Thursday, September 9, 2010
Canadians in for a rude shock after transition to digital TV
Beginning next September 1, Canadian over-the-air TV viewers in 32 cities will need digital equipment to continue watching television. They will need either a newer TV with a digital receiver or a converter box for their older analog set.
But it's Canadians in the other cities, towns and rural areas that are in for the really rude shock. Starting in less than a year, their local stations will start unplugging the analog over-the-air transmitters and replace them with ... nothing. If you want to watch TV in those areas, you'll need a cable or satellite hookup, unless you are close enough to US stations to pick those up over the air.
It is quite a shock to compare the before-transition and after-transition maps of Canada. Check it out.
Here's a live version of the after-transition map, where you can see what stations will be available in what cities:
View Free digital TV in Canada/La télé numérique gratuite au Canada in a larger map
Don't forget to compare it to the map of where free, over-the-air TV is available today.
Meanwhile, viewers in the US, where the transition is already more than a year old, and Canada who have tried digital over-the-air TV seem to love it. First, there's no monthly bill. Second, the picture quality is great. There is evidence of a growing grassroots movement in favour of over-the-air TV.
Too bad so many smaller-town and rural Canadians are slated to be thrown under the digital bus.
Monday, February 1, 2010
Community TV should be supported - now more than ever
Today's the deadline for submission of comments for an important set of CRTC hearings on community TV.
The hearings aren't getting alot of attention, but people in the industry know what's at stake. Once a place of dynamic innovation and divergent points of view, community TV stations are not what they should be. They could and should be a place for real local news. They could and should be a more effective training ground, especially if the stations were linked in some way, with any of the provincial public broadcasters or the CBC.
A group named CACTUS, which stands for the Canadian Association of Community Television Users and Stations, is trying to improve regulations, funding and bandwidth for these stations. We at the Canadian Media Guild are supporting their efforts. The hearings begin April 26 in Gatineau.
Thursday, September 17, 2009
For the price of a cup of coffee
Le Devoir. It happens to be one of the only large-city daily newspapers in Canada that is not owned by a media conglomerate.
The "local TV matters" campaign - run by the major networks who have been using their local stations, including the ill-fated one in Red Deer, as bargaining chips to get access to cable fee revenues - is only mentioned toward the end of the article.
Meanwhile, the networks' "campaign" was the story earlier this week in many of the country's major daily newspapers. The ones that are connected through their media conglomerate owners to the those same campaigning networks.
Friday, September 11, 2009
Celebrating the survival of CHEK in Victoria
CHEK’s story of survival against all odds is another glaring example of how the media is doing a lousy job of covering its own crisis. And this one needs to be told, because there are lessons in it for many of us.
CHEK is one of five E! stations that Canwest put up for sale in February. By July, Canwest claimed it couldn’t find a buyer and CHEK would go off the air by the end of August.
While Canada’s media owners spent the spring and summer complaining that local news was no longer viable, we know a lot of prospective buyers weren’t listening. They knew they could improve on the E! model for local TV, which we know is deadly. For example, the E! station in Hamilton, CHCH, was charged more than $51M by Canwest for airing a package of mostly American shows. Compare that to the $8M spent on local news and sports. Revenue for 2009 was projected to be $44M. That’s respectable but not if you’re footing the bill for expensive Hollywood stuff. (Those figures were gleaned from Channel Zero’s successful application to the CRTC to buy CHCH.)
You can bet the figures for CHEK were similarly onerous.
Investors who thought they could improve on the model couldn’t get negotiations going with Canwest, and the competing groups of U.S. bondholders that appear to be running it. Things looked like they were going to stall.
So a group of employees dug in and began their rescue. Station manager John Pollard was the first to get the ball rolling and work on an employee purchase. “If he had put the Canwest corporate interest in front of the station’s interest, we would not be here today,” says assignment editor Richard Konwick who’s also president of CEP local 815M. Lesson #1.
“Virtually all” of CHEK’s 45 employees bought shares worth $15K each. CEP put up $105K in interest-free loans which worked out to $3,500 per employee to offset their cost of buying the shares.
