ARCHIVED - Broadcasting Decision CRTC 2003-170

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Broadcasting Decision CRTC 2003-170

  Ottawa, 3 June 2003
  Newfoundland Broadcasting Company Limited
St. John's, Argentia, Norris Arm, Stephenville, Marystown,
Bonavista, Corner Brook, Red Rocks, Clarenville, Bay Bulls,
Deer Lake, Glenwood, Grand Bank, Lawn, St. Alban's,
Swift Current, Newfoundland and Labrador
  Application 2001-1429-9
Public Hearing at St. John's, Newfoundland and Labrador
10 December 2002
 

CJON-TV and its transmitters - Licence renewal

  In this decision, the Commission renews the licence for CJON-TV St. John's and its transmitters from 1 September 2003 to 31 August 2010. The decision also addresses the methodology for measuring the level of Canadian programming broadcast on CJON-TV during the broadcast day and the evening broadcast period.
 

Introduction

1.

At the 10 December 2002 public hearing, the Commission considered an application by Newfoundland Broadcasting Company Limited (NBCL) to renew the licence of television station CJON-TV St. John's and its transmitters CJOM-TV Argentia, CJCN-TV Norris Arm, CJSV-TV Stephenville, CJMA-TV Marystown, CJWB-TV Bonavista, CJWN-TV Corner Brook, CJRR-TV Red Rocks, CJCV-TV Clarenville, CJON-TV-4 Bay Bulls, CJLW-TV Deer Lake, CJSG-TV Glenwood, CJOX-TV-1 Grand Bank, CJLN-TV Lawn, CJST-TV St. Alban's and CJSC-TV Swift Current.

2.

As part of its application, NBCL proposed to amend CJON-TV's licence by deleting the condition requiring CJON-TV to operate as part of the network operated by CTV Television Inc. (CTV).

3.

In Broadcasting Notice of Public Hearing CRTC 2002-11, 4 October 2002, the Commission indicated that it intended to discuss with NBCL alternative methods of calculating Canadian content during the upcoming term of licence.
 

Interventions

4.

In addition to letters of support filed with the application, the Commission received five interventions in support of the renewal of CJON-TV's licence. Codlessco Ltd., an independent producer, commended NBCL's support of the film industry in Newfoundland and Labrador.

5.

The Janeway Children's Hospital Foundation, The Newfoundland and Labrador Chapter of Sunshine Dreams for Kids, The Salvation Army, and St. John's Clean and Beautiful commended the support given by the licensee to their activities, as well as the activities of other not-for-profit organizations.

6.

CTV submitted an intervention relating to NBCL's disaffiliation from the CTV Network. The CTV intervention is discussed later in this decision.
 

Issues and concerns

 

Disaffiliation from the CTV Network

7.

In Licence to carry on a new television network, Decision CRTC 2001-506, 21 August 2001, the Commission approved an application by CTV for a licence to carry on an English-language television programming network (the CTV network) to provide programming to CJON-TV St. John's and its transmitters. As part of its licence renewal application, NBCL applied to delete the condition of licence that requires CJON-TV to operate as part of the CTV network. NBCL indicated that it had been unable to reach an agreement with CTV that would enable CJON-TV to carry the full CTV network service. However, NBCL stated that it had concluded a news supply arrangement with CTV that will run until August 2004. Under this arrangement, CTV will supply Canada AM, The CTV National News as well as news specials programming to CJON-TV. CTV will not charge licence fees for this programming, and NBCL will retain all commercial inventory within the programs. For its part, CTV will receive access to CJON-TV's news programming. CTV will also be permitted to use the facilities of CJON-TV to produce news programming. CTV submitted an intervention confirming that the news supply arrangement was in place.

8.

NBCL stated that, during the upcoming licence term, the majority of its non-news programming will come from Global Television Network Inc. (Global). The applicant indicated that it had concluded a contract with Global for the provision of Global programming that had four years left to run.

