Playback Daily reports that the Competition Bureau recently gave the merger between CTV Globemedia and CHUM a tepid thumbs-up. Despite some concerns from the advertising community, the Competition Bureau did not believe that the merger would result in what it called "a substantial lessening of competition" in Canada's media landscape.
The decision relied in part on how the bureau conceived of the media marketplace. The official characterized Canadian broadcasting as a "duopoly" with CTV and Global at the front of the line and a second tier of stations that made up "a competitive fringe." Furthermore, the Competition Bureau argued that under this scheme, the two entities don't compete with each other. In the Toronto market, for example, CHUM's City-TV did not have any programs in the top 20. CTV, by comparison, had a large number of them. So the Competition Bureau reasoned that CHUM stations compete with specialty channels and the CBC rather than with the big players, CTV and Global.
Here are two ways of looking at this:
1. The Competition Bureau is wrong. Even if the merger doesn't affect the competitive environment in television it may affect the landscape in radio. With its purchase of CHUM assets, CTV now has a major presence on radio. This could affect the advertising industry by getting advertisers to bundle their adbuys on different CTV media properties.
2. The Competition Bureau is right. Why? Because what you really have is one re-broadcaster of American programs forced to play Canadian content buying up another re-broadcaster of American broadcaster forced to play Canadian content. Is there really a net gain or loss for Canadian consumers? Probably not.
What would change things is if the Competition Bureau and the CRTC let the duopoly continue to grow as they are expected to do. But there's a twist: In return for this, the CRTC changes the rules so that Canadian broadcasters won't be able to simulcast shows on American networks. Canadians can watch them on NBC or CBS or whatever network they originally appeared on. This would mean that duopoly would have to create all-Canadian programming, giving domestic audiences some truly distinctive material to complement their menu of offerings on American networks. Isn't this what already exists on satellite radio - channels devoted exclusively to Canadian material? That's the way to go in the age of media abundance. But that's not going to happen. Well, it's fun to think about, isn't it?
With that in mind, two other things to watch for:
1. It'll be interesting to see how things shake out at the next level, when the merger goes before the CRTC at the end of April. The broadcaster's position will be clear; the merger is necessary to keep growing in a global media market blah blah blah. What's less clear is how the CRTC, under the leadership of former Competition Bureau head Konrad von Finckenstein, will handle it. Sure, the merger is going to go ahead, but how will the CRTC justify it? That's where it'll get interesting --- because it will have an effect on two other mergers coming down the 'pike: Canwest's purchase of Alliance Atlantis and Astral Media's purchase of Standard Broadcasting.
2. If the merger goes ahead, it probably marks the end of the line for the CHUM/City televisual style. Analysts of the Canadian communication scene have been very unkind to what Moses Znaimer did to CityTV when he was in charge. With its unabashedly pro-Toronto outlook (refreshing for a country that enjoys bashing its largest city), its enthusiasm for new media technologies and its "open format:" newsrooms, City possessed Canada's most distinctive television aesthetic -- one that spread to networks across Canada and now, into places like Columbia. With networks in the United States, Finland, and Argentina, MuchMusic is an example of a successful export in a country not known for its media imperialism.
When CTV takes it over, consider that vibe finished and done with. Remember corporate mergers are about the bringing together of different corporate cultures. Here a family-run (but very large) corporation with offices located in downtown Toronto near a terrific independent bookstore and a shop that sells John Fluevog's merges with a corporation with offices located next to a Highway in the East end of the city. You can probably imagine what happens next but I'll give you a hint: it probably involves more Ben Mulroney.
Taking over CHUM/City is one thing; keeping it cool is something else. Want evidence? Look at what CBC is doing with former VJ George Stroumboulopoulos. As edgy as public broadcasting can be, no? And we all know what happens when CTV tries to get cool. His name was Mike Bullard (the link is to an interview with Wendy Crewson from YouTube). As a colleague of mine told me recently, consider this further evidence of the "blandification" of Canadian television.
The next post will be shorter -- I promise.
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