With CTV and Global Television heading into licence-renewal period, the CRTC is prepping for its first opportunity to evaluate the private broadcast groups against provisions of the new TV policy.

To foster open and informed public discussion, the commission has decided, by majority vote, to publish previously unreleased information on the two broadcasters, including: a comparison of Canadian and foreign program viewing levels for the years 1997 to 2000; total annual revenues for each of the three years; Canadian programming expenditure data; and current information about the actual and potential audience reach of each network.

"Canadian programming is a public policy issue and there’s no reason not to be transparent about the amount of money spent on [it]," says Trina McQueen, president and COO of CTV.

Nonetheless, Global and the Canadian Association of Broadcasters opposed the release of the Canadian program expenditure data, arguing issues of confidentiality and potential competitive harm.

"We’ve been providing this information to the CRTC on a confidential basis and then all of sudden it is decided unilaterally to make it public," says Gerry Noble, president and CEO of Global Communications.

Under the TV policy, established in June 1999, minimum Canadian expenditure requirements are generally no longer imposed on condition of licence. "So," Noble asks, "why is this information relevant now?" And even McQueen admits a dash of "anxiety about going back to the old regime of hours and expenditures."

The CRTC argues, and McQueen tends to agree, that such data will provide an indication as to how the commission’s new policy is working over the next licence term. The commission also has the authority, under the Television Broadcasting Regulations, 1987, to collect the financial information it requires from television licensees in order to fulfill its mandate under the Broadcasting Act.

In 2000, CTV spent $163.5 million on Canadian programming, which is flat compared with the previous year, but Global spent $116.8 million in 2000, compared to only $77 million the year before.

"We spend nearly 35% of our revenue on Canadian programming and I think that’s a righteous number," says McQueen. "We should be measured against our competition and obviously we’re way ahead."

"But," argues Noble, "Global and CTV are vastly different companies with different assets. CTV has network licences, we don’t. They have two layers of licences, we don’t." Our numbers don’t include benefits spending. CTV’s include three deals that have benefits spending. It’s apples, oranges and bananas."

He also points out that CTV receives more government funding than Global, which is included in its expenditure numbers. "CTV receives $16.5 million from the CTF, while Global receives $2.8 million."

In fall 1999, less than 12% of what was watched in primetime on CTV was Canadian, compared to the more than 17% calculated in 1997. Global also saw that figure decline to 5% in 1999 from 7.2% in 1997.

"Canadian programming is watched in proportion to what is available," says McQueen, who points out that 15% of its programming schedule is Canadian drama. "The only reason we don’t spend 100% of our programming budget on Canadian content is that we need to build popular mainstream programming, which is what the BCE benefits package is designed for."

In other countries, public funding supports less-watched programming while the private sector takes care of more commercially viable content. In Canada, McQueen suggests, our public funds support all tiers of programming.

"We’re always being pushed into it," she says.

Noble, however, pins the audience decline for conventional networks on the umpteen specialty channels that have been launched over the past three years. "Viewing doesn’t increase just because there’s new services, it comes off existing services."

CTV’s total revenue for 2000 dropped to $497.2 million from $497.9 million in 1999.

Total revenues for CanWest Global in 2000 were more than $602 million, compared to roughly $419 million the year before.

At the licence renewal hearing, to be held in Hull, QC on April 17, CTV with its 30 local television stations and one satellite service, and Global with it 19 stations across the country, will be challenged on the basis of cross-media ownership, cultural diversity, local and regional reflection, vertical integration and how well they are serving the visually impaired communities.

Questions surrounding autonomy and editorial independence between CTV and The Globe and Mail, and Global and The National Post will be addressed. The hearing will also explore whether safeguards should be put in place to protect against undue preference in the case of CTV and Landscape Entertainment, and Global and Fireworks Entertainment International. *

-www.ctv.ca

-www.canwestglobal.com