9.

The Commission is satisfied that NBCL's agreements with CTV and Global will allow CJON-TV to continue to offer attractive programming to its viewers. It therefore approves the deletion of the condition of licence that requires CJON-TV to operate as part of the CTV Network. The Commission expects CTV to surrender its network licence to the Commission for revocation.

10.

The Commission notes that the news supply arrangement between NBCL and CTV will expire in August 2004. The Commission considers it important that residents of Newfoundland continue to receive a national newscast that is an alternative to the national newscast supplied by the CBC. The Commission therefore requires NBCL to report to the Commission, no later than 1 June 2004, on arrangements that will be made to ensure that CJON-TV continues to broadcast a national newscast after the current news supply arrangement with CTV expires.
 

Calculation of Canadian content

  Background

11.

Under the Television Broadcasting Regulations, 1987 (the Regulations), private television stations must ensure that at least 60% of the broadcast day and at least 50% of the evening broadcast period are devoted to Canadian programs. The Regulations define a "broadcast day" as "the period of up to 18 consecutive hours, beginning each day not earlier than six o'clock in the morning and ending not later than one o'clock in the morning of the following day, as selected by the licensee." The "evening broadcast period" is "the total time devoted to broadcasting between six o'clock in the afternoon and midnight during each broadcast year."

12.

Section 4(11) of the Regulations, however, sets out a provision by which the Commission may vary the requirements with respect to the broadcast of Canadian programs. Section 4(11) states:
 

Where, in the calculation of the time devoted by a licensee to Canadian programs that are broadcast during a broadcast day, inequities arise among licensees because their stations are located in different time zones, the Commission may vary the application of this section in order that licensees receive equitable treatment in the calculation of their Canadian programs.

13.

Since the 1970's, the Commission has, in its regulation of CJON-TV, applied a unique formula (the CJON-TV formula) for calculating the level of Canadian programs broadcast by CJON-TV. The CJON-TV formula was adopted in recognition of the difficulties encountered by the station as a result of operating in the Newfoundland time zone. The Newfoundland time zone is a half-hour ahead of the Atlantic time zone and 1.5 hours ahead of the Eastern time zone. The Eastern time zone is the time zone in which CJON-TV's major non-Canadian competitors - the American networks delivered by cable and satellite - operate. These networks provide the programming from which NBCL obtains the benefits of simultaneous substitution. The CJON-TV formula was also adopted in recognition of the difficult economic situation that Newfoundland was facing and the competition for local ratings and advertising that CJON-TV faced from the CBC.

14.

The official broadcast day for CJON-TV is designated as the 18-hour period from 6 a.m. to midnight, and the evening broadcast period is the six-hour period from 6 p.m. to midnight. To comply with the Regulations, CJON-TV must broadcast at least 10 hours and 48 minutes of Canadian programming during an average broadcast day, and at least 3 hours of Canadian programs during an average evening broadcast period. However, under the CJON-TV formula, the licensee has been permitted to include in the total amount of Canadian programs broadcast, both during the broadcast day and the evening broadcast period, the Canadian programs that CJON-TV broadcasts after midnight, up to and including the last program delivered by the CTV Network, plus the late local news broadcast immediately afterward. In order to accommodate these additional Canadian programs in its calculations of the percentages of Canadian programs broadcast by CJON-TV, the Commission has eliminated from its calculations an amount of non-Canadian programming broadcast before midnight that is equal to the amount of qualifying Canadian programming broadcast after midnight.

15.

While the CJON-TV formula recognizes the unique situation of CJON-TV, counting Canadian programs broadcast after midnight has had the effect of reducing the amount of Canadian programming broadcast between 6 a.m. and midnight and between 6 p.m. and midnight. As part of this proceeding, the Commission reviewed with the licensee whether the CJON-TV formula for measuring the level of Canadian programming should be continued or amended.
  The applicant's position

16.

