ARCHIVED - Decision CRTC 2001-385

Decision CRTC 2001-385

Ottawa, 5 July 2001

Groupe TVA inc.
Across Canada
2000-2307-8, 2000-2308-6 

26 March 2001 Public Hearing
in Montréal

Licence renewals for the French-language national television network TVA and for the French-language television programming undertaking CFTM-TV Montréal

1.

The Commission renews the licences of the French-language national television network TVA and of the French-language television programming undertaking CFTM-TV Montréal, from 1 September 2001 until 31 August 2008.

2.

The licences will be subject to the conditions stipulated in this decision and in the licences to be issued. Moreover, when the authority granted today in Decision CRTC 2001-384 to transfer effective control of TVA to Quebecor Média inc. is implemented, the conditions established by the Commission with respect to that transaction, as set out in Appendices 2, 3 and 4 of this decision, will come into force as conditions of licence.

3.

The renewal applications for these licences have been examined in the context of implementing the Commission's television policy Building on success - A policy framework for Canadian television, released in 1999. According to the definition set out in the policy, Groupe TVA inc. is one of the "largest multi-station ownership groups"-in other words, one of the groups licensed to operate in several provinces with a potential reach of more than 70% of the audience in its language of operation. The distribution of its service, which has been licensed nationally since 1998, enables it to reach Francophones and Francophiles across Canada.

4.

The TV policy provides that licence renewals for the conventional television stations of a group will be examined at the same time, to enable the Commission on that occasion to discuss the licensee's comprehensive strategic plan. Groupe TVA inc. consists of the TVA French-language network, its mother station, CFTM-TV Montréal, and the regional stations CFCM-TV Québec, CHEM-TV Trois-Rivières, CFER-TV Rimouski and its transmitter CFER-TV-2 Gaspé Nord, CHLT-TV Sherbrooke and CJPM-TV Chicoutimi and its transmitter CJPM-TV-1 Chambord. Because there is a wide variance in the licence expiry dates for these stations, the Commission has not proceeded to renewal of the group, as would otherwise been the case under the policy. The Commission will start examining the renewal of all licences of the regional stations in 2003, the year in which CFCM-TV's licence term expires, in order to proceed, pursuant to the policy, to the examination of Groupe TVA as a whole in 2008.

Issues raised during the hearing

5.

At the hearing, the Commission discussed the implementation of the TV policy, particularly with respect to the following issues: priority programming during prime time; the licensee's contributions to independent production; commitments to local and regional programming, and to the reflection of the realities of Francophones outside Quebec; contributions to Canadian theatrical feature films; ethnic and cultural diversity; closed-captioning; descriptive video; and the broadcast of commercial advertising and infomercials.

Priority programming

6.

The Commission indicated in the TV policy that the largest multi-station ownership groups would be required to broadcast, on average, 8 hours per week of priority Canadian programs during the peak viewing period, that is, from 7 p.m. to 11 p.m. from Monday to Sunday. The Commission also designated new categories of priority programs: long-form documentaries, magazine programs that promote Canadian artists and regionally produced programs other than local news and sports.

7.

The licensee indicated at the hearing that the broadcast of priority programs is the core of its programming strategy and primarily involves drama and variety. This type of programming continues to be very popular with viewers. The licensee added that it would keep essentially the same orientation for its programming for the next licence term and it committed to comply with the requirements of the policy in this regard. Conditions of licence relating to the broadcast of priority programs, and to all commitments concerning priority programming offered in the benefits package associated with the transfer of effective control of TVA to Quebecor Média inc., are appended to this decision. Furthermore, considering the huge popularity of drama programs among viewers, the Commission expects the licensee, over the next licence term, to maintain the same number of hours per week that it allocated to these programs during the 2000-2001 fall/winter season.

Independent production

8.

The Commission notes that, during the current licence term, TVA has complied with the Commission's expectation regarding independent production. In its licence renewal application, TVA indicated that it intends to follow the same policy on this matter by seeing to a further consolidation of its ties with the independent production sector.

9.

