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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-123
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Electrohome Limited, doing business under the name and style of Sunwapta Broadcasting
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Edmonton, Grande Prairie, Peace River, Whitecourt, Ashmont, Lac La Biche, Red Deer, Lougheed, Grouard Mission, Slave Lake, Crimson Lake and Rocky Mountain House, Alberta - 881562300
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Following a Public Hearing in Edmonton commencing on 14 November 1988, the Commission renews the broadcasting licences for CFRN-TV Edmonton and its rebroadcasting undertakings serving the other communities listed 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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Electrohome Limited (Electrohome) is a publicly-traded company ultimately controlled by members of the J.A. Pollock family of Ontario. In addition to CFRN-TV and its rebroadcasters, Electrohome is licensee of CFRN and CKXM-FM Edmonton, as well as of CKCO-TV, the CTV affiliate in Kitchener, and various other broadcasting undertakings in Ontario.
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CFRN-TV was established by pioneer Canadian broadcaster Dr.G.R.A. Rice in 1954 and has operated as an affiliate of the CTV network since 1961. Ownership of CFRN-TV, and of the two Edmonton radio stations noted above, remained with Dr. Rice until 1988 when the Commission approved applications for authority to transfer their effective control to the present owners (Decision CRTC 88-276 dated 8 April 1988). In that decision the Commission accepted as benefits associated with the transaction a number of commitments made by the new owners, including several relating directly to CFRN-TV. The Commission, recognizing that many of the commitments could not be fully implementated within the current licence term, indicated that it would consider requiring their fulfillment, by condition of licence, at the time of renewal.
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At the Edmonton hearing in November 1988, the Commission reviewed with the licensee its progress toward meeting its commitments, including its undertaking to extend service in northern Alberta through the construction of new television rebroadcasters at Edson, Hinton, Jasper, Athabaska, Grand Centre and Plamondon. In response to a request of the Commission, Electrohome filed a report after the hearing in which it indicated that rebroadcasters should be in place in the first three communities by August 1990 and in the last three by August 1991. The Commission reminds the licensee that the necessary applications should be completed and submitted for the Commission's consideration in a timely manner in order that the proposed implementation schedule may be met.
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A second commitment noted in Decision CRTC 88-276 concerned the installation of stereo broadcast capability at all of the licensee's television transmitters within a period of five years. The Commission notes that Electrohome now plans to complete this project by August 1991, almost two years ahead of its original schedule.
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The 1988 decision also described the licensee's commitment to construct microwave links between CFRN-TV and its rebroadcasting undertakings in order to improve signal quality and to distribute separate regional newscasts. As a related commitment, the licensee had stated that it would hire five additional news correspondents in the year following approval of the transaction to help provide the proposed split-feed coverage of local events.
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At the hearing, Electrohome advised that a two-way microwave system linking Edmonton with Whitecourt, Grande Prairie, Peace River, Grouard Mission and Slave Lake is now in operation, and that other reverse linkage microwave feeds between Edmonton and Red Deer and Lougheed, and Ashmont and the communities beyond would be completed shortly. The licensee stated that microwave links to the other rebroadcasting undertakings would be completed within the new licence term.
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Electrohome added that it had started testing the existing microwave system to Whitecourt and the other four communities in the quadrant north and west of Edmonton by inserting a separate five-minute regional newscast once a week, and stated plans to increase the number of these split-feed newscasts to five per week early in 1989. The licensee indicated further that, once its microwave system is completed, "... there will be a five minute insertion in each of the four quadrants on a daily basis, Monday through Friday". It also confirmed that one of the five proposed news correspondants had been hired and that the four other positions would be staffed within the current calendar year.
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The licensee reiterated plans to solicit local advertising within the areas served by the proposed split-feed newscasts. When reminded of the Commission's expectation expressed in Decision CRTC 88-276 that such local advertising be broadcast only within the split-feed newscasts and the Commission's statement that this expectation could be imposed as a condition of licence, the licensee expressed hope that any such condition would be broad enough to permit the insertion of local advertising in other programs that might be distributed on a split-feed basis from time to time. However, the Commission has decided to impose a condition of licence authorizing the insertion of local advertising only during the proposed split-feed newscasts. The condition of licence is set out in the appendix to this decision.
