OTTAWA and TORONTO – CTV says that only “urgent regulatory relief” can help to keep its struggling stable of ‘A’ channels afloat.
In an application to the CRTC, CTV said that its six ‘A’ stations, which it acquired as part of its 2007 purchase of CHUM Ltd., “continue to lose tens of millions of dollars annually”, despite improved ratings and an investment of approximately $240 million in programming over the last three years.
In order to ensure that the stations “are in a position to continue to operate in the short term”, CTV has asked the Commission to extend “interim regulatory flexibility” to CIVI-TV Victoria, CHWI-TV Windsor, CFPL-TV London, CKVR-TV Barrie, CHRO-TV Pembroke and CHRO-TV-43 Ottawa.
Specifically, CTV has asked that the Commission:
– eliminate all exhibition requirements relating to priority programming;
– reduce overall Canadian content exhibition requirements to 55% of the broadcast year; and
– revise existing obligations relating to described video by removing the “original” requirement and expanding the scheduling window and nationality of programming that qualifies.
The ‘A’ stations are currently required to air an average of eight hours per week of Canadian programs between 7:00 p.m. and 11:00 p.m. consisting of Canadian drama; music, dance and variety programs; long-form documentaries; or, regionally-produced programs in all categories other than news, information, sports and Canadian entertainment magazine programs. In addition, at least 75% of this priority programming broadcast on average over the broadcast year must be produced by independent producers.
So does this mean that CTV wants to drop the stations’ local programming? Not necessarily, said Kevin Goldstein, CTV’s VP of regulatory affairs, who described the ‘A’ channels’ future programming plans as being “in flux right now”.
“We’re simply looking for the same programming flexibility as, say (Channel Zero-owned) CHCH”, he told Cartt.ca on Tuesday. “We just don’t want to be tied to a set amount (of priority programming) like that.”
Goldstein described CTV’s request as similar to the regulatory relief granted to other licensees, in particular former Canwest-owned E! branded stations CHCH-TV and CHEK-TV. The amendments are also consistent with the policies outlined in BRP 2010-167, A group-based approach to the licensing of private television services, he said.
If granted, the amendments will give the ‘A stations “added scheduling flexibility to better compete”, CTV’s application continues. It has asked for the changes to come into effect on September 1, 2010.
But isn’t the Local Programming Improvement Fund (LPIF) designed to help stations like these?
"The LPIF is highly successful for small channels, but it is only one of the tools in the toolbox, and is not the solution to the problem", Goldstein added.
“The ‘A’ Stations will continue to be able to make local programming their primary focus as CTVgm works to improve the group’s financial performance in the short term”, the application reads. “In terms of the longer term future of the ‘A’ Stations, assuming the relief requested herein is granted, we expect to be in a position to present a plan for the group as part of CTVgm’s group licence renewal application late this Fall.”
Interventions to the application are due before August 3, 2010.