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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-153
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CHUM Limited
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Halifax, Canning, Truro, Valley, Bridgetown, Sheet Harbour, Caledonia, Yarmouth, Marinette, Sydney, Inverness, Antigonish, Dingwall, New Glasgow, Bay St. Lawrence and Port Hawkesbury, Nova Scotia; Moncton, Saint John, Florenceville/Woodstock, Boiestown, Upsalquitch Lake, Newcastle, Chatham, Blackville, Doaktown and Campbellton, New Brunswick; Charlottetown and St. Edward/St. Louis, Prince Edward Island -881063200 -881064000 -881061600 -881062400
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Following a Public Hearing in Halifax commencing on 6 December 1988, the Commission renews the broadcasting licences for CJCH-TV Halifax, CJCB-TV Sydney, CKCW-TV Moncton, CKLT-TV Saint John and their respective rebroadcasting undertakings at the other localities 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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These broadcasting undertakings, collectively known as the Atlantic Television System or ATV, are owned and operated by CHUM Limited (CHUM). A publicly-traded company ultimately controlled by Mr. Allan F. Waters of Toronto, CHUM is also the licensee of radio stations CJCH and CI00-FM Halifax, and of 23 other radio stations serving 17 large and small communities across Canada. It also owns and operates ASN, a satellite-distributed independent television network service available in the Atlantic Provinces and the Eastern Arctic. Further, CHUM is licensee of CITY-TV Toronto, CKVR-TV Barrie and of the national specialty music service MuchMusic, and owns 50% of MusiquePlus, MuchMusic's French-language counterpart.
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CHUM noted that the ATV system had its beginnings in 1971. It stated that, while the television stations in Halifax, Sydney, Moncton and Saint John are licensed separately, "... they have provided a highly integrated service to the Maritime provinces", a service that has evolved over time in response to the unique circumstances of the "Maritime neighbourhood". Today, ATV's chain of 28 stations and rebroadcasters provides CTV network service throughout the provinces of Nova Scotia, New Brunswick and Prince Edward Island.
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At the hearing the licensee stated that it has expended approximately $10.3 million on various capital projects since it last appeared before the Commission for licence renewal in 1982. This sum includes a capital outlay of approximately $3 million to establish ASN, as well as other amounts for new rebroadcasting undertakings, microwave plant, a mobile unit, improved production facilities, a computerized newsroom and transmitter replacement.
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According to CHUM, during the past five years it has made further direct expenditures of $18 million in Canadian programming, exclusive of payments to the CTV network, representing an amount 50% greater than its expenditures on acquired non-Canadian programs.
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In Decision CRTC 82-876, which renewed the licences for CJCH-TV Halifax and CJCB-TV Sydney, the Commission noted the licensee's plans for the production of "six to eight half-hour [drama] episodes for distribution on all ATV stations in the Maritimes". During the current licence term CHUM has exceeded this commitment through the production and broadcast of 22 original half-hour episodes of the drama series "Windows". Moreover, the licensee stated that it has produced more than 100 original episodes of the musical/variety series "Up Home Tonight" during the current licence term. According to the licensee, this program, broadcast at 9:00 p.m. on Monday, has given exposure to the talents of more than 1200 Maritime performers over the years. CHUM has also been involved in the production of several musical specials. The Commission commends the licensee for its support of musical talent and encourages the licensee, through its "Up Home Tonight" series and other programming, to continue its support for the development of amateur and professional talent in the Maritimes.
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Over the current licence term, CHUM has produced 46 original episodes of the children's program series "Shantytown". Although the licensee has now ceased production of this series, repeat episodes continue to be broadcast in 1988/89. The licensee advised that the current season will also see the introduction of a new program series aimed at a teenage audience and entitled "16th Avenue". According to CHUM, this program will be produced at CJCB-TV Sydney and will be broadcast at 7:30 p.m. on Saturday. The Commission understands that CHUM intends to seek out the participation of other Canadian television stations to assist in the production and financing of "16th Avenue", and encourages the licensee in these plans.