NBCL noted that, due to its recent decision to broadcast the CTV news between 11:30 p.m. and midnight, CJON-TV's late local newscast, which has been extended to an hour, now ends at 1 a.m. rather than at 1:30 a.m. It therefore noted that the CJON-TV formula would apply to a maximum of one hour per day of Canadian programming broadcast after midnight, rather than one hour and thirty minutes per day, as has previously been the case. NBCL submitted that it was critical that both CJON-TV's early evening newscast, which begins at 6 p.m., and its late newscast, which now ends at 1 a.m., continue to be counted in determining compliance with Canadian content requirements for both the broadcast day and the evening broadcast period. NBCL further submitted that it must be free to maximize simulcast opportunities for attractive popular American entertainment programming broadcast during the evening. It noted that, due to time zone differences, such programming appears later in Newfoundland than in the Eastern time zone. By way of illustration, NBCL stated:
 

This means, for example, that an episode of a U.S. show like Survivor, which airs at 8:00 Eastern time, is distributed by satellite and cable operators in Newfoundland at 9:30. In order to take advantage of simulcasting opportunities, CJON would have to broadcast that show at 9:30 as well.

17.

NBCL submitted that, given the time zone differences, "it is clear that the most advantageous and lucrative time to simulcast CJON programming over U.S. network shows is 9:30 p.m. to 12:30 a.m. in Newfoundland." The applicant noted that the CTV news is a half-hour long and CJON-TV's late local newscast runs for an hour. NBCL submitted that, if it were obliged to begin its late news programming at 10:30 p.m. in order for both the CTV news and the CJON-TV late news to count as Canadian programming, CJON-TV would lose two-thirds of its most lucrative simulcast opportunities. NBCL submitted: "The impact of this on our audience share and our revenues would be significant and could ultimately threaten our very existence."

18.

NBCL further considered that its disaffiliation from CTV and the changes to its program schedule that have resulted in the replacement of many CTV programs with programs acquired from Global have placed it in a position of uncertainty. NBCL therefore did not consider that it was in a position to assume additional costs that might be associated with any changes that would result in CJON-TV having to broadcast more Canadian programming prior to midnight, which would replace attractive non-Canadian programs.

19.

In light of the above, NBCL requested that the Commission continue to apply a formula pursuant to section 4(11) of the Regulations so that Canadian programming broadcast after midnight would continue to be counted when measuring CJON-TV's compliance with the Regulations.

20.

Both before and during the hearing, the Commission put forward possible alternative methods for calculating Canadian content, and requested the licensee's comments. The first alternative was to extend the evening broadcast period so that it ran from 6 p.m. until 1 a.m. instead of from 6 p.m until midnight. Under this proposal, CJON-TV would have to achieve a 50% level of Canadian programming during a seven-hour evening broadcast period. This would require CJON-TV to broadcast an average of 3.5 rather than 3 hours of Canadian programming per day during the evening broadcast period in order to meet the 50% requirement.

21.

NBCL submitted that, under this method of calculation, CJON-TV would be required to air a half-hour more Canadian programming per day than other Canadian stations. NBCL considered that this would be unfair, would impact dramatically on the company's bottom line, and would "not be feasible."

22.

The second alternative involved extending the evening broadcast period so that it would run from 6 p.m. to 12:30 a.m. instead of from 6 p.m. to midnight. Under the Commission's proposal, CJON-TV would have to achieve a 50% level of Canadian programming during a 6.5-hour evening broadcast period. CJON-TV did not favour this proposal, stating ".if everyone else has to do three hours, we would absolutely resist any suggestion that we should, the smallest affiliate in the whole country, or smallest station, have to produce more Canadian."

23.

