Friends’ plea does not fall on deaf ears; CTV gets CHUM, not CityTV

As many in the industry had expected, the CRTC today approved the transfer of effective control of CHUM Ltd. To CTVglobemedia Inc., minus CHUM's five CityTV stations in Toronto, Winnipeg, Edmonton, Calgary and Vancouver. The CRTC reasoned that approving the transfer of the CityTV assets would have been inconsistent with the commission's own common ownership policy. "The purpose of this policy is to maintain diversity of voices within the Canadian broadcasting system," said CRTC chairman Konrad von Finckenstein in a press release. "Some exceptions to the policy were granted in the past for failing stations in secondary markets. CTV asked for the exception using arguments based upon competitive equality and the impact of new media. However, the commission was not convinced by CTV's arguments." CTV does acquire CHUM's seven A-Channel stations in Victoria, Pembroke ON, Ottawa, London ON, Wheatley ON, Wingham ON and Barrie ON. In this respect, the CRTC's decision is the opposite of what CTV had asked for; the broadcaster had already arranged to sell the A-Channel assets to Rogers Communications Inc. It is, however, exactly the direction that Friends of Canadian Broadcasting spokesman Ian Morrison was hoping the commission would take. "We're saying if they approve the CTVglobemedia as filed it would destroy, or render invalid, common ownership policy," Morrison told Canadian Communications Reports in April (CCR, April 19/2007). Morrison advocated for CTV to receive the A-Channel stations instead of the CityTV assets because he said it would give the A-Channels a boost by attaching them to "a powerful engine like CTV." He added that allowing CityTV to be operated by another broadcaster would ensure a third private television network for English Canada and avoid a CanWest/CTV duopoly. What now happens regarding Rogers' bid for the A-Channel stations remains to be seen. Morrison opined in April that Rogers may have offered to buy the A-Channel assets in hope that it would get right of first refusal to purchase the CityTV stations should the CRTC rule in that direction.

Friends’ plea does not fall on deaf ears; CTV gets CHUM, not CityTV

Broadcast | June 8, 2007

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