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The licensee described its news and public affairs programming as "the backbone of ATV's acceptance and dominance" in the market it serves. Regularly-scheduled news programs include a week-day report at mid-day, an early evening package daily except Saturday (preceeded on weekdays by the magazine program "Live at Five"), and a daily late-evening newscast following network news. According to the licensee, the early evening news is the most-watched newscast in the Maritimes and the highest rated local news program in Canada.
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At the hearing, the licensee stated that it was holding discussions with the CTV network with a view to freeing time in the network's program schedule to allow the broadcast of a local news program at 6:00 p.m. on Saturday. CHUM stated that, in its view, present difficulties in presenting a local newscast in this time period, arising from the scheduling of the CTV network program "Wide World of Sports", can be overcome:
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Sometime during this year, we will figure out a way to do it. The Saturday news, we hope to start it next year, if we can make that arrangement.
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The Commission encourages the licensee to resolve these scheduling problems and proceed with its plans to implement a half-hour news program on Saturday, thereby providing a full, suppertime news service seven days a week.
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According to the licensee, CJCH-TV Halifax is the primary production centre for the ATV system, particularly for news programming. At the same time, an extensive microwave network allows the transmission of live or same-day news reports to the Halifax newsroom from studios in Sydney, Moncton and Saint John, as well as from bureaus in Charlottetown, Fredericton, Newcastle, Bathurst, Campbellton, Edmundston and Ottawa. The Commission also notes that CHUM currently employs seven news staff based at Saint John, four at each of Fredericton and Moncton, one at Bathurst, three on Prince Edward Island, two in Newfoundland, six in Sydney and a total of sixty-seven in Halifax. The licensee stated at the hearing that additional facilities will be established in the future to permit the transmission of news reports from Yarmouth and other communities. The Commission encourages the licensee in its plans to expand its news bureaus throughout the Maritimes for the purpose of contributing live or same-day news reports for broadcast within the licensee's information programming.
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At the hearing, the Commission questioned the licensee regarding an incident it had reported in which the amount of commercial messages broadcast on CKCW-TV Moncton was inadvertently permitted to exceed the regulatory maximum. The licensee explained that the problem was the result of a clerical error and was corrected immediately upon discovery. CHUM also stated that various measures have been taken to guard against future errors of this nature, including the introduction of an instructional program for station staff and implementation of additional log check responsibilities. The Commission is satisfied by the licensee's explanation of the incident in question and the steps it has taken to prevent a recurrence.
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The Commission has assessed the licensee's achievements as noted above, particularly with regard to the provision of a strong regional news service, the production of programs in under-represented categories and its efforts in support of Canadian talent, and is generally satisfied with CHUM's performance during the current licence term.
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With regard to the licensee's strategies and program plans for the new licence term, the Commission notes that CHUM intends to continue to offer an integrated service to its Maritime viewers. Specifically, while each of the licensee's four stations has its own studio facilities and is capable of broadcasting programs separately from those broadcast on the other stations, CHUM stated that, with the exception of some local commercial insertions, the four stations and their rebroadcasters will continue to carry essentially the same program matter. In fact, since May 1988, the licensee has filed only one program log applicable to the program content of all of the stations.
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At the hearing, the licensee described a formula whereby the costs of news and other programs produced by any of the four stations are apportioned among them all. It is also CHUM's contention that the production of its news and other programs relies significantly on the human and technical resources of all four of the stations. It suggested that it is thus appropriate to consider such programming as being co-operatively produced by the four stations, and as being local programming in respect of each station.
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Based on this contention, the licensee made a commitment to broadcast, as a minimum, an average of 19 hours 15 minutes per week of local programs. This total includes all of the licensee's information and sports programming. It also includes other programs in the music and entertainment category with the titles "Comedy Mill", "Comedy College" and "The Originals"; these had been described by the licensee in its written application as acquired programs, but were claimed by CHUM at the hearing (and in a revised Promise of Performance dated 13 December 1988) to be co-productions in which "... the producer doesn't have any equity" and which qualify as local programs. The amount also includes the program series "Canada In View", for which the licensee indicated plans to produce two episodes in the current broadcast year, and "Sunday Edition", to which CHUM contributes various program segments and financial support.
