CRTC turns down bid for superstation


by Chris Sorensen
TheStar.com
Apr 04, 2008 04:30 AM

John Bitove, the fast-food franchise executive who founded XM Canada satellite radio, has been dealt a setback after Canada's broadcaster regulator turned down his proposal to offer a free high-definition television service.

The Canadian Radio-television and Telecommunications Commission ruled against Bitove's HDTV Networks Inc. because it would only offer two hours of local programming in eight cities, compared with 22 hours for current licensees, effectively making it a Canadian "superstation," an independent broadcaster that's carried nationally without paying for programming in local markets.

"The programming strategy associated with such a station is inconsistent with the objectives of the Broadcasting Act and the commission's policies," Michel Arpin, the CRTC's vice-chair of broadcasting, said in a statement yesterday.

"We have never granted a licence for such a conventional television station in the past and did not find any compelling reason to do so at this time."

Bitove, who is also seeking to enter Canada's $12.7 billion cellphone industry, had proposed to broadcast a high-definition signal free over the air and via cable and satellite TV services, effectively creating a new national broadcaster.

But the commission said it was not satisfied with HDTV's local-programming commitment.

HDTV proposed to serve markets in Toronto, Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Montreal and Halifax.

Bitove, a former co-owner of the Toronto Raptors, could not be reached for comment.

The CRTC, which yesterday also denied a licence to YES TV Inc. to operate a high-definition service in Toronto, said local programming was an "integral" feature of its conventional television policy.

It noted that other stations and current licensees carry more than 22 hours of local programming per week on average.

The Canadian Association of Broadcasters argued that granting HDTV Networks a licence would give it an unfair advantage, since local programming is expensive.

As well, the association took issue with Bitove's submission that the service would be unique because it would be offered in a high-definition format, arguing that all broadcasters could conceivably be transmitting HD signals by 2011.

In addition to television, Bitove has also expressed an interested in becoming a major player in the telecommunications market after submitting an application to bid on wireless airwaves in an upcoming Industry Canada auction.

He also managed to persuade Microsoft Corp. co-founder Paul Allen to back the bid by Data & Audio-Visual Enterprises Wireless Inc.

Bitove's move into the media industry comes as the fast-food business faces headwinds.

Priszm Income Fund, which owns franchised KFC and Taco Bell outlets across Canada and is headed by Bitove, announced a massive restructuring last fall that included closing or selling restaurants.

While Priszm officials said the overhaul was in response to rising costs and marketing missteps, some analysts expressed concern the fund was also at risk of being hurt by people's increasing preference for healthier eating.

http://www.thestar.com/Business/article/410041

If I understand this correctly, this new network was only going to offer 2 hours of local programming in a typical week?  Obviously there would not be a local news component unless it's a five minute stint in front of another show.  I thought when they announced this initially they would have local news.