CCR Short Takes

Conservative election email: CCR exclusiveWith a review of the Canadian broadcasting industry and the CBC on the horizon, speculation abounds as to where the new Conservative Party of Canada (CPC) government stands on these issues. The following is an election-time email to Conservative Party staff obtained by CCR which contains a rote response for inquiries about the state of Canadian broadcasting under a CPC government. It is presented in its entirety – only recipients’ email addresses have been removed.Subject: RE: Canada TV drama needs your helpWe are to use this in response - it is a one size fits all response to broadcasting issues.Garry KellerCandidate Media Support OfficerConservative Party of CanadaDear XXXXXXX:The Conservative Party believes in a stable Canadian presence in a varied and vibrant broadcasting system. The Canadian broadcasting system should offer a wide range of Canadian and international programming, while being respectful of Canadian content. The system should provide audiences with maximum choice and have the ability to utilize new technologies to achieve its public and private objectives.The CBC-SRC is an important part of the broadcasting system in Canada. It must be a true public service broadcaster, relevant to Canadians. The Conservative Party will focus the CBC-SRC services on its mandates as public broadcasting services.The Conservative Party recognizes the vital role played by the private broadcasters of Canada through their local and regional programming that reflects the language and multicultural realities of our country. Private sector broadcasters and service-providers first and foremost are businesses and must be able to compete in an ever-increasing fragmented and global market. The Conservative Party recognizes the need for both regulatory flexibility and predictability.Broadcasting policy in Canada must be relevant in today’s communications environment and responsive to the demands of Canadians.The Conservative Party will review and update the Broadcasting Act to ensure its relevance in today’s technological environment. The Conservative Party will establish clear, national policy directions and a framework that will maximize the freedom of choice and ensure that freedom of speech is respected. The CRTC’s role in content regulation will be reduced to eliminate duplication where other legislation exists.Kind regards and thank you for your enquiry. New Glasgow NS the site of fierce radio competitionA Nova Scotia town with fewer than 10,000 residents was at the centre of a heated competition for the only available space on the FM dial last October, according to a decision announced by the CRTC on March 24 (Broadcasting Decision 2006-87). With just one frequency available – 94.1 MHz on the FM band – only one of the four applications put forward for a new station in New Glasgow NS by Hector Broadcasting Co. Ltd., Astral Media Radio Atlantic Ltd., Atlantic Broadcasters Ltd., and Acadia Broadcasting Ltd. could be accepted. Astral envisioned a station in a hot adult contemporary (Hot AC) format, Acadia proposed a classic rock format, while Atlantic applied for a licence that would see a mix of Hot AC and pop music broadcast. Hector, meanwhile, had asked for permission to move its AM band station to the FM dial; Hector’s station had previously served as the market’s only local commercial radio outlet. Astral, Acadia and Atlantic all eventually volunteered that their programming would consist of a minimum of 40% Canadian musical selections during weekday daytime hours (6 a.m. to 6 p.m.), a figure in excess of the 35% required by the Radio Regulations. Aside from interventions by the Canadian Independent Record Production Association and Roy Dallas, a local citizen, three of the applicants attacked each other’s applications, with Astral claiming that Hector’s station, if approved, would be receivable in the neighboring Truro radio market, thus potentially damaging the business of Astral’s two FM radio stations there. Acadia, meanwhile, panned both the Astral and Atlantic applications, pointing out that the two broadcasters already had stations in adjacent markets, stations that would in fact compete with the new service in New Glasgow. Finally, Hector voiced its objection to all three of the other applications, saying that its AM station might not survive if one of the three was given the green light. However, after weighing the submissions and subsequent interventions as well as the general trend in radio profitability nationwide, the CRTC decided that the New Glasgow market likely could not support a new FM radio station at present, and instead granted Hector’s request to move its AM station to the FM band. "The commission is confident…that the conversion of CKEC to the FM band will provide an opportunity for the incumbent service to rejuvenate its position in the New Glasgow market, while providing a much better quality service to its listeners," the decision reads. Cogeco gets relief from rules governing second 4+1 setCogeco Cable Canada Inc. has been granted temporary relief from conditions governing its carriage of a second set of US 4+1 signals on its digital cable service. The cable BDU applied for permission to carry CBS, NBC, ABC and FOX as well as PBS in 2002 (Broadcasting Decision 2002-300), a request that was approved as long as Cogeco abided by the non-simultaneous program deletion stipulations set out in section 43 of the CRTC’s Broadcasting Distribution Regulations. The section, which falls under the section of the act pertaining to DTH BDUs, mandates that licensees delete an out-of-market non-simultaneous program if a Canadian programmer offering a similar program requests it, and was designed to protect the program broadcast rights of local-market broadcasters from being superceded by similar programming from larger stations. Thanks to an agreement it reached with the Canadian Association of Broadcasters (CAB), Cogeco is now exempt from the provisions of section 43 until at least August 12, at which time Cogeco and the CAB will renegotiate the terms of the exemption. Corus and Shaw post gains in first half of FY 2006Toronto firm Corus Entertainment Inc. recently reported a 6% rise in consolidated revenues in its second quarter (7% over the six-month period), which ended on February 28. The firm, whose business lines include radio stations, specialty and pay television channels, and content creation, still posted a $65.7 million loss on revenue of $164.4 million. However, much of that cost was due to a buyback of its high-yield debt, a move that should save Corus $20 million to $25 million annually in lower interest payments, president and CEO John Cassaday said in a release. Meanwhile, Shaw Communications Inc. – the Calgary-based majority shareholder in Corus – saw an 11% gain in its total service revenues during its second quarter, which also ended February 28. As have many of its cable television peers, Shaw has been making inroads into the digital telephony landline market, a move that’s added to its revenue base, the firm said. The company’s cable division yielded a 13% increase in revenue during the quarter, to $449.2 million, while its satellite division brought in $162 million in revenues, a 6% gain year-over-year. CHUM’s revenues rise, priorities set for rest of FY 2006CHUM Ltd. recently released its financial results for the second quarter and first half of its 2006 fiscal year. After advertising commissions were subtracted, revenues at the Toronto-based broadcaster climbed 7.8% for the second quarter, which ended February 28, compared with revenue for the same quarter in CHUM’s 2005 fiscal year; for the six months ending February 28, revenue gained 12.3%. Both revenue figures managed to keep abreast of hikes in operating expenses, which rose 5.3% for the second quarter and 11.1% for the six-month period. In announcing the figures, CHUM management laid out a series of priorities for the 2006 fiscal year which included finding ways to cost-effectively increase prime time television ratings, cut non-programming expenses, and leverage its content and brands across other platforms and in other markets. CHUM’s first quarter of 2006 ended Nov. 30, 2005. Astral sees improvement across all units so far in FY 2006Revenues were up 10% at Montreal’s Astral Media Inc., in keeping with those of other broadcast media players. The specialty and pay television, radio, and outdoor advertising provider booked $138.2 million in consolidated revenue for the quarter ending February 28, and $292 million for the first six months of its 2006 fiscal year. Astral’s advertising business held the distinction of being the company’s fastest-growing segment in terms of revenues, besting the radio and television units with 26% growth in revenue year-over-year, compared with TV’s 8% and radio’s 7%. "In what is traditionally a slower quarter in the advertising industry, revenues were up across the board," said Astral president and CEO Ian Greenberg in a media release announcing the earnings.

CCR Short Takes

News | 04/21/2006 4:00 am EDT

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