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The Commission has decided, for the duration of the new licence term, to treat as local programs in respect of the four stations all of the programs claimed by CHUM as being co-operative productions and expects CHUM to adhere to its commitment to broadcast, at a minimum, an average of 19 hours 15 minutes per week of original local programs on each station throughout the new licence term. At the same time, the Commission draws the licensee's attention to the Public Notice introducing this and other television renewal decisions in which the Commission addresses the matter of co-operatively produced information and amateur sports programs.
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CHUM's financial projections indicate proposed expenditures amounting to a total of $4,183,000 by the four stations on Canadian programming during the first year of the new licence term. This projected amount includes $2,267,000 in respect of CJCH-TV Halifax, $1,350,000 in respect of CKCW-TV Moncton and CKLT-TV Saint John (as reported on a combined basis by the licensee), and $566,000 in respect of CJCB-TV Sydney. The Commission notes that, according to the information filed by CHUM, the total advertising revenues earned by CJCH-TV in 1987/88 were in excess of $10 million, as were the total advertising revenues generated by the combined operations of CKCW-TV and CKLT-TV. However, the total advertising revenues earned by CJCB-TV during the same period were less than $10 million.
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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 revenue 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 revenues. The Commission is satisfied that this approach offers a reasonable and fair means of ensuring that the Canadian program expenditures of each station keep pace with changes in its revenue growth.
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The condition of licence pertaining to CHUM in respect of CJCH-TV Halifax is set out in the appendix to this decision. Because the licensee has reported its financial results and projections for CKCW-TV Moncton and CKLT-TV Saint John on a consolidated basis, the Commission has applied a similar condition of licence regarding the combined Canadian program expenditures by those two stations. In the case of CJCB-TV Sydney, the Commission expects the licensee to adhere to the formula prescribed in the introductory Public Notice.
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At the hearing, CHUM provided details regarding several initiatives it will undertake in the new licence term for the production of Canadian programming. In the area of drama, the licensee stated that it would allocate $500,000 over five years, as a minimum commitment, to develop and produce 12 Maritime-based drama programs for broadcast on its stations. CHUM stated that it intended to produce one drama in the first year, two in the second year, and three in each of the next three years with a tentative direct production budget of approximately $30,000 for each production.
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Some $150,000 of the $500,000 will be allocated to the development of drama programming, including the funding of drama workshops attended by amateur playwrights and performers in each of the three Maritime provinces served by the ATV system. The money will be disbursed equally among those three provinces.
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CHUM confirmed that the $150,000 for drama development noted above formed part of the total consolidated program development commitment of $240,000 specified in its applications. 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 noted that, during the current licence term, it has produced an average of 20 specials each year in a broad range of program categories, including news and music and entertainment. It made a commitment to maintain this level of production of special programs, at a minimum, in each year of its new licence term.
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CHUM also made a commitment to participate in the co-operative production of a musical talent and variety series tentatively titled "Coast-to-Coast Talent Search". The concept for such a series originated with CITV-TV Edmonton. CHUM stated that if the number of stations interested in participating in this project is not sufficient, "... we will produce a Maritime talent search here, on our own. That is a commitment that we have made to this Commission."
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With regard to other co-productions and co-operative ventures, the licensee noted that its investment in such programs as "Comedy Mill", "Comedy College", "The Originals", "Canada In View" and "Sunday Edition" mentioned earlier in this decision, together with its participation in a future drama series entitled "Chestnut Avenue", represents expenditures of approximately $200,000 in the current broadcast year. CHUM confirmed "an ongoing commitment to explore co-operative ventures" in the new licence term, and "a further commitment to assist and support independent producers". The Commission encourages the licensee to continue to pursue the production of co-operative programs with other Canadian broadcasters and to fulfill its commitment with respect to support of independent producers through such avenues as funding for script development and the provision of broadcast letters. The Commission also encourages the licensee to fulfill its other commitments described above in the areas of drama and support for Canadian talent.
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The Commission questioned the licensee regarding its plans to provide closed captions, particularly of its news programming. CHUM confirmed at the December hearing that a captioning system is available which can be used in conjunction with its computerized newsroom in Halifax to produce closed captions for scripted portions of its newscasts:
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We will do the scripted portions to provide a service [for the deaf and hearing-impaired] ... The equipment is now in house. It is being tested further, and we hope very early in the new year that we will have the system up and operative.