Finally, the possibility of establishing an 18-hour broadcast day that would run from 7 a.m. to 1 a.m. was discussed. This would entail the termination of the arrangement whereby Canadian programming aired outside the 18-hour broadcast day counts toward fulfilment of the requirement that at least 60% of the programs aired during the broadcast day must be Canadian. NBCL noted that, under this method, a newscast currently broadcast between 6 a.m. and 7 a.m. would not count in determining CJON-TV's compliance with the Regulations.

24.

The Commission discussed the financial implications of the various scenarios outlined above with the applicant at the hearing, and NBCL submitted information following the hearing concerning the financial impact of changes to the methodology for measuring the amount of Canadian programming broadcast by CJON-TV.
  The Commission's analysis

25.

Building on success - A policy framework for Canadian Television, Public Notice CRTC 1999-97, 11 June 1999 (the Television Policy) emphasized the exhibition of Canadian programming in peak viewing time. The preface to the Television Policy states: "Given that Canadians want Canadian programs, quality programs must be available when large numbers of Canadians are watching."

26.

While the CJON-TV formula recognizes the unique situation of CJON-TV, counting Canadian programs broadcast after midnight has had the effect of reducing the amount of Canadian programming broadcast between 6 a.m. and midnight as well as between 6 p.m. and midnight. Under the CJON-TV formula, which allows for the counting of certain Canadian programs broadcast after midnight, it has been possible for CJON-TV to achieve compliance with the terms of the Regulations by broadcasting a 54% level of Canadian programming between 6 a.m. and midnight, and a 33% level of Canadian programming between 6 p.m. and midnight.

27.

NBCL argued at the hearing that recognition of Canadian programming broadcast after midnight by CJON-TV is necessary to correct a time zone inequity that is unique to CJON-TV. NBCL noted that, without the CJON-TV formula, the local one-hour newscast that follows the CTV news would fall outside the broadcast day and the evening broadcast period. This situation does not occur for stations operating outside the Newfoundland time zone, because other stations receive and broadcast the CTV News at 11 p.m. followed by a local newscast that airs entirely before midnight. The Commission notes that another inequity would exist if a formula were adopted whereby the 6 p.m. local newscast were omitted from the calculations of the level of Canadian programming broadcast during the evening broadcast period. Typically, stations have a supper hour newscast that is included in the standard 6 p.m. to midnight calculation.

28.

The Commission further notes that NBCL has made a programming change that decreases the amount of Canadian programming broadcast after midnight that needs to be counted in determining CJON-TV's compliance with Canadian content requirements for the broadcast day and for the evening broadcast period. In the past, CJON-TV has broadcast the CTV news at 12:30 a.m. This newscast was followed by a local newscast. Thus, under the CJON-TV formula, Canadian programming broadcast as late as 1:30 a.m. has been counted in determining CJON-TV's compliance with the provisions of the Regulations related to the broadcast of Canadian programming. CJON-TV now broadcasts the CTV news at 11:30 p.m., followed by a one-hour local newscast. As a result, NBCL indicated that it is now only necessary to count Canadian programs broadcast up until 1 a.m.

29.

The Commission also notes that viewing patterns in Newfoundland are different from those in other parts of Canada. As discussed with the applicant at the hearing, according to Bureau of Broadcast Measurement (BBM) data for Fall 2001 and Fall 2002, viewing levels in Newfoundland between 6 and 9:30 a.m. are lower than in the rest of Canada. The effect of the later availability of American network programming, which begins for most Canadians at 8 p.m., but becomes available in Newfoundland beginning at 9:30 p.m., is also apparent. Beginning at 10:30 p.m., Newfoundlanders watch television at the same levels as other Canadians watch about 30-45 minutes earlier in the evening, local times. This lag continues for the rest of the evening and into the period between midnight and 1 a.m. The Commission considers that an 18-hour broadcast day that begins at 7 a.m. and an evening broadcast period that ends at 1 a.m. would reflect more closely the viewing habits of Newfoundlanders.

30.