Strings were pulled – by local MP Gary Lunn, who happens to be Sports Minister in the Harper cabinet. Levi Sampson, president of the Harmac pulp mill in Nanaimo, which was saved from closing by a similar model, helped rally local investors raise more money. Lesson #2. It's good to have friends in high places.
Many twists and turns later, the deal got done a week ago today. The employee group and local investors raised about $2.5 million to cover the first bit of operating costs and Canwest announced it was selling the station for $2.
The employees make up the 2nd largest single investor group and while the corporate structure of the new station hasn’t been worked out, Konwick says the intent is to have an employee representative on the Board of Directors.
Further, he says the deal would have been impossible if the station had not been unionized, because “you need some kind of structure to be able to pull this off”. Lesson #3.
Who says local news is dead? CHEK is a proof that people in communities know there’s real value in local news – as long as it’s freed from conglomerate structures that make no sense.
Tuesday, September 1, 2009
Hope is still alive for Victoria’s oldest TV station
CHEK-TV employees and local investors launched a campaign this summer to keep the station on the air, reportedly raising $2.5 million. On the weekend, Canwest turned down an offer from the group, claiming it didn’t want to be on the hook for operating losses until the sale was granted the necessary CRTC approval.
Late Monday, on what they thought was the last newscast, CHEK reported that the deadline had been extended. Canwest reportedly hopes a deal can be made by Friday.
Given the local interest in the station, it would have been an outrage if CHEK had been allowed to close yesterday. We’ll keep our fingers crossed this week for the employees and the local viewers.
Meanwhile, Channel Zero’s purchase of two other Canwest stations – CHCH-TV in Hamilton and CJNT-TV in Montreal – was approved last Friday. The new owners got everything they were looking for from the CRTC: a seven-year licence, no requirements to show Canadian priority programming in prime time and no requirement to spend on tangible benefits from the deal. They will be called to a public hearing in 2012 to review their approach to programming.
Thursday, July 23, 2009
Victoria and Red Deer to lose local TV stations
CHEK-TV in Victoria and CHCA-TV in Red Deer will close on August 31. However, Canwest says it will keep its Kelowna station open under the Global TV banner.
These are the last of the five E! network stations. CHCH-TV in Hamilton and CJNT-TV in Montreal are being sold to Channel Zero.
As a result of the closure of the two stations, 80 people will reportedly lose their jobs.
Not a great day for local TV in Canada.
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Tuesday, July 21, 2009
How Channel Zero plans to make a go of CHCH-TV
The buyer of CHCH-TV in Hamilton figures they can start making money at the station by 2011 by running local programming all day and "popular movies" in prime time.
"It would be exceedingly naïve, if not arrogant, for our company to assume that we can succeed where Canwest did not with the same strategy. Canwest is an experienced broadcaster dealing with the same systemic issues facing all OTA broadcasters that the Commission is well aware of," says Channel Zero's application to the CRTC.
That application finally provides a little peak into the local station's financial affairs. Channel Zero's projection suggests that CHCH will spend about $8 million this year on local news and sports programming. However, it will be charged more than $51 million by Canwest for the (mostly Hollywood) programming that airs across the E! network, including on CHCH. The station will also be charged more than $4 million for "broadcast network support" provided by Canwest (master control, sales support, programming ops). With a forecast of only $44 million in revenue for the year, you can see why the local station was no longer able to prop up both the network's Hollywood shopping spree *and* local programming. There's your broken model: the station is expected to be $32.7 million in the red at the end of the year.
But, starting next year, Channel Zero plans to boost the budget for local news and sports to about $9 million with the help of the CRTC's new Local Program Improvement Fund. On the other hand, the budget for buying shows will be slashed to $2 million. And the new owner will provide its own "broadcast network support services" at a cost of about $1.3 million, or one-third of what Canwest is apparently charging CHCH for the same services. They do forecast a sharp drop in revenue for next year to about $18 million, but an overall loss of only $3.2 million. By 2011, they forecast net income after tax to be nearly $1.8 million.
