CRTC introduces new media ownership rules

The Canadian Radio-television and Telecommunications Commission is tightening its rules to limit media ownership.The changes mean any person or entity can own only two of the three different types of outlets—radio stations, television stations or newspapers—in a single market.The regulator is also limiting ownership of broadcasting licences to ensure any one party does not control […]

The Canadian Radio-television and Telecommunications Commission is tightening its rules to limit media ownership.

The changes mean any person or entity can own only two of the three different types of outlets—radio stations, television stations or newspapers—in a single market.

The regulator is also limiting ownership of broadcasting licences to ensure any one party does not control more than 45% of the total television audience share as a result of a transaction.

“The whole thing was a great concern,” CRTC chairman Konrad von Finckenstein said in an interview.

“Everybody is concerned about it, because the trend is there… toward media concentration. On the other hand, we want to make sure there is a plurality of voices and a diversity of programming.”

The regulator also will not approve transactions between cable and satellite companies that distribute television services, which it says would result in one person effectively controlling the delivery of programming in a market.

Tuesday’s restrictions do not apply retroactively to existing media conglomerates, said von Finckenstein.

While the new limits restrict ownership of the types of media owned, the rules about how many newspapers and radio and TV stations may be owned have not changed.

Companies can own:

  • only one TV station per language in a single market;

  • two AM and two FM radio stations in the same language in large markets; and
  • three radio stations, but only two per frequency band, in smaller markets.

A CRTC spokeswoman said there are no restrictions on the number of newspapers a company can own.

The regulator called for public hearings last March amid concerns Canadian broadcasting was becoming too concentrated following several large consolidations.

The CRTC raised the issue of “diversity of voices” after CTV’s acquisition of CHUM Ltd. and Canwest’s takeover of Alliance Atlantis Communications.

Many of the country’s big media companies argue consolidations are necessary in today’s fast-changing media climate.

Ian Morrison of the group Friends of Canadian Broadcasting welcomed the CRTC’s decision.

“The CRTC is recognizing that as a result of media concentration, there are levels of concentration that could well pose a threat to diversity and, therefore, democracy,” he said.

“Although I would quibble on some of the details, I think this is an example of the CRTC doing its job.”

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