All eyes on CHCH experiment
Hamilton TV station could show struggling industry the way
October 08, 2009
Steve Arnold
The Hamilton Spectator
http://www.thespec.com/News/Business/article/649566
Hamilton television is in the national spotlight as the industry watches its bold local news and movies format, hoping it shows the struggling business a way into the future.
Analysts say CHCH TV's new format certainly has the potential to do just that.
Six weeks after the once-struggling station shed its roster of American entertainment gossip shows for a package of local news through the day and movies in the evening, analysts see at least the promise of future success.
"So far it's what I expected it to be," said analyst Carmi Levy of AR Communications Inc. "They're making the best of a bad situation.
"I think CHCH is going to continue to be a viable local operation."
In Levy's analysis, the new owners of the Hamilton station are making the right decision by adding staff and resources to the local news operation when many other outlets are taking them away.
"For the most part it looks like it has been business as usual with no substantial job losses," he said. "New resources are being devoted to content where others are taking them away, so I expect the results to be quite positive.
"The new owners seem to have a much better sense of how to build a viable local organization."
That effort has seen about 15 jobs created under the new format, with some of them going to former staff fired during Canwest's relentless rounds of cuts.
Once part of the Canwest Global communications empire, CHCH was sold at the end of August to Toronto-based Channel Zero, owner of digital specialty networks such as Movieola -- The Short Film Channel and Silver Screen Classics and distributor of The Fight Network and adult channels.
Once Canada's largest media empire, Canwest faces the prospect of being broken up under court-supervised bankruptcy protection. The restructuring, which includes the National Post newspaper and the Global Television network, will mean the biggest sale of media assets Canada has ever seen. The process is expected to take four to six months.
In the days following the sale, new president Cal Millar spoke of ambitious plans, comparing the Hamilton operation to American superstations such as TBS and KTLA -- heavily local through the day and national in the evening with movies and sports.
Alan Sawyer, of Toronto-based Two Solitudes Media Consulting, also likes CHCH's chances -- it's a small station by Toronto standards, but with a wide reach through the Golden Horseshoe area.
"The breadth of its distribution might just make it viable," he said. "It's a hybrid local-national operation and in a market like Hamilton, that's a workable model."
Millar has said overnight ratings for the new format have been good. A full weighing of viewer opinions won't be available until January, when the next Bureau of Broadcast Measurement survey results are released. The study starts next Thursday and runs through Nov. 18.
Good numbers in that survey will help the station attract advertisers -- the critical piece to paying for the recovery.
The analysts think that's also a fair bet to succeed.
"CHCH was just priced out of the local market by Canwest, but Channel Zero seems to speak another language on pricing and it's a language local businesses want to hear," Levy said.
"I think Hamilton is going to be a template for how local television should be done."
Sawyer agrees, noting customers such as car dealers need local television exposure that they couldn't afford under the old regime.
"A local car dealer can't afford time on a Toronto station, even at the lower end," he said. "I think they're going to come back to local television because CH's rates are going to be lower than any Toronto station.
"I think this experiment has potential and it's going to be fascinating to watch over the next year or so."