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Decision CRTC 88-276 noted the licensee's commitment to renovate the building housing CFRN-TV, with a view to improving the quality of local production. As part of this commitment, the licensee had promised to computerize the CFRN-TV newsroom and to introduce closed captions in its local news programming. At the Edmonton hearing, Electrohome indicated that, barring unforeseen delays, the renovations to its television studio facilities, including the computerization of the newsroom, would be completed before the end of 1989.
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The licensee also stated that once the newsroom computerization was completed, "... we intend to close caption all of our newscasts.... Our long-term goal would be that all of our local programming would be done closed captioned." The Commission, noting the intervention received from Mr. Peter Haskins of Stony Plain on this subject, expects the licensee to adhere to these important commitments with respect to closed captioning. The Commission also expects Electrohome to acquire a telephone device for the deaf (TDD) within the first year of its licence term, and to install it in the master control room or wherever is most appropriate to ensure access to the station throughout the broadcast day by deaf or 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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In the application to acquire control of CFRN-TV, the present owners pledged to enhance the station's programming through the production of an annual special featuring the Edmonton Symphony Orchestra, as well as of a weekly program series devoted to business matters and a new children's program series. These plans were noted in Decision CRTC 88-276, as was a commitment to improve CFRN-TV's programming further through the exchange of program segments or entire programs with CKCO-TV Kitchener and through the co-operative production of programs with the Kitchener station.
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At the Edmonton hearing, Electrohome advised that all three of the new local program initiatives had been realized. Specifically, it stated that a special production of Handel's Messiah was to be broadcast during Christmas week 1988, while "Alberta Business" and the new children's series "Video Stew" had been introduced to the local program schedule in September 1988. Electrohome indicated that the weekly business program is exchanged with a similar program produced by CKCO-TV, allowing each station to select and use relevant program segments produced by the other. It added that meetings were being held with CKCO-TV with a view to the development of a musical variety program on each station, "...whereby a common format would be developed and both stations would integrate material into both programs." The Commission encourages the licensee to continue its efforts to develop programs in co-operation with CKCO-TV, in accordance with its commitments noted in Decision CRTC 88-276.
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The Commission has reviewed the steps taken by Electrohome toward fulfillment of the commitments outlined in the 1988 decision, and is satisfied with the progress achieved to date. It expects the licensee to adhere to its original timetable, as noted in the 1988 decision and reviewed at the hearing, for fulfilling those commitments not yet implemented, including the completion of the microwave system, the provision of split-feed programming, the introduction of stereo capability and, subject to Commission approval, construction of the six new rebroadcasting undertakings.
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With respect to the programming plans and strategies Electrohome proposes to follow in the new licence term, the Commission notes that these indicate a continuing concentration by the licensee in the area of news and other information programming, music and dance, variety and, to a lesser extent, children's programming.
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The Commission commends CFRN-TV on its performance in the first of these areas, in particular on the comprehensiveness of its local news service. This was strengthened recently through the addition of a half-hour mid-day newscast, Monday through Friday. The licensee also underscored the importance it places on the introduction of split-feed newscasts on CFRN-TV's rebroadcasting undertakings; in its view, such programming will assist the station in maintaining its regional audience, and hence its market revenue share.
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The licensee proposed to continue production of such information programs as "Day By Day", a weekday magazine program; "Between Two Worlds", designed for Native viewers; a program for seniors entitled "Time of Your Life"; "Every Day Workout", a weekday fitness program in syndication to several CTV affiliates, or programs similar to these, throughout the new licence term. The licensee also stated that it would continue to participate, along with several other CTV affiliates, in the production of programs for the "Canada In View" series. Further, Electrohome outlined plans for the production of four documentary specials in the current broadcast year; the Commission expects the licensee to maintain, at a minimum, this annual level of local documentary production throughout the new licence term.
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The Commission also commends the licensee for the important role it plays in producing local variety and music and dance programming. In the 1988/89 broadcast year CFRN-TV produces three regularly-scheduled program series in these under-represented categories, all featuring Canadian talent exclusively, including the classical music program "New Peformers"; the "Tommy Banks Show", featuring jazz music; and a musical/variety program, scheduled at 7:00 p.m. on Wednesday evenings, entitled "Marquee". The Commission notes the licensee's intentions to continue to produce these or similar programs during the new licence term.
