Stornoway asks Cabinet to force CRTC to re-examine CPAC licence renewal decision

Stornoway Communications filed a Cabinet appeal earlier this month asking the government to order the CRTC to have another look at its licence renewal decision for the Cable Public Affairs Channel (CPAC). Stornoway contends that the changes granted make the cable-owned Parliamentary channel competitive with its Category 1 digital specialty TV channel ichannel, in contradiction of CRTC policy. A favourable Cabinet response to the appeal, while considered by many a long shot, is vital to the struggling independent channel, which could be smothered out of the market by incumbent CPAC, now operating on much more beneficial conditions. Stornoway is taking the matter seriously, having hired Howard Brown, president of Brown & Cohen Communications & Public Affairs Inc., to lobby on its behalf. "While many in this industry believe that appealing to the Governor-in-Council to set aside a CRTC decision and refer the matter back to the CRTC is unwise, fraught with dangers and offers only the faintest hope of success, we believe that there are times when bold actions and decisive measures are required and we believe that this is one of those rare times," writes Stornoway president and CEO Martha Fusca in her January 2 petition to Cabinet. In a two-page summary of the petition, it’s noted, "Stornoway has persevered through tough economic challenges and is not going to lay down and give up now." Stornoway contends that CPAC’s licence renewal altered the nature of the channel, making it competitive with ichannel by allowing the incumbent to expand its programming categories to include analysis and interpretation, long-form documentary, and informal education (CCR, Nov. 22/02). While the commission restricted CPAC’s broadcast of long-form programming to 38 hours in any broadcast week, Stornoway notes that no such curbs were placed on analysis and interpretation. About 65% of ichannel’s programming is from the analysis and interpretation programming category. The independent specialty broadcaster also hints that the CRTC proceeding was unfair because CPAC was allowed to present amendments to its licence renewal application during and after the public hearing, held after the intervention deadline. Stornoway notes that not all interveners, including itself, were notified and given the chance to comment on the changes. "It is important to note that neither CPAC’s application, nor the Commission Public Notice stated the extent to which the programming categories available to CPAC would be radically expanded…," Stornoway notes. Furthermore, Stornoway points out that through the licence renewal process, "CPAC has been given unprecedented monopoly-like privileges." The CRTC granted the channel mandatory carriage on basic and a wholesale rate, while allowing it to expand its program categories. Stornoway provides a stark contrast to its situation: ichannel is distributed only in digital for a reach about a third the size of CPAC’s, with no requirement for households to buy the channel, and with restrictions on some of its programming. All this, Stornoway says, means ichannel cannot be competitive with other licensed services. Stornoway had allies during CPAC’s licence renewal hearing, namely the Canadian Broadcasting Corp., which was also worried about the changing nature of the channel, and the National Film Board, which complained the revamped CPAC would be competitive with its diginet The Documentary Channel. While sympathetic to Stornoway’s plight, the CBC does not intend to appeal the decision. "Obviously, we’re surprised and disappointed by the decision. We carefully reviewed the decision and decided not to appeal to Cabinet for a variety of reasons – one of them being that we already articulated strongly our concerns about the application," Jason MacDonald, senior media relations officer at the CBC, tells Canadian Communications Reports.

Stornoway asks Cabinet to force CRTC to re-examine CPAC licence renewal decision

Broadcast | January 30, 2003

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