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Ottawa, 15 March 1991
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Decision CRTC 91-135
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CKCK Broadcasting Limited Partnership
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Regina, Colgate, Willow Bunch, Swift Current, Marquis and Golden Prairie, Saskatchewan - 900861600CFQC Broadcasting, (a limited partnership)Saskatoon, Stranraer and North Battleford, Saskatchewan - 900859000
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Shamrock Television System Inc.
Prince Albert, North Battleford, Greenwater Lake, Big River, Spiritwood, Tisdale, Melfort, Yorkton, Norquay, Hudson Bay, Warmley, Wynyard and Humboldt, Saskatchewan - 900862400 - 900255100 - 900863200 - 901650200 - 901965400 - 900860800 - 900295700 - 900858200 - 901062000 - 901063800
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Following a Public Hearing in Regina commencing on 23 October 1990, the Commission renews the broadcasting licences for CKCK-TV Regina, CFQC-TV Saskatoon, CKBI-TV and CIPA-TV Prince Albert, CICC-TV and CKOS-TV Yorkton and their respective rebroadcasting undertakings serving the localities noted above, from 1 July 1991 to 30 June 1996, subject to the conditions specified in the appendices to this decision and in the licences to be issued. CKCK Broadcasting Limited Partnership, CFQC Broadcasting and Shamrock Television System Inc. (Shamrock Television) are wholly owned and directly and/or indirectly controlled by Russwood Broadcasting Limited (Russwood). Russwood is ultimately controlled by Baton Broadcasting Incorporated (Baton), which also controls television undertakings in Toronto and Ottawa, as well as in Northern Ontario. Baton is controlled by members of the Eaton family of Toronto through their indirect ownership of a majority of Baton's voting shares.
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The broadcasting undertakings in Yorkton and Prince Albert operate as "twinsticks": CKOS-TV and CKBI-TV operate as affiliates of the CBC English-language television network, while CICC-TV and CIPA-TV operate as affiliates of the CTV Television Network. CKCK-TV and CFQC-TV also operate as CTV affiliates. These broadcasting stations and their rebroadcasting undertakings are collectively known as the Saskatchewan Television Network or STN.
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During the current licence term, specifically during the week of 27 May to 2 June 1990, CKCK-TV, CKOS-TV and CIPA-TV were each found to be in apparent breach of subsection 10(5) of the Television Broadcasting Regulations, 1987, requiring the retention by licensees of a clear and intelligible audiovisual recording of all programming. After considering the written reports and the verbal explanation provided at the hearing regarding the incidents in question, the Commission is satisfied with the steps taken to prevent any further infractions of this type. The Commission also discussed apparent infractions by the licensees of the Canadian Association of Broadcasters' Broadcast Code on Advertising to Children (the Code).
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Speaking on behalf of the licensees, Russwood explained that a number of stations had "interpretation difference[s]" with respect to paragraphs 6A and 6B of the Code. With regard to other problem areas, such as the number of commercial minutes and types of messages broadcast in a children's program, Russwood stated that they were due to human error and a failure to communicate procedures properly. It confirmed, however, that these problems have been rectified and that a new set of instructions has been issued to the appropriate staff "so that they are aware of what can and cannot be done in children's programming".
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In Decision CRTC 86-642, the Commission approved Baton's applications to expand its television operations in Saskatchewan. In that decision, it noted a number of commitments made by Baton with respect to ownership, technical improvements and new programming initiatives. The Commission notes the thorough accounting provided by Baton with respect to the implementation of these commitments during the initial licence term. It is pleased that Baton and the licensees have honoured and, in many cases, exceeded their obligations.
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At the hearing, Russwood confirmed that a commitment to spend $11.3 million on technical improvements had been met. It forecast that "by the end of fiscal 1991, we will have exceeded our commitment in this area ... with total capital spending of $16.1 million". Russwood indicated that an extensive program of capital replacement and upgrades to improve the signal quality of its service had been undertaken during the current licence term, including the construction of a bi-directional microwave system, which now links its four broadcast centres in Saskatchewan.
