Another TV station viable in both Calgary and Edmonton markets, CHUM tells CRTC

Toronto-based CHUM Ltd. argues that not only can the Alberta market support new television stations, but that they would bring much needed diversity and regional programming to the province. The argument is in stark contrast to the company’s contention that the Toronto market couldn’t sustain more entrants during a licensing bid that ended in Craig Broadcast Systems Inc. getting the go-ahead for its toronto/one station (CCR, June 7/02, May 23/02). Now, CHUM is offering a slew of commitments in its bid to get licences for TV stations in Craig’s backyard – Edmonton (with a retransmitter in Red Deer) and Calgary. "No local broadcaster systematically covers or adequately reflects the cultural diversity and vitality of Edmonton and Alberta. No local broadcaster provides a home for innovative local and regional entertainment and information that matches the vibrancy of the community," writes CHUM in its Edmonton licence application. According to a January 2003 survey conducted by Edmonton-based TeleResearch, a majority of respondents felt that their city wasn’t adequately reflected in TV programming. CHUM refers to the Calgary/Edmonton corridor as the "fastest growing urban region in Canada," and notes that the markets cry out for an additional local broadcaster. Audiences in the market have fewer local choices than in any other major market in the country, with only three local private broadcasters compared to five in the Greater Toronto Area (soon to be six with the launch of toronto/one) and five in southern British Columbia, CHUM notes in its applications. CHUM says its proposed Alberta stations will be based on its flagship Citytv format, and will be targeted at the 18-34 age group, the culturally diverse/culturally engaged, the civic minded/socially active and the active/adventurous. It projects that the Calgary station will become profitable by year four, bringing in just over $1.5 million in net income, and will garner net income of $2.9 million during the seven-year licence term. It predicts the Edmonton station will have net income of $146,000 by year four, but lose $5 million during the seven-year licence period. CHUM hopes to reduce some of the expenditures by working out deals to share the Canadian Broadcasting Corp.’s broadcasting facilities in Edmonton and Red Deer AB. A market study completed by Bay Consulting Group on behalf of CHUM in January 2003 concludes that Calgary is a "market which appears to be ready for a Citytv-style station." It estimates that the population of Calgary will reach 1.089 million in 402,508 households by 2004. The study further notes that the average personal income in Calgary will be the highest of any major Canadian television market, with the average per capita income expected to reach $28,400 in 2004, which is higher than the projected Canadian average of $21,700. When compared to the Canadian average, the survey also finds that Calgary has 296% more "young city singles," 344% more residents in "university enclaves," and 51% more "young urban mix." A similar study by the same group revealed that Edmonton had 296% more "young city singles" and 118% more residents in "university enclaves" than the average Canadian city. The average personal income in Edmonton ranked 12th in Canada with the figure expected to reach $23,800 in 2004. Bay Consulting predicts that Edmonton’s projected 2004 population of 1.032 million in 383,312 households will be able to support CHUM’s planned station. Among the promises CHUM makes if it is successful in getting the Edmonton and Calgary licences are the injection of $15 million in licence fees and development over seven years to Alberta independently produced film, drama, documentary, magazines, lifestyle and information programs that fit the CRTC’s definition of priority programming; the production of two new one-hour culturally diverse dramatic series; the assurance that at least four of the eight hours of mandated priority programming on the Alberta stations, Citytv Vancouver and Toronto are drama; and a commitment that Citytv Toronto air eight hours of priority programming during peak time. CHUM is currently not considered a large broadcaster and is thus not subject to the rule mandating that eight hours of priority programming per week be carried during peak hours. CHUM has also pledged to broadcast a minimum of 27 hours per week of original local or regional programming, of which at least 20 hours will be local to Edmonton/Calgary on the Alberta stations. But the broadcaster cautions that all the commitments can only be fulfilled if both stations are licensed. "Should the commission licence only one of the two proposed stations the most immediate effect on the programming would be the elimination of the ‘regional’ component…," CHUM states in response to CRTC questions about the impact of licensing only one of the two stations sought. As well, the broadcaster notes that the commitment to devote four of the eight hours of priority programming to drama will fall by the wayside if it does not receive the go-ahead for both Alberta stations. "…CHUM believes that the critical mass of audience necessary to support this proposal would not be reached and therefore we would not be able to make this commitment. CHUM would commit to at least two of the eight hours being Canadian drama, but would not be able to commit to the increase in priority programming in Toronto." "…CHUM believes that the launch of stations in Alberta will bring positive synergies not only to the CHUM television group, but to the production community and audiences across the country," the company states in its Feb. 5, 2003 applications. While pumping up the benefits of the proposed new stations, CHUM deflects a suggestion by the CRTC that the broadcaster’s ownership of Learning and Skills Television of Alberta Ltd. via ACCESS that already affords it a presence in Edmonton and Calgary would put it in contravention of CRTC policy allowing ownership of only one conventional TV station per market. "As ACCESS is not a mainstream commercial over-the-air station, CHUM submits that approval of our applications for new over-the-air stations in Edmonton and Calgary would therefore be consistent with the commission’s ownership policy," CHUM states in its March 17 response. "Given ACCESS’s limited commercial authority, and that its programming is more closely identified with that of a specialty service, it would be unreasonable to conclude that ownership of ACCESS and these new stations could in any way stifle competition in the marketplace." CHUM adds that it "should not be forgotten that CHUM’s acquisition of its 60% stake in ACCESS was and essentially remains a case of ‘financial rescue’." The private broadcaster notes that it stepped in after the Alberta government decided to cease all direct funding for ACCESS, the province’s educational broadcaster, beyond 1994. CHUM proposes having the stations operational by fall 2004. Comments on CHUM’s licence applications are due by May 22. The applications will be heard at a public hearing that begins on June 16 in Edmonton (Broadcasting Notice of Public Hearing 2003-4).

Another TV station viable in both Calgary and Edmonton markets, CHUM tells CRTC

Broadcast | April 25, 2003

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