Parrots squawk in support of big media

Friends of Canadian Broadcasting, a nonprofit watchdog for Canadian programming, has filed an intervention with the Canadian Radio-television and Telecommunications Commission opposing a key aspect of CTVglobemedia Inc.'s proposed takeover of CHUM Limited. However, its submission has been offset by numerous political heavyweights, including three premiers, who contacted the CRTC expressing support for the deal.

CTVgm owns the Globe and Mail, 21 CTV-affiliated stations, CTV Newsnet, TSN, Discovery, and Canada's Business Network. In its April 5 submission, Friends of Canadian Broadcasting noted that CTVgm already controls 60 percent of the top 25 programs on English-language TV in Canada in the 25-to-54 age demographic.

"Upon approval of the proposed transaction, CTVgm would control almost 40% of Canadian specialty revenues," Friends of Canadian Broadcasting wrote. "Thus, the proposed entity would exercise a dominant position in the market, a matter of concern to advertisers, competitors, and viewers alike."

The group also claimed that if the CRTC approves CTVgm's application, the corporation will have "a near monopoly" in the English-language music category on television. That's one reason why Friends of Canadian Broadcasting urged the CRTC to allow the takeover to proceed only if CTVgm sells five Citytv stations, including CKVU in Vancouver, and keeps six A-Channel television stations in smaller markets plus a television station in Brandon, Manitoba.

The CRTC has scheduled a public hearing on April 30 in Hull, Quebec. As the Georgia Straight reported last week, CTVgm has applied to the CRTC to take over CHUM's 33 radio stations, five Citytv stations, and 21 specialty channels, including MuchMusic and Bravo!. As part of its application, CTVgm has offered to sell CHUM's six A-Channels in smaller markets, the TV station in Brandon, the Canadian Learning Channel, Sex TV, and Access Alberta.

CTVgm had earlier posted a notice on its Web site (www.ctvglobemedia.com/) providing instructions to its supporters on how to submit letters to the CRTC prior to the April 5 deadline for public comments. CTVgm listed sentences as "possible suggestions", including this one: "This acquisition will ensure our broadcasting system has a strong wholly-owned Canadian company with the size, experience and financial resources to meet the growing competition from foreign and unregulated sources."

In a curious coincidence, there was a flood of last-minute submissions posted on the CRTC Web site (www.crtc.gc.ca/) citing this language, sometimes even the exact wording. For example, former federal Conservative cabinet minister John Crosbie wrote that he supported CTVgm's application to "ensure that our broadcasting system has a strong wholly-owned Canadian company with the size, experience and financial resources to meet the growing competition from foreign and unregulated sources".

The cochair of the Conservatives' last national campaign, former MP John Reynolds, echoed this message, as did several others. "This acquisition will also ensure our broadcasting system has a strong wholly-owned Canadian company with the size, experience and financial resources to meet the growing competition from foreign and unregulated sources," Reynolds wrote on the letterhead of Lang Michener LLP, where he is senior strategic advisor.

Terry McBride, CEO of Vancouver's Nettwerk Music Group, filed a submission praising CHUM's stations for "not being scared to play music from developing artists". He also highlighted how CHUM, the owner of MuchMusic, has spent more than $40 million on VideoFACT, which funds music videos. Then McBride, who manages Barenaked Ladies and Sarah McLachlan, lauded CTV for supporting Canadian musical talent through the Juno Awards, Canadian Idol, eTalk, and the Vancouver Tsunami Relief Concert.

At the end of his letter, McBride repeated CTVgm's suggested line: "Furthermore, this acquisition will ensure our broadcasting system has a strong wholly-owned Canadian company with the size, experience and financial resources to meet the growing competition from foreign and unregulated sources."

Jack Poole, Vancouver's Olympic organizing committee chairman, wrote a letter that highlighted CTV's support for the 2010 Olympic and Paralympic Games. Then came a line that was so popular with other intervenors. "This acquisition will ensure our broadcasting system has a strong, wholly-owned Canadian company with the experience and resources to meet the growing competition."

The Canadian Association of Chiefs of Police, another CTVgm supporter, stated in its submission: "This acquisition is particularly important to ensure that our broadcasting system has a strong, wholly-owned Canadian company which will compete successfully with unregulated and foreign media."

Even the premier of Newfoundland and Labrador, Danny Williams, included this message in his letter supporting the takeover. "Ultimately, it ensures the industry has a strong, wholly-owned Canadian company with the financial resources to protect against foreign and unregulated competition," Williams wrote.

Last week, the Straight reported that Gordon Campbell was the only premier who had written to the CRTC supporting CTVglobemedia's application to take over CHUM. After the Straight went to press, the CRTC posted letters from Williams and from Manitoba NDP premier Gary Doer, who also expressed support for the CTVgm takeover.

Montreal-based telecommunications giant BCE Inc., which owns 15 percent of CTVgm, contributed more than $24,000 through its various subsidiaries to the B.C. Liberal party in 2006. In 2005, when BCE owned 68.5 percent of CTVgm (then known as Bell Globemedia), BCE subsidiaries contributed more than $33,000 to the B.C. Liberal party.

Perhaps not surprisingly, Campbell's March 28 letter to the CRTC described CTVgm as an "industry leader". As part of the CTVgm echo chamber, the B.C. premier also claimed that "the acquisition will go a long way in meeting the growing competition from foreign and unregulated sources, and provide an even greater diversity of choice for viewers."