The Channel Zero proposal means as much or more local programming as is now broadcast on CHCH. In fact, the programming grid in their application suggests they will broadcast 85.5 hours of local programming per week next year. However, they only say they are "likely" to broadcast more than the 36.5 hours per week that used to be a condition of licence for CHCH. It appears to depend on whether the CRTC lets them off the hook on another key condition of licence.
"[W]e would be prepared to accept ... the same license conditions as currently apply... It is our view, however, that such terms of approval would hinder our plans to revitalize and focus the stations [CHCH and CJNT in Montreal], as we have outlined in our application. Among other things our ability to provide the extent of local programming that we have contemplated in our application, and to provide long-term employment for the existing complement of staff at CHCH and CJNT could well be jeopardized." (Emphasis added.)
What licence condition do they want eliminated in Hamilton? The requirement to broadcast Canadian drama, variety, documentary and/or entertainment magazine shows in prime time. And the jobs of the existing staff are the bargaining chips.
Another hitch is that they want to be exempt from paying any monetary benefits from the purchase of the station, which are typically set at 10% of the value of the transaction and often get spent on the production of original Canadian programming. (Channel Zero claims the deal is worth $500,000 and the benefits, if they had to pay them, would therefore be $50,000.) The company argues that keeping the station open, the existing staff in place and the local programming on the air is a very tangible benefit of this deal and that having to pay out fifty grand would hamper their efforts.
The CRTC will hold a hearing on the purchase starting on August 24. Channel Zero has asked for the green light by August 31.
Friday, July 17, 2009
Go boldly where Shaw refused to go
Somebody does want Brandon's CKX-TV for a dollar. All appeared to be lost after CTV made a terse announcement at 5:11 pm on June 30 (yep, minutes into the July 1 holiday) that Shaw would not be buying CKX and the Windsor and Wingham stations. You may recall the offer was made in a Shaw ad published in CTVglobemedia's Globe and Mail newspaper in the middle of the CRTC hearings in early May. The offer was accepted by CTV in an adjoining ad.
As suspected, it was all theatre. Shaw was trying to make the point that local TV is viable even without money from cable and satellite companies. Perhaps the lame exit from the deal emboldened the CRTC, which announced days later that it is increasing the funding from cable and satellite companies (yeah, that's you Shaw) going to the Local Program Improvement Fund from 1% of the companies' revenue to 1.5%.
Since the CRTC announced its bailout (more LPIF money, low standards for local programming) CTV announced it would keep the Windsor station open another year.
The latest successful bidder for CKX-TV is Bluepoint, an investment firm run by ad guy Bruce Claassen. Bluepoint wants to become a "significant media player in North America." Apparently, they think the boosted Local Program Improvement Fund is all they need to make a go of it. Perhaps it's not totally nuts. After all, Izzy Asper started his media empire from a single Manitoba TV station (albeit in Winnipeg, not Brandon). And Bluepoint's only in for $1.
They are probably busy looking for a new affiliation agreement for CKX-TV since CBC did not renew past August. Perhaps they will go the route of the Pattison Group out west, which just signed with Rogers for stations in Kamloops, Prince George and Medicine Hat. Pattison had to do something since their current affiliation with Canwest's E! network was doomed. Canwest didn't buy any programming for E! for next season and plans to shut the E! stations it can't sell. So far, only CHCH in Hamilton and CJNT in Montreal have a buyer. That leaves the stations in Red Deer, Kelowna and Victoria, as well as the CTV station in Wingham, in a very precarious situation.
We wish Bluepoint all the best in its Brandon venture. The 39 employees at CKX-TV can hopefully now take a deep breath and enjoy the rest of their summer.
Tuesday, June 30, 2009
CHCH has a buyer!
Channel Zero owns Moveiola and Silver Screen Classics, a couple of digital specialty channels, as well as some "adult entertainment" channels.
There's apparently no buyer yet for the other three local TV stations Canwest is trying to unload by the end of this summer in Red Deer, Kelowna and Victoria.