During the hearing, a number of interveners indicated that the baseline for investments in independent production should be $20 million in the first year of the next licence term and should gradually increase. In its renewal application and in reply to the interventions, the licensee indicated that the 1999-2000 year during which it allocated $20 million could not be taken as a baseline. It argued that the amounts directed to independent production were greater than planned, reflecting spending on programs produced to mark the transition to the year 2000. However, it stated that it was committing to spend $16 million on independent production in the first year of its new licence term and would achieve a total of $20 million in 2007-2008.

10.

The Commission expects the licensee to honour the commitment it made at the hearing and in its renewal application to allocate a minimum of $16 million in 2001-2002 to the independent production sector (producers not affiliated with Groupe TVA inc.), with this amount increasing to a minimum of $20 million in 2007-2008. To this would be added, as applicable, any amount resulting from implementation of the benefits package proposed as part of the transfer of effective control of TVA to Quebecor Média inc.

11.

The Commission expects the licensee to gradually increase its expenditures on independent production, at a rate of increase similar to that which it has maintained in the past. For this purpose, the licensee could consider the expanded range of priority programs, identified in the TV policy, some of which are in categories for which the independent producers outside Montréal have developed some expertise.

Local and regional programming

12.

The TV policy emphasizes that the Commission will no longer require licensees to make quantitative commitments concerning local news programs, but will expect them to meet the demands and reflect the concerns of the communities they serve.

13.

The licensee explained during the hearing that its policy on local programming is [translation] "to put the accent on information." In addition to being broadcast regionally, local programming can be broadcast on the network. With respect to information programming, local news is broadcast at noon and 6 p.m., and brief local news segments are provided throughout the day. In addition, each station broadcasts a daily program that reflects the social and cultural circumstances of the community it serves. Moreover, the financial forecasts filed by TVA as part of its licence renewal process reflect an increase in news-related expenditures throughout the new licence term.

14.

Given that the licences of the regional stations of Groupe TVA inc. do not have to be renewed in the current proceeding, the discussion at the hearing was more concerned with the overall strategy adopted by the licensee concerning local and regional programming. The Commission considers the issue of local programming to be of primary importance and intends to conduct an examination of the licensee's performance in this regard during the licence renewal process for TVA's regional stations in 2003. Until then, the Commission expects TVA to continue to meet the needs of the communities served by its regional stations, not only in the area of news, but also in terms of the development and broadcast of programs in other content categories produced in the regions.

15.

The local audience of CFTM-TV Montréal, the network's flagship station, is generally well served. The Commission encourages the licensee to continue broadcasting programs such as "Coup de chapeau", which specifically reflect the community aspect of the Montréal region.

Services to Francophones outside Quebec

16.

In 1998 (Decision CRTC 98-488), the Commission approved national distribution of TVA's signal. At that time, the Commission imposed conditions of licence based on the commitments made by the licensee, in particular to:

· broadcast a minimum of six (6) special events per year reflecting the Francophone reality and experience outside Quebec;

· include, as part of the TVA network programming, a weekly 30-minute program on Francophone life outside Quebec;

· reinvest at least 43% of the excess of its revenues over expenses related to the expanded distribution of its service outside Quebec in the improvement of programming focusing on Francophones outside Quebec.

17.

For the new licence term, the Commission continues to impose these three conditions. Furthermore, it encourages the licensee to increase its efforts to reflect the realities of Francophones in a minority environment and to meet their needs for service as effectively as possible. These conditions are appended to this decision.

18.

In addition, the Commission then stated that it expected TVA to expand its news coverage to better serve the Francophone population outside Quebec. The licensee therefore proposed the creation of an advisory committee, that includes public figures representing their communities, to better meet the expectations of all Francophones in Canada.

19.

The licensee pointed out that it has had many discussions with stakeholders outside Quebec to determine the best way of involving them in programs that reflect the realities of Francophones outside Quebec. It emphasized that it is [translation] "developing effective connections and procedures for using the services of independent producers from outside Quebec."

20.

