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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-112
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Moffat Communications Limited
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Winnipeg, Fisher Branch, Flin Flon, The Pas, Snow Lake and Thompson, Manitoba -881055800
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Following a Public Hearing in Winnipeg on 12 October 1988, the Commission renews the broadcasting licences for CKY-TV Winnipeg and its rebroadcasters serving the other five communities noted above 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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Moffat Communications Limited (Moffat) is a publicly-traded company ultimately controlled by Randall L. Moffat of Winnipeg. In addition to the undertakings listed above, Moffat is licensee of CKY and CITI-FM Winnipeg and eight other radio stations operating elsewhere in Canada.
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As a consequence of Decision CRTC 89-111 issued today, which approves the transfer to Moffat of the assets owned by its subsidiary Relay Communications Ltd., Moffat also becomes the licensee of CKYB-TV Brandon, CKYB-TV-1 McCreary and CKYD-TV Dauphin. In addition, Moffat controls Winnipeg Videon Incorporated, which provides cable television service to part of Winnipeg and to Pinawa, Manitoba.
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Financially, CKY-TV has not performed as well as many other private television broadcasters in recent years. Furthermore, the Commission notes that the licensee's revenue projections indicate a conservative growth rate for the upcoming renewal term. Moffat stated at the hearing that, during the period 1982 to 1987:
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CKY's total revenues grew by just 15%, and our total expenditures on Canadian programming during that same period were up 50%. At the same time, pre-tax profits have declined by almost 50%.
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Moffat attributed this performance to the impact of such factors as the introduction to the market of a fourth English-language television service (CHMI-TV Portage La Prairie/Winnipeg), the enhanced attractiveness to advertisers of independent Winnipeg station CKND-TV as a result of the expansion of CanWest Broadcasting Ltd. into Saskatchewan, and the introduction to the Winnipeg market of the new specialty services on cable. The licensee also emphasized the fact that Winnipeg continues to be one of the most undervalued major markets in the country. According to Moffat, while national advertising revenues grew at a rate of 34% for the country as a whole during the period 1983 to 1987, the growth rate in national revenues experienced within Manitoba was closer to 12%; during the same period, combined national and local advertising revenue growth was 40% nationally, but only 26% in Manitoba.
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The Commission notes that, despite the circumstances described above, CKY-TV has generally exceeded its commitments with respect to the production of original local programming during the current licence term. In recent years, CKY-TV has also increased substantially the quantity and the quality of its local news and information programming through such measures as the introduction of a half-hour weekday newscast at 11:30 a.m., the repeat broadcast of its late evening news the following morning, and the incorporation into its major newscasts of special documentary reports offering local perspectives on matters of concern to its viewers. The Commission commends the licensee for its efforts to provide news coverage relevant to Manitoba audiences. The success of these efforts is indicated by the increased audiences for the station's news and information programming.
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Further, the Commission notes the steps taken by Moffat to upgrade CKY-TV's post-production facilities during the past three years. Other technical improvements have included conversion of the licensee's field production equipment from film to videotape and the addition of stereo transmission facilities.
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In licence renewal Decision CRTC 82-835 dated 9 September 1982, the Commission expressed concern regarding the licensee's proposal to devote only two hours of local production per week to entertainment features, and expected the licensee to "... make every effort to increase the amount of local entertainment programs produced by the station, particularly drama, musical variety and children's features". At the 12 October 1988 hearing, the licensee reviewed its performance in this regard, noting in particular the success of such Moffat-produced children's series as "Let's Go", which has been sold to the new specialty service YTV; "The Rockets", currently broadcast by the CTV network; and local programs such as "S'Kiddle Bits" and "Magic Garden". The Commission notes the licensee's commitment to continue production of these last two programs during the new licence term, representing 3.5 hours per week of original local programs in the under-represented children's category. The licensee also stated that funds have been allocated for the production of one or two "S'Kiddle Bits" specials.
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With respect to the production of local drama, however, the licensee was able to identify only three special presentations produced by CKY-TV between 1982 and 1986, "The Tempest", "Clearances" and "Climate of the Times", all produced in co-operation with the Manitoba Theatre Centre; and its participation in a ten-episode drama series entitled "Hamilton's Quest" which was produced co-operatively with other CTV affiliates in Saskatchewan and Alberta in 1984/85.
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The licensee indicated that it has acquired from an independent Canadian producer 130 half-hour episodes of "Time of Your Life", a drama series aimed at a teen audience which will be scheduled at 4:00 p.m. on weekdays during the current broadcast season. As for the upcoming licence term, Moffat confirmed that it would continue to produce "The Rockets" for the CTV network, but made no firm commitments for the production of any other drama programs.
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With respect to variety or music and dance programming, the licensee's last attempt to produce an ongoing local series in either of these under-represented categories was the 1986/87 rock music program "Changes". There is no regularly-scheduled local programming from these categories in the schedule for the current broadcast year and no specific commitments or proposals for such programming, on a regular basis, have been made for the new licence term.
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According to the licensee, it has responded to the concern expressed by the Commission in Decision CRTC 82-835 regarding the lack of local variety and music and dance programming through the production of specials. The Commission acknowledges the licensee's contribution to the development of Canadian musical talent through the production of the program entitled "Canadian Music Fest", an annual hour-long special featuring the best performances of the Canadian Stage Band Festival. The licensee's contributions in producing this program over the years were also highlighted in a supporting intervention submitted by Music Fest Canada. In general, however, the Commission considers that Moffat's production of occasional specials has not represented a sufficient effort to improve its performance in the area of variety and music and dance programming during the current term of licence. In the Commission's view, the licensee's commitment to produce five hours per year of local variety and music and dance programs during the new licence term offers no substantial improvement in this performance.