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The Commission expects the licensee to adhere to this commitment to provide closed captions, at a minimum, of the headlines and other scripted portions of its major local newscasts, commencing within the current licence term.
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In renewing these licences, the Commission authorizes the licensee to make use of the Vertical Blanking Interval on its Maritime stations. 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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Further, the Commission expects the licensee to acquire a telephone device for the deaf (TDD) for each of its four stations within the first year of the new licence term, and to install them in the master control rooms or wherever most appropriate to ensure access to the stations throughout the broadcast day by deaf or hearing-impaired viewers.
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The Commission has reviewed the licensee's programming proposals and commitments and, on the whole, considers these to be commensurate with CHUM's financial and other resources. Accordingly, the Commission is satisfied that the licences for CHUM's four Maritime television stations and their rebroadcasters should be renewed for a full term.
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The Commission acknowledges the interventions submitted by the Canadian Association of Broadcasters, Theatre Prince Edward Island, The Nova Scotia Drama League, the Glace Bay Police Department, the Island Alternative Measures Society and the Chairman of the 1988 Canadian Little League Championship Tournament, all in support of these applications for licence renewal. It notes that matters raised in the intervention by the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) are addressed in the notice accompanying this decision.
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The Commission received an intervention from Mayor Douglas Williamson of the City of Bathurst regarding the quality and reliability of the signal provided by the rebroadcasting undertaking serving Bathurst, CKAM-TV Upsalquitch Lake. Based on the evidence available to it, including that provided by the licensee and the Department of Communications, the Commission is satisfied that CKAM-TV provides the Bathurst area with a reliable signal of adequate quality.
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Through an intervention presented at the hearing by The Maliseet Nation at Tobique, the Commission was made aware of the formation of the Maritime Aboriginal Broadcasting Corporation (MABC) which represents approximately 34,440 aboriginals in Atlantic Canada. The organization is seeking support to initiate, develop and distribute radio and televison programs of interest to its aboriginal audience with secondary attention to be given to broadcasting programs of interest to general audiences. The Commission encourages the licensee to consult with the native representatives with a view to assisting the efforts of MABC.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CJCH-TV Halifax and its rebroadcasting undertakings CJCH-TV-1 Canning, CJCH-TV-2 Truro, CJCH-TV-3 Valley, CJCH-TV-4 Bridgetown, CJCH-TV-5 Sheet Harbour, CJCH-TV-6 Caledonia, CJCH-TV-7 Yarmouth and CJCH-TV-8 Marinette; CJCB-TV Sydney and its rebroadcasting undertakings CJCB-TV-1 Inverness, CJCB-TV-2 Antigonish, CJCB-TV-3 Dingwall, CJCB-TV-4 New Glasgow, CJCB-TV-5 Bay St. Lawrence and CJCB-TV-6 Port Hawkesbury; CKCW-TV Moncton and its rebroadcasting undertakings CKCW-TV-1 Charlottetown, CKCW-TV-2 St. Edward/St. Louis, CKAM-TV Upsalquitch Lake, CKAM-TV-1 Newcastle, CKAM-TV-2 Chatham, CKAM-TV-3 Blackville, CKAM-TV-4 Doaktown and CKCD-TV Campbellton; and CKLT-TV Saint John and its rebroadcasting undertakings CKLT-TV-1 Florenceville-Woodstock and CKLT-TV-2 Boiestown
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1. The licensee shall operate these broadcasting undertakings as part of the network operated by CTV Television Network Ltd.
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2. The licensee, in respect of CJCH-TV Halifax, shall expend on Canadian programming, at a minimum:
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(a) for the year ending 31 August 1990, the amount of $2,267,000;
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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 stations' 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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(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, in respect of CKCW-TV Moncton and CKLT-TV Saint John, shall expend on Canadian programming, at a minimum:
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(a) for the year ending 31 August 1990, the amount of $1,350,000 for the two stations combined;
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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 stations' 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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(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 stations' 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 stations' 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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4. 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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5. 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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