CRTC moves to limit future media concentration
The federal broadcasting regulator is imposing considerably tighter rules on media ownership.
But those rules will not apply to existing ownership structures.
From now on, a person or company can only control two of the following types of media that serve the same market: a local radio station, a local television station or a local newspaper.
This is quite a step up from common ownership policies governing the number of conventional television and radio stations a person may control in the same market.
As well, the CRTC will:
- impose limits on the ownership of broadcasting licences to ensure that one party does not control more than 45 per cent of the total television audience share as a result of a transaction; and
- not approve transactions between companies that distribute television services (such as cable or satellite companies) that would result in one person effectively controlling the delivery of programming in a market.
“The trend toward greater consolidation in the broadcasting industry has raised concerns that a large ownership group could achieve a dominant position through acquisitions, which could bring about a reduction in the diversity of local, regional and national content,” the CRTC said in a news release issued this morning.
It’s not immediately clear whether there’ll be a grandfathering clause or the rules mean current owners will have to sell off operations if they own more than than two.
“With these new policies, we have developed a clear approach to guide us in assessing future transactions in the broadcasting industry,” said CRTC Chairman Konrad von Finckenstein, CRTC. “It is an approach that will preserve the plurality of editorial voices and the diversity of programming available to Canadians, both locally and nationally, while allowing for a strong and competitive industry.”
The policies apply only to private broadcasters.
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This seems a little too late. If the CRTC and the Canadian government wanted to allow more owners they should never have allowed all the mega-mergers over the last 15 years. CTV now owns TSN, Discovery, Much and the CHUM radio stations; Global has the Alliance Atlantis cable channels and the CanWest newspapers. I doubt that CTV will be forced to give up its crown jewel cable assets. Instead CTV and Global will likely end up selling their weak performing local TV stations such as A-Channel, E! (formerly the CH channels). The most profitable source of revenue is never in local TV. It’s in national cable networks and today’s new CRTC policy doesn’t seem to change anything. The mega networks will simply dump the local channels to any buyer.
It’s nice for Konrad von Finckenstein to take time out from his race with Penelope Pitstop to address this issue, but we all know Muttley was the one who drafted the legislation. Credit where credit’s due, people.
Could that not still work to Canadians’ benefit?
In that case, I can’t wait for my Local CBC Newspaper!
Gabriel: Try http://cbc.ca/canada and use the left-hand navigation to find your local news