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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-102
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CHEK-T.V. Limited
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Victoria, Sooke, River Jordan, Port Alberni, Coal Harbour and Campbell River, British Columbia -881072300
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Following a Public Hearing in Vancouver on 25 October 1988, the Commission renews the broadcasting licences for CHEK-TV Victoria and its rebroadcasting undertakings from 1 September 1989 to 31 August 1994, subject to the conditions specified in the appendix to this decision and in the licences to be issued.
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CHEK-T.V. Limited is ultimately controlled by Frank A. Griffiths of Vancouver. Mr. Griffiths' broadcast holdings include controlling interests in British Columbia Television Broadcasting System Ltd., licensee of CHAN-TV Vancouver; CKNW and CFMI-FM New Westminster, British Columbia and other radio stations in Alberta, Manitoba and Ontario; and of Canadian Satellite Communications Inc. (CANCOM). Mr. Griffiths also holds negative control (50%) of Okanagan Valley Television Co. Ltd., licensee of CHBC-TV Kelowna and its rebroadcasters which are affiliated with the CBC.
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CHEK-TV and its rebroadcasters have, as their mandate, the provision of a local and regional service oriented to Victoria and Vancouver Island. This service is distinct from the province-wide orientation reflected in much of the news and information programming produced by the licensee's sister station CHAN-TV Vancouver which is available in most of British Columbia through numerous rebroadcasters.
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In 1980 the Commission approved a change in CHEK-TV's affiliation from the CBC to the CTV network (Decision CRTC 80-460). The approval was made conditional upon the Victoria station providing 25 hours per week of local production ("Island Service"), a level which the licensee has consistently achieved.
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Despite the competition presented by the ready availability on cable of television signals from Vancouver and Seattle, CHEK-TV has long held its position as the number one station in the Victoria market. According to the licensee, this success has been largely due to three factors: the station's close community involvement, the quality and comprehensiveness of its news and information programming and the station's attractive program mix.
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As examples of CHEK-TV's community involvement, the licensee noted the station's participation with the Globe Theatre Society in producing the 90-minute drama "Merely Players" as a fund raiser for the Victoria Shakespearean Festival, its annual production of the "Kiwanis TV Auction" and its weekly "Crimestoppers" feature. It also noted the station's regular talent auditions, in which videotapes of the performances of local actors and musicians are made available to the performers for their promotional use.
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The licensee submitted that the second factor in its success, local news and information programming, was "... extremely important to Victoria and Vancouver Island because of the distinct characteristics and geographic separation of the island from the rest of British Columbia". CHEK-TV produces three local newscasts each weekday, including an hour at noon, half an hour at 5:30 p.m. preceeding CHAN-TV's "News Hour" and a 45-minute late evening news package at 11:30 p.m. following the CTV network news. There are 45-minute newscasts at 11:30 p.m. on Saturday and Sunday. CHEK-TV also produces a weekly half-hour information program entitled "Newscience" and an hour-long public affairs program each weekday entitled "Daily Edition".
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The news department of the Victoria station has a current operating budget of $1.2 million and employs 25 full-time staff. According to the licensee, the extensive resources allocated to news enable the station "... to cover daily events in the Greater Victoria area, weekly trips throughout Vancouver Island, the Gulf Islands and occasionally as far as the Queen Charlottes". Although CHEK-TV and CHAN-TV are under common ownership and, in some areas, share the services of senior management personnel, the licensee confirmed that, in keeping with their distinct mandates, the two stations maintain separate news staffs in Victoria: "If we're covering ... the same story, [CHAN-TV] would look at it from the provincial angle; we look at it strictly from the Vancouver Island position".
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According to the licensee, the station's success is also attributable to its attractive program mix and the fact that a substantial portion of its broadcast schedule is unduplicated by any other Canadian television service available on Vancouver Island. The licensee noted that CTV network programs are, with few exceptions, broadcast on CHEK-TV at different times than on CHAN-TV, thus contributing to viewer choice. The licensee also emphasized the care it takes to ensure that its locally-produced and acquired programs respond to the interests of the local population, which consists largely of families and senior citizens, by focusing on topics such as fitness, recreation, travel, gardening, education and entertainment.
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While the bulk of CHEK-TV's local programming falls in the news and information category, last year the licensee undertook the production of its first dramatic series entitled "Time Exposures". The program, which has time travel as its premise, is filmed on location in Victoria and has a cast consisting largely of children. The licensee advised that the first series of 13 episodes have been sold to nine other CTV affiliates, and that production had begun on a further 13 episodes.
