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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-101
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British Columbia Television Broadcasting System Ltd.
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Vancouver, Chilliwack, Bowen Island, Squamish, Courtenay, Brackendale, Wilson Creek, Prince George, Kelowna, Penticton, Vernon, Revelstoke, Oliver/Osoyoos, Santa Rosa, Grand Forks, Trail, Castlegar, Taghum, Nelson and Creston; Kamloops, Pritchard, 100 Mile House, Williams Lake and Quesnel, British Columbia -881065700 - 881067300 - 881068100 - 881066500
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Following a Public Hearing in Vancouver on 25 October 1988, the Commission renews the broadcasting licences for CHAN-TV Vancouver and its rebroadcasting undertakings serving the other 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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British Columbia Television Broadcasting System Ltd. (BCTV) is ultimately controlled by Mr. Frank A. Griffiths of Vancouver. Mr. Griffiths' broadcast holdings also include controlling interests in CHEK-T.V. Limited, licensee of CHEK-TV Victoria; Westcom Radio Group Ltd., licensee of 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 a number of CBC-affiliated television undertakings in the British Columbia interior.
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CHAN-TV Vancouver, together with its sister station CHEK-TV Victoria and the numerous rebroadcasters of these two stations, provide CTV network service to approximately 95% of all households in British Columbia. The CHAN-TV signal is also available to thousands of viewers elsewhere in Canada as part of CANCOM's Canadian signal package.
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The Vancouver Public Hearing was the Commission's first opportunity for a full review of the licensee's performance in several years. This review included an assessment of the licensee's past performance with respect to meeting its own commitments and the Commission's expectations as set out in licence renewal Decision CRTC 79-281 dated 28 March 1979. The Commission notes in this regard that the licensee has fulfilled its commitment to extend service to the Sunshine Coast through the establishment of a transmitter at Wilson Creek in 1983. The Commission is also satisfied that the licensee has met the commitment, noted in the 1979 decision, to upgrade its production facilities. Capital expenditures over the five-year period ending 31 August 1989 are expected to be approximately $6.2 million, the largest portion of which has been for studio equipment replacement.
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In Decision CRTC 79-281, the Commission noted that, as a major affiliate in the CTV network, CHAN-TV should:
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... contribute more effectively and significantly to the development and production of Canadian programs of high quality and excellence.
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At the Vancouver hearing, the licensee reviewed its performance in this regard. It noted its past participation in such CTV network series as "The Alan Thicke Show", "Fast Company", "The Don Harron Show", "Prime Cuts" and various segments of "Canada AM". Current contributions to the CTV network by the licensee include the half-hour daytime drama "Secret Lives" and the weekly half-hour children's program "5-4-3-2-Run". BCTV identified various other specials it has produced for the network, including a one-hour program on the Vancouver Folk Festival and coverage of the Canadian Country Music Awards. The licensee also described its involvement in the production of feature-length movies, such as "The Outside Chance of Maximilian Glick" and "Dude".
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BCTV indicated that competition with other CTV affiliates for exposure on the network is such that its pilots and proposals are seldom accepted by the network's programming committee. It has therefore sought out other national windows for its production.
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Examples provided by the licensee include its drama special "Brothers by Choice" and the series "Airwaves", both of which were broadcast by the CBC network. Other BCTV productions have been acquired by Global Communications Limited, Canadian pay television services and by individual CTV affiliates.
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In its application, BCTV listed 30 development projects in which it has participated during the past five years. The licensee stated that:
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Of these, over half were in the drama category. The majority of the projects involved independent producers. Some of those projects have gained national exposure. We have been very encouraged by these successes, and we intend to maintain an intensive effort to promote, produce and sell our regional programming to a wider Canadian audience.
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The Commission commends the licensee on the manner with which it has responded to the Commission's expectation regarding the production of high quality Canadian programming, and encourages it to persist in these efforts. The licensee's close working relationship with the Canadian independent production industry was noted in supporting interventions submitted by several members of that industry, including Atlantis Films Limited whose representative, Michael MacMillan, appeared at the hearing to present his views. In this context, the Commission notes the licensee's statement that one of its highest priorities is "to work with independent producers to get a series in prime time on the CTV network".
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With respect to local programming, BCTV submitted that over the last ten years this has averaged better than 25 hours per week. By far the largest portion of the licensee's local programming is in the category of news and information. This is produced with a staff of more than 100 people, including those working out of news bureaus in Victoria and Ottawa. The licensee's news and information programming accounts for approximately 70% of BCTV's Canadian program expenditures. According to the licensee, geography and historical patterns of commerce have tended to give British Columbia residents a sense of isolation from central and eastern Canada, making it "vitally important to develop an exceptionally strong regional and national news voice in our province".
