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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-113
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CanWest Broadcasting Ltd.
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Winnipeg and Minnedosa, Manitoba - 881004600
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Following a Public Hearing in Winnipeg commencing 12 October 1988, the Commission renews the broadcasting licences for CKND-TV Winnipeg and its rebroadcasting undertaking CKND-TV-2 Minnedosa from 1 September 1989 to 31 August 1994, subject to the conditions specified in the appendix to this decision and the licences to be issued.
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CanWest Broadcasting Ltd. (CanWest), licensee of CKND-TV and CKND-TV-2, is indirectly owned and controlled by Mr. Israel Asper. CanWest also ultimately controls both SaskWest Television Inc., licensee of independent stations CFRE-TV Regina and CFSK-TV Saskatoon, and, through CanWest Pacific Television Inc., Western Approaches Limited, licensee of independent station CKVU-TV Vancouver. Mr. Asper holds, indirectly, a 60.75% equity position but only a 50% voting position in Global Ventures Western Ltd. which in turn holds 100% of Global Communications Limited, licensee of an Ontario regional television service.
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CanWest was first licensed to operate CKND-TV as an independent television station in 1974. In Decision CRTC 81-784 dated 22 October 1981, the Commission licensed CKND-TV-2 Minnedosa to rebroadcast the programs of CKND-TV to Brandon and southwestern Manitoba.
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Although it experienced significant growth in terms of profits during the period 1982 to 1985, CKND-TV has not performed as well as other private television broadcasters in this respect in recent years. The licensee attributed this performance to increased competition in its market and to a significant slowdown in the growth of advertising revenues in Manitoba. According to CanWest, while combined national and local advertising revenues grew 40% for all private television stations in Canada between 1983 and 1987, the increase in Manitoba was just half of this level, or only 20%; from 1986 to 1987, national advertising revenues grew by 5.9% nationally, but only by "one fifth of one percent" in Manitoba.
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The Commission notes, nevertheless, that, CKND-TV has consistently and significantly exceeded a 1979 commitment to broadcast 24 hours of original local programming each week. For example, by 1981 CKND-TV had already increased its original local programming hours to 30 hours per week; in the current season, according to the licensee, this number has risen to 34 hours 10 minutes per week.
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During the first years of the current licence term, CKND-TV was particularly successful in producing local drama programs. Between 1982 and 1985, CKND-TV produced several half-hour drama programs, such as "Hunting Season", "Reunion" and "In The Fall" (the "West Winds" trilogy), which achieved national and international program sales. In the 1984/85 season, the station became involved in its first feature-length production, "Tramp at the Door", based on a story by Gabrielle Roy and written and directed by Winnipegger Allan Kroeker.
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In the area of news, the Commission notes that in the fall of 1988 CKND-TV added a local news package to its regular noon-hour agricultural report and that the station has achieved a significant audience share for its late evening newscast aired each night, including weekends, at 10:30 p.m. In the fall of 1987, CKND-TV, in co-operation with its sister CanWest stations CFRE-TV Regina and CFSK-TV Saskatoon, began to produce the evening information programs "For Arts' Sake" and "Eyes West". According to the licensee, CKND-TV is "developing a close working relationship with our sister stations in Regina, Saskatoon and Vancouver to increase coverage of western stories."
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CKND-TV has also produced, in co-operation with CFRE-TV Regina and CFSK-TV Saskatoon, such regularly scheduled local music/variety programs as "Big Sky Country" and "Folk Arts Café" and the award-winning syndicated "Size Small" children's series.
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The Commission notes that CKND-TV currently schedules a weekly total of 3 hours 30 minutes of local programming other than news in the 6:00 p.m. to midnight time period.
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Based on the licensee's accomplishments as reviewed at the Winnipeg hearing, including its substantial activities in the production of high quality Canadian programming, its participation in co-operative productions with other CanWest stations, and the increased amount of drama and other local programming on CKND-TV, the Commission is satisfied with the licensee's performance during its current term of licence.
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With respect to its plans for the next licence term, the licensee committed to continue to serve its viewers as a community station with a strong focus on local programming and public service. At the same time, however, it stated that, given recent and projected economic trends in Manitoba, "we believe it is prudent for CKND-TV to make our plans and commitments on the assumption of modest growth". For this reason, it proposed to maintain its existing level of service through its next licence term, and to exceed this level in the event its financial situation improves significantly.
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At the hearing, CanWest stated that the daily and weekly local series in CKND-TV's current schedule, together with its existing news programs, will "form the core of our projected local production responsibilities in the forthcoming years." In addition, the licensee stated that the station will continue to produce entertainment and information specials each year. In this respect, CanWest highlighted a forthcoming special entitled "Indian Time": produced by Winnipeg's Native Multi-Media Productions Ltd. in association with CKND-TV, this program was described by the licensee as "the first ever North American native variety special".
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As noted earlier, the level of local programming in CKND-TV's current schedule, on which it bases its future production plans, amounts to in excess of 34 original hours each week. Moreover, the licensee confirmed at the hearing that its Canadian program expenditure projections for the new licence term reflect the continued production of a similar level of local programs. Nevertheless, the licensee considered itself unable to increase its local programming commitment as set out in its Promise of Performance beyond the level of 24 hours of original local production per week, the level to which it committed in 1979.
