MTV (Viacom) to buy part of MTV (Craig)

[Bruce]

<font color=red>Broadcasting Public Notice CRTC 2002-6</font color=red>
Ottawa, February 6, 2002

The Commission has received the following applications:



3.
Across Canada
Application Nos. 2001-1062-7; 2001-1229-3

Applications by CRAIG BROADCAST SYSTEMS INC. (Craig) requesting authority to effect a change in the ownership structure of:

i) the national Category 1 specialty television service approved under the name of Connect now operating as MTV (Canada), and

ii) the national Category 2 specialty television service approved under the name of Music 5 now operating as MTV2.

Craig and the licensees (3844161 Canada Ltd. and 3850099 Canada Ltd.) signed a Joint Venture Agreement with MTV Networks (MTV), which calls for a corporate reorganization.

The new proposed ownership structure, resulting from the Joint Venture Agreement, would affect the effective control of both licensees, Connect and Music 5.

Pursuant to this agreement MTV, a division of Viacom International Inc., a non-Canadian, has agreed to license the rights to produce, operate and distribute MTV-branded television programming services in Canada based on the MTV Programming Services. Further, MTV has an option to acquire up to 51% of the licensees’ shares, or their parent companies.

Consequently, the Commission seeks public comments on the proposed ownership structure, pursuant to the Joint Venture Agreement, and on the potential impact it may have on the programming of the services.

The Commission notes that it has received complaints by CHUM Television and MusiquePlus inc. raising concerns about Craig’s compliance with the nature of service definitions of both specialty services. These complaints are being dealt with in a separate process.

[MikefromCanmore]

option to 51% foreign ownership - this should be worth watching

[BCTripster]

Viacom finally have their foot in the door, they want more of their leg to follow, well actually pretty much they want in at least waist deep /forums/images/icons/smile.gif

My bet is they'll argue the US let MuchMusic in the door unhindered, threaten to take it to the WTO, etc.

Looks like a challenge to Canadian ownership rules is brewing, could be interesting, especially when outfits like Global own 100% of foreign stations already.

Our rules are rather hypocritical if you ask me.

[MikefromCanmore]

The jig is up for BCE/ChumCity/Izzy non OTA tv holdings - it may take 2, 4 or 5 years but the writings on the wall. When a country gives up it's sovereignity at the borders, in immigration and national defence - well tv protectionism is just an afterthought.

[JoeDude]

This hour has 22 minutes had a satirical news clip about the MTV - Much Music battle.

In it the reporter stated that Chum want's to sue Craig becuase they ripped off Much Music's idea of ripping off MTV's idea.

I thought it was funny. /forums/images/icons/smile.gif

[DC_Guy]

Let's not paint Craig as ANY injured party here. They applied for a teen-oriented service. They pulled a bait-and-switch and turned it in to a music service. Plain and simple. Time for someone's knuckles to get rapped HARD, and it's Drew Craig's hand which needs to be extended. End of story -- or do we feel sorry for him just because he's from the ol' west? Because if that's the case, well east vs. west arguments are pointless.

Craig Broadcasting is in the wrong -- plain and simple. A poorly managed organization with a long track record of incompetency. They're an organization which makes a commitment, yet fails to follow through (ie. 2 year absense of "Wired" as a separate program from CKAL, elimination of non-standard news times as promised in applications for CKAL and CKEM, a ZERO commitment to local programming in Portage La Prairie (which is home to the license for CHMI/A-Channel Manitoba), a near-ZERO commitment to local news in Brandon after giving nearly all the news staff the heave-ho at CKX. Oh yeah, let's not forget trying to copy the Citytv format on the cheap instead of being wise and buying the format from CHUM (would have saved a lot of their "growing pains" and "headaches" which they experienced during their first months on the air in Alberta -- months which diminished their credibility as a news source in that province and has made their newscasts very redundant (given the ratings))

Why am I so hard on Craig Broadcasting? Because they're a western based company which likes to pull out the "give us the license, we're western" card more often than anyone else. Because they know about the bottom line, but little about broadcasting. Because those at the helm in the family share very few principles with their now deceased father who was a cornerstone in building the Craig Broadcast business. And above all else, because the manner in which they treat their licenses isn't much different than they treat their employees.