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Other local programs currently broadcast by BCTV on a regular basis include the weekly children's series "Zig-Zag"; a weekly sports series entitled "All Star Wrestling"; the half-hour music and entertainment series "The Performers"; and "Fifteen", a half-hour weekly drama series for youth. BCTV also produces a number of local specials, such as the "Variety Club Telethon", and contributes episodes to the weekly information series "Canada in View" co-operatively produced by a number of CTV network affiliates.
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On balance, the Commission considers that the amount of local programming produced by BCTV in the past has been consistent with the licensee's commitments, and that the licensee's expenditures on such local programs have been commensurate with its financial resources and responsibilities. The Commission, noting in particular the quality of the licensee's news programming and other local production, and its extensive involvement with Canadian independent producers, is satisfied with BCTV's performance during the current licence term.
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In examining BCTV's proposals for the new licence term, the Commission notes the licensee's plans to examine the possibility of future co-operative productions with CHEK-TV Victoria, and its intention to seek out other co-venture partners for the production of programs marketable on an international basis. The Commission also notes the licensee's commitment, set out in the renewal application, to allocate a total of $835,000 over five years to prepare scripts and develop pilots. At the hearing, the licensee cited the following as programs currently under development: "Wing and a Prayer", a half-hour situation comedy based on RCAF life on the prairies during World War II; "Winter Love" a feature length, made-for-television movie; and "Discover the Sea", a new series introducing children to marine life. The Commission draws the licensee's attention to the program development funding guidelines set out in the introductory Public Notice.
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With respect to local programs, the licensee indicated that it would continue to focus on improving the quality of its news and information programming. BCTV also stated that it would be "diligently working to develop new series of programs in each of the children's and drama categories." In this context, the Commission notes the licensee's commitment, set out in its Promise of Performance, to broadcast a minimum of 53 minutes per week of original local music and entertainment programming during the new licence term.
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The licensee expressed the view that it can improve its service:
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by continuing to make our local programming more attractive and more relevant to our viewers than the numerous new services entering our marketplace via satellite and cable.
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While encouraging the licensee in its plans to increase the attractiveness and relevance of its local programming, the Commission is concerned that BCTV's quantitative commitment to such programming, as presented at the hearing, would result in a potential decrease in the amount of original local program production from the 25 hours 35 minutes per week specified in the current Promise of Performance to a proposed average of 21 hours 46 minutes per week for the new licence term.
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The Commission has considered the licensee's explanation that the decrease essentially reflects the sizeable gap in its local program schedule created by the retirement of Jack Webster, host of the popular "Webster" program, and the demise of the Vancouver White Caps soccer team. Nevertheless, taking into account the resources available to BCTV, its significant past performance in this respect, the size, importance and vitality of its market, and the amounts of local programming produced by other television licensees, the Commission expects BCTV to maintain, at a minimum, an average of 25 hours per week of original local programs throughout the new licence term.
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At the hearing the Commission discussed with BCTV the diverse races, cultures, ethnic backgrounds and origins of those resident in the Vancouver area, and the licensee's responsibility to ensure that they are accorded fair representation in its local television programs. According to the licensee, CHAN-TV does not broadcast programs targeted to any one specific ethnic group, and has received "no complaints or demands from our viewers for this kind of coverage". The licensee was satisfied that "all the ethnic communities represented, plus visible minorities, get very good coverage within our news operation", and that, in recent years, CHAN-TV has "become more sensitive to the need to employ visible minorities". BCTV also expressed the view that Vancouver's largest ethnic minority, the Chinese, were adequately served by the national specialty television and regional pay services, Chinavision Canada Corporation and Cathay International Television Inc.
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The Commission has considered the views put forward by the licensee on this matter, but is not convinced that CHAN-TV's mainstream programming adequately takes into account the diverse ethnic and visible minority groups living in the Vancouver area. In this regard, the Commission notes the 1986 census results indicating that approximately one quarter of those resident in metropolitan Vancouver have a mother tongue other than English or French. Accordingly, the Commission expects the licensee to prepare for its new licence term by re-examining its responsibility to reflect the rapidly-changing mix of ethnic groups resident within the coverage area of CHAN-TV, with a view to developing and demonstrating a greater sensitivity to their diverse needs and interests in the context of its mainstream programming.
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A further issue discussed with the licensee was its expenditures on Canadian programming. According to the financial projections provided in its renewal application, BCTV will spend $17,370,000 on Canadian programming in the first year of the new licence term.