At the hearing, the groups representing Francophones outside Quebec were enthusiastic about working with TVA's advisory committee to determine what programming would best meet the needs and expectations of Francophone communities living in a minority environment. Ms. Aldéa Landry, in her capacity as Chair of this committee, referred during the hearing to the intervention by the Fédération des communautés francophones et acadienne as follows:

[translation].this brief submitted by the Fédération provides us with a sort of pathfinder for our committee's work so we can represent the interests of our communities to TVA even more effectively.

21.

The Commission notes the efforts by TVA since May 1999 to better reflect the realities of Francophones outside Quebec. To this end, it encourages TVA to continue consulting them and to provide the best possible reflection of these communities to all Francophones and Francophiles in Canada. Finally, the Commission encourages TVA to continue its consultation activities with the advisory committee, which is itself committed to cooperating more closely with the Francophone groups in order to represent the interests of the Francophone groups to TVA more effectively so as to motivate them to increase their viewing of Canada's largest, private, French-language general interest television undertaking.

Canadian feature films

22.

As the licensee pointed out during the hearing, the number of Canadian feature films it broadcasts has increased over the past three years and, in its opinion, its investment in Canadian feature films in recent years has been satisfactory. The Commission considers, however, that this investment continues to be low compared to that of the other French-language broadcasters. The licensee added that it plans to devote much more time to broadcasting Canadian feature films and that it intends to incorporate Quebec cinema in its regular programming, but without assigning it a specific niche.

23.

During the hearing, TVA agreed to commit to ensure [translation] "an increased presence of Canadian films" in its programming ".insofar as there is an increase in the number of films available."

24.

The Association des réalisateurs et réalisatrices du Québec intervened at the hearing to point out that:

[translation] as television is naturally a window for cinema, with a role in promoting it, [TVA] also has a responsibility not only to broadcast cinema, but also to do so in a context that enhances it.

25.

The Commission emphasizes the importance of the role that broadcasters play in the process of developing Canadian cinema, both by contributing financially and by airing Canadian feature films. It notes the licensee's commitment to ensure a greater presence of Canadian feature films and expects the number of Canadian feature films broadcast on the TVA network, in the original French-language version, or dubbed in French, to increase in each year of the licence term.

Advertising

26.

TVA indicated in its licence renewal application that it wishes to be exempted from application of section 11(1) of the Television Broadcasting Regulations, 1987 (the Regulations), under which a licensee may not broadcast more than 12 minutes of advertising material in any clock hour in a broadcast day. In this regard, it wishes to benefit from greater flexibility in managing its commercial inventory during peak viewing periods. The licensee indicated that it wants to increase advertising during the peak hours and reduce it the rest of the time. It proposes:

[translation] that the advertising time on each of its stations and its network be governed by a condition of licence allowing it to calculate advertising material over a broadcast week.

27.

During the hearing, TVA was more specific on this subject, indicating that it did not intend to exceed 14 minutes of interruptions for advertising, all breaks combined, in any broadcast hour. These 14 minutes would include commercial advertising, public service announcements and promotions of Canadian programs. The licensee added:

[translation] We would agree to establish flexibility for advertising in prime time for the seven-day week and to calculate the average over this same period. The commercial inventory would thus be efficiently used in the same time periods, from 6 p.m. to midnight, seven days a week.

28.

The Commission notes that the matter of advertising flexibility was recently examined in the context of the TV policy. As a result of its review of this matter, the Commission decided to maintain the 12 minute per clock hour limit on advertising.

29.

The Commission's concerns regarding this application are essentially the same. The Commission remains concerned that too many commercial messages could lead to a lessening of advertisers' interest in television as an advertising medium, and a corresponding reduction in the revenues earned by Canadian programming undertakings. It is also concerned that the quality of programming and the promotion of Canadian programs could suffer as a result. Moreover, the network could neglect to broadcast public service announcements that could affect society in general, because they bring no direct revenue. Finally, the advertising market share of the largest TV broadcasters could grow at the expense of the smaller ones. This could lead to a reduction in local services provided by the small broadcasters. These concerns were also raised by a number of interveners at the hearing and in the written interventions submitted to the Commission.

