John Bitove has upped the ante in his bid to create Canada’s newest All HD Television network in 8 of Canada’s major markets. As reported earlier Bitove had asked for a license to create 8 new HDTV stations, but had asked for the CRTC to waive the requirement that they produce any local programming. This had many people opposed to the idea, including concerns from Konrad Finckenstein. Chairman of the CRTC

“By allowing you to create a purely national system without any local feed, in effect, you are competing with those who have an obligation to provide local programming and taking away the cream on the national market.” (1)

Konrad von Finckenstein Chairman of the CRTC, Speaking to John Bitove During the CRTC Hearings February 12, 2008

But all of that changed yesterday when Mr Bitove and company changed their views and decided their network would produce two hours per week of local programming per station.

“…we’ve heard the Commission loud and clear and we really want this licence and, as such, we are revising our programming schedule. Under the current revenue model which we are assuming and related assumptions about sources of revenue, we believe we can provide some hours of programming every week. Consistent with our strategy of funding Canada’s production community, these programs will be produced by independent producers in the local areas. Funding for these productions will come from money currently allocated within the budgets but, again, this is assuming the current revenue model stays the same because we know you are constantly looking at and reviewing the business model for television, including hearings you’ll be going through.” (2)

John Bitove Speaking to the CRTC on February 13, 2008

Ellen Baine a programming executive for HDTV Networks further elaborated on Mr Bitove’s new view on local programming. Baine told the commission that the company would direct money to independant producers in the various markets to produce the content that HDTV Networks would need to fufill their local programming requirement.

“Our intention is to go to the communities we are serving and local producers there to find and create that programming. In order to do this, we will modify the nature of the news budget and acquired Canadian programming budget to make our business plan work.

We have been very careful to try and protect our priority programming schedule and budgets to minimally impact what we have discussed with these various important stakeholder groups for the Canadian broadcasting system.

The CFTPA said that they didn’t want local programming to eat into our priority spend and we agree. We just don’t feel we have the latitude to increase our total programming expenses.” (2)

Ellen Baine, Programming Executive HDTV Networks, Formerlly of CHUM. Speaking to the CRTC February 13, 2008.

Prior to the announcenment by HDTV Networks at the hearings that they would support new local programming the opponants to the new Network lined up to tell the commission the creation of a new network of stations in Canada would harm their bottom lines by eroding their own advertising marketshare.

“And while Mr. Bitove, with respect, says that they are only going to peel off 3 percent of the market, our belief and our experience has been that it’s always the stations at the lower end that suffer the greatest setback. Once the advertising pool is whittled down and you get through your CTVs, your Globals, your Rogers, formerly the CHUM group of stations, then the remainder of the money kind of filters down to the rest of us.” (2)

Glenn Stewart, Director of Sales & Marketing for Crossroads Television System. Speaking to the CRTC on February 13, 2008

Bitove responded to the concerns by the other networks by saying he had no desire for any of them to loose any money by his entrance to the television industry. He actually offered to buy the competing networks from their present owners to prevent them from incurring any losses.

“ I have an idea for Mr. Armstrong and the CAB to save CanWest and CTV from all their projected PBIT losses, I’d buy either of those businesses for a dollar, they’re not in business to lose money.” (2)

John Bitove Speaking to the CRTC on February 13, 2008.

I am glad to see that HDTV Networks is now recognizing the importance of local programming. They must have read my blog (yeah right)

It’s now in the hands of the CRTC to decide on what to do next. If you are a Canadian and have an oppinion one way or another I would urge you to send your comments to the CRTC by clicking HERE.

Technorati Tags: Television, HDTV, Canadian Television, CRTC, John Bitove, Bitove, Ellen Baine, Crossroads, HDTV Networks, OTA, Over-The-Air, Gatineau

Sources:

(1) “2008-02-12 Volume 1.” CRTC. 12Feb2008. Canadian Radio-Television Telecommunications Commission. 15 Feb 2008 <http://www.crtc.gc.ca/eng/transcripts/2008/tb0212.htm>

(2) “2008-02-13 Volume 2.” CRTC. 13Feb2008. Canadian Radio-Television Telecommunications Commission. 15 Feb 2008 <http://www.crtc.gc.ca/eng/transcripts/2008/tb0213.htm>.