Amid a slumping economy, CTV Inc. told federal regulators it expects to lose as much as $100-million on its conventional television operations in 2009, painting a bleak portrait of the year ahead in the TV sector.
That announcement was contained in documents filed to federal broadcast regulators that also revealed CTVglobemedia took a $1.7-billion writedown on its television operations at the end of the last quarter.
The figure is the largest in a recent parade of hefty writedowns on television assets this year. In November, CTV rival CanWest Global Communications Corp. announced it was writing down the value of its television assets by $1-billion. This month, Rogers Communications Inc. said it was writing down the value of its City-tv network by $294-million.
The moves reflect a deterioration in the value of network television assets in recent years, as competition from cable channels and the Internet has shifted audiences and advertising dollars away from the big networks. While the companies don't take a cash hit, accounting rules require them to adjust the value on their books.