TORONTO - CTV Television Inc. (TSX:BCE) says it has asked the CRTC for a one-year renewal on the licences of its A Channel television stations -- the shortest term that can be requested -- as the big broadcaster grapples with declining advertising revenues and a tough economy.

In a memo to CTV employees Friday, the company said that while it has faced a general downturn in profits, the finances at its A Channels across Ontario, and in B.C. and Nova Scotia, are "grave," and are forcing the broadcaster to reduce costs.

A CTV representative wasn't immediately available to say whether the cost reductions would include layoffs.

'When we bought the As, they had never made money. We hoped to turn this around and this year achieved a major increase in their ratings," CEO Ivan Fecan said in the letter.

Despite the higher ratings, the channels continue to lose money.

'This is not the fault of our hard working and dedicated employees who work at our A stations across the country. It is because the business model for conventional television is now broken."

Earlier this week, CTV said it will not seek to renew the licences for two A Channel stations - CKNX-TV in Wingham and CHWI-TV in Wheatley and Windsor in southwestern Ontario when they expire at the end of August.

The broadcaster is also looking at either selling or closing CKX-TV Brandon in western Manitoba.

A Channel was acquired as part of CTV's $1.7-billion acquisition of CHUM Ltd. in 2007, though at one point the company planned to sell the stations to Rogers Communications (TSX:RCI.B) to get the CRTC approval for the deal.

At the time, the stations were struggling with low viewership and weak profits.

A Channel-branded stations are located across Ontario in Ottawa, Barrie, London, Windsor and Wingham, as well as in both Victoria and Halifax. The Halifax operation was a former CTV station but was rebranded.

Friday's CTV moves reflect the increasingly difficult times for Canada's conventional broadcasting sector, an industry squeezed by the recession, a drop in advertising and increased competition from specialty channels.

On Friday, CTV also said it will ask the CRTC for permission to "no longer offer separate and distinct local programming" on four channels - CKCO-TV in Oil Springs, Ont., CFRN-TV in Whitecourt, Alta., CFRN-TV in Ashmont, Alta. and CFRN in Red Deer, Alta.

Also, CTV says it won't renew the licences for about 45 rebroadcasting transmitters across the country where it is "no longer economical" to carry over-the-air broadcasting.

CTV says it is battling the weaker economy on top of financial pressures at its conventional TV operations in the wake of the CRTC's decision last fall to deny fee-for-carriage charges - which are essentially subscriber fees - that would have pumped up to $300 million in additional money into the broadcast industry.

The CRTC will begin hearings into the current state of conventional television later this year, though CTV warned it could be too late.

'While we welcome this new, year-long CRTC process and while we can't guarantee the survival of the As until that time, together we will do our best," Fecan said.

CTV filed its application with the CRTC this week and the full details will be made public by the regulator next week, along with the applications of other national broadcasters Canwest Global Communications (TSX:CGS) and Rogers Communications (TSX:RCI.B).