both broadcasters had movie-based channels. He argued that the bids by Global Communications Ltd. (CCR Update, April 16/03) and CHUM were “the wrong applications” and at the “wrong time.” He said that CHUM was proposing a service that would mirror Craig’s stations in the Alberta market, while Craig’s yet-unlaunched toronto/one would be distinct in that Ontario city. But Craig did admit that its commissioning of CHUM programming has fallen as it has acquired shows that it will air in both Toronto and in Alberta. CRTC commissioner Stuart Langford drilled CHUM on its attitude change since the Toronto licensing hearing. He questioned how CHUM could say that a new entrant in Toronto was bad, but that a new channel in Alberta would have little effect on the incumbents. Switzer replied that there are factors at work within the system with existing players that didn’t exist seven years ago, primarily consolidation with companies getting bigger. He said the Edmonton and Calgary markets were the next logical step for CHUM to grow. Craig Media disputed CHUM’s contention that much of its growth would come from new TV viewers. Drew Craig said that when Craig entered the Alberta market, its stations repatriated a lot of viewers who were tuning into U.S. border stations, which had ad sales people north of the border. He added that none of those sales people are here now. Craig executives also claimed that they would not be able to maintain their commitments to Canadian content if either Global or CHUM entered the market because their existing revenues would become split with the new entrants. Furthermore, Craig noted that it was counting on revenues from its Alberta channels to subsidize its digital specialty TV channels and its new Toronto station, and to a lesser extent its Brandon MB operations. Craig said allowing new entrants in the Alberta market at this time would be “devastating.” Appearing before the commission, CTV Inc. noted that any new entrants are bound to affect the incumbents. It said that when Craig entered the Calgary and Edmonton markets in 1997, its revenues fell substantially and it was forced to cut 26 full-time jobs at its Calgary station and 50 full-time positions in Edmonton.

CHUM, Craig disagree over impact of new TV stations in Calgary, Edmonton

Broadcast | June 20, 2003

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