30.

In light of all of the above, and particularly the fact that the Commission has so recently visited this matter in its TV policy, the Commission denies the licensee's request. Accordingly, the licensee is required to comply with section 11 of the Regulations.

31.

Another concern raised by the Commission and by certain interveners relates to the presentation of commercial products during the broadcast of drama or other types of programs. The Société des auteurs de radio, télévision et cinéma (Sartec) and the Union des artistes are opposed to this form of advertising, which makes the viewer captive. Sartec submitted during the hearing that these insertions [translation] "threaten the integrity of creative works by identifying them with a product", adding that "practices have been introduced which mutilate the work in some way or draw the attention away and infringe upon the author's message." The Union des artistes indicated that it had successfully negotiated the removal of one such insertion during a broadcast.

32.

Over the years, advertisements in television programs have actually taken various forms: use of a specific product directly in programs, moving messages at the bottom of the screen, appearance of a logo at the bottom of the screen, etc. The Commission intends to closely monitor developments in the various forms of non-traditional advertising.

Infomercials

33.

During the hearing, the licensee indicated that infomercials represent 8% of its programming schedule. The Commission noted the increase in infomercials aired by TVA during the regulated period, particularly on weekends and in the afternoon. The Commission is concerned that this could be to the detriment of regular programs that are broadcast. It notes, among other things, that these periods were formerly devoted to the broadcast of feature films. Replying to the Commission's concerns in this regard, the licensee maintained that, despite the additional revenue source represented by infomercials, it is [translation] "clearly not our intention to expand in the area of infomercials."

34.

The Commission expects the licensee to ensure that the time allocated to infomercials remains marginal in TVA's overall programming schedule.

Other issues

Ethnic and cultural diversity

35.

The objectives of the Canadian television system in the area of ethnic and cultural diversity are clearly set out in the TV policy:

The system should be a mirror in which all Canadians can see themselves. It should be one in which producers, writers, technicians and artists from different cultural and social perspectives have the opportunity to create a variety of programming and to develop their skills.

36.

Moreover, the Commission indicated in the policy that it expected:

all conventional television licensees (at licensing or licence renewal), to make specific commitments to initiatives designed to ensure that they contribute to a system that more accurately reflects the presence of cultural and racial minorities and Aboriginal peoples in the communities they serve. Licensees are expected to ensure that the on-screen portrayal of all minority groups is accurate, fair and non-stereotypical.

37.

The Commission will issue in the near future a call for a proposal and action plan for an industry and community task force to address matters related to a better reflection of Canada's cultural diversity in broadcasting. The task force will identify best practices for broadcasters so that cultural diversity is achieved. The task force will also sponsor research that will serve as a baseline for measuring progress, and help define issues and present practical solutions. The Commission expects TVA to participate in the work of this task force.

38.

TVA confirmed at the hearing that it had not established any internal policy to ensure cultural diversity both on and off the air, but because it was aware of this reality and of the growing need to take it into account, it had adopted the following approach:

[translation] Our own approach is not to dedicate specific programs to cultural communities, but to integrate them into our general programming.

39.

To illustrate, the licensee explained that, for news and public affairs programming, it invites specialists from various cultural communities, to cover international issues in particular. Concerning the off-air aspect, TVA is of the opinion that such integration [translation] "occurs naturally to some extent," and that "the policy is to reflect the environment in which one lives as faithfully as possible."

40.

At the hearing, however, TVA indicated its interest in being part of a task force dealing with this issue, and expressed the hope that its creation [translation] "will be more coordinated within groups or associations to which we are already making a contribution."

41.

The Association des réalisateurs et réalisatrices du Québec (ARRQ) submitted that:

[translation] besides news coverage and the on-screen presence of public figures representing ethnic origins, diversity of voices should also apply to the voices behind the camera, including the voices of creators and writers who are saying other things, or saying things in another way, or exploring the medium in another way.

42.

