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Decision
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Ottawa, 20 July 1984
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Decision CRTC 84-603
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CFPL Broadcasting Limited
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London Ontario - 840163000
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At a Public Hearing in Hull, Quebec on 5 June 1984, the Commission considered the application by CFPL Broadcasting Limited (CFPL) to renew the broadcasting licence for the CBC-affiliated station, CFPL-TV London, expiring 30 September 1984.
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In its deliberations, the Commission examined the issue of whether the licence for CFPL-TV could be renewed in the light of the Direction to the CRTC on Issue and Renewal of Broadcasting Licences to Daily Newspaper Proprietors (the Direction) dated 29 July 1982. The Direction was issued pursuant to section 22 of the Broadcasting Act which empowers the Governor in Council to identify classes of applicants to whom broadcasting licences may not be issued or to whom amendments or renewals of such licences may not be granted.
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The Direction stipulates in sections 3 and 4 that the Commission may not issue or renew broadcasting licences to applicants who, in the opinion of the Commission, are effectively owned and controlled, directly or indirectly, by the proprietor of a daily newspaper, where the major circulation area of the daily newspaper substantially encompasses the major market area served or to be served by the broadcasting undertaking. Notwithstanding the above, section 5 of the Direction allows the Commission to grant a licence or renewal thereof, on an exceptional basis, where it is satisfied that refusal to do so "would be contrary to overriding public interest considerations taking into consideration all relevant factors including consequences that would adversely affect service to the public or create exceptional or unreasonable hardship to the applicant and the level of existing competition in the area served or to be served under the broadcasting licence..."
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CFPL-TV was first licensed in 1953. It is owned by London Free Press Holdings Limited (LFP). LFP also owns 100% of London Free Press Printing Company Limited which is the publisher of the "London Free Press", a daily newspaper published in London.
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At public hearings held in the spring of 1983 and 1984, the Commission examined the issue of whether the licences for CFPL's AM and FM undertakings in London could be renewed in the light of the Direction. In Decisions CRTC 83-676 and CRTC 84-443, the Commission determined that the applicant fell within the proscribed class of applicants described in section 4 of the Direction. However, in accordance with section 5 of the Direction, these licences were renewed on the grounds that failure to renew would be contrary to overriding public interest considerations.
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Again, in the present instance, it is the Commission's opinion that CFPL falls within the proscribed class of applicants described in section 4 of the Direction.
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The arguments put forward by the licensee at this hearing for the renewal of the licence for CFPL-TV London were largely the same as those set out in the earlier decisions, namely that failure on the part of the Commission to renew the licence would be contrary to the overriding public interest considerations contemplated under section 5 of the Direction.
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The licensee stressed that, in view of the high degree of diversity and competition and the variety of news sources that are available in the London area, and in the absence of any evidence that failure to renew the broadcasting licence issued to CFPL-TV would lead to any significant increase in independent, competitive and diverse sources of news and viewpoints in London, the licence should be renewed.
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CFPL also expressed concern regarding the impact that non-renewal would have on the operation of CKNX-TV Wingham, a CBC-affiliated station and the only source of local off-air television service in the Wingham area. CKNX-TV is licenced to CKNX Broadcasting Limited which is a company controlled by LFP. The applicant stated that if the CFPL-TV licence were not renewed, CKNX-TV would be obliged to cease operations since its principal source of revenue depends on a joint marketing relationship with CFPL-TV.
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The licensee further stressed the high quality and uniqueness of the local and regional programming service provided by CFPL-TV, in addition to the CBC network regional and national programming it broadcasts as an affiliate of the CBC. It stated that a refusal by the Commission to renew the CFPL-TV licence would create "an enormous void in the immediate area served by CFPL television", and "very substantial problems in terms of the provision of local information, viewpoints, advertising and entertainment" to viewers in the London area. CFPL emphasized, in particular, its ongoing commitment to the production of local news, information and public affairs programs which reflect the activities and interests of the region. The Commission notes that, in keeping with the licensee's principal objective of providing its viewers with a comprehensive coverage of local news and events, such programming currently makes up approximately 17 hours of the station's weekly schedule.