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Although the licensee had originally proposed a smaller figure, it submitted a revised Promise of Performance after the hearing, in which it undertook to achieve a minimum level of 25 hours 3 minutes per week of original local programming on CKY-TV in the new licence term. This amount excludes the 30-minute program "The Rockets", which the licensee produces for the CTV network. The Commission encourages Moffat to continue to develop and produce programs such as "The Rockets" for network distribution. However, as stated in the Public Notice introducing this and other television renewal decisions, the Commission has concluded that such programs should not receive recognition as local programs. On balance, the Commission considers 25 hours 3 minutes of original local programs to represent an adequate commitment by this licensee, and expects Moffat to adhere to its commitment to produce at least this amount throughout the new licence term.
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While satisfied with the amount of local programming proposed by the licensee, the Commission is concerned that Moffat has not proposed to broadcast any regularly-scheduled local programs during the evening, other than news and one weekly half-hour information program ("Family Focus").
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The Commission is also concerned by the inadequacy of the licensee's commitments, noted above, with respect to the production of drama, variety and music and dance programming in the new term.
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Similar concerns were expressed in interventions by the Winnipeg and Saskatchewan branches of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA). The interveners emphasized the difficulty that local artists have in gaining regular exposure on local television stations. While complimenting Moffat on its use of local talent in the production of children's programming, Keith James, representing the Winnipeg branch of ACTRA, expressed concern that the remainder of the licensee's local production provided little other opportunity for actors and performers in the region to further their careers:
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I think there has to be some way ... to further [the broadcaster's] ability to produce drama and entertainment in the local scene. I think if we don't start ... imposing a certain amount of pressure ... on these licensees, there simply will not be the artists from the Prairies ... There really won't be anybody to use.
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Although the licensee suggested that its previous attempts to produce regularly-scheduled programs from the under-represented categories of variety and music and dance failed to attract sufficient audiences to support continuation of such program series, the Commission considers that Moffat, as a local licensee in one of Canada's larger English-language television markets, has a responsibility to provide its viewers with an adequate amount of variety and music and dance programs, as well as drama programs, featuring the talent of emerging and established artists resident in Winnipeg and elsewhere in Manitoba. Accordingly, the Commission encourages Moffat to schedule during evening hours a minimum of 13 hours of such productions in each year of the new licence term. The Commission also invites the licensee to investigate the possibility of simulcasting any music and dance programs it might produce on its Winnipeg FM station CITI-FM.
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Regarding the production of drama specifically, and in line with the licensee's past level of performance in this area, the Commission expects Moffat to broadcast a minimum of six drama specials during the upcoming licence term, whether these are produced by CKY-TV itself, in co-operation with other licensees, or as co-productions with independent producers.
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The Commission is satisfied that such increased amounts of music and entertainment programming on CKY-TV would be consistent with the levels achieved by other television licensees operating in major markets across Canada. Moreover, the Commission is satisfied that such efforts are well within the licensee's resources and capabilities and take into account the particular circumstances of the Winnipeg market.
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According to the projections submitted with the licensee's renewal application, Moffat will expend $4,633,000 on Canadian programming in the first year of the new licence term. 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 CKY-TV is set out in the appendix to this decision.
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With respect to program development, the licensee did not identify any specific budgetary allocations for this purpose in its renewal application. The Commission, however, notes the licensee's assurance at the hearing that it does have funds in its budget for the development of programs. It also notes the information submitted by Moffat after the hearing indicating that its average annual expenditures on program development have amounted to more than $53,000 in recent years. 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 Commission notes the licensee's purchase, two years ago, of a telephone device for the deaf (TDD), thus making CKY-TV more accessible to the deaf and hearing impaired. The Commission encourages Moffat to ensure that the telephone number for its TDD service is listed in the public telephone directory.
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The Commission 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 notes the licensee's commitment to allocate a budget of $195,000 over five years to closed captioning. Moffat has made use of the vertical blanking interval as a service for the deaf and hearing impaired since 1980. At the hearing, the licensee stated that it has allocated funds within its budget for the purchase of electronic newsroom equipment, and is in the course of identifying the most appropriate system for its needs. Moffat indicated that it would be making a decision within the coming months on the purchase of equipment, ancillary to the electronic newsroom, that will enable closed captions to be electronically added to the scripted portions of local newscasts. The Commission expects the licensee, at a minimum, to close caption the headlines and appropriate scripted portions of its early evening local newscasts in the first year of the new licence term.
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The Commission has reviewed the licensee's programming and other commitments for the upcoming licence term and, in most respects, considers these commitments to be adequate and commensurate with the licensee's financial and other resources. Where these commitments have been found to be less than adequate, the Commission has expressed expectations and encouragements regarding the licensee's future performance. The Commission is satisfied that Moffat will respond fully to the concerns identified in this decision and considers that the licences for CKY-TV and its rebroadcasters should thus be renewed for a full term.
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The Commission acknowledges the support expressed for the licence renewal of CKY-TV in the interventions submitted by the Canadian Association of Broadcasters and the National Watch on Images of Women in the Media (Mediawatch) Inc.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CKY-TV Winnipeg and its rebroadcasters, including those mentioned in Decision CRTC 89-111 issued today
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1. The licensee shall operate these broadcasting undertakings as part of the network operated by the CTV Television Network Ltd.
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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 $4,633,000;
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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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