Having reviewed the matter, the Commission wishes to ensure that special attention is paid to this issue and that the large groups of stations, by introducing specific measures, play a proactive role in achieving this cultural objective. Therefore, the Commission requires that TVA submit, within three months of the date of this decision, corporate guidelines in the form of an action plan for the new licence term.

43.

The Commission expects the licensee's corporate plan to address the presence of people from diverse backgrounds, both in programming that the licensee produces and in programming that the licensee acquires. As well, the report should address the way that cultural minority groups are portrayed in programming. More specifically, with respect to news programming, the Commission expects the licensee to identify mechanisms to assess progress in the following areas:

· the use of people from minority groups as sources regardless of whether the issue being discussed is related to a minority community;

· ensuring that stories about ethnic communities do not appear solely within the context of coverage of cultural celebrations or crime reporting;

· ensuring that on-air personalities reflect the diversity of the community served; and

· ensuring that reporters and journalists from minority communities are not assigned exclusively to covering stories of principal concern to cultural groups.

44.

The Commission further expects the corporate plan to address how the portrayal and presence of cultural minorities will be incorporated into all stages of the production and acquisition of non-news programming, including decision making about which programs will be broadcast. For instance, the plan should address how the licensee ensures that:

· those responsible for casting make a concerted effort to hire visible minority actors in leading and recurring roles;

· those persons responsible for script development ensure that minorities are not portrayed in a stereotypical manner; and

· programming from independent producers reflects the presence and accurate portrayal of visible minorities.

Community involvement

45.

The corporate plan should set out mechanisms that the licensee has put in place to ensure that it receives effective input and feedback from its communities with respect to the reflection of cultural diversity in its programming.

Hiring and training

46.

The corporate plan should set out the licensee's plans for hiring and retention of visible minorities, as well as the training that it will provide to its staff in this area.

Annual reports

47.

The Commission further expects the licensee to file annual reports on progress made to achieve the goals set out in the corporate plan with respect to the reflection of diversity.

Closed-captioning for the hearing-impaired

48.

In the TV policy, the Commission emphasized that the time has come to require more closed-captioning from French-language broadcasters, and that it would raise the issue at the time of individual licence renewals.

49.

At the hearing, the licensee reiterated its intention to close-caption 90% of its programming before expiry of the new licence term, [translation] "provided an appropriate technology has been developed by 2004 for the live captioning of French-language programs." It explained that, above the 40% level of closed-captioning, it would have to:

[translation] caption programs broadcast live or quasi-live. By quasi-live, we mean a program that is recorded shortly before being broadcast, so we are unable to perform closed-captioning with the technologies currently available for the French language.

50.

The Regroupement québécois pour le sous-titrage (RQST) submitted at the hearing that, since the first closed-captioned program in 1981, progress has been very slow. It asked that the Commission require more of the licensee, considering TVA's substantial revenues.

51.

Further to discussions during the hearing with the licensee and RQST, the Commission has decided to apply the following measures to TVA, a major player in the television sector:

· The Commission requires, by condition of licence, that CFTM-TV close-caption 100% of its newscasts by September 2004.

· The Commission requires, by condition of licence, that the TVA network and CFTM-TV gradually increase the amount of closed-captioned programming that they broadcast to 90% of all their programming by the end of the new licence term.

· The Commission expects the licensee to continue to provide quality control for closed captions.

Descriptive video

52.

It is apparent from the discussions during the hearing on descriptive video services (DVS) that the main concerns relating to implementation of such a service by Canadian broadcasters are technical or financial in nature. TVA submitted that implementation of DVS would be more feasible in a digital environment and that this transition to digital mode could begin in 2004 and be completed by 2008.

53.

In its intervention, the National Broadcast Reading Service (NBRS) argued, with the help of examples, that descriptive video programming is a reality, that it is increasingly available in Canada, and that its cost is not prohibitive, taking into account TVA's revenues.

54.

In the TV policy, the Commission recognized the importance of access to the broadcasting system for all Canadians. It has taken steps to ensure the reflection of all groups and it has also established policies and guidelines for broadcasters in order that listeners and viewers may benefit from broadcasting services adapted to their needs where technology permits.