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CFPL's local production in this area includes an ambitious and competitive hour-long news program broadcast each weekday morning which captures a significant audience in the London area. This programming also includes a weekly half-hour public affairs program, and a news package broadcast weekday evenings at 6:00 p.m. which has the second highest ratings of all programs broadcast on the station.
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CFPL also underlined its important and continuing contribution to the promotion of aspiring local musical talent, a commitment noted by the Commission in Decision CRTC 80-124 which last renewed the licence for CFPL-TV. The Commission commends the licensee on its efforts in this area, particularly on its award-winning series "Performance".
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With regard to Canadian content in general, the Commission recognizes that the licensee has consistently exceeded the required amount of Canadian programming, in both the full day and the prime time measurement periods.
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As further evidence of its commitment to the production of local programming, CFPL called attention to its capital investment of $2.3 million during the past 30 months, and to its plans for an additional expenditure of more than $3 million for the expansion of its current facilities, which will include a new production studio projected for completion by the fall of 1985.
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The Commission has examined CFPL's arguments in support of its licence renewal in the light of the Direction, and has assessed the licensee's overall performance in fulfilling its obligations under the Broadcasting Act.
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As stated in Decision CRTC 83-676 and CRTC 84-443, the Commission is satisfied that there already exists a high degree of competition resulting from the multiplicity and diversity of media voices accessible to residents of the London area. Moreover, the Commission is convinced that the locally-oriented service provided by CFPL-TV to residents in the London area, in particular the substantial amount of high-quality local news and information programming produced by the licensee, provides a unique and essential contribution to the large and diverse mix of media sources available in the region, and that the public in the London area would be adversely affected by the loss of this service.
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Taking all of these factors into account, the Commission has therefore concluded that failure to grant a licence renewal for CFPL-TV would be contrary to overriding public interest considerations, particularly in view of the level of existing competition in the area served by CFPL-TV, the high quality of the local broadcasting service provided by that station, and the potential impact that non-renewal would have on the continued operations of CKNX-TV Wingham.
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Accordingly, the Commission renews the broadcasting licence for CFPL-TV from 1 October 1984 to 30 September 1989, subject to the condition specified in the licence to be issued.
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In deciding to renew this licence for a full, five-year term, the Commission has accepted, as minimum commitments, the licensee's assurance that there will be no diminution in either the quality or quantity of its local news and information programming, and no decrease overall in terms of its financial expenditures on the production of local programs. The Commission encourages CFPL to focus its energies and resources during the new term on continuing to improve the quality of its local service and on enhancing the station's contribution to the development of high-standard Canadian programs. To this end, in accordance with its commitment, the Commission expects the licensee to complete the construction of its new production studio as soon as possible, not later than the fall of 1985.
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In a report to the Commission dated 12 August 1982, CFPL stated that, instead of a single series devoted to the promotion of local talent, it intended to produce nine or ten one-hour specials per year for broadcast in prime time, each dealing with a specific aspect of the performing arts. At the hearing, CFPL's spokesman, Mr. J.A. Plant stated:
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I dare say that our schedule next year would be somewhat similar... There would be a similarity in programming but perhaps from different sources, and that is our assurance.
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The Commission expects the licensee to adhere to its ongoing commitment to provide exposure for local talent.
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The Commission also notes with interest the licensee's commitment to allocate the sum of $50,000 during the coming year for the production of a pilot program directed to children, which may be ready for broadcast as early as the fall of 1985. The licensee is expected to make every effort to develop this pilot to the level of excellence viewers have come to expect of CFPL-TV, so that it can be made available on a regular basis to CFPL's younger audience, and possibly marketed for broadcast by other Canadian television stations. The production of such a high-quality series would be a significant step towards responding to the concern, frequently expressed by Canadian broadcasters, regarding the difficulty in acquiring high-calibre Canadian children's programs. The Commission requests CFPL to submit a report after two years, on the outcome of this project and on any further plans it may have for the production of other Canadian programs for children.
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Fernand Bélisle Secretary General
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