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According to Russwood, the licensees will also surpass the condition of licence requiring them collectively to spend $1,080,000 on drama produced in Saskatchewan. The Commission notes that the fund was used to produce productions such as "Heart of Christmas" and "The Garden". In addition, the fund assisted several amateur productions and contributed to the development of "Museum of the Past" and "Round Up".
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In the Commission's view, the licensees provide a reasonably balanced and distinctive regional programming service. The cooperatively-produced regional programs offer an exchange of urban and rural dialogue. In its presentation, Russwood indicated that the licensees currently provide slightly more than 5 hours per week of regional programming, which is in excess of the required 4 hours 30 minutes. This package includes programs such as: "The Provincial", "Farm Gate", "My Partners, My People", "Number One West", "Entertainment Saskatchewan", and "Insight - The Church Here & Now".
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At the hearing, the Commission noted that the licensees are no longer involved in the production of "My Partners, My People" and that no specific plans for new native programming initiatives have been indicated in the renewal applications. In response, Russwood stated that it will either acquire this program from its producers or it "... would endeavour to find something similar to replace it".
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According to Russwood "Number One West" and "Entertainment Saskatchewan" will be scheduled during the prime time evening hours in order to "give them, hopefully, a regular home where viewers can find them on a regular and on-going basis, and see if we can hopefully establish them and enhance them even more". The Commission encourages the licensees to continue to make STN-originated productions, particularly those in under-represented categories, accessible to the widest audience possible through such "prime time" scheduling practices.
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The licensees also met their commitment to broadcast a "Premier" series weekly on Sundays at 6:30 p.m. The series was used to introduce a variety of programs. "Puttnam's Prairie Emporium", a children's program that was subsequently picked up for two seasons by the CTV Television Network was introduced through the "Premier" series. The Commission notes that the licensees cooperatively produced a total of 51 episodes in this series, which won a number of awards.
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The Commission notes that the licensees have also achieved a high standard in news and public affairs programming. STN currently provides early and late evening local newscasts seven-days-a-week. Included in its news service is the cooperatively produced "The Provincial", which is essentially a rural and urban Saskatchewan network news package. "The Provincial" is broadcast at 6:30 p.m. on weekdays and, according to Russwood, "is now the most watched newscast in Saskatchewan".
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Having assessed the licensees' accomplishments, including those noted above, the Commission is satisfied with their performance during the current licence term.
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With respect to the strategy and program plans for the new licence term, Russwood indicated that the licensees would continue to focus primarily on news, sports, farming matters and public affairs. A number of documentary specials will also be produced to enhance information programming. Russwood further stated that its strategies will "certainly not ... ignore the music and entertainment categories".
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At the hearing, the Commission raised with Russwood the Commission's policy on local programming. In this regard, Russwood indicated that the titles of its local programs, and the programs themselves may change. It added that there may be shifts between categories or within the same category, "to the extent that it provides more flexibility for involvement with local or independent producers or other stations". Russwood stated, however, that it did not believe that "the overall total number of hours of this type of programming would change". As stated in Public Notice CRTC 1989-27 dated 6 April 1989, as well as in several television renewal decisions issued at that time and subsequently, the Commission expects licensees of television stations earning less than $10 million annually in total advertising revenue to adhere to their projected first-year expenditures on Canadian programming, at a minimum, and to adjust such expenditures in subsequent years in accordance with a formula linked to station advertising revenues.
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The Commission is satisfied that this approach continues to offer a reasonable and fair means of ensuring the Canadian program expenditures of each television station keep pace with changes in its revenues. Consistent with this policy, and inasmuch as the annual advertising revenues of each of the six originating stations were less than $10 million in 1989/90, the Commission expects the licensees to adhere to the prescribed expenditure formula. For the purposes of this expectation, the level of Canadian program expenditures forecast by the licensees for each of the six stations in the broadcast year 1991/92, shall be deemed to be the minimum expected levels of first year expenditures.
