CHPC Committee Report

In early 2009, the effects of the world economic downturn combined with long-term structural changes affecting conventional television broadcasters, led to the closing of a number of local television stations and/or news operations. In February, CTV Television Inc. announced it would not seek to renew the licences for two A Channel stations — CKNX-TV in Wingham and CHWI-TV in Wheatley and Windsor in Ontario — when they expire at the end of August and that it would either sell or close CKX-TV in Brandon, Manitoba.[1] In early March, CTV cancelled A Channel morning shows produced in Victoria, London, and Barrie, and the evening, late-night, and weekend newscasts produced in Ottawa.[2]

Also in February 2009, Canwest Global Communications said it was considering selling some of its conventional television stations, including CJNT-TV in Montreal (Quebec), CHCH-TV in Hamilton (Ontario), CHCA-TV in Red Deer (Alberta), CHBC-TV in Kelowna (B.C.), and CHEK-TV in Victoria (B.C.).[3] Meanwhile, CBC/Radio-Canada said it would have to cut services, programs, and people in order to bridge a short-term financing gap brought about by the economic crisis.[4] On March 19, it announced it would cut executive salaries and bonuses, offer voluntary retirement incentives, and try to sell assets.[5]

Earlier, in June 2008, the Canada Radio-television and Telecommunications Commission (CRTC) approved the acquisition of bankrupt TV network Télévision Quatre-Saisons (TQS) by Remstar Diffusion Inc. Remstar wanted to significantly reduce news programming at TQS and, as a short-term measure, the CRTC allowed it to offer a two-hour weekly current events analysis show in Montreal and Quebec City and one hour of news each week in Sherbrooke, Trois-Rivières and Saguenay.[6]

As a result of these events, on March 11, 2009, the Committee agreed:

That, in light of the economic downturn, this Committee conduct a study at its earliest convenience on the future of television in Canada and the impact of the economic crisis on the industry in our local communities, beginning with calling to appear on March 25, 2009 from the CRTC: Konrad von Finckenstein, Chairman, Michel Arpin, Vice-Chairman of Broadcasting, and Peter Foster, Director General of Television Policy and Applications, to provide a briefing examining:

1. impacts on broadcasting in terms of the following key issues that are emerging:
1. the upcoming transition to digital programming,
2. the financial pressures on local and Canadian programming,
3. the need to maintain diversity of voices in media markets across Canada,
4. the effectiveness of cultural development funds on ensuring Canadian voices are able to compete in a challenged television landscape, and
2. the upcoming public hearing on License Renewals for Private Conventional Television Stations listed in Broadcasting Notice of Consultation CRTC 2009-113 in light of the recent economic crisis and technological innovations, and

   that the Committee report the findings of this study to the House.[7]

The Committee also approved a set of study themes, which included funding (financial pressures, the decrease in advertising, changing viewing habits, and revenue streams), fee for carriage, the transition to digital programming, the role of the federal government and the CRTC, and the impact of local broadcasting (see Appendix A.)

As provided in the motion, the Committee heard from the chairman and officials of the CRTC on March 25. It held further hearings on April 20, 22, 27, and 29 and May 4, 6, 11, 13, and 25. During these hearings, the Committee heard from a total of 45 people and groups, including the Minister of Canadian Heritage and Official Languages, broadcasters, distributors, producers, representatives of community channels, specialty and pay channels, Aboriginal channels, and educational channels, as well as unions and other interested groups. (The list of witnesses is provided in Appendix B.)

On May 27 the Committee held an in-camera roundtable with industry representatives, unions, and industry associations.