TORONTO – According to CanWest Global CEO Leonard Asper, things are looking up for Global Television.
"Looking at the fall (ad) bookings, it’s looking good," Asper told the BMO Capital Markets Media and Telecom conference on Tuesday in Toronto. "It looks like the trough is over and we’re on our way up. How far up? I don’t know."
Once a ratings leader, Global Television began to slide over two years ago, ceding much the overall ratings lead – across the board – to CTV. But, with popular U.S. shows such as Prison Break, 24, House, Deal or No Deal, and The Apprentice on the 2006 fall schedule, media buyers are returning to Global. "We are above budget on bookings, but all we’re talking about is pacing right now," he cautioned.
And, added Asper, part of the Global resurgence has something to do with CHUM’s sales force. He called the number three broadcaster "a bit distracted," alluding to its impending sale to CTV’s parent Bell Globemedia. "We are benefiting from CHUM’s sales force not being as aggressive as they could be."
With BGM and CHUM getting together, Asper was asked the company’s position on the proposed sale. "It would be slightly hypocritical of us to say this is a terrible deal or we hate consolidation," he explained. "I’ve been on the public record for years saying this is what has to happen." The company is currently still formulating its opinion on the CRTC’s TV Policy Review, which will help set out its final position on the proposed sale. Asper conceded that having CHUM’s Citytv and the local CTV affiliate working together in many markets is a concern, however.
Crucial to the CRTC’s approval of the deal, added Asper, is how it stipulates where the "benefits" will be spent. Benefits, usually 10% of a transaction, are supposed to be set aside for production of Canadian content, a policy mandated by the Commission. Asper said the $230 million in benefits when Bell Canada purchased CTV injured Global Television because of all the extra cash CTV had on hand to purchase programming.
"We suffered when BCE bought CTV in 2001 because they were able to use a lot of that (benefit) money… to buy U.S. programming to flood the market," said Asper.
Asper also wished the Waters family, which owned CHUM, had handled the sale of their company differently. "I’m sorry about the way CHUM handled the transaction (the Waters’ approached only BGM and Astral Media) because I think there a number of other buyers who would have stepped up if they had known about it."
