Radio / Television News

UPDATE: Commission to include newspaper ownership in new media merger policy


OTTAWA and GATINEAU – For the first time, the CRTC will look at newspaper ownership when considering the diversity of media voices in Canadian markets.

As reported by Cartt.ca earlier this morning, the CRTC released its new policies on diversity of voices in Canadian media.

"With these new policies, we have developed a clear approach to guide us in assessing future transactions in the broadcasting industry," said Konrad von Finckenstein, chairman of the CRTC, in the Commission’s press release. "It is an approach that will preserve the plurality of editorial voices and the diversity of programming available to Canadians, both locally and nationally, while allowing for a strong and competitive industry."

After its diversity of voice proceeding held in Gatineau in September 2007, the Commission has determined that it is “satisfied that the broadcasting system currently provides Canadians with a range of news and information programming,” says its press release.

So, it reaffirmed its existing common ownership policies governing the number of conventional television and radio stations a person may control in the same market.

However, to maintain the plurality of editorial voices, the CRTC is establishing a new policy restricting cross-media ownership. As a result, a person or entity will only be permitted to control two of the following types of media that serve the same market: a local radio station, a local television station or a local newspaper.

While CTVglobemedia owns radio stations and a TV station in the Toronto area, as well as The Globe and Mail newspaper, the new rules will apply to future transactions, not companies currently in existence. Plus, the new rules apply to local daily newspapers and the Commission considers the Toronto based Globe and Canwest’s National Post to be national papers. And when it comes to companies like Dougall Media in Thunder Bay, ON, which owns the local weekly newspaper, TV stations and three radio stations, it doesn’t count against the new rules because its paper is a weekly.

In addition, the Commission has conditionally approved the Journalistic Independence Code that was proposed by the Canadian Broadcast Standards Council (CBSC).

“In particular, the Commission directed the CBSC to include a minimum number of journalists on the panels that study complaints and to formalize the process used to select panel members. The principles set out in the Code will ensure a diversity of professional editorial voices and will eventually apply to all broadcasters who own a newspaper in the same market,” says the Commission release.

The trend toward greater consolidation in the broadcasting industry – as evidenced by Astral Media’s purchase of Standard Broadcasting, CTVgm’s CHUM Ltd. buy, Canwest’s acquisition of Alliance Atlantis’ specialty services and Rogers Media’s Citytv takeover – “has raised concerns that a large ownership group could achieve a dominant position through acquisitions, which could bring about a reduction in the diversity of local, regional and national content,” continues the Commission decision.

In order to address these concerns, the CRTC has also decided to:

* Impose limits on the ownership of broadcasting licences to ensure that one party does not control more than 45 per cent of the total television audience share as a result of a transaction.
* Not approve transactions between companies that distribute television services (such as cable or satellite companies) that would result in one person effectively controlling the delivery of programming in a market.

The new policies announced today apply only to private broadcasters. The Commission will consider the contribution public broadcasters make to the diversity of voices during upcoming proceedings focusing on the Canadian Broadcasting Corporation and provincial educational broadcasters. The Commission will also undertake a comprehensive review of its policies relating to community broadcasters in the near future.

More to come.

www.crtc.gc.ca