The Commission notes the applicant's concern that recent programming changes it has made have placed it in an uncertain financial situation and would make it difficult to displace even a modest amount of foreign programming from its schedule and replace it with Canadian programming. In this regard, the Commission notes that CJON-TV has realized growth in advertising revenues since 1999 that has exceeded the average of other Canadian private conventional television stations by a very wide margin. This growth has been particularly dramatic when compared with that of other Atlantic regional television stations, which have experienced stagnation in total revenues over the past two years.

31.

The Commission further notes that CJON-TV's strategy of marketing itself as "Canada's Superchannel" reflects its success in attracting viewers outside of Newfoundland even though, according to the NBCL, this out-of-market tuning has not yet resulted in any increased revenues. Because of the time zone difference that exists between Newfoundland and other parts of Canada, those viewing CJON-TV in other parts of Canada on distribution systems that import the station as a distant signal are able to view attractive programs at earlier times than they are shown on local stations. As a result, peak hour viewing to CJON-TV outside of Newfoundland increased by 90% between Fall 2001 and Fall 2002. Currently, 37% of all viewing to CJON-TV occurs outside of Newfoundland. The Commission considers that this increased viewing has a strong potential to translate into additional national advertising revenues for CJON-TV during the upcoming licence term.

32.

The Commission further considers that NBCL's program supply agreement with Global will ensure the availability of attractive programming for broadcast on CJON-TV. It notes that, according to the Fall 2002 BBM report, the CTV news is achieving the audience levels projected by NBCL when it moved the broadcast time to 11:30 p.m.

33.

The Commission further notes that, during the last licence term, competition from CBNT, the local CBC television station, has decreased. This is because of cutbacks by the CBC which have led to a reduction in the amount of regional programming broadcast by CBNT to only 2.5 hours per week. The CBC's effect on the local advertising market has decreased significantly as a result. As well, the provincial economy is stronger than when the CJON-TV formula was first adopted, and the outlook for the future appears positive.

34.

In light of the factors discussed above, its examination of CJON-TV's annual financial returns, including the salary levels paid to employees, as well as the figures filed by NBCL following the hearing on the impact of changes to the system of measuring the level of Canadian programming broadcast by CJON-TV, the Commission considers that CJON-TV is currently in a secure financial position. The Commission further determines that CJON-TV is capable of supporting the modest increase in the amount of Canadian programming that would be entailed by the establishment of an 18-hour broadcast day that begins at 7 a.m. each day, and by the establishment of a 7-hour evening broadcast period that begins each evening at 6 p.m.

35.

The Commission notes that, under such an approach, CJON-TV will, based on the its current program schedule, be required to broadcast, on average, an extra half-hour of Canadian programming per day during the evening broadcast period, thus increasing the amount of Canadian programming available to viewers during times of peak viewing, in accordance with the objectives of the Television Policy. This approach will, however, not impair CJON-TV's ability to simulcast American network programs between 9:30 p.m. and 11:30 p.m. and will further allow both CJON-TV's supper hour and late local newscasts to qualify as Canadian programming broadcast during the evening broadcast period, thereby addressing major inequities identified by NBCL. This approach will also lead to the introduction of a half-hour more Canadian programming outside of the evening broadcast period, based on CJON-TV's current program schedule.

36.

The Commission further notes that this approach takes into account the unique viewing patterns of Newfoundlanders. It will also deregulate, for purposes of determining the amount of Canadian programming broadcast, the time period between 6 a.m. and 7 a.m., which is a period of very low tuning by viewers in Newfoundland as compared to the size of the viewing audience in other parts of Canada. On the other hand, Canadian programming broadcast between 12 a.m. and 1 a.m., a time period where viewing is higher in Newfoundland than in other parts of Canada, will be taken into consideration in determining CJON-TV's compliance with the Regulations.

37.

The Commission considers that it would be appropriate to implement its revised approach during the second year of CJON-TV's new licence term in order to allow NBCL adequate time to make the necessary adjustments to its program schedule.