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In addition, the Commission notes that the licensees will collectively contribute $50,000 to a Development Fund in each year of the new licence term. At the hearing, Russwood stated that the fund is intended to "assist in not only developing the creative side of a project, but in developing the marketability and financial side of it, in terms of giving the producer the resources to put together the package". In this regard, the licensees have indicated their intention to work with independent producers in the development of a western Canadian fishing series, an exercise and lifestyles program, and in the exploration of a number of new programming initiatives for children or adolescents, including a spin off of the "Puttnam's Prairie Emporium" series and the development of a forum for young talent.
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As noted in Public Notice CRTC 1989-27, the Commission considers that all television licensees have an obligation to ensure that their local programming is made accessible to deaf and hearing-impaired viewers. It notes Baton's undertaking to acquire the technical facilities required to close caption local news and other locally produced programming during the first year of the new licence term. Accordingly, the Commission expects the licensees to close caption, at a minimum, headlines and appropriate scripted portions of their early evening newscasts, within the first year of the new licence term.
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At the hearing, Russwood confirmed that each of the six stations would acquire and install a telecommunications device for the deaf (TDD) during the first year of the new licence term. The Commission expects the stations to install the devices wherever is most appropriate, such as in the master control rooms, to ensure access to the stations by deaf and hearing-impaired viewers throughout the broadcast day, and to publicize the TDD's availability to its potential users.
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An intervention was received from Swift Current Telecasting Co. Ltd. (Telecasting), licensee of CJFB-TV, the privately-owned CBC affiliate in Swift Current. Telecasting requested that Baton be required to guarantee CJFB-TV's national selective advertising revenues, as it had originally committed to do for a two-year period as noted in Decision CRTC 86-642. It also requested that existing conditions of licence relating to the deletion and substitution of local commercials on CKMC-TV and the selling of local commercials in Swift Current, be reimposed in order to ensure the continued viability of CJFB-TV.
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In response, Russwood indicated that CJFB-TV currently deletes local commercials on CKMC-TV and substitutes local or national commercials sold by Telecasting. Moreover, the original commitment that "CKCK-TV undertook to not solicit advertising in the Swift Current area... remains today". With respect to the two-year guarantee by Baton of CJFB-TV's national selective advertising revenue, Russwood maintained that this requirement had been met and that, at the end of the two-year period, it had been mutually agreed that no further guarantee was necessary.
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The Commission is of the view that the guarantee by Baton was a one-time requirement that was satisfactorily met and has served its purpose. The other two conditions of licence, however, will continue to apply in order to ensure the continued viability of the local Swift Current broadcaster. Furthermore, in the Commission's view the licensee should ensure that adequate coverage is given to activities in the Swift Current area, either through CKCK-TV's news service or "The Provincial".
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Shamrock Television, licensee of the twinstick operations at Prince Albert and Yorkton, also applied for authority to solicit and broadcast local advertising in Melfort, Wynyard, Humboldt and North Battleford via separate feeds from the originating stations in Prince Albert and Yorkton. Shamrock Television has proposed no other programming changes except for some occasional special programs to be directed specifically to the Wynyard and Humboldt areas.
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The Commission's policy stipulates that a broadcaster wishing to solicit local advertising in a community must be prepared to provide a local program service in return. This policy was reaffirmed in Public Notice CRTC 1988-131 dated 5 August 1988.
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In support of the applications, Russwood argued that all of the STN stations provide "a package of programming" that is "relevant and germane" to the various local communities served by their rebroadcasters throughout the province. Moreover it stated "...our whole strategy, our whole philosophy is to link those communities together because there is a commonality that runs throughout the Province of Saskatchewan and we serve the Province of Saskatchewan. It's not like we're proposing to extend our [signal] to distant market areas and then try to reap the benefit of advertising".
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Furthermore, it argued that the historical development of many of the individual stations has relied heavily on the advertising revenues derived from these local markets. At the hearing, Shamrock Television indicated that the loss of its ability to solicit advertising in Melfort, Wynyard and Humboldt would have a "strong negative impact" on the operations of the Prince Albert and Yorkton stations. According to Shamrock Television:
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... it really is not a large significant amount of money, but to the extent that we serve those broad local coverage areas and have for so many years attracted so much revenue, not only through specifically split feeding but through solicitation of local advertising in areas that are outside of what you would call the home station. When you look at it all together it's a very, very significant part of what we do.