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In addition to these regularly-scheduled programs, Electrohome stated that CFRN-TV's schedule would include 60 hours of special local productions in 1988/89. The licensee also noted its production each summer of an hour-long special entitled "Talent Quest", which focuses on young Alberta performers, and described plans for the production of a half-hour special entitled "World Stage", featuring an Alberta entertainer of international renown. For the new licence term, the licensee made a specific commitment to produce three hour-long concerts annually; the Commission expects the licensee to adhere to this commitment, at a minimum.
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In addition to the new children's program series entitled "Video Stew" mentioned earlier in this decision, Electrohome stated that it would continue to produce "Paul Hann and Friends". According to the licensee, this weekly children's series aired on the CTV network for three years and has since become successful in syndication.
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The licensee noted that it has contributed a total of 265 half hours of Canadian programming to the CTV network during the current licence term, including the children's series "Storytime" and "Paul Hann and Friends", as well as a program entitled "A Funny Thing Happened on the Way to the Symphony". Although no CFRN-TV production currently airs on the network, the Commission commends the licensee on its past contributions and encourages it to continue its efforts to produce programs for network distribution during the new licence term. In this regard the Commission notes the licensee's plans to submit for the network's consideration the proposal, described earlier in this decision, for a musical variety program to be developed and produced in co-operation with CKCO-TV:
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We believe we now have the resources and we have the capabilities between us to make a program or series of programs that can play across Canada.
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The licensee's activity in the area of drama production has been limited during the past licence term, although it did participate in the consortium of western-based CTV affiliates in the co-operative production of "Hamilton's Quest", a family-oriented dramatic series. At the hearing, the licensee also noted its involvement in a recently-completed co-production entitled "Into the Fields", a 30-minute drama special; and in a further project entitled "Down Came the Rain" which, according to the licensee is scheduled to begin production early this year. Regarding its plans for the production of drama in the new licence term, Electrohome stated:
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We would like to produce two hours of drama a year and that's what we budget for. Quite often we don't get the two hours because ... we end up expending our entire budget on a [single] hour.
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The Commission encourages the licensee to produce either by itself or in co-operation with other broadcasters, or to co-produce with the independent production sector, and broadcast a minimum of two hours of drama specials on CFRN-TV in each year of the new licence term.
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With regard specifically to co-productions, the Commission discussed with the licensee at the hearing its involvement with the Alberta independent production sector. Concerns regarding the licensee's approach to projects involving locally-based independent producers were expressed in an intervention presented at the hearing by King Motion Picture Corporation.
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According to Electrohome, it has been involved in a number of projects with independent producers "... that just haven't gone anywhere... The ideas are good. It's just a matter of somewhere along the line they fall down." It was Electrohome's view that the role of the independent producer "... is to bring the financing to the project that he brings with him to the door", whereas the broadcaster's role is to be "... very active in the licensing of projects that come to us [by providing] letters of committal that can go forward both to Telefilm and to the Alberta [Motion Picture Development] Fund."
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Later on at the hearing, Electrohome acknowledged the difficulties often encountered in raising funds for independent productions:
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So maybe we can be proactive... in trying to put that financing side of it together, and we're prepared to have a look at that.
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The Commission places particular importance on this statement by the licensee, and notes as well its commitment to meet and discuss these matters with the AMPDC. The Commission also expects Electrohome to increase its involvement with the independent production community in Alberta during the new licence term.
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Schedule I of the Promise of Performance submitted with CFRN-TV's renewal application contained a commitment to produce 21 hours 50 minutes per week of original local programming, representing a decrease of 1 hour 35 minutes per week from the amount specified in the current Promise of Performance. After much discussion at the hearing, the licensee advised that the minimum amount of original local programming on CFRN-TV would be 25 hours 35 minutes per week, reflecting the addition in January 1988 of the mid-day local newscast on weekdays noted earlier in this decision. A revised Schedule I submitted by the licensee after the hearing indicated a commitment of 26 hours per week of original local programming, or 25 minutes more than the licensee's commitment at the hearing. Subsequently, in responding to a request for clarification, Electrohