SCTV was BRILLIANT, very funny! I laugh just thinking of Guy Caballaro, Edith Prickley, Johnny LaRue, the Shmenge Brothers, Lola Heatherton. . . .
The format you describe, PJ, of a cable news channel would be loose enough to allow satirizing current events.
The Simpsons has a knack for doing that, too: they're watching Kent Brockman, a celebrity visits Springfield--lots of ways to work in contemporary references and still stay within format.
One of the hosts on the fictitious CCC of "Media Circus" would be a fast talking, hyperactive, host of "Softball" called Matt Christopher. Whenever the subject turns to the Scooter Libby trial, rivers of drool flow from his mouth.
Another CCC host would be a Rino Yuppie named Huckster Carlton who is constantly battling lousy ratings and lives in fear of being cancelled. The program director of CCC tell Huckster that he needs to get rid of his trademark bowtie because the audience hates it. However, Huckster stands his ground and they come up with the concept of Huckster wearing an even bigger bowtie with this twist---whenever Huckster gets excited about something, the oversized bowtie spins like a propellor.
Another host on legal matters for CCC would be Nancy Graceless. She would dress and act like Roland Freisler of the German People's Court (Volksgerichtshof). Any guest of hers who is accused of committing a crime such as the Duke Lacrosse players is given the screeching Freisler treatment by her in that they aren't even given a chance to speak. (Important for her to wear the Volksgerichtshof judge hat and gown.)