CRTC ESTABLISHES A NEW APPROACH TO MEDIA OWNERSHIP CRTC Release The Canadian Radio-television and Telecommunications Commission (CRTC) today introduced new policies to ensure that a diversity of voices is maintained in the Canadian broadcasting system.
“With these new policies, we have developed a clear approach to guide us in assessing future transactions in the broadcasting industry,” said Konrad von Finckenstein, Q.C., Chairman of the CRTC. “It is an approach that will preserve the plurality of editorial voices and the diversity of programming available to Canadians, both locally and nationally, while allowing for a strong and competitive industry.”
Further to its review, the Commission is satisfied that the broadcasting system currently provides Canadians with a range of news and information programming. For this reason, it reaffirmed its existing common ownership policies governing the number of conventional television and radio stations a person may control in the same market.
However, to maintain this plurality of editorial voices, the Commission is establishing a new policy restricting cross-media ownership. As a result, a person or entity will only be permitted to control two of the following types of media that serve the same market: a local radio station, a local television station or a local newspaper.
In addition, the Commission has conditionally approved the Journalistic Independence Code proposed by the Canadian Broadcast Standards Council (CBSC). In particular, the Commission directed the CBSC to include a minimum number of journalists on the panels that study complaints and to formalize the process used to select panel members. The principles set out in the Code will ensure a diversity of professional editorial voices and will eventually apply to all broadcasters who own a newspaper in the same market.
The trend toward greater consolidation in the broadcasting industry has raised concerns that a large ownership group could achieve a dominant position through acquisitions, which could bring about a reduction in the diversity of local, regional and national content. To address these concerns, the Commission has decided to:
The new policies announced today apply only to private broadcasters. The Commission will consider the contribution public broadcasters make to the diversity of voices during upcoming proceedings focusing on the Canadian Broadcasting Corporation and provincial educational broadcasters. The Commission will also undertake a comprehensive review of its policies relating to community broadcasters in the near future.
BACKGROUNDER ON MEDIA OWNERSHIP
Common ownership policies
The Commission has reaffirmed its existing common ownership policies for conventional television and radio stations. Under these policies, a person may own no more than one conventional television station in one language in a given market. In large markets, a person may control as many as two AM and two FM stations in the same language. For smaller radio markets, a person may control as many as three stations operating in the same language, with a maximum of two stations in any one frequency band.
Cross-media ownership
The CRTC has decided to restrict cross-media ownership in order to ensure that Canadians continue to benefit from a range of perspectives in their local news coverage. Under the new approach, a person or entity may only control two of the following types of media that serve the same market:
Given that it considers the Globe and Mail and the National Post to be national newspapers, the Commission is not aware of any market in Canada where a single person or entity controls all three types of media at this time.
Ownership of television services
The Commission has decided to impose limits on the ownership of television broadcasting licences to maintain the diversity of programming. As a result, the CRTC will not approve a transaction that would result in one party controlling more than 45 per cent of the total audience share, including conventional, pay and specialty television services.
Additionally, the Commission will:
However, an ownership group can increase its audience share beyond 45 per cent by operating and growing its existing assets without causing the Commission concern.
Broadcasting distribution
Companies that distribute broadcasting services also play an important role in providing a diversity of voices in the broadcasting system through their acquisition and packaging of channels. The Commission is of the view that competition in the distribution of broadcasting services translates into increased programming diversity for consumers. To further this objective, the CRTC will not approve a transaction that would result in one person effectively controlling the delivery of programming services in a single market.
Journalistic Independence Code
The Commission has granted conditional approval to the Journalistic Independence Code proposed by the Canadian Broadcast Standards Council (CBSC). The Code sets out procedures to ensure that broadcasters maintain news management and presentation structures that are separate and distinct from those of their affiliated newspapers.
The general public and members of the broadcasting industry may submit complaints about issues relating to the Journalistic Independence Code. Any complaint requiring adjudication is brought to the attention of the CBSC’s Journalistic Independence Panel. The Commission directed the CBSC to include a minimum number of journalists on the panels that adjudicate complaints. Given their experience and expertise, the presence of journalists, or representatives from this profession, is essential to fully understanding newsroom operations. The Commission also directed the CBSC to formalize the process used to select panel members in order to ensure a fairer and more transparent appointment process.
The Code will eventually apply to all broadcasters who own a newspaper in the same market and will ensure a diversity of professional editorial voices in the Canadian broadcasting system. |