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Recently, CHEK-T.V. Limited has also been involved in the production of a second program series, also in the music and entertainment category, with the working title "The B.C. Music Project". The series is produced as a co-operative venture between CHEK-TV, which is also in charge of post-production, and four other private television stations in British Columbia: CHBC-TV Kelowna, CFJC-TV Kamloops, CKPG-TV Prince George and CFTK-TV Terrace. The licensee stated that the programs, which are intended to serve as a major showcase for musical talent in the province, feature a blend of country, folk and light rock music. Each station is responsible for locating and recording the performances of local talent.
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The Commission commends the licensee for its involvement in this project and its success in the field of local music and entertainment programming, and on its performance in general during the current licence term.
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With regard to the licensee's programming plans and strategies for the upcoming licence term, the Commission notes CHEK-T.V. Limited's statement that it would work at strengthening the three factors it perceives as forming the foundation of its success, these being the station's community service role, the quality of its local news, and the attractiveness of its program mix. Specifically, the licensee stated that it will "... remain at the forefront of community causes and will seek new ways both to participate in and publicize these causes". In the face of an expanding range of services and viewing options available to local audiences, the licensee added that it will continue to promote CHEK-TV as providing a distinctive Vancouver Island service.
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In the area of local news, the licensee made a commitment to establish a news bureau at Nanaimo within the first two years of the new licence term, to provide more complete coverage of events in the northern portion of Vancouver Island. The news bureau will consist of a correspondent, a cameraman and ENG (electronic news gathering) facilities. As noted by the licensee:
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There's 80,000 people in the Nanaimo area. We feel that they warrant a distinct coverage, and we intend to pursue that to solidify our market position.
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The licensee stated that it will computerize its main newsroom studio in Victoria within three years, and will install a microwave link between Victoria and its proposed news bureau in Nanaimo within five years.
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In all, the licensee made commitments for capital expenditures of $3.5 million over five years to cover the projects noted above as well as the purchase of additional ENG cameras, improved post-production facilities and closed captioning equipment.
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In presenting its future plans at the hearing for local programming other than news, the licensee stated that there will be "a significant increase" in the budget allocated for music and entertainment programming. With respect to the "B.C. Music Project" and "Time Exposures", the licensee undertook to continue the production of these specific programs, or "projects similar to them", representing 30 minutes per week of original local programming throughout the new licence term. The Commission notes and expects the licensee to adhere to this important commitment.
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The licensee also announced that, although plans had not been finalized, it hoped to introduce two new locally-produced program series during the next licence term, including a weekly children's show for pre-schoolers and a regular health, activity and fitness show for seniors. The licensee indicated further plans for the production of at least two specials to examine the contributions to Vancouver Island life by the Chinese and Native Indian communities. These specials would represent part of CHEK-TV's contribution to "Canada In View", a program series produced co-operatively by certain CTV affiliates.
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The Commission notes the licensee's commitment to budget $300,000 over five years for program development, described by CHEK-T.V. Limited as seed money "to help [projects] be worked up perhaps to a pilot stage". The Commission draws the licensee's attention to the program development funding guidelines set out in the introductory Public Notice.
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The licensee explained that its involvement with Canadian independent producers has been minimal in the past due to the fact that few independent producers are located on Vancouver Island; consequently, most of CHEK-TV's program development activity has been conducted in-house. The licensee stated that it is encouraged by its experiences with the "B.C. Music Project", and that it intends to investigate the possibility of obtaining wider syndication for the series, thereby gaining greater exposure for British Columbia's musical artists. The Commission encourages the licensee to pursue its plans in this regard. Although the licensee was uncertain whether this particular co-operative concept could be successfully adapted to other program areas, it indicated that it would be interested in pursuing other co-operative ventures, possibly with CHAN-TV.
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In its Promise of Performance, the licensee made a commitment to produce 23 hours 12 minutes per week of original local programs. This amount does not include its commitment given at the hearing to produce an additional weekly half-hour of local music and entertainment programming. Accordingly, the Commission requires the licensee to submit without delay a revised Promise of Performance reflecting the larger commitment. Further, the Commission expects the licensee to maintain, at a minimum, an average of 23 hours 42 minutes per week of original local programs throughout the licence term.
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According to the financial projections provided with its renewal application, CHEK-T.V. Limited will spend $6,407,000 on Canadian programming in the first year of its new licence term. At the hearing, the Commission asked the licensee for its views regarding a possible condition of licence linking Canadian program expenditures to revenues. The licensee confirmed that it would have no difficulty abiding by such a formula.