[Shadedmuse]

Ok what are the news ratings in Calgary. I thought A-Channel was number 1. everyone I know watches A-Channel.

[DC_Guy]

Overall, it's floundering anywhere from #3 to #4 in a four station market... beating the CBC isn't a big accomplishment, but they are dead last among the private players.

[Shadedmuse]

I heard the News ratings are.
I have ties that run deep in the Calgary broadcast Market and this is what I have been told.
1 CKAL Best local news in Calgary with the best Local newsteam.
2 CFCN
3 CBRT Loyal viewers to the core.
4 CICT they slid to 4th place when they lost their local look and went Global.

[**DONOTDELETE**]

AFAIK, one could replace the name "Craig" in your reply with the names of a lot of other broadcast players in this country and your comments would be just as appropriate

[DC_Guy]

Your "sources" are wrong...

From a recent edition of AlbertaViews Magazine...

<blockquote><font class="small">In reply to:</font><hr>

In the spring 2001 ratings period, as reported by the BBM Bureau of Measurement, most of the shows took a huge hit. For example, in the age 18+ category, the weekday Calgary News @ Six dropped from more than 15,000 viewers a year ago to a little more than 11,000. The Live @ Five show-dubbed Dead @ Five by one media wag-lost more than half its viewers in the span of two reporting periods, dropping from almost 13,000 viewers to fewer than 6,000. It was subsequently dropped from both stations' schedules.

That's something the station has a tough time accepting and explaining.

"Yes, of course," Carter says when asked if he finds the numbers disappointing. "It's normal to want the big numbers, and sometimes I wonder why that hasn't translated as effectively as I'd like it to. That just comes with plugging away, one step at a time, baby steps. You keep growing in the market and eventually it's there. I think any TV station wants to have higher numbers...but that's part of the challenge."

Craig also finds the ratings somewhat disheartening but thinks they will rise with time. "It is somewhat disappointing but...I think it's the hardest audience to capture," he says. "When you create a local program, it's hard to get people to switch from their incumbent news choice."

<hr></blockquote>

[QualityIsJobOne]

IMO MTV &amp; MTV2 ROCK! Thanks so much Craigs!

I'm watching Road Rules on MTV as I type! /forums/images/icons/tongue.gif

BTW....MTV &amp; MTV2 picture quality is just WICKEDLY AWESOME on StarChoice!! Thanks to all who are making this happen! /forums/images/icons/tongue.gif /forums/images/icons/tongue.gif

[Shadedmuse]

MTV and MTV 2 plays way to much rap and hip hop music for me.

[Bruce]

<font color=blue>Craig moves foreign ownership to front burner; Commission asks for public opinion</font color=blue>

Cablecaster Magazine February 11, 2002

OTTAWA - An application by Craig Broadcast Systems last week asking to change the ownership structure of its category one digital specialty service MTV Canada, and category two MTV2, has the broadcast industry all abuzz.

Craig's application says it signed a joint venture agreement with MTV Networks owner Viacom, which calls for a corporate reorganization should foreign ownership rules for Canadian broadcasters change so that Viacom would own 51% of the two channels.

Canadian foreign ownership laws when it comes to broadcasters prohibit non-Canadian firms from owning more than 33% of any holding company or more than 20% of an operating company. All told, foreign companies are limited to about 47%.

"Pursuant to this agreement MTV . . . a non-Canadian, has agreed to license the rights to produce, operate and distribute MTV-branded television programming services in Canada based on the MTV Programming Services. Further, MTV has an option to acquire up to 51% of the licensees' shares, or their parent companies," reads the application.

Instead of quashing it outright, the Commission has decided to go after public comments on the proposed ownership structure, pursuant to the "and on the potential impact it may have on the programming of the services," said the Commission's notice, which said it would deal with Chum Television's recent complaints over the two services (see www.cablecastermagazine.com (http://www.cablecastermagazine.com), 1/29/2002, 1/18/2002) in a separate process.