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Decision
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Ottawa, 24 July 1984
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Decision CRTC 84-607
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Classic Communications Ltd.
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Parts of the Towns of Vaughan, Richmond Hill, Markham and Whitchurch-Stouffville Ontario - 833508500
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For related documents: see Introductory Statement Relating to Decisions CRTC 81-919 to CRTC 81-922: Cable Distribution of Non-Programming Services on an Experimental Basis (30 December 1981).
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Following a Public Hearing in Hull, Quebec on 5 June 1984, the Commission denies the application to change the authorized distribution for the broadcasting receiving undertaking serving the communities noted above by adding the distribution on an experimental basis, of a digital, 24-hour, non-programming service consisting of advertiser-supported classified ads, to be distributed on a non-discretionary basis to all cable subscribers.
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The Commission acknowledges the interventions from the Canadian Association of Broadcasters, the Canadian Daily Newspaper Publishers Association, the Canadian Broadcasting Corporation, CFTO-TV Limited, CKVR Television, CHEX Television and the CTV Television Network Ltd., in opposition to the application. The interveners argue that cable television licensees should not be permitted to engage in advertising activity, noting that such a proposal runs counter to the Commission's policy relating to advertising on basic service channels and could have a serious negative impact on the broadcasting industry, particularly on local broadcasters.
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Interventions were also received in support of the application from the Greater Toronto Cable TV Association, the Ontario Cable Telecommunications Association, the Hon. James Snow, the Ontario Minister of Transportation and Communications, the Town of Whitchurch-Stouffville, the Town of Vaughan, the Town of Markham and the Canadian Cable Television Association (CCTA). Basically, these interveners advocate an approval of this application, on an experimental, test-case basis. The CCTA, supported by some of the above-noted interveners, contend that the proposed advertiser-supported non-programming service is a new advertising concept quite different from that which has been traditionally followed by the broadcast industry, and their view is that "it poses no direct threat to existing broadcast services".
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It is the Commission's current policy not to permit the distribution of advertising material by cable television licensees on the grounds that this could adversely affect achievement of the goals of the Broadcasting Act and could erode the advertising-revenue base of local conventional broadcasters. In its Notice of March 1979 entitled A Review of Certain Cable Television Programming Issues, the Commission reaffirmed this policy, stating: "The Commission believes that cable television systems should not compete with conventional commercial broadcasters for advertising revenues and contemplates no change in this policy."
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The Commission notes that the current application is similar to a proposal for a classified real estate advertising service which was submitted by the applicant and by other Toronto area cable television licensees in 1981, and considered by the Commission in the context of the public hearing on non-programming services in Toronto early in 1981. In Decision CRTC 81-921 the Commission denied this application, stating:
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...the Commission is not prepared, in the absence of an overall policy review, to permit the distribution, at this time, of the real estate advertising service which the licensees propose to provide free-of-charge to subscribers on a universal basis.
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However, the Commission would be prepared to authorize, on a trial basis, the distribution of real estate listings as part of a data bank information retrieval service offered to subscribers on a user-pay discretionary basis.
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The Commission also refers to its recent statement concerning advertising on cable (Circular N° 297 dated 12 June 1984) and reiterates that it is not prepared to consider a major review of its cable television policy relating to advertising at this time, without an issue hearing.
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In this regard, as indicated in Public Notice CRTC 1983-232 dated 3 October 1983, the Commission intends to hold a public hearing, tentatively scheduled for December 1985, to develop an overall policy on the carriage of non-programming services.
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Fernand Bélisle Secretary General
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