Business

Winnipeg Free Press - PRINT EDITION

Strugging TV stations touted as opportunity

By: David Friend

Posted: 07/18/2009 1:00 AM | Comments: 0 (including replies)

TORONTO -- Another new player has entered the Canadian broadcast industry with hopes of resuscitating struggling local TV stations that the country's media giants have written off as losers.

Bluepoint Investment Corp. chief executive Colin Berrie said Friday that he sees an opportunity to scoop up the unwanted TV stations that national broadcasters are selling, and form a mini-media empire for pocket change.

On Thursday, the three-month-old Bluepoint agreed to buy the CTV-owned TV station in Brandon, CKX-TV, for a mere $1, a deal that at least one other potential buyer nixed after reviewing the assets.

However, Berrie said in an interview with The Canadian Press that he sees potential in local TV, and is scouring the market for other deals in the television sector.

"We want to be a Canadian company that has a strong presence throughout North America," he said.

"Fundamentally, we develop our base in Canada and take it to the next level from there. It could be specialty channels, it could be super channels."

Berrie, a 52-year-old Bay Street veteran who spent a year as president of Avenue Financial Corp., formed Bluepoint with Toronto-based advertising-industry insider Bruce Claassen, 56.

He believes the duo's business relationship holds the key to properly managing television assets and successfully luring advertisers in an economy that has big broadcasters, like CTV and Canwest, struggling.

"We think there's a tremendous amount of opportunity," he said.

Some would disagree with him, saying that broadcasters have become victim to a market downturn and declining viewership in favour of the Internet.

Both CTV and Canwest have asked the government for financial aid to keep their local stations running, but both have also put several of their small-market stations up for sale, calling them unprofitable in this economy.

Even Shaw Communications Inc. (TSX:SJR.B) appeared to agree with the media giants when it exited a deal to buy a group of CTV's assets, including the Brandon station, after deciding that the asking price of $1 per station was too high.

Berrie downplayed suggestions that he could be setting himself up for a financial disaster.

He points out that unlike giants CTV and Canwest, he will be able to access a small-market local broadcaster fund that hasn't been available to broadcasters with a national presence.

He can also obtain a piece of the CRTC's $100-million local programming improvement fund that is aimed at helping small- and medium-market stations.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition July 18, 2009 B8

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