38.

In light of the above, the Commission is imposing conditions of licence on CJON-TV, effective 1 September 2004, that specify the following:
 
  • the broadcast day will extend from 7 a.m. to 1 a.m. CJON-TV will be required to devote 60% of the broadcast day to Canadian programs, as provided under the Regulations.
 
  • the evening broadcast period will extend from 6 p.m. to 1 a.m. CJON-TV will be required to devote at least 50% of the evening broadcast period to Canadian programs, as provided under the Regulations.

39.

The Commission will continue to apply the existing CJON-TV formula until the end of the broadcast year that concludes 31 August 2004.
 

Service to the hearing impaired

  The applicant's performance and proposed commitments

40.

In Licence renewal for CJON-TV, Decision CRTC 95-478, 24 July 1995, the Commission stated:
 

.the Commission expects the licensee to caption, by the end of the new licence term, all local news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

 

The Commission also expects the licensee to close caption, by the end of the licence term, at least 90% of all programming during the broadcast day.

41.

NBCL stated, at the hearing, that it was not currently captioning all local news programming broadcast by CJON-TV. The applicant indicated that it was now captioning CJON-TV's weekday evening newscast and the Sunday evening newscast - a total of six hours per week. NBCL stated, however, that it planned to expand its local news captioning, adding captions to the weekday noon newscast in September 2004, which would add an additional 2.5 hours per week of captioning. Finally, captions would be added to the late night newscast in September 2005. At that point, CJON-TV would be captioning all 14 hours and 50 minutes of original local news programming broadcast each week.

42.

In support of its position, NBCL submitted that its proposed commitment to captioning was greater than that of CBNT, which has only 2.5 hours of local news to caption each week. By contrast, CJON-TV stated that it broadcasts 20 hours of local news per week, including repeats, which significantly increases the cost of captioning.
  The Commission's analysis

43.

The Commission's policy on captioning was set out in Introduction to decisions renewing the licences of privately-owned English-language television stations, Public Notice CRTC 1995-48, 24 March 1995 and was reiterated in the Television Policy. The captioning policy, which became effective on 1 September 1998, states that television stations earning more than $10 million in annual advertising revenues and network payments will be required, by condition of licence, to caption all local news, including live segments. All such licensees will also be required, by condition of licence, to close caption at least 90% of all programming during the broadcast day by the end of their licence terms. Under the captioning policy, stations with revenues between $5 million and $10 million annually are expected to meet the levels set out above, but conditions of licence are not imposed.

44.

The Commission notes that CJON-TV's annual advertising revenues and network payments now exceed $10 million per year. Therefore, if the captioning policy were strictly applied, the Commission would impose a condition of licence requiring  CJON-TV, during the upcoming licence term, to caption all local live newscasts, including newsbreaks during the upcoming licence term. This would amount to 14 hours and 50 minutes of captioning per week.

45.

The Commission notes, however, that CJON-TV has significantly exceeded its commitments with respect to the broadcast of local news over the past licence term. Although its commitment was to broadcast 7 hours of original local news programming each broadcast week, it now broadcasts almost 15 hours per week of such programming. In light of CJON-TV's performance, the Commission considers that it is appropriate to phase in increases to the amount of local news programming that will be captioned, as NBCL proposed. Since the amount of local news captioned also affects the level of all programming that is captioned, the Commission considers it appropriate to make the condition of licence requiring that NBCL caption at least 90% of all programming broadcast by CJON-TV effective beginning in the second year of the new licence term.

46.

The Commission is therefore imposing a condition of licence that requires CJON-TV to caption a minimum of 8.5 hours of original local news each broadcast week beginning 1 September 2004, and to caption all original local news beginning in September 2005. CJON-TV is further required, by condition of licence, to caption at least 90% of all programming beginning 1 September 2004. These conditions are set out in the appendix to this decision.
 