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At the Vancouver hearing, the Commission asked BCTV for its views regarding a possible condition of licence linking Canadian program expenditures to revenue. According to the licensee, it had suggested such an approach in its application. Specifically, BCTV said "... if our revenues are to go up, then our Canadian programming commitments can obviously go with them". The licensee also provided the undertaking that "... we will always spend more on Canadian [programming] than we do on foreign", and confirmed that, if the Commission were to devise a formula linking such expenditures to revenues, "... we would be prepared to accept that, certainly, hoping that it would apply equally to all stations".
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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 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 CHAN-TV is set out in the appendix to this decision.
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The Commission notes BCTV's ongoing commitment to maintain and improve its studio and transmission facilities through capital expenditures projected to amount to more than $8 million over five years. Of this amount the licensee undertook to allocate $250,000 over five years for closed captioning hardware and software, including $15,000 proposed as a first-year capital expenditure on equipment to caption the scripted portions of CHAN-TV's local news programming. BCTV also undertook to have "all programs we produce for syndication or for the CTV network closed captioned in the first year of the renewal 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 Public Notice introducing this and other television renewal decisions, expressed frustration about the lack of any captioning on BCTV's local news and the lack of any immediate plans by the licensee to remedy this situation. They noted the recent establishment in Vancouver of a new company, Western Captioning Services, and urged the licensee to caption its local productions.
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In responding to these interveners, BCTV acknowledged the concerns of the deaf and hearing impaired, and undertook to work with Western Captioning Services: "We now know that that service is available, and we will be taking advantage of that service." At the hearing, BCTV's President Mr. Don Smith also committed to move forward the projected purchase date of the captioning equipment:
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I'm prepared to undertake that [$15,000 expenditure] immediately in this fiscal year and try to have that first segment of it completed before we enter our next licence renewal.... That is what we undertake to do immediately, that we put this encoding facility in place.... We can provide, we believe, the substantial text of the locally-produced stories, which would ... communicate to a hearing-impaired viewer the essence of the stories ... on our 6:00 p.m. news hour.
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The Commission expects the licensee to adhere to each of its commitments with respect to closed captioning, including the provision of closed captions, within the current licence term, of scripted portions of its local 6:00 p.m. news hour. 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 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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With respect to the licensee's stations, CIFG-TV Prince George, CHKL-TV Kelowna and CHKM-TV Kamloops, the Commission notes that these undertakings rebroadcast the programs of CHAN-TV Vancouver, but that the licensee will continue to permit the insertion of local commercials by Jim Pattison Industries Ltd. (CFJC-TV Kamloops), Okanagan Valley Television Co. Ltd. (CHBC-TV Kelowna) and CKPG Television Limited (CKPG-TV Prince George).
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The Commission has reviewed BCTV's programming proposals and commitments and, on the whole, considers these to be commensurate with the licensee's financial and other resources. In those few areas where the Commission considers that some greater effort and attention is required of BCTV, the Commission has expressed expectations and encouragements regarding the licensee's future performance, and is confident that BCTV will respond fully to these. Accordingly, the Commission is satisfied that the licences for CHAN-TV and its rebroadcasting undertakings should be renewed for a full term.
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The Commission acknowledges the supporting intervention received from the Canadian Cable Television Association (B.C./Yukon Region), encouraging the licensee to introduce stereo broadcasts for viewers of CHKM-TV, CHKL-TV and CIFG-TV. The Commission notes the further support expressed for approval of BCTV's licence renewal applications by Pam Glass, the Canadian Association of Broadcasters, and 108 other groups and individuals. The Commission also acknowledges the concerns expressed by Mr. Joseph Phelan regarding simultaneous signal substitution. With respect to the intervention submitted by the British Columbia Ministry of Regional Development, the Commission is satisfied that the issues raised by the intervener regarding CHAN-TV have been adequately addressed in the context of this decision. The Commission also acknowledges the intervention by the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) and notes that matters raised in this intervention are addressed in the context of the introductory Public Notice.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CHAN-TV Vancouver, CHAN-TV-1 Chilliwack, CHAN-TV-2 Bowen Island, CHAN-TV-3 Squamish, CHAN-TV-4 Courtenay, CHAN-TV-5 Brackendale, CHAN-TV-6 Wilson Creek, CIFG-TV Prince George, CHKL-TV Kelowna, CHKL-TV-1 Penticton, CHKL-TV-2 Vernon, CHKL-TV-3 Revelstoke, CKKM-TV Oliver/Osoyoos, CISR-TV Santa Rosa, CISR-TV-1 Grand Forks, CKTN-TV Trail, CKTN-TV-1 Castlegar, CKTN-TV-2 Taghum, CKTN-TV-3 Nelson, CKTN-TV-4 Creston, CHKM-TV Kamloops, CHKM-TV-1 Pritchard, CITM-TV 100 Mile House, CITM-TV-1 Williams Lake and CITM-TV-2 Quesnel
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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 $17,370,000;
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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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