LESS than six weeks away from the much-anticipated digital channel launch, the CRTC has put out a public notice for interventions on Alliance Atlantis’ acquisition of the Independent Film Channel Canada licence.

The licence, which has been valued at an estimated $6.4 million, was inherited by the media giant when it acquired Halifax-based Salter Street Films in mid-April for $84 million.

Once the transaction was complete, all the issued and outstanding shares of Salter Street Broadcasting, the subsidiary that owned the licence, were handed over to trustee Daniel M. Campbell. The channel remains in trust until the CRTC approves the takeover and as such, it will be launched under the ownership of the trustee.

However, in terms of sales, AAC already represents the IFCC. ‘It’s efficient to use Alliance Atlantis as a sales force,’ says a company spokesperson. ‘We have full rights to represent IFC, just like we do Historia and other channels, and it doesn’t relate to us purchasing them.’

As part of the transaction, AAC has proposed a tangible benefits package worth $1.25 million, close to 20% of the estimated value of the channel and 10% more than what’s required by the CRTC.

The benefits would be distributed as follows: $700,000 to the Filmmakers Training Program in Atlantic Canada, $500,000 to the IFCC Canadian Programming Fund and $50,000 to the Atlantic Film Festival.

‘In order for the package to be relevant, it had to be big enough,’ says the AAC spokesperson in response to why AAC has opted to provide such a large package. ‘We wanted to make a meaningful contribution and $600,000 really isn’t a lot.’

Because of the unconventional route AAC took to acquire the licence, the company could have a difficult time persuading interested parties and the CRTC of its case.

‘You’re not supposed to get a licence and sell it right away. It doesn’t work that way,’ says CRTC spokesman Denis Carmel.

Nonetheless, there’s little in the way of policy to stop broadcasters from buying or selling licences, as opposed to operating channels.

Salter Street won the Category 1 licence last year in a bid against AAC and others seeking to launch a similar channel. However, in a move that would give the media giant the licence it placed high on its favorites list, it overrode the process and bought the IFCC’s parent company.

The value of the licence is inevitably based on forecast earnings.

The CRTC is currently seeking comments from the public to be submitted before Aug. 30 regarding the value of the transaction, including the proposed tangible benefits package; the impact of the transaction on the diversity of ownership in the Canadian specialty service industry; the possible consequences of the transaction on the commission’s process in licensing specialty services; and the impact of AAC’s vertical integration in terms of programming production and services.