A Channel thumps rivals!

CRTC's broadcasting policy permits each of the major broadcast TV network complexes to own and operate only two local affiliates in each major local market. This policy is designed to ensure there is a multiplicity of diverse broadcast voices are made available to Canadians and to avoid over concentration of media ownership.

The major broadcasting complexes have tried to exploit the "two local O&Os" rule for several years now. For example, in the GTA market, Canwest historically operated as Global TV (on cable 3) and then, following a more recent acquisition, assumed operations of Hamilton's CHCH TV 11 (briefly ON TV, then "CH" and now E!). CHUM-City historically operated CITY TV (UHF channel 57, cable 7) and then, following a more recent acquisition, assumed operating Barrie's CKVR TV (now "A" Channel 3).

Global built the CH brand out into a secondary national network (now re-branded as E!) and likewise CHUM leveraged VR to build A channel into a secondary national network. When ctvglobemedia completed its acquisition of CHUM-City, it would have added both the CITY TV and A channel stations to its pre-existing local CTV affiliates (CFTO, Channel 9, Cable 8 in Toronto), which would have meant they would be left owning and operating three local TV stations in many major urban markets, in clear violation of CRTC policy.

So the CRTC required ctvglobemedia to divest itself of the CITY tv statons as a pre-condition for approving its acquisition of CHUM-City. In due course, Rogers broadcasting submitted the highest auction bid and acquired the CITY stations from ctvglobemedia. Rogers already operated the OMNI multi-cultural local stations in some major markets. Following all of this M&A activity, the major urban market TV landscape was carved up between the three broadcasting complexes (CTV, Canwest and Rogers) as follows:


Broadcaster Primary network Secondary network

ctvglobemedia CTV "A"
Canwest Global E!
Robers CITY OMNI


Historically, in the Toronto market, CTV has been the dominant ratings powerhouse, followed by Global, City, CH/E! and finally VR/"A".

Since the dust has settled on the M&A activity, the broadcasters have tended to structure their programming by placing their most highly rated US imported shows on their primary network affiliates and to shift their less popular US pick-ups to the secondary networks.

The current Fall 2008 season represented the first year that CTV's programmers assumed specific exclusive responsible for acquiring programming to re-stock the A network schedule. Their efforts (and bigger programme acquisition budget) have resulted in a dramatic boost in A channel ratings! "A" channel, which in prior seasons had lagged both CITY and CH/E! in average ratings, is now suddenly ahead of both of those networks in the season to date ratings. Most impressively, the "A" network has seen triple digit increases in ratings in the metred markets at the expense of City and E!

Here are the comparatives comparing ratings in Fall 2008 to Fall 2007

National Average Viewing Audience, Age 2+

Network 2008 vs 2007

A 294K + 30%
E! 223K - 19%
CITY 161K -47%

Toronto Local Market Average Viewing Audience

Station 2008 vs 2007

A 72.9K +59%
E! 68.0K -18%
CITY 50.0K -40%


The gains and loses are similar in the key (aged 18-49) demo that advertisers target.

Considering only series that air on one of the secondary networks ("A", E! or City), A can boast of 6 Top 10 performers, E! of 3, while City airs only 1.

A channel has enjoyed considerable success with simulcasts of CBS's 2.5 Men on Monday nights (when the main CTV network is simulcasting ABC's Dancing with the Stars) and is also simulcasting one of the top new series of the Fall (FOX's Fringe)

I will continue to monitor this situation to see if ctvglobemedia can sustain the "A" momentum over the balance of the season!