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As stated in the introductory Public Notice, the Commission has decided to impose conditions of licence requiring licensees of each television station that earned more than $10 million in total advertising revenues in 1987/88 to adhere to their forecasts for first-year expenditures on Canadian programming, at a minimum, and to adjust such expenditures in subsequent years in accordance with a formula linked to station advertising revenues. The Commission is satisfied that this approach offers a reasonable and fair means of ensuring the Canadian program expenditures of each station will keep pace with changes in its revenue. The condition of licence pertaining to CHEK-TV is set out in the appendix to this decision.
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The Commission notes the licensee's statement at the hearing that closed captioning "would be a priority for us". It qualified this, however, by adding that closed captioning of any of its local program production would only occur after its Victoria newsroom is computerized in the third year of the new licence term.
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The adequacy of the licensee's closed captioning commitments was challenged in opposing interventions presented at the hearing by the Canadian Hard of Hearing Association and the Greater Vancouver Association of the Deaf. The interveners, whose shared concerns are also addressed in the introductory Public Notice expressed frustration about the lack of any captioning in CHEK-TV's local news and of any immediate plans by the licensee to remedy this situation.
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The Commission shares the interveners' concerns and, accordingly, expects the licensee, within the first year of the new licence term, to acquire the means to provide closed captions at least for the headlines and other scripted portions of its major local newscasts. The Commission acknowledges the licensee's statement regarding the difficulty of preparing closed captions for news with a non-computerized newsroom. Given the legitimate complaints of those directly affected by the absence of closed captions in the licensee's local news and other local production, the importance the Commission attaches to this particular issue, and the ready availability of closed captioning hardware and software, the Commission encourages the licensee to consider moving forward its timetable for the installation of computerized newsroom facilities.
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The Commission also expects the licensee to acquire a telephone device for the deaf (TDD) within the first year of its new licence term and, as discussed with the licensee at the hearing, to install it in the master control room or wherever most appropriate to ensure access to the station throughout the broadcast day by deaf and hearing-impaired viewers.
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In renewing these licences, the Commission also authorizes the licensee to make use of the Vertical Blanking Interval. The Commission expects the licensee to adhere to the guidelines set out in Appendix A to Public Notice CRTC 1989-23 dated 23 March 1989 entitled "Services Using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operation (FM)".
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The Commission, having reviewed the licensee's programming plans and commitments, is satisfied that the licences for CHEK-TV and its rebroadcasting undertakings should be renewed for a full term.
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The Commission acknowledges the support expressed for the licence renewal of CHEK-TV in interventions received from Atlantis Films Limited, the Department of Theatre at the University of Victoria, the Canadian Association of Broadcasters, the Canadian Cable Television Association (B.C./Yukon Region) and 34 other interested groups and individuals. With respect to the comments submitted by the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), the Commission notes that matters raised in this intervention are addressed in the introductory Public Notice. The Commission also acknowledges the views expressed by Mr. Joseph Phelan regarding simultaneous signal substitution.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CHEK-TV Victoria, CHEK-TV-1 Sooke, CHEK-TV-2 River Jordan, CHEK-TV-3 Port Alberni, CHEK-TV-4 Coal Harbour and CHEK-TV-5 Campbell River
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1. The licensee shall operate these broadcasting undertakings as part of the CTV Television Network.
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2. The licensee shall expend on Canadian programming, at a minimum:
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(a) for the year ending 31 August 1990, the amount of $6,407,000;
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(b) for the year ending 31 August 1991, the amount set out in paragraph (a) above, increased (or decreased) by the year-over-year percentage change for the year ending 31 August 1990, in the total of the station's revenues from local time sales, national time sales and payments (if any) received from networks, as reported in the relevant Annual Return;
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(c) for the year ending 31 August 1992, the minimum required expenditure calculated in accordance with paragraph (b) above, increased (or decreased) by the average of the year-over-year percentage changes for the years ending 31 August 1990 and 31 August 1991, in the total of the station's revenues from local time sales, national time sales and payments (if any) received from networks, as reported in the relevant Annual Returns; and
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(d) in each subsequent year, an amount calculated in accordance with the following formula: the amount of the previous year's minimum required expenditure, increased (or decreased) by the average of the year-over-year percentage changes for the years ending on 31 August of the three previous years, in the total of the station's revenues from local time sales, national time sales and payments (if any) received from networks, as reported in the relevant Annual Returns;
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with all terms or calculations found in paragraphs (b), (c) and (d) set out above to be interpreted or made in accordance with the explanations set out in Public Notice CRTC 1989-27 dated 6 April 1989.
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3. The licensee shall adhere to the Canadian Association of Broadcasters' self-regulatory guidelines on sex-role stereotyping, as amended from time to time and approved by the Commission.
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4. The licensee shall adhere to the provisions of the Broadcast Code for Advertising to Children published by the Canadian Association of Broadcasters as amended from time to time and approved by the Commission.
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