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Decision
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Ottawa, 28 June 1988
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Decision CRTC 88-438
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C.K.R.T.-TV Ltée and Grégoire Thibault, operating under the corporate name "Société de Télévision MBS"
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Rivière-du-Loup, Quebec -873343800
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Related document: Decision CRTC 85-733 dated 6 September 1985.
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Following a Public Hearing in Quebec City on 7 March 1988, the Commission approves the application for a licence to operate a television broadcasting undertaking at Rivière-du-Loup, on channel 29-B, with an effective radiated power of 18,100 watts, to rebroadcast the programs of CFJP-TV Montreal.
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The Commission will issue a licence expiring 31 March 1990, subject to the conditions of licence stipulated in this decision and in the licence to be issued. This term will enable the Commission to consider renewal of this licence at the same time as that of CFJP-TV Montreal and of the Réseau de télévision Quatre Saisons.
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This application is consistent with Decision CRTC 85-733, in which the Commission authorized the operation of a new French-language television station in Montreal, CFJP-TV. At the time, the Commission had considered the potential impact of this new service on the revenue of stations in secondary Quebec markets, in view of the low profitability of several of these stations. In order to minimize this impact, the Commission stipulated that:
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With regard to secondary Quebec markets, the Commission anticipates that the new service could be made available by cable or by establishing a relay transmitter to be operated by an existing station. In the case of a twin-stick or rebroadcasters, the Commission will examine each case on its own merits, taking into account the particular circumstances of each market.
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C.K.R.T.-TV Ltée, which holds a 99% interest in the applicant partnership, Société de Télévision MBS (Télévision MBS), is authorized to operate station CKRT-TV Rivière-du-Loup which is affiliated with the CBC's French-language television network and serves the entire region through its rebroadcasters. Moreover, C.K.R.T.-TV Ltée is directly controlled by Télé-Inter Rives Ltée (92.8%), which is authorized to operate CIMT-TV Rivière-du-Loup. This latter station is affiliated with the TVA network and serves the same region through its rebroadcasters. Ultimately, control of CKRT-TV, CIMT-TV, as well as of radio stations CJFP and CIBM-FM Rivière-du-Loup and CHGB La Pocatière and their rebroadcasters is held by members of the Simard family of Rivière-du-Loup. The Commission also notes that 44.6% of the equity in Télé-Inter Rives Ltée is held by Réseau Pathonic Inc.
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The Commission notes that, in the context of the present application, the applicant requested that the Commission require all cable television operators in the region to distribute this new service even though, in accordance with the Cable Television Regulations, 1986 (the regulations), its carriage would not be mandatory.
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The Commission received six interventions opposing the present application. Five of them raised concerns about increased concentration of the electronic media and of the sources of information in the hands of related companies. Three of the interveners appeared at the hearing to present their views. One presentation was made by a group of cable operators from the Rivière-du-Loup region, another by Radio Degelis Inc., licensee of radio station CFVD Ville Degelis, the third by Mr. Léopold Lévesque; two other interventions were submitted to the Commission in writing by the Cercle de presse de la Côte-du-Sud Inc. and by the Corporation de développement économique du Témiscouata.
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As emphasized in a number of past decisions involving an increase in the concentration of ownership of broadcasting undertakings, the Commission has sought to maintain a flexible case-by-case approach in assessing such applications, and has determined that it is appropriate to examine each application in the context of the particular circumstances of each region. The Commission notes in this respect that this approval represents only the second occasion on which the Commission has authorized related companies to operate three television services in the same market in order to rebroadcast programming from three different networks. The first was the approval granted to Radio Nord Inc. in Abitibi/Témiscamingue, Quebec, on 11 April 1986 (Decision CRTC 86-350).
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In responding to the interventions, both in writing and at the public hearing, Télévision MBS first of all emphasized that the Rivière-du-Loup regional market represents the smallest television market in the province of Quebec and one of the smallest in the country, as Rivière-du-Loup has a population of only some 14,000 people according to the most recent national census which was conducted in 1986. Given the circumstances, the applicant considers that it would be impossible for two television stations to compete in such a small market and that [TRANSLATION]: "it is absolutely essential that the broadcast media be concentrated in order that the system already in place can be maintained".
