CanWest Global: the mornings after

Vancouver: Once the dust settles on the latest deal in the WIC Western International Communications asset shuffle, Vancouver will be left without a strong broadcast entity, a situation that is expected to negatively affect production and ruffle political feathers.

‘I’m very distressed that b.c. will be left without a head office of a major broadcaster,’ says Michael Francis, chair of funding society British Columbia Film and, until about two months ago, a director of wic.

‘I certainly saw a shift in emphasis [at wic] toward supporting better the local producer, which had been a traditional failure of the company,’ says Francis. ‘Still, whenever there is concentration like this, it is not good news for independent producers in b.c. A broadcaster is crucial to an independent production community.’

Even without the crtc’s negative decision against Shaw regarding Headline Sports July 21, Francis suggests that the regulator would never have allowed a cable company to acquire an over-the-air broadcaster, adding that such a merger goes against the principles of the crtc when it comes to competition and consolidation of power.

In rebuttal, however, John Cassaday, president and ceo of Shaw Media, says the argument that a viable production community depends on the presence of a broadcaster’s head office is weak.

‘Production will take place wherever it is best,’ says Cassaday. ‘Whether or not there is a head office is of zero relevance to production.’

With the agreement struck by Shaw and CanWest about the division of wic’s television and radio properties Aug. 18, CanWest effectively owns bctv, chek-tv and Global Vancouver. The crtc will require CanWest to divest one or two of the stations in the Vancouver-Victoria market, making two stations and maybe chbc-tv Kelowna available for sale.

The problem is that there is no established b.c.-based television company ready to step in where wic left off, creating the potential for non-b.c. companies to gain control of the properties that CanWest lets go.

Industry watcher David Stanger, executive vp of media buying company Genesis Media, says the likely suitors of existing television licences in Vancouver are those shut out by the recent race for the vtv licence obtained by Baton.

‘I think we’re going to see a series of intertwined deals,’ says Stanger, adding that Rogers Communications, chum or Craig Broadcasting could be working in b.c. within six to 18 months.

He speculates that Global will shift to the bctv signal to get provincial coverage, while Baton will get some prize – possibly chbc – for forfeiting its first right of refusal to buy bctv. That leaves Rogers, chum and Craig to bid – in this scenario – on the independent Vancouver station (ckvu) and the independent Victoria station (chek).

A political issue arises in that there are no clearly established b.c.-owned television companies to step in where wic left off. Will the Vancouver mps and the Victoria legislature sit back while ownership of b.c.’s major media outlets moves out of the province?

Kim Van Bruggen, spokesperson for the minister of film Ian Waddell in b.c., says the province has no plans to intervene, especially since the wic asset deal is a long way from officially closing.

‘wic has been for sale for a year and anybody from b.c. could have stepped up to the plate, and they haven’t,’ says Van Bruggen. ‘Business is business. Even if b.c. loses a broadcaster, there will be no barriers to producers. We’ll be watching this closely, but there will likely be other ownership changes.’

Among b.c. residents, the entrepreneur most ready to ante up for CanWest’s castoffs is diversified Vancouver industrialist Jimmy Pattison, who already owns a cbc affiliate television station, cfjc in Kamloops, and is a longtime operator of radio properties in b.c.

‘Yes, we would be interested in any broadcast properties that might come up,’ says Pattison, explaining that he has had a positive experience with cfjc.

Another candidate is Vancouver’s Lions Gate Entertainment, which continues on its acquisition track to become more vertically integrated.

‘Acquisition is possible,’ says Gordon Keep, a senior vp with Lions Gate, adding that the company is interested in various ways, including broadcasting, to provide opportunities for the content it creates. ‘We’d have to look at what kind of add-on value [the television property] would offer.’

In the meantime, b.c. producers are trying to gauge for themselves how wic’s dissolution will affect their businesses.

‘Hopefully, any kind of shake-up would benefit the West Coast production community,’ says producer Jana Veverka, who has a Gemini nomination for the Baton show Eyes of a Cowboy. ‘It’s best to be optimistic.’