ARCHIVED - Broadcasting Decision CRTC 2002-330

Broadcasting Decision CRTC 2002-330

Ottawa, 21 October 2002

CHUM Limited
Vancouver and Courtenay, British Columbia

Application 2001-1322-5
Public Hearing in the National Capital Region
6 May 2002

Licence renewal for CKVU-TV Vancouver and its transmitter CKVU-TV-1 Courtenay

1.

The Commission has considerede the application by CHUM Limited (CHUM) for the renewal of the licence for the television programming undertaking CKVU-TV Vancouver and its transmitter CKVU-TV-1 Courtenay.

2.

The Commission received 11 interventions with regard to this application, and all have been taken into account by the Commission in its deliberations. All of these interventions were in support of the renewal of the licence to operate CKVU-TV. Comments contained in certain of these interventions are discussed in Licence renewals for seven CHUM Limited television stations, Broadcasting Decision CRTC 2002-323, 21 October 2002 (Decision 2002-323) which introduces this and other decisions of today's date.

3.

In an intervention to this application by the Directors Guild of Canada, concern was expressed about the incremental nature of the benefits offered by CHUM at the time it acquired ownership of CKVU-TV in 2001. According to the intervener, "it is critical that this issue of incrementality be clarified." The Commission notes in this regard that, in Transfer of control of CKVU-TV Vancouver, Decision CRTC 2001-647, 15 October 2001 (Decision 2001-647), the Commission stated that it wished to ensure that CHUM's financial contributions to various tangible benefit initiatives are clearly incremental to the expenditures that would have otherwise been made by CKVU-TV without the change in ownership. Decision 2001-647 expected CHUM to meet with Commission staff to make certain the accounting methodology used to determine incrementality was acceptable and clearly understood.

4.

In a letter to CHUM dated 11 June 2002, the Commission outlined a proposed reporting format and accounting methodology for the tangible benefit expenditures, and requested CHUM's views on the matter. In its letter of reply dated 5 July 2002, CHUM generally agreed with the Commission's approach, but requested time to finalize its review. All correspondence on this matter is available on the public file. In the meantime, Commission staff will continue to work with CHUM to develop an appropriate accounting and reporting methodology.

5.

As indicated in Decision 2002-323, the Commission has decided that a short-term renewal for CKVU-TV is justified, and renews the licence for CKVU-TV from 1 December 2002 to 31 August 2004¹. The Commission notes that the latter date coincides with the expiry of the current licence issued to CHUM for CIVI-TV Victoria. At that time, the Commission will wish to be satisfied that the licensee's commitments are commensurate with the privilege CHUM holds as licensee of two television stations operating in Canada's second-largest English-language television market. The licence for CKVU-TV will be subject to the conditions of licence set out below, as well as to others contained in Decision 2002-323.

Conditions of licence

Canadian drama programs; Canadian music and dance and variety programs; Canadian long-form documentaries; Canadian regionally-produced programs in all categories other than News and information and Sports; Canadian entertainment magazine programs.

In fulfilling this condition, all of the described video programming must be Canadian, and a minimum of 50% of the required hours must be original broadcasts. Further, the licensee may broadcast up to one hour per week of described children's programming at an appropriate children's viewing time.

Other matters

6.

The Commission expects the licensee to ensure that a minimum of 75% of the described video programming required under condition of licence 6 above, is priority programming.

7.

In addition to the condition of licence set out above which requires the licensee to broadcast priority programming on CKVU-TV which is distinct from that broadcast on CIVI-TV, the Commission expects the licensee to fulfil its commitments to safeguards to ensure that the ownership of two television stations in the same market will not reduce the diversity of views and opinions available to television viewers in the market. The licensee's commitments are that:

• no more than 10% of the weekly program schedule of CKVU-TV will overlap with that of CIVI-TV;

• the management of news and of other programming on CKVU-TV and CIVI-TV will be kept separate from that of the other;

• the creation and broadcast of news and information programming on one station will be kept editorially and physically separate from that of the other;

• there will be no material duplication between the news programming of the two stations; and

• CHUM will file annual reports on its performance in applying the above safeguards.

8.

The Commission expects CHUM to adhere to its commitment that all of the programming produced through the $7.8 million benefits initiative for the pre-licensing of theatrical feature films and feature length documentaries produced in British Columbia resulting from the acquisition of CKVU-TV will be seen across the Canadian broadcast system on other CHUM stations such as CITY-TV Toronto.

9.

The Commission also expects the licensee to adhere to its commitment to spend, over the licence term, a minimum of $476,000 for script and concept development. This amount is in addition to any spending related to benefits accepted in Decision 2001-647.

10.

The Commission further expects the licensee to adhere to its commitments to broadcast on CKVU-TV a minimum of six hours each broadcast week of original local multicultural programming, to increase programming directed to visible minority youth, and to provide multicultural programming in English to second- and third-generation Canadians of various origins.

Secretary General