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With respect to the issue of the possible monopolization of sources of information, Télévision MBS argued that the population of the region has access to extremely diverse sources of information, ranging from Quebec City's eight weekly and two daily newspapers, which provide regular coverage of the region, to the community programming services distributed on the cable systems in many communities. In terms of electronic media, the applicant pointed out that Rivière-du-Loup is located approximately half-way between Quebec City and Rimouski and that the media from these two localities have a strong presence in its market and regularly cover important events. The applicant placed particular emphasis on the fact that (TRANSLATION): "... there is an additional significant source of electronic information in our market" by virtue of a special agreement between CKRT-TV and CJBR-TV, the CBC's French-language television station in Rimouski. Under the agreement between the two stations, CKRT-TV broadcasts on a daily basis CJBR-TV's regional newscast, which covers all major events in the counties of Rivière-du-Loup and Témiscouata, as well as a cultural program produced in Rimouski which provides a summary of the main cultural activities for all of eastern Quebec. CKRT-TV also broadcasts a weekly CJBR-TV program that covers all matters in any way related to events in the Lower Saint Lawrence region. Television MBS also mentioned that approval of this application would not change the situation as far as regional concentration of information is concerned, since the proposed station would not broadcast any locally-produced newscasts.
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While acknowledging the concerns that were expressed by the interveners with regard to concentration of media ownership, the Commission has concluded, on the basis of the considerations set out earlier, that approval of the present application would, in these very particular circumstances, be the best means of broadening, as much as possible and with as little delay as possible, the range of French-language television services available in the region. In the Commission's view this is in the public interest. The Commission has also taken into account the fact that, in response to the general call for applications to serve secondary Quebec markets which was issued on 6 September 1985 (Decision CRTC 85-733), Télévision MBS was the only undertaking to show an interest in delivering the signal of CFJP-TV Rivière-du-Loup on an over-the-air basis in the area, at the expense of financial losses during the first five years of operation.
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Moreover, in their interventions opposing the present application, the group of cable operators from the Rivière-du-Loup area and Mr. Jean R. Labonté, on behalf of three other cable operators, noted that they are already authorized to distribute the Quatre Saisons network signal via satellite and that they are in a position to distribute a signal of better technical quality. They also expressed concern that approval of the application could lead to a decrease in the local advertising revenues available for their community programming services. The group of cable operators from the Rivière-du-Loup region also raised concerns about the applicant's request that all cable companies in the area be required to distribute the signal of the new station, even if its carriage is not required by regulation.
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In response to these interventions, Télévision MBS pointed out that the cable penetration rate in the Rivière-du-Loup area is approximately 65% and that the major advantage of its proposal is that it will allow a significant segment of the population that does not currently receive the Quatre Saisons television network to have access to it without charge. The applicant also indicated that this would not have any adverse effect on the amount of available local advertising revenues as it did not propose to broadcast local advertising on the new station.
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Following an analysis of the arguments put forth by the interveners and the applicant, the Comission notes that the application was submitted in compliance with the provisions of Decision CRTC 85-733 concerning service to secondary Quebec markets and that the application has been subject to the same procedure as was followed in the other markets where rebroadcasters of the Quatre Saisons network have been authorized. The Commission also notes that, as mentioned above, this was the only application received in response to the 1985 call for applications. Further, the Commission considers that the public interest will best be served if the signal of CFJP-TV is broadcast over-the-air rather than distributed only via cable. Such distribution will in fact, permit all of the households in the area that are located within the station's offical contour to receive it. In this regard, the Commission draws the attention of the cable operators who intervened to the following paragraph which is contained in their broadcast licences:
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This licence, authorizing the distribution of signals received from specific broadcasting transmitting undertakings, does not confer a monopoly on the reception and use of these signals and this licence shall not be construed as conferring any right for continued reception or for protection against interference caused by other broadcasting transmitting undertakings which the Commission may authorize from time to time.
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Further, the Commision notes that it is unable to grant the applicant's request for mandatory distribution of the new station's signal by those cable operators that are not obliged to do so under the regulations. A condition of licence would be required and this could only be imposed when each individual cable operator's licence comes up for renewal or upon receipt of an application by the cable licensee.
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Further, in light of the discussions at the hearing and the concerns that were raised by the interveners, the Commission has decided to require, as a condition of licence, that the licensee not sell any broadcast time to local advertisers during the licence term.
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At the hearing, Télévision MBS undertook to commence operation of the new rebroadcasting unertaking by 1 September 1988 at the latest. Consequently, it is a condition of licence that construction of the retransmitter be completed and that it be in operation by that date or where the licensee applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before 1 September 1988 and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.
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Fernand Bélisle
Secretary General
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