In Hamilton, it looks like they plan to keep on the existing staff and run news all day until 8 pm, after which they will show familiar, if not first-run, movies. Think Adam Sandler and Jim Carrey.
It sounds quite a bit like the proposal originally floated by CHCH employees interested in mounting a community bid for the station. In fact, in an article in CARTT.ca, Channel Zero says they will be relying on the existing CHCH crew to pull off the new format.
In Montreal, where the licence is for a multicultural channel, they are talking about running foreign movies and "multicultural music videos."
Channel Zero seems bullish about local TV. At least somebody is. Funny that we haven't heard another word out of Shaw since they announced they were paying $1 to CTVglobemedia for the local stations in Windsor and Brandon.
Today's sale also seems to represent a move away from big media conglomerates.
Friday, May 22, 2009
Sandbox feud detracts from real issue: they’re killing local TV
In the opposite corner, Rogers, Bell, Telus and Cogeco, who today launched a complaint at the CRTC against CTV’s “one-sided and unbalanced coverage” of the subject of the feud … whether CTV can get access to cable and satellite subscriber fees.
In an annoying spot that CTV seems to run at least every half hour in prime time, the network blames its threat of killing local television on the fact that it doesn’t get money directly from cable and satellite subscribers. No, they don’t put it that way, exactly. Apparently there were also “reports” about the campaign on local newscasts. Tomorrow, they’re planning rallies at their local stations and trying to get people to pressure their MPs on the network’s behalf. Is this is advocacy journalism, 21st century style??
(Can you imagine the reaction if CBC did something like this?)
The cable guys are no angels, of course. They raise subscriber fees any time for any reason. Now they’re saying that if they have to raise fees to pay the conventional networks, it’ll hurt their business. Whatever.
Meanwhile, three CTV stations are still in limbo. CTV said it will close stations in Brandon, Windsor and Wingham on August 31.
Then Shaw (another cable guy) ran an ad in CTV’s own newspaper (the Globe and Mail) on May 1 – in the midst of CRTC licence hearings where the spat hit the headlines – saying it would buy the stations for $1 each. Curiously, we’ve heard no more from Shaw on this since then.
If CTV really wanted to “save local TV”, would it really hang these stations, these employees, these communities out to dry while they negotiate a better deal with Ottawa?
Friday, March 6, 2009
CRTC fund gives hope to distressed local TV
It is exactly the right thing at the right time. And it is more important than ever that the fund maintain those original principles of helping small market stations – both publicly- and privately-owned – improve local programming, and especially news.
The money for the fund will come from a percentage of cable and satellite revenues and is expected to amount to $60 million in the first year. Of the total, $40 million will be devoted to English-language markets and $20 million to French-language markets of less than one million.
In proposing the fund, the CRTC denied the TV networks access to cable and satellite fees with no strings attached. We note that Canwest’s most recent submission to the CRTC, made public this week, now asks that the fund simply be handed over to the conventional stations in all markets “to help subsidize local news” at a diminished level, which would negate the purpose of the fund. Canwest announced in February that it is trying to sell the E! network stations, including CHCH, and will shut them if new owners can’t be found.
The structure of the big media companies has not been friendly to local programming and there's no good reason that new money from cable and satellite should continue to prop up a model that hasn’t worked for local TV.
I urge other communities with stations at risk develop action plans that involve the use of this fund.
Thursday, March 5, 2009
The fight to save local news is on
First, the employees and community of Hamilton got together in a move to buy CHCH in the Canwest firesale and return it to local ownership. It's a wonderful effort I'll write much more about later.
Now at least one city council is stepping up to sound the alarm. Not surprisingly, it's Windsor, which knows what it's like to lose a station (CBC in 1991 -- it returned in 1994). Now it's losing CTV's A Channel at the end of August. And because of the government-CBC budget dispute, there’s concern about the future of the CBC in Windsor too.
Last night, Windsor City Council adopted a resolution that calls on Council and the Mayor to petition the CRTC and the government to do a comprehensive review of the crisis in conventional TV and do what it takes to focus on policies that will guarantee Canadian media content in markets such as Windsor.