55.

The Commission expects the large station groups to demonstrate leadership in establishing descriptive video. With regard to CFTM-TV's market, the Commission expects TVA to provide, during peak viewing hours, DVS in accordance with the following timetable:

· Years 1 and 2: 2 hours/week

· Years 3 and 4: 3 hours/week

· Year 5 and following years: 4 hours/week

56.

The Commission emphasizes that the number of hours allocated to DVS must not consist of more than 50% repeats.

Depiction of violence on television, sex-role portrayal, and advertising to children

57.

TVA indicated that it adheres fully to the principles and codes of professional conduct recognized by the industry in Canada. All programs broadcast, whether they have been produced by independent producers or by TVA, comply with the CAB's Code of Ethics, the Sex-Role Portrayal Code, the Broadcast Code for Advertising to Children, the Canadian Code of Advertising Standards, and the Voluntary Code Regarding Violence in Television Programming. The relevant conditions of licence are appended to this decision.

Diversity of voices

58.

In the context of Decision CRTC 2001-384 of today's date dealing with the transfer of effective control of TVA to Quebecor Média inc. (QMI), the Commission raised certain concerns regarding ownership, especially media cross-ownership, and its potential impact on the editorial independence of TVA , LCN and LCN Affaires as well as on the diversity of voices in Quebec.

59.

In response to the Commission's concerns, QMI filed with its transfer application a list of safeguards designed to ensure the independence and autonomy of the newsrooms of TVA, LCN and LCN Affaires, together with a code of professional conduct, and a commitment to establish a monitoring committee to examine any complaints related to its adherence to the code. At the hearing, in response to discussions with the Commission concerning these matters, QMI filed a proposed revised code of professional conduct and a set of guidelines to be followed by the monitoring committee. In Decision 2001-384, the Commission has accepted the revised code, subject to one amendment and conditional on the establishment of the monitoring committee.

60.

As noted above, once the transfer of TVA to QMI is completed, the conditions concerning that transaction, set out in Appendices 2, 3 and 4 of this decision, will come into force as conditions of licence. As indicated in Decision 2001-384, if the Canadian Broadcast Standards Council (CBSC) adopts a code of conduct concerning cross-media ownership applicable to the industry as a whole, and if the code is approved by the Commission, the Commission would be prepared to consider suspending the application of conditions of licence 2 and 3 in Appendix 2 of this decision. The CBSC code of conduct would include an appropriate monitoring mechanism to be administered by the CBSC. Any application by the licensee to suspend these conditions of licence should include confirmation that the licensee supports the CBSC code of conduct, including the monitoring mechanism, and that the licensee is a member in good standing of the CBSC.

Interventions

61.

The Commission wishes to thank all those who participated in the public process leading to this decision, either through their written interventions or through their presentations at the public hearing.

Related CRTC documents

. Decision 92-544 - Licence renewals for the TVA television network and its mother station, CFTM-TV Montréal

. Decision 95-27 - Licence amendments for television programming undertakings concerning the airing of infomercials

. Decisions 97-195, 97-443, 97-638 - Administrative renewals

. Decision 98-488 - Approval of the national distribution of the French-language television service of TVA Group Inc.

. Decision 98-508 - One-year renewal for CFTM-TV

. Decision 2000-245 - Licence amendment for CFTM-TV Montréal

. Decision 2000-266 - One-year administrative renewals

. Decision 2001-283 - Transfer of effective control of Vidéotron ltée to Quebecor Média inc.

. Decision 2001-384 - Transfer of effective control of TVA to Quebecor Média inc.

. Public Notice 1992-53 - Private French-language television

. Public Notices 1999-27 and 1999-27-1- Order respecting the distribution of the French-language television service of TVA Group Inc.

. Public Notice 1999-97 - Building on success - A policy framework for Canadian television

. Public Notice 1999-205 - Definitions for new types of priority programs; revisions to the definitions of television content categories; definitions of Canadian dramatic programs that will qualify for time credits towards priority programming requirements.

Secretary General

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca