So the news came down today that the CRTC approved CTVglobemedia's purchase of CHUM assets with one big proviso. The new company is not allowed to have the City-TV assets. This was because the commission argued that if it gave CTVglobemedia the go-ahead, it would violate its policy on multiple station ownership in major markets like Toronto or Winnipeg.
Some people, like the Friends of Canadian Broadcasting are applauding the deal, saying it represents a big step for "diversity" of programming. Ironically, the CRTC seems to be drinking the same Kool-aid as the Friends on this one. It is also touting this decision as representing a key step ensuring "diversity of voices in the Canadian broadcasting system." I always get nervous when the theme of diversity gets thrown around after a mega-merger. So to the Friends of Canadian Broadcasting and their pals in the CRTC, permit me to say, um, I don't think so.
Why? Let me count the ways :
1. For all of the talk on diversity, there's an awful lot of consolidation going on here. Let's remember that CTVglobemedia still gets control of all of CHUM's radio stations and all of its specialty channels, including Bravo!, MuchMusic, and TV Land Canada. These are the key assets in the deal, both because they offer more opportunities to spread programming across different platforms and for their national coverage. While the A-Channels aren't exactly exciting, the fact remains that the new CHUM/CTV company is now humongous and the CRTC has done very little to change that. Diversity my foot.
2. I guess the CRTC isn't too interested in consolidation of the music programming market -- now CTVglobemedia owns both MuchMusic and MTV Canada.
3. Does anyone really care about radio anymore? Considering that CTVglobemedia takes over all of CHUM's stations and considering that the Standard-Astral deal offers more consolidation, the radio landscape in this country could be a real mess. Let's watch them spin the diversity card when that all shakes out.
4. Considering 2 and 3, did anyone think about how the deal might affect Canada's recording industry?
5. Saying that CTV can't buy City-TV seems like a noble move, but there is only one little question: who will buy them? Let's see, will it be Rogers? Maybe Quebecor? What about Shaw? Yes, it will produce diversity, but this is among a small number of players that make up the oligarchy that is Canada's broadcasting environment. As long as foreign ownership restrictions are not relaxed, there are really only a small number of people who could actually take over these stations. The chances of a really new entrant jumping into the game -- someone in the software industry perhaps -- are highly unlikely.
6. Keep in mind who else liked this deal -- the Association of Canadian Advertisers. Why did they like it? Because now it guarantees a "competitive marketplace" in key advertising markets. Seeing that Canadian broadcasters will now be allowed to air more commercials, it seems that the CRTC's big accomplishment recently is to please the advertising community. So local voices are winners from this deal-- local advertisers. Here's to diversity of advertising!
7. Let's also remember that there are more mergers coming down the turnpike in the coming months. So, like collective bargaining in the automotive industry, the CRTC has to be careful it doesn't set up any precedents the other potential merger candidates can refer to when they testify in Gatineau before the end of the year.
You can see here that what are experiencing is the beginning of a reshuffling -- not a shake-up -- of the Canadian broadcasting system. Maybe that's the reason today's news, in its own way, is a little depressing.
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