Decision
|
Ottawa, 2 March 1984 |
Decision CRTC 84-219 |
Avalon Cablevision Limited |
St. John's, Newfoundland - 833146400 |
For related documents: see Decisions CRTC 81-253 dated 14 April 1981 and 83-572 dated 22 July 1983, Public Notice CRTC 1983-158 dated 22 July 1983 and Notice of Public Hearing 1983-86 dated 21 November 1983. |
At a Public Hearing in Halifax on 10 January 1984, the Canadian Radio-television and Telecommunications Commission considered an application by Avalon Cablevision Limited (Avalon), licensee of the broadcasting receiving undertaking serving St. John's: |
- to delete the authority granted by Decision CRTC 83-572 for the distribution of the service of the Atlantic Satellite Network (ASN), formerly ATV-2, which was subject to the following two conditions: |
i) that the ASN service be distributed on an unimpaired channel of the basic service; and |
ii) that commercial messages be deleted from the ASN programming at such time as replacement material is supplied by Newfoundland Broadcasting Company Limited (NTV); |
- for authority to distribute the ASN service subject to one condition only, that the service be carried on an unimpaired channel on the basic service. |
In Decision CRTC 81-253, the Commission approved an application by Atlantic Television System Limited (ATV) for a licence to carry on a television broadcasting network operation to provide, via satellite, "a new television service to the Maritime Provinces, Newfoundland and the Eastern Arctic." As noted in that decision, the ASN service consists of a "satellite-to-cable network arrangement for the transmission and distribution of new regional television programming designed to provide viewers in Atlantic Canada with an alternative viewing choice originating in their region." |
The programming scheduled on ASN consists of educational programming developed in co-operation with the provincial governments, news and public affairs with input from every region of Atlantic Canada, including Newfoundland, and general entertainment programming. The schedule includes a daily one-hour block of programming designed for pre-school children. |
In Decision CRTC 81-253, the Commission also addressed the concerns raised by NTV, the CTV affiliate providing television service in various parts of Newfoundland. In its intervention, NTV had claimed that the distribution of ASN in Newfoundland would have a severe financial impact on its service. In recognition of this concern, ATV had proposed the following three alternatives for the carriage of the ASN service in Newfoundland: |
1. ATV-2 not be distributed on currently licensed cable systems; |
2. that it be carried but have the commercials deleted by all Newfoundland cable systems in the urban centres;and |
3. have commercials deleted and make an arrangement with NTV to allow them to use the commercial avails for themselves. |
In its Introductory Statement to Decision CRTC 83-572 (Public Notice CRTC 1983-158) dated 22 July 1983, which dealt with the application by Avalon to add the carriage of ASN, the Commission again noted the concerns that NTV had earlier expressed with respect to the introduction of ASN in Newfoundland. The Commission considered these three alternatives and essentially imposed the third one as a condition of its approval. The Commission urged all parties concerned, including ATV and NTV, to seek a suitable arrangement which would allow commercial deletion and substitution for cable systems in urban centres of Newfoundland. |
Avalon began distributing the ASN service on 25 July 1983 but had to cease such distribution on 7 September 1983 because ATV and NTV were unable to reach a suitable arrangement. |
Avalon subsequently applied to the Commission to amend its authority for the distribution of the ASN service, in effect to remove the condition of approval requiring that commercial messages be deleted from ASN programming at such times as replacement material is supplied by NTV. |
At the hearing, Mr. Danny Williams, President of Avalon, advised that Avalon had received numerous complaints from subscribers relating to the loss of the ASN service and stated that Avalon's primary concern was "to get the ASN service back on the air as soon as possible". The Commission also heard interventions in connection with this application by ATV and NTV. The position of ATV, as stated at the public hearing by its President, Mr. Fred Sherratt, is that "...It is important that this service be available to the people of St. John's. They want it. It is also important that the existing private service in Newfoundland be preserved. We want to provide whatever protection this Commission feels is necessary for NTV." Further, in response to the Commission's questioning on what constitutes its market area and whether this had changed from the original hearing in February 1981, Mr. Sherratt confirmed that, "all of our planning was predicated on the Maritimes, not including any revenues attributable to Newfoundland". ATV then proposed that those commercial messages that could impact negatively on NTV would be deleted by ATV. It also proposed to substitute alphanumeric information and audio material for these commercials. |
At the January 1984 Public Hearing, Mr. Forsythe, General Manager of NTV, affirmed NTV's position that the distribution of ASN service in St. John's, Newfoundland could have a severe financial impact on NTV. He advised that such concerns were unique to St. John's and did not apply to other areas in Newfoundland, including Corner Brook and Grand Falls. Mr. Forsythe stated that the protection of NTV's revenue base could be achieved through the deletion of those commercials which could drain revenues from its market area. He further indicated that NTV did not require that its own commercial messages be substituted for those of ASN. |
At the hearing, the Commission was given a commitment by both ATV and NTV that they would consult immediately to arrive at a mutually acceptable list of commercial messages to be deleted by ATV. Subsequent to the hearing, the Commission has been advised that the parties have reached a satisfactory working agreement as to the commercial messages which would be deleted on the ASN service. |
At the hearing, NTV also raised the issue of sponsored programs as having a potential negative impact on NTV. However, the Commission does not consider that such programs should be required to be deleted. |
In light of the foregoing, the Commission approves in part Avalon's application to distribute the ASN service, subject to the following conditions: |
a) that the ASN service be distributed on an unimpaired channel of the basic service; and |
b) that commercial messages which are likely to have a negative financial impact on NTV be deleted from the ASN service distributed in St. John's. |
The Commission will review this matter further with all parties concerned at the time of the renewal of the licence relating to ASN, which expires 30 September 1985. In the meantime, it expects NTV, ASN and Avalon to co-operate fully with a view to ensuring that subscribers in the St. John's area have access to this worthwhile alternative television service originating in their own region. |
J.G. Patenaude Secretary General |
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