On Tuesday, the Canadian Radio-television and Telecommunications Commission (CRTC) released new provisions intended to curb mergers in Canadian media.
The CRTC announced three major rules that seem to be a direct response to the ongoing expansion of media conglomerates such as CTVglobemedia Inc. and CanWest Global Communications Corp. As Canada’s two biggest media corporations, they’re subject to criticism for their monopolistic hold on numerous print, television and radio sources.
The regulator announced a gradual system of colours—green, amber or red—to approve or disapprove proposed media mergers and acquisitions. The first rule stipulates that a company’s television assets will be blocked from expanding when they reach 45 per cent of all Canadian viewership. The second prevents one company from owning all forms of TV delivery service, such as cable or satellite, in one local market. The third major provision prevents a monopoly on owning all three of radio, TV and newspaper in a market, limiting ownership to only two of these mediums.
Although the CRTC should be commended for implementing a barrier to monopolies in the media market, they don’t deserve a full pat on the back—Canada’s
media market has desperately needed legislation to prevent media monopolies for years. This law’s inability to work retroactively means it may be too little, too late.
For the most part, big conglomerates such as CTVglobemedia, CanWest Global and Quebecor will find their empires relatively untouched by the new rules, although ongoing acquisitions will prove challenging.
This monopoly-driven homogeneity is felt most acutely in small local markets, where less range in media outlets available means it’s easier for one company to dominate news sources.
Unless the regulations are revised to incorporate retroactive measures, the media conglomerates will maintain their strongholds.
The dangers of media monopolies are obvious and the CRTC’s regulations now leave the conglomerates to maintain their vast ownership without worrying about possible competition springing up. Although the CRTC is heading in the right direction in its attempt to promote independence in the media market, it seems to have gotten stuck halfway.
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