Toronto - Canada's broadcast regulator - the CRTC - has protected editorial diversity in local news and more choices for Canadian content during prime time with its decision today to carve out five City TV stations from the assets acquired by CTVglobemedia from CHUM, according to the broadcast watchdog group Friends of Canadian Broadcasting.
"Today's decision is good for viewers, advertisers and competition and diversity in the Canadian broadcasting system," said Friends spokesperson Ian Morrison.
CTV had asked the Commission to allow it to acquire CHUM's radio stations, specialty TV channels and the CHUM City TV stations in Toronto, Winnipeg, Calgary, Edmonton and Vancouver. As the CRTC has noted, acquisition of the City TV stations would have broken the Commission's Common Ownership policy, which limits any broadcaster to one channel in each city.
Owing to CTVgm's current domination of English conventional TV, Friends asked the CRTC to approve the purchase of CHUM only on condition that CTVgm sell the City TV properties while retaining CHUM's "A" Channels in six smaller markets.
"Had the Commission approved this transaction as proposed there is good reason to expect that it would have created a duopoly in private conventional English TV: a duopoly in which CTV, would have enjoyed a permanent structural advantage over the other, CanWest Global. Such an outcome would be a negative development for the broadcasting system: for markets, competition and viewers," Morrison said.
Friends was also concerned that local news would suffer were the CRTC to approve the purchase as proposed and that CHUM's smaller "A" Channels would struggle without the financial protection and access to competitive programming as part of CTV.
"In each of the five big markets, City and CTV are currently important players in local television news. The editorial safeguards proposed by CTVgm were inadequate. While they would create a semblance of editorial diversity, true editorial diversity can only be achieved by separate ownership," Morrison said.
"Today's CRTC decision ensures that three private-sector national television networks, rather than two, will operate in English-speaking Canada," said Morrison. He added: "Had the CRTC allowed CTV to gobble up Chum's City stations today, nothing could have prevented TVA from swallowing Quatre Saisons, thereby creating a monopoly in private TV in French-speaking Canada".
Morrison noted that today's decision respects CRTC's Common Ownership policy to restrict broadcasters to one station per market, and it creates a competitive parity between CTVgm and CanWest while still allowing CTV a dominant position in the youth demographic while reaping 39% of Canadian specialty revenues.
"Commensurate with these benefits, CTVgm should assume the obligation to ensure that the A-Channels continue to meet their local programming and other obligations in the smaller local markets they serve," Morrison said.
Friends is a national media watchdog group that promotes more and better Canadian programs on radio and TV and is supported by 100,000 Canadians. Friends is not affiliated with any broadcaster.
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