Priority programming

47.

In its written application, NBCL proposed to broadcast 2.5 hours per week of priority programming between 7 p.m. and 11 p.m. At the hearing, however, the applicant stated that it would be willing to increase in stages the amount of priority programming broadcast, so that it reaches 5 hours per week by the end of the licence term.

48.

The Television Policy states that the largest multi-station ownership groups will be required to broadcast, over the broadcast year, on average at least 8 hours per week of priority Canadian programs during the 7 p.m. to 11 p.m. viewing period. The Television Policy does not, however, set out the amount of priority programming that is required of commercial broadcasters such as NBCL, but states that the Commission will review the contributions that such licensees may make to the achievement of the goals of the Television Policy at the time of their licence renewals.

49.

The Commission considers that NBCL's proposed approach is appropriate given that CJON-TV is an independent television station. Given that CJON-TV operates in the Newfoundland time zone and broadcasts the CTV news at 11:30 p.m. rather than at 11 p.m. as do other CTV stations, the Commission considers it appropriate for CJON-TV to broadcast priority programs between 7 p.m. and 11:30 p.m.

50.

The Commission therefore expects the licensee to broadcast, at a minimum, the following average levels of Canadian programs in the priority program categories between 7 p.m. and 11:30 p.m., from Monday to Sunday, each week:
 
  • 2.5 hours in the broadcast year beginning 1 September 2003
  • 3.5 hours in the broadcast year beginning 1 September 2004
  • 4.5 hours in the broadcast year beginning 1 September 2005
  • 5 hours in the broadcast year beginning 1 September 2006, and in the remaining broadcast years of the licence term

51.

As defined in 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, Public Notice CRTC 1999-205, 23 December 1999 (Public Notice 1999-205), as may be amended from time to time, the priority program categories are:
 

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.

52.

For the purposes of the above-noted expectation, the licensee may claim the dramatic programming credit amount announced and set out in Public Notice 1999-205. The licensee may no longer use the dramatic programming credit that is applied to Canadian content requirements.
 

Local programming

53.

During the upcoming licence term, NBCL proposed to broadcast 14 hours and 50 minutes of original local news each week, during the broadcast day. The applicant stated that its news programming would be supplemented with other locally produced programs such as The Fishery Now. NBCL indicated that it intends to continue to work with the local arts community to license local independent productions.

54.

The Television Policy states that, at the time of licence renewal, all licensees will be required to demonstrate how they will meet the demands and reflect the particular concerns of their local audiences, whether through local news or other local programming.

55.

The Commission notes that the licensee exceeded its commitments with respect to the broadcast of local news during the current licence term and plans to continue to emphasize the broadcast of local news during the upcoming term. The Commission further notes the success of The Fishery Now, which is co-produced with a local independent producer. It encourages NBCL to continue to broadcast programs produced by local independent producers.

56.

The Commission considers that NBCL's local programming will meet the demands and reflect the concerns of CJON-TV's local audiences, as called for by the Television Policy.
 

Employment equity

57.

Because this licensee is subject to the Employment Equity Act and files reports with Human Resources Development Canada, its employment equity practices are not examined by the Commission.
 

Service to the visually impaired

58.

"Audio description" and "described video" are methods of improving the service that television broadcasters provide to persons who are visually impaired.

59.

Audio description involves the provision of basic voice-overs of textual or graphic information displayed on the screen. For example, a broadcaster providing audio description will not simply display sports scores on the screen, but will also read them aloud to ensure that those who have a visual impairment receive the information. NBCL stated that its on-air announcers provide audio description for weather conditions and maps that are shown on-screen. Audio description is also provided for promotional announcements for upcoming programs. The licensee further stated that CJON-TV's on-air staff is informed about the needs of visually impaired viewers. In accordance with the Television Policy, the Commission expects NBCL to continue to provide audio description where appropriate. It further expects the licensee to take the necessary steps to ensure that the service provided by CJON-TV responds to the needs of visually impaired audiences.

