Picture looks fuzzy for CHCH
Chance of sale slim: observer
February 13, 2009
Mark McNeil
The Hamilton Spectator
http://www.thespec.com/News/Local/article/512942
The president of Friends of Canadian Broadcasting says he doubts there will be a "happy outcome" for local viewers from the strategic review of CHCH television by its parent company Canwest.
Ian Morrison says he believes there will be little interest in buying the stations as a package and he says he thinks it will be extremely doubtful that an organization would want CHCH by itself.
"The number of entities that could add CH to their stable is limited by regulation or the fact they already have the Toronto area market covered."
Morrison believes CHCH will continue in Hamilton. But sagging financial fortunes and an inability to sell the station will be used as an excuse to further reduce local programming.
"The realistic threat is not that you would tune in and see snow on the screen but rather that you would see a deterioration of quality and quantity of local coverage."
He says broadcast regulator the Canadian Radio-television and Telecommunications Commission should put pressure on the station to fulfill local obligations.
A CRTC spokesperson says broadcasters can apply to reduce their local programming licence commitments. Stations that break their commitments usually find themselves criticized at their next licence renewal.
CHCH had produced more than 40 hours of local programs and recently reduced that to 37 hours. Its licence requires 36.5 hours.
Canwest says it is awaiting the outcome of its review before it determines its next steps.
CHCH's future
CHCH TV is one of five television stations being "strategically reviewed" by parent company Canwest Global Communications.
Canwest is looking at four options:
* Selling: A move that would require approval of the broadcast regulator Canadian Radio-television and Telecommunications Commission.
* Rebranding: Changing CHCH from being part of E! Channel into something else.
* Reprogramming: Dramatically changing its program offerings.
* Closing it down: The company says this is an absolute last resort. And experts say this is extremely unlikely because the broadcasting licence would have considerable value in the marketplace.
For Canwest to walk away would leave a great opportunity for another company to apply and be granted a licence to broadcast on CHCH's frequency.
The stations
The stations, as well as CHCH, being reviewed by Canwest are:
CJNT-TV in Montreal,
CHCA-TV in Red Deer,
CHBC-TV in Kelowna
CHEK-TV in Victoria
How long will the strategic review take?
* Late March to early April. RBCP Capital Markets has been retained to assist in the process.
"Once we have gathered all the information we will make a rational business decision based on comprehensive information," said John Douglas, vice-president of public affairs for Canwest
Canwest woes
* The company is $3.6 billion in debt.
* In November, the company said it was cutting 560 jobs across the country, including 14 jobs at CHCH in an effort to save $61 million.