Vol. 12 #21: Thursday, May 3, 2007
Calgary's News & Entertainment Weekly
FFWD Weekly
NEWS
by AMY STEELE
Media conglomerates becoming monsters?
CRTC ruling may be precedent setting
Those concerned about increased media concentration are closely watching to see if CTVBellglobemedia (CTVgm) will be allowed to own two TV stations in one market, which is currently contrary to federal rules.

The Canadian Radio-television and Telecommunications Commission (CRTC) is holding public hearings this week on the recent $1.4 billion CTVgm takeover of CHUM Inc. CTVgm is asking the CRTC to allow it to keep Citytv stations in five major markets, including Calgary. If given approval, CTVgm would have two stations, CTV and City, in Toronto, Vancouver, Calgary, Edmonton and Winnipeg.

Friends of Canadian Broadcasting, a non-profit lobby group, argues that allowing the proposal would "create a dominant player" in English language Canadian television, because it already controls 60 per cent of the top 25 programs on English language TV in Canada in the 25 to 54 age group.

CTVgm argues that CanWest Global, which owns Global TV stations, has been given special exemptions to own two TV stations in one market. For example, in Calgary CanWest Global owns Global and also CH Red Deer. However, Friends of Canadian Broadcasting points out that CH isn’t allowed to solicit advertising in Calgary or Edmonton.

Ivan Fecan, president and CEO of CTVgm argued before the CRTC that the proposed merger would "actually expand the diversity of voices." Fecan told the CRTC that the Internet is posing a new challenge for conventional TV stations because it is drawing away the younger demographic. He says Citytv stations are "teetering at the financial edge," but if the CRTC approved CTVgm’s application it would reinvigorate the ailing stations.

CTVgm would ensure City TV could "afford top quality Canadian programming, enlist top talent, and to secure national sponsors" and the strong media conglomerate would "give rise to new opportunities for the products and promotion of Canadian programming and artists."

Fecan has promised there will be zero overlap in programming between CTV and Citytv stations. He has also promised that CTV and City stations will have completely separate news operations. He argues that if CTVgm doesn’t buy Citytv the stations could cease to exist.

CRTC chairperson Konrad von Finckenstein asked at the hearing how Canadians can be reassured the larger CTVgm conglomerate would be a "national champion" and not a "national predator" that would "just milk the profits." von Finckenstein said that the CRTC has granted exemptions to the rule of only one station per market, but "all of those have been based essentially on a station in a secondary market not doing well." He pointed out that Australia and the U.S. still only allows a media outlet to own one station per market.

In the Friends of Canadian Broadcasting CRTC submission the organization agreed, stating "acceptance of this application would stretch the existing exception to the point of abandonment of the policy."

Friends of Canadian Broadcasting is doubtful that CTVgm would have "true editorial diversity" in its CTV and Citytv stations. The organization argues that CTV or Citytv "may also be expected to subtly promote one another when opportunities arise. Journalists at both CTV and Citytv will know ‘where the bread is buttered’ and exercise natural self-censorship… hesitating to criticize their corporate owners or colleagues."

Meanwhile, Richard Stursberg, vice-president of CBC English TV told the CRTC that if CTVgm’s application is approved it will have control of more than 50 per cent of conventional and specialty TV ad revenue in Canada.

Terry Field, chair of Mount Royal College’s journalism program, says "a lot of people have spoken to the preference to have a diverse set of voices in a community to provide different points of view." However, he questions whether CTV, Global and Citytv in Calgary are currently offering much diversity in coverage despite being owned by different companies. "Is it really that much different, or are they all pretty much providing the same middle class view of the city, providing similar product anyway?" he asks.

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