Montreal: Citing the importance of a new national window for Montreal-produced English-language drama and documentaries, producers here are generally supporting a wic-led application to acquire local ctv affiliate station cfcf-tv.

Producers do not see much of a future for cfcf as a standalone operation, but raised concerns at a July 8 crtc hearing about the Montreal station’s ability to impact national programming decisions as well as a proposal that cfcf get out of children’s programming.

At the hearings, WIC Television president and ceo Jim Macdonald proposed a five-year benefits package worth $7 million including a $4 million investment in English-language projects, mainly primetime drama produced by independent Quebec producers. Macdonald said the investment would trigger more than $20 million in new high-quality Canadian programming.

Vancouver-based wic (70%) and Capital Communications cdpq (30%), a unit of the Caisse de Depot et Placement du Quebec, the multi-billion dollar Quebec pension fund, purchased cfcf from Videotron in an undisclosed auction process for $70 million, a figure considered to be on the high side by some industry analysts. The deal includes a maximum adjustment of up to $30 million more based on future revenues.

In general, the cftpa has asked the crtc to impose rigorous conditions that fully reflect ‘the tremendous business advantages that will accrue to WIC Television on a national basis (including national advertising sales and better program amortization) through this acquisition.’

At the hearing, cftpa chair Elizabeth McDonald asked the crtc to ‘insist that wic’s programming commitments in the underfunded categories be consistent with the decision you made when you granted the Vancouver licence to BBS/Electrohome.’

‘It is our hope that the June 30, 1998 edition of Playback will read somewhat better in terms of wic Canadian programming plans than the recent June 30 1997 edition, which said in a review of the recently announced 1997/98 television schedule that led with ‘Canadian drama series suffer on wic,’ and then added ‘Speaking of wicŠit’s the most Cancon poor of the bunch,’ ‘ said McDonald.

Macdonald responded, ‘It is not a great year for wic in terms of Canadian programming,’ but qualified that remark by saying wic was willing to take a second window on certain primetime Canadian drama series.

On the issue of cfcf’s national impact, Macdonald said cfcf programming vp Bill Merrill will sit on WIC Entertainment’s national program committee.

Productions La Fete vp Kevin Tierney told the commission it is essential wic open a program development and acquisition office in Montreal.

Great North Communications ceo Andy Thomson said despite limited funds, cfcf and Merrill play an important enabling role for documentary production in Montreal, licensing projects which subsequently gain access to other broadcast sales and national funding.

‘The cftpa is concerned this merger may affect cfcf’s ability to do this,’ he said.

Macdonald said the wic benefits package is over and above local cfcf programs expenditures and show replacements, and that the $250,000 seed funding would remain in place.

The second proposed benefit is a $3 million investment in a digital production mobile. wic will spend an additional $1.2 million acquiring seven digital video cameras.

wic is also asking the crtc to relieve cfcf of its obligation in children’s programming (4.5 hours a week) and authorize the transfer of an equilvalent investment to another category.

Macdonald said the children’s category is no longer underrepresented, with new kids’ programming available in Montreal from Global, teletoon, Fox and eventually Treehouse. He said the money could be better used elsewhere, citing a Quebec ban on advertising to children 13 and under and the reality of a significantly more competitive local market due to Global’s presence.

crtc chair Francoise Bertrand made the point that despite the known restrictions, the commission has imposed children’s programming commitments on all other Quebec broadcasters.

A spokesman for the apftq, the Quebec producers association, told Playback producers are generally supporting the wic application and benefits package.

Ready to jump

On the opaque issue of network affiliation, Macdonald said ‘yes’ to commissioner Gail Scott who had asked if wic would respect cfcf’s affiliation with ctv if ctv’s licence were ‘hypothetically’ extended a year beyond its 1999 expiration.

‘While we recognize that we may have to jump off that bridge at some pointŠI don’t think we’d have much difficulty replacing the ctv schedule,’ Macdonald said.

Macdonald told the commission cfcf would definitely ‘take a hit’ competing with the new tva/CanWest Global Television Network station ckmi-tv (management at cfcf is forecasting a 25% cut in revenues and a 75% reduction in pretax profits in ’98).

However, he subsequently told the commission the real issue continues to be the lack of profitable primetime Canadian programming.

He said Canadian rights are being eroded by foreign broadcasters like a&e which is buying up Canadian rights at the same time Canadian broadcasters face shrinking margins. And he said specialty channels now have 17% of national viewing and $120 million in advertising revenues. He said the specialties are fast becoming major competitors in primetime, adding: ‘We’re stuck with unrecoupable licence fees with Canadian drama in primetime. We are trying to strike a balance between cultural projects and industrial projects.’

Concentration in private-sector Canadian broadcasting is reaching network thresholds.

Based on bbm numbers as opposed to major market revenues, CanWest now reaches 77% of the Canadian English-speaking audience with ckmi in its fold while Baton will reach 84% of the audience if the crtc approves the station swap with Toronto-based CHUM Ltd. wic programs will reach 74% of the English Canadian tv audience if the cfcf acquisition is approved.

Based in Vancouver, wic operates eight tv stations in Western Canada and Ontario (ONtv in Hamilton) and has interests in radio, pay-tv, satellite distribution, direct-to-home programming and most recently lmcs.