Feds OK BCE's bid for CTV; TV industry watchdogs cheer by Leanne Yohemas-Hayes

by Leanne Yohemas-Hayes

Approval by the federal regulator Thursday of BCE Inc.'s $2.3-billion bid for the CTV television network will boost Canadian content and give the broadcaster a new lease on life, say industry watchers.

"This is a good decision," said Ian Morrison, president of Friends of Canadian Broadcasting, a lobby group that promotes Canadian programming. "The end result is that there is more Canadian programming on the air. And that's good for Canadians." The deal combines the Globe and Mail newspaper with Canada's biggest private television network and the country's largest Internet service provider – Bell Sympatico-Lycos.

All that would be controlled by Canada's biggest telephone company, which also owns a leading distributor of satellite television, Bell ExpressVu.

The Canadian Radio-television and Telecommunications Commission approved the deal Thursday with a few strings attached.

BCE must invest $230 million over the next seven years in the broadcasting industry, with the majority going to original Canadian TV programming such as dramas and documentaries.

Morrison said the end result is more Canadian programming on the air to the tune of an extra hour during prime time each week. That's an hour more than the CRTC's requirement of eight hours.

The regulator also called for strict financial reporting requirements which will highlight the fact the company spent extra cash on Canadian content.

"It's making very sure that they'd do what they'd promise they will do," said Morrison.

Michael Nolan, a professor at the University of Western Ontario, said the merger will give CTV a new lease on life.

"For the first time really in their history ... they're on a really stable economic footing," said Nolan, who is writing a book on the broadcaster's history.

"CTV does not have to rely on subsidies any longer. It's got this pile of cash, so there should be no excuse now for not delivering a really alternative style of programming."

Ivan Fecan, president and CEO of CTV, agreed that CTV is in good hands.

"This ruling creates the best possible environment for CTV – a stable base from which to remain innovative and creative," he said in a news release.

Elizabeth McDonald, Canadian Film and Television Production Association President and CEO also applauded the deal.

"This is a major win for Canadian content creators," she said. "This transaction will lead to the creation of innovative and diverse Canadian programming."

The CRTC decision didn't force CTV to sell off some of its specialty channels, such as TSN and the Discovery Channel, as was widely speculated.

Morrison wasn't surprised. He said there's no conflict of interest because in the realm of the digital world – with hundreds of channels – cable companies don't have the power to favour one company over another.

"Because ExpressVu is only distributing digitally, it is not in the same position," he said. "ExpressVu would be stupid not to carry all the channels because they carry all the dishes."

Janet Yale, president and CEO of the Canadian Cable Television Association, said regulators made the right decision.

But she wants restrictions be loosened so that cable companies, too, can increase ownership of specialty television channels.

Previously the CRTC would only allow such mergers on a case-by-case basis.

Rogers Communications Inc., for example, wasn't allowed to expand its share of Sportsnet.

And when the regulator approved the sale of WIC Western International Communications TV stations to CanWest Global Communications Corp. in July, it also ruled that Toronto-based Corus Entertainment, a Shaw Cable spinoff, couldn't buy family specialty channels.

"We believe it's time for that policy to change," she said. "It creates uncertainly in the marketplace."

Potential sellers aren't as interested in selling to cable companies if they think there's a federal policy that transaction won't get regulatory approval, she said.

Within the next week, the CRTC is planning to put out a call for comments on the issue of cable ownership of specialty channels, spokesman Denis Carmel said.

© Canadian Press