ARCHIVED -  Decision CRTC 98-134

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DECISION

Ottawa, 23 April 1998

DecisionCRTC 98-134

Rogers Cablesystems Limited
Rogers Cablesystems Ontario Limited
3305911 Canada Inc.
Mountain Cablevision Limited

Various locations in Ontario

Licence amendments – Denied

1. Following Public Notice CRTC 1997-114 dated 28 August 1997, the Commission denies the applications by the above-noted licensees to amend the broadcasting licences for the cable distribution undertakings listed in the appendix to this decision, by adding the authority for the distribution of WNYO-49 (IND/Warner Brothers) Buffalo, New York, on a discretionary tier.

2. Cable distribution undertakings in Canada are allowed to distribute a maximum of 4 commercial U.S. television signals - 1 each from the major U.S. networks, plus 1 non-commercial U.S. signal (referred to as the "4 + 1" policy). In addition, cable systems may also distribute any U.S. station received over the air at their local head end, unless that station broadcasts primarily religious programming, or the station began operation after 1985.

3. The restriction of the distribution in Canada of U.S. border stations that commenced operation after 1985 is intended to address concerns regarding potential financial harm to Canadian broadcasters by new U.S. television stations whose target audience includes nearby Canadian cities.

4. Applications to carry such stations as part of the basic service or on a discretionary tier of a Canadian distribution undertaking are assessed on a case-by-case basis by the Commission and approved only if the Commission is convinced that such an undertaking would not materially compete for Canadian advertising revenues.

5. In Public Notice CRTC 1997-25, the Commission set out its new policy framework for broadcasting distribution undertakings. In that notice, the Commission stated that, before entertaining any change to the current "4 + 1" policy, it would carefully assess the impact that would result from the introduction of such additional U.S. network services.

6. WNYO-TV is a post-1985 station. It was inaugurated as WNYB (FOX) in 1987, and operated from 1990 to 1996 as a religious station. In 1996, the station was relaunched as WNYO-TV, an independent station affiliated with Warner Brothers. Although the applicants state that it is the fastest-growing television network in the U.S., Warner Brothers is not generally considered to be a full-fledged "network" in the same sense as NBC, CBS, ABC and FOX.

7. The applicants stated, in support of their applications, that the signal of WNYO-TV is easily receivable over the air in the markets of the subject cable systems, but that the target audience of WNYO-TV is primarily western New York state, and would remain so.

8. Interventions in opposition to these applications were submitted, among others, by Baton Broadcasting Incorporated, licensee of CFTO-TV Toronto, CHUM Television, licensee of CITY-TV Toronto, Global Ontario, licensee of CIII-TV Paris and its transmitters across Ontario, the Canadian Association of Broadcasters as well as the Specialty and Premium Television Association.

9. According to the interveners, the major issues raised by these applications are the potential negative impact on local broadcasters and specialty services, the lack of demonstrated demand for the distribution of WNYO-TV, the low level of programming diversity that WNYO-TV would provide, the lack of need for WNYO-TV as a packaging partner for Canadian specialty services, the issues of simultaneous substitution and program rights, and the potential negative impact upon the launch of new Canadian digital specialty services.

10. The Commission has considered the views of the applicants and of the interveners, and, based upon all of the information available to it, is of the opinion that distribution of an additional non-Canadian service in these markets could have a negative financial impact upon local broadcasters. The Commission is also satisfied that denial of these applications is consistent with its policy on the carriage of stations that began operation after 1985. The Commission is not convinced that the minimal level of programming diversity that WNYO-TV could add to the affected markets is sufficient to warrant an exception to this important policy.

11. The Commission acknowledges and has considered the interventions of support submitted with respect to these applications.

Laura M. Talbot-Allan
Secretary General

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Appendix to Decision CRTC 98-134

Rogers Cablesystems Limited
Part of Toronto (Mississauga-Peel), Ontario – 199704713

Part of Toronto (York), Ontario
– 199704721

Part of Toronto (Downsview), Ontario
– 199704739

Oshawa, Pine Ridge, Bowmanville, Whitby and Hampton, Ontario – 199704763

Newmarket, Bradford, Holland Landing, etc., Ontario – 199704771

Kitchener, Stratford, Brantford, Paris and St. Mary’s, Ontario – 199704789

Rogers Cablesystems Ontario Limited
Part of Toronto (Etobicoke/Mississauga), Ontario – 199704747
Ajax, Ontario – 199704755

3305911 Canada Inc.
Burlington, Ontario – 199706280

Niagara Falls, Welland, Port Colborne, and Fonthill, Ontario – 199706462

Part of Hamilton and Stoney Creek, Ontario – 199706470

St. Catharines, Fort Erie and Niagara on the Lake, Ontario – 199706488

Mountain Cablevision Limited
Parts of Hamilton and surrounding area, Ontario – 199707981

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