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In the case of North Battleford, it forecast that this impact may amount to revenues of between $35,000 and $50,000 per year.
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The Commission received ten interventions opposing the request by Shamrock Television for authority to solicit local advertising in North Battleford. Among the concerns raised, was the negative impact on that area's existing advertising media, in particular on CJNB, the locally-based radio broadcasting undertaking and the fact that there was no corresponding commitment to provide any local programming originating in North Battleford, as required by the Commission's policy. In response, Shamrock Television emphasized that it proposes to improve the service to the area by replacing the off-air source with a more reliable microwave feed. As a side benefit, this technical change would allow the transmitter to be programmed separately, thus permitting merchants in the area to purchase television advertising for the first time. It further stated that "CKBI-TV intends to attract additional advertising budgets from potential clients in the Battlefords area rather than force a shift away from local radio or print advertising budgets".
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In the case of Melfort, Wynyard and Humboldt, the Commission notes that the licensee has been producing programming of specific relevance to, and has been soliciting local advertising in, these communities for a number of years. In light of the above and the fact that the revenues so generated are necessary to sustain the current level of service, the Commission is satisfied that an exception to its policy is warranted in these circumstances and accordingly, approves the request to solicit and broadcast local advertising in Melfort, Wynyard and Humboldt.
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With respect to North Battleford, the Commission is not satisfied that the relevant circumstances which exist with respect to Shamrock Television's rebroadcasters at Melfort, Wynyard and Humboldt are duplicated in North Battleford. The Commission has considered the licensee's request to solicit local advertising in North Battleford but has determined that such solicitation would be contrary to the Commission's policy which prohibits "access to a local television advertising market unless the broadcaster provides a local program service to that market".
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Further, the Commission has taken into consideration the concerns raised by the opposing interveners and, in particular, Northwestern Radio Partnership, licensee of CJNB, with respect to the potential negative impact that solicitation of advertising by Shamrock Television's Prince Albert undertakings would have on the existing advertising market in North Battleford. Accordingly, the Commission denies the proposal to solicit advertising in North Battleford.
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In addition to those addressed earlier in this decision, the Commission wishes to acknowledge the views expressed in the other numerous interventions with respect to the renewal and amendment applications.
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Allan J. Darling
Secretary General
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APPENDIX I
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Conditions of licence for CKCK-TV and its rebroadcasting undertakings
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1. The licensee shall operate this broadcasting undertaking as part of the network operated by the CTV Television Network Ltd.
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2. The licensee shall adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
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3. The licensee shall adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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4. The licensee shall allow Swift Current Telecasting Co. Ltd., the licensee of CJFB-TV, to delete "local commercials" carried on CKMC-TV Swift Current and to substitute therefore any other commercials, including national, regional or chain operation advertisements. "Local Commercials" is to be defined as "any commercial that is a non-advertising-agency account".
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5. The licensee shall not solicit advertising in Swift Current.
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APPENDIX II
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Conditions of licence for CFQC-TV and its rebroadcasting undertakings
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1. The licensee shall operate this broadcating undertaking as part of the network operated by the CTV Television Network Ltd.
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2. The licensee shall adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
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3. The licensee shall adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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APPENDIX III
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Conditions of licence for CIPA-TV, CICC-TV and their respective rebroadcasting undertakings
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1. The licensee shall operate CIPA-TV and CICC-TV as part of the network operated by CTV Television Network Ltd.
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2. The licensee shall adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
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3. The licensee shall adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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APPENDIX IV
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Conditions of licence for CKBI-TV and CKOS-TV and their respective rebroadcasting undertakings
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1. The licensee shall operate CKBI-TV and CKOS-TV as part of the English-language network operated by the Canadian Broadcasting Corporation.
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2. The licensee shall adhere to the guidelines on sex-role portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
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3. The licensee shall adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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