Here’s what it says:
Whereas the citizens of Windsor and Essex County want and deserve a strong local and Canadian television presence; and
Whereas Windsor-Essex is located with 1000 yards of a major American media shadow; and
Whereas Windsor-Essex is a unique region with regards to the impact of local issues and how they have profound provincial and national impact in areas such as the U.S. Canadian border, International Trade and the Auto Industry, to name a few; and
Whereas the CRTC has announced that later this year a review of the crisis in conventional television will take place;
Therefore, be it resolved that Council and the Mayor, for the City of Windsor, Ontario, petition the CRTC and the Government of Canada to undertake the following:
Without further delay, immediately commence a comprehensive review of the crisis in conventional television; and
That this review look at all policy framework with the intent of creating new, and/or enhancing existing policies in order to guarantee Canadian media content in unique markets such as Windsor-Essex, by way of special designations, recognizing the close proximity of major U.S. media; and
During this review, interim measures be immediately instituted in order to protect markets such as Windsor-Essex, and any other media markets, currently at risk of not having their broadcast license renewed by the current license holders.
Percy Hatfield, a former CBC Windsor reporter, is now a Windsor councillor and just happens to be at a meeting of the Federation of Canadian Municipalities this week. Let’s hope he spreads his Windsor zeal to every community in this country.
Tuesday, March 3, 2009
Breaking news: the sky is falling
This happens to be the very day the CRTC planned to go public with the networks’ various license applications – the submissions in which they tell Canadians what they intend to do in exchange for access to our public airwaves. This is when all the pre-CRTC hearing lobbying begins. What better way to make your case that you need new relaxed rules than to eliminate service to the public and lay people off?
Only last Friday, CTV’s chief executive officer Ivan Fecan said the company would at least try to make a go of it with the A Channels. “We’re merely trying to keep the As open until regulatory restructuring for the entire sector can take place. While we welcome the new, year-long CRTC process and while we can’t guarantee the survival of the As until that time, together we will do our best.”
What changed in three days? Perhaps a peak at other broadcasters’ filings? Why do more than your competitors? A cursory read of the hundreds of pages that we all have to read in less than a month is eyeopening.
For example, we learned today that even though Canwest is abandoning at least five local markets, it wants more breaks. It wants to do fewer hours of local television on the stations it decides are profitable enough to keep. And it wants permission from the CRTC to be able to continue to do simultaneous substitution of lucrative U.S. shows (of course!) and get “priority carriage” on cable and satellite…but it doesn’t want to have to bother actually being a broadcaster. It’s asking for these privileges even if it doesn’t send out its signal free over-the-air – just directly to cable and satellite.
Not only is this an attack on local television, it’s an attack on free television. Oh, and did we remind you how horrible it is for conventional broadcasters right now? We trust the CRTC will demand to see those numbers, station by station, and release them to the public.
Friday, February 13, 2009
Railroaded?
The announcement poses an immediate threat to local programming in Canada and should raise fears across the country about the future of free, over-the-air television after the conversion to digital delivery in 2011.
Broadcasters have had an unprecedented number of closed-door meetings with the CRTC. This fast-tracking of the process is going to circumvent real discussion about the future of local programming and over-the-air television. Broadcasters have been using a weak economy to seek permanent changes to their licence obligations.
The Guild wants the CRTC to guarantee that it will seek the widest possible input before making major permanent changes to the way broadcasters serve the public.
Friday, February 6, 2009
Fire sale
They could be sold as a group or as individual stations.
“These stations have proud histories of serving their communities with strong independent voices,” says Leonard Asper in the Canwest release.
Apparently, Canwest was never able to square its strategy of using the stations to dump excess Hollywood programming it had to buy to get the stuff it really wanted for the Global schedule with that proud local history.
The word is the stations could be sold for a song, if only to save Canwest the costs of winding them down. Is there an investor out there who is actually interested in reviving some proud local history in one or all of the stations? Or is it time for the good people of Montreal, Hamilton, Red Deer, Kelowna and Victoria to find another way to save their local TV stations?