Sep 18, 2019
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CRTC challenges CTVglobemedia claim

GATINEAU, Que. (CP) _ CTVglobemedia’s $1.4-billion purchase of CHUM Ltd. television and radio network was met with pointed skepticism at hearings before the national regulator Monday.

CTVglobemedia CEO and president Ivan Fecan told the Canadian Radio-television and Telecommunications Commission panel that the purchase would give CHUM’s key City-brand TV stations the financial stability to go back to their roots and create "edgy" programming. Fecan said Citytv stations in the major Canadian markets are teetering on the financial edge.

But they were repeatedly challenged on the point by commissioners, who argued that while the CHUM stations, which include several A-Channel stations, were not extraordinarily profitable, they were far from failing.

Approving the application would give the merged entity two stations in Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Toronto and Hamilton, violating the CRTC’s rule against so-called "twin sticks" per market.

"I’m trying to give you what you want but why couldn’t you have made your request for an exemption less monumental?" said commissioner Stuart Langford. CRTC chairman Konrad von Finckenstein also said he was concerned that approving the combination as it stands would give CTV about 50 per cent of the television advertising pie.

"I can see why it’s in your interest _ I’m not sure why it’s in the public interest," said von Finckenstein. Challenged to find a new justification for his proposal, Fecan said that audience share is splintering, as is advertising revenue.

He noted that a new report Monday said advertising on the Internet had cracked the $1-billion barrier.

"It’s a different world today than a few years ago and I don’t think it’s going to get a whole lot better," said Fecan.

The CRTC hearings were called to determine whether it will give CTV an exemption in all or some of the markets or force the network to sell some of the CHUM stations.

Earlier this month, Rogers Communications Inc. (TSX:RCI.B) offered $137.5 million in cash for several TV channels, including the A-Channel group, that CTVglobemedia Inc. wants to divest.

That deal is contingent on CRTC approval of the CTVglobemedia takeover of CHUM.

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Headline, Industry News

CRTC challenges CTVglobemedia claim

GATINEAU, Que. (CP) _ CTVglobemedia’s $1.4-billion purchase of CHUM Ltd. television and radio network was met with pointed skepticism at hearings before the national regulator Monday.

CTVglobemedia CEO and president Ivan Fecan told the Canadian Radio-television and Telecommunications Commission panel that the purchase would give CHUM’s key City-brand TV stations the financial stability to go back to their roots and create "edgy" programming. Fecan said Citytv stations in the major Canadian markets are teetering on the financial edge.

But they were repeatedly challenged on the point by commissioners, who argued that while the CHUM stations, which include several A-Channel stations, were not extraordinarily profitable, they were far from failing.

Approving the application would give the merged entity two stations in Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Toronto and Hamilton, violating the CRTC’s rule against so-called "twin sticks" per market.

"I’m trying to give you what you want but why couldn’t you have made your request for an exemption less monumental?" said commissioner Stuart Langford. CRTC chairman Konrad von Finckenstein also said he was concerned that approving the combination as it stands would give CTV about 50 per cent of the television advertising pie.

"I can see why it’s in your interest _ I’m not sure why it’s in the public interest," said von Finckenstein. Challenged to find a new justification for his proposal, Fecan said that audience share is splintering, as is advertising revenue.

He noted that a new report Monday said advertising on the Internet had cracked the $1-billion barrier.

"It’s a different world today than a few years ago and I don’t think it’s going to get a whole lot better," said Fecan.

The CRTC hearings were called to determine whether it will give CTV an exemption in all or some of the markets or force the network to sell some of the CHUM stations.

Earlier this month, Rogers Communications Inc. (TSX:RCI.B) offered $137.5 million in cash for several TV channels, including the A-Channel group, that CTVglobemedia Inc. wants to divest.

That deal is contingent on CRTC approval of the CTVglobemedia takeover of CHUM.

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You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Headline, Industry News

CRTC challenges CTVglobemedia claim

GATINEAU, Que. (CP) _ CTVglobemedia’s $1.4-billion purchase of CHUM Ltd. television and radio network was met with pointed skepticism at hearings before the national regulator Monday.

CTVglobemedia CEO and president Ivan Fecan told the Canadian Radio-television and Telecommunications Commission panel that the purchase would give CHUM’s key City-brand TV stations the financial stability to go back to their roots and create "edgy" programming. Fecan said Citytv stations in the major Canadian markets are teetering on the financial edge.

But they were repeatedly challenged on the point by commissioners, who argued that while the CHUM stations, which include several A-Channel stations, were not extraordinarily profitable, they were far from failing.

Approving the application would give the merged entity two stations in Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Toronto and Hamilton, violating the CRTC’s rule against so-called "twin sticks" per market.

"I’m trying to give you what you want but why couldn’t you have made your request for an exemption less monumental?" said commissioner Stuart Langford. CRTC chairman Konrad von Finckenstein also said he was concerned that approving the combination as it stands would give CTV about 50 per cent of the television advertising pie.

"I can see why it’s in your interest _ I’m not sure why it’s in the public interest," said von Finckenstein. Challenged to find a new justification for his proposal, Fecan said that audience share is splintering, as is advertising revenue.

He noted that a new report Monday said advertising on the Internet had cracked the $1-billion barrier.

"It’s a different world today than a few years ago and I don’t think it’s going to get a whole lot better," said Fecan.

The CRTC hearings were called to determine whether it will give CTV an exemption in all or some of the markets or force the network to sell some of the CHUM stations.

Earlier this month, Rogers Communications Inc. (TSX:RCI.B) offered $137.5 million in cash for several TV channels, including the A-Channel group, that CTVglobemedia Inc. wants to divest.

That deal is contingent on CRTC approval of the CTVglobemedia takeover of CHUM.

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Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

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