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The Commission is concerned that, should it accept CKND-TV's level of local programming as proposed, the licensee will not have formally increased its commitment to local program production for approximately 10 years despite its demonstrated ability to exceed its existing commitment. As discussed in the Public Notice introducing this and other television renewal decisions issued today, the Commission, in considering renewal applications, needs to be assured that applicants will bring about clear improvements to the service they provide. Accordingly, given CanWest's history of exceeding its minimum commitment to local production and its clear intention to maintain a level considerably above that proposed in its application, the Commission expects the licensee to schedule an average of at least 30 hours per week of original local programming during each year of the new licence term. CanWest is required to submit to the Commission within three months of the date of this decision a revised Schedule I to the Promise of Performance which reflects this expectation. The Commission considers that in meeting this expectation the licensee will be adhering more closely to its clearly-demonstrated production capability.
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In terms of its plans for drama production in the upcoming licence term, the licensee informed the Commission that CKND-TV plans to undertake regional drama productions "in concert with other CanWest stations, other broadcasters and independent producers here in the West." It stated:
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... CanWest is now in the development of four feature films in western Canada through development equity, and we're presently helping two made-for-television movies, their licence fees, in concert with other stations, and we're involved, either through development funds or licence fees, in six other potential regional drama series, some by ourselves at the moment with independent producers and some in concert with other stations.
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Despite these statements, however, the licensee failed to make any firm commitments regarding the airing of local drama productions during the new licence term. Again, the Commission is concerned about the licensee's reticence in this respect, particularly in light of CKND-TV's commendable past efforts in respect of local drama production. The Commission considers that, given the potential for the four CanWest stations to co-operate in the production of new drama projects, CKND-TV is in a position to undertake a level of drama production at least similar to that which it achieved during the current licence term. Accordingly, the Commission expects the licensee to produce, co-produce or produce co-operatively a minimum of six local drama productions over the next licence term. The Commission expects the licensee to broadcast such material during the evening broadcast period.
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The Commission is satisfied that the above expectations regarding the level of local programming and drama production are consistent with the licensee's resources and capabilities and adequately take into account the particular circumstances of the Winnipeg market. The Commission is of the opinion that this station can continue to build on its past successes by taking advantage of the opportunities for co-operative production ventures with its sister CanWest stations, as discussed at the hearing and as already realized to some extent by the licensee.
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With this in mind, the Commission expects the licensee to continue to develop and produce entertainment projects in co-operation with other CanWest stations or with other broadcasters. The Commission considers that such ventures in which resources are pooled should increase the overall quality of local programming. Such co-operative projects should provide fair and equitable exposure of Canadian talent in each locality.
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According to its financial projections, CKND-TV will expend $4,052,000 on Canadian programming in the first year of the new licence term. As stated in the Public Notice introducing this and other television renewal decisions issued today, the Commission has decided to require licensees of television stations that earned more than $10 million in total advertising revenue in 1987/88, by condition of licence, to adhere to their projected 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 that the Canadian program expenditures of each station keep pace with changes in its revenues. The specific condition of licence pertaining to CKND-TV is set out in the appendix to this decision.
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In renewing these licences, the Commission authorizes the licensee to make use of the Vertical Blanking Interval. The Commission expects Canwest 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 that CKND-TV has installed a closed captioning system which enables the station to obtain closed captioning directly from the National Captioning Institute. According to the licensee, this has already resulted in a significant increase in the number of captioned programs being broadcast on CKND-TV.
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The Commission also notes the licensee's plans to caption news headlines and a news summary on its early evening newscast in 1988/89 and on its late evening newscast beginning in the fall of 1989, and to caption the scripted body of its local newscasts once its newsroom facilities have been upgraded. The Commission expects the licensee to fulfill its commitments with respect to captioning headlines and appropriate scripted portions of its early evening newscast during the new licence term.
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The Commission also expects the licensee to obtain a telephone device for the deaf (TDD) during the first year of the new licence term and to install it wherever is most appropriate, such as in the master control room, to ensure access by deaf and hearing-impaired viewers to the station over the entire broadcast day.
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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 the commitments have been found to be less than adequate, the Commission has expressed expectations regarding the licensee's future performance. The Commission is satisfied that CanWest will respond fully to the concerns identified in this decision and therefore considers that the licences for CKND-TV and its rebroadcaster should be renewed for a full term.
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The Commission acknowledges the support expressed for the renewal of CKND-TV's licence in the over 120 interventions submitted by a wide variety of community and sports organizations, theatre and dance companies, educational institutions and independent producers, as well as by the Canadian Assocation of Broadcasters (CAB) and the National Watch on Images of Women in the Media (MediaWatch) Inc. Interventions were also submitted by national and regional chapters of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA). The Commission considers that matters raised in these interventions have been adequately addressed by the licensee and in the Public Notice introducing this and other television licence renewal decisions issued today.
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The Commission notes that CanWest and Western Manitoba Broadcasters Limited (Western Manitoba) have agreed to continue their arrangement with respect to commercial substitution on CKND-TV-2 Minnedosa. As a result of this agreement, Western Manitoba withdrew its intervention opposing CanWest's renewal application.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CKND-TV Winnipeg and its rebroadcaster, CKND-TV-2 Minnedosa, Manitoba
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1. 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 $4,052,000;
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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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2. 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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3. 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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