OTTAWA and GATINEAU, June 8 – As first reported in cartt.ca yesterday, the CRTC has approved the transfer of effective control of CHUM Ltd. to CTVglobemedia Inc., but the deal comes at a stiff price: CTV can take on the A-Channel stations, but not the more lucrative Citytv stations in Toronto, Winnipeg, Edmonton, Calgary and Vancouver.
The decision – enabling CTV to buy seven TV stations, 34 radio stations and, in whole or in part, 20 specialty TV services – has been issued with what appears to be unprecedented speed, with only six weeks having elapsed from the end of the hearing Apr. 30 until today’s release. The Commission says that allowing CTV to take over the Citytv stations “would be inconsistent with the Commission’s common ownership policy. That policy stipulates that a licensee may not operate more than one conventional television station in one language in a given market.”
“The purpose of this policy is to maintain diversity of voices within the Canadian broadcasting system,” says CRTC Chairman Konrad von Finckenstein, in a news release. Referring to previous commission decisions which have allowed one ownership group to control two TV stations in a single market, he adds, “Some exceptions to the policy were granted in the past for failing stations in secondary markets. (CTVglobemedia or CTVgm) asked for the exception using arguments based upon competitive equality and the impact of new media. However, the Commission was not convinced by CTVgm’s arguments.”
The Commission evidently considers CHUM’s A-Channel stations to be “failing” or in secondary markets and approved their acquisition by CTVgm.
The CRTC statement adds that approval of this transaction is conditional on the trustee responsible for the Citytv stations presenting the Commission with an “acceptable plan for the sale of the Citytv stations” within 30 days.
Surf back to cartt.ca later today and in the coming days for continuing coverage.
www.crtc.gc.ca/eng/whatsnew.htm