60.

"Described video," or "video description," as it is also known, consists of narrative descriptions of a program's key visual elements that enable persons who are visually impaired to conceptualize what is occurring on the screen. Described video particularly lends itself to drama programming, although long-form documentaries and children's programs also lend themselves to described video. Described video can be provided on the Secondary Audio Programming (SAP) channel. Not all broadcasters are currently equipped to deliver SAP signals. Thus, the introduction of described video via the SAP channel requires significant capital expenditures to upgrade a licensee's transmission facilities.

61.

With respect to described video, NBCL stated that the studio and transmitters of CJON-TV are not equipped to deliver a SAP channel and that the capital investment required to allow delivery of a SAP channel would amount to millions of dollars. NBCL therefore did not make a commitment to provide described video during the upcoming licence term.

62.

The Commission notes that CJON-TV is a stand-alone television station that operates an extensive network of transmitters to make its signal available across Newfoundland. It further notes the applicant's statement that making a SAP channel available across this distribution network would be very expensive. The Television Policy states that the Commission considers that it is premature to impose specific requirements on all licensees with respect to described video at this time. In light of the Television Policy and the particular circumstances of CJON-TV, the Commission does not consider it appropriate to impose requirements or set expectations with respect to described video for CJON-TV for the upcoming licence term. The Commission will review this matter again at the time of CJON-TV's next licence renewal.
 

Cultural diversity

63.

NBCL stated that it would reflect cultural diversity primarily through its news coverage. It noted that it had engaged two stringers in Labrador to report on Innu-related issues. NBCL further indicated that it would attempt to obtain programming that is reflective of Canada's multi-racial and multicultural nature.

64.

The Commission's Television Policy states:
 

The Commission will expect 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.

65.

The Commission considers that the initiatives outlined by NBCL are reasonable for a stand-alone television station and encourages it to continue its efforts in this regard.
 

Conclusion

66.

The Commission notes that, over the past licence term, CJON-TV has operated in compliance with the Regulations as well as with the conditions of its licence. The Commission further notes that CJON-TV significantly exceeded its commitments with respect to the broadcast of local news. Although its commitment was to broadcast 7 hours of original news programming during each broadcast week, it now broadcasts almost 15 hours of such programming. The Commission commends CJON-TV for providing a strong local news and information service for its viewers.

67.

Based on CJON-TV's performance, its examination of the application, and taking into consideration the views of interveners, the Commission is satisfied that a full-term renewal of the licence for CJON-TV is appropriate. Accordingly, the Commission renews the licence for CJON-TV and its transmitters noted above from 1 September 2003 until 31 August 2010. The licence will be subject to the conditions set out in the appendix to this decision, as well as to those contained in the licence to be issued.
  Secretary General
  This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: http://www.crtc.gc.ca 
 

Appendix to Broadcasting Decision CRTC 2003-170

 

Conditions of licence

  1. Effective 1 September 2004, for purposes of interpretation of the requirements of the Television Broadcasting Regulations, 1987, the term "broadcast day" means a period of 18 consecutive hours, beginning each day at seven o'clock in the morning.
  2. Effective 1 September 2004, for purposes of interpretation of the requirements of section 4 of the Television Broadcasting Regulations, 1987, the term "evening broadcast period " means the total time devoted to broadcasting between six o'clock in the afternoon and 1 o'clock in the morning.
  3. The licensee shall caption a minimum of 8.5 hours of original local news each broadcast week beginning 1 September 2004 and all local news beginning 1 September 2005. In addition, the licensee shall caption at least 90% of all programming beginning 1 September 2004.
  4. The licensee shall adhere to the guidelines on gender 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. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.
  5. 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.
  6. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary code regarding violence in television programming, as amended from time to time and approved by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.

Date Modified: 2003-06-03

Date modified: