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CRTC denies new TV channels that would compete with major broadcasters

Friday, September 5th, 2008

In Canada we essentially four major TV networks (sorry, CBC): CTVglobemedia, Astral, Canwest and Rogers. Between the four of them, they own almost ever analogue channel and a big share of the HD channels in Canada. The CRTC is a regulatory body for the broadcasting industry. In recent years, they have started allowing unprecedented consolidation of the media in this country. The rational has been that we need the Canadian broadcasters to be as strong as possible to be able to compete with the power of the U.S. networks. Of course, there’s no way that will ever happen, but that’s the rational ;)

Over the last few years, the Canadian broadcasters have been allowed for the first time to own multiple news stations in each city market, which has further narrowed the points of view that we are exposed to in the media. For example, in Toronto CTVglobemedia owns both CP24 and CTV Toronto. To make matters worst, CP24 airs mostly news from RogersCityNews, which shares content with 680 News Radio, etc, etc. You start to get an idea how consolidated the media is despite the CRTC’s “efforts.”

Given this state of the industry, we need more independent voices in the market, not less. So what does the CRTC do to respond?

CRTC slaps down application for new HD stations
In three separate decisions handed down today, the Canadian Radio-television and Telecommunications Commission (CRTC) turned down multiple applications from High Fidelity HDTV Inc. to operate two new English language high definitions and one standard definition channel in Canada.

The federal regulator denied the applications because the commission said the new stations would compete with stations owned by Canada’s largest television broadcasters: Astral, CTVGlobemedia, and Rogers and that would contravene the commissions “competitive policy.”

Although it is counter-intuitive to most readers, under the CRTC’s competitive policy, new applicants must convince bureaucrats in Ottawa that a new station would NOT compete with an existing analog or pay channel in order to receive approval.

In simple terms, the CRTC ruled that High Fidelity, the broadcaster of several HD channels in Canada including Oasis HD, Equator HD and Treasure HD, had dared to propose stations that would compete with stations owned by Astral, CTVGlobemedia and Rogers therefore the stations were rejected.
Diversion HD and Diversion SD

The CRTC is using outdated mandates to protect the major broadcasters and denying competition as a matter of policy. Can anyone explain to me how that policy benefits Canadians?! Combined with the CRTC starting hearings about whether they should regulate the Internet, this bureaucracy is completely out of control. Unfortunately, the minority Conservative government in Ottawa is no friend of the media industry. There’s little hope of them making tough decisions about the CRTC.

So I guess we’re stuck with this increasingly irrelevant, dinosaur office mucking about in an industry it no longer understands. I guess the moral story is: if you want to broadcast your content in Canada, you’d better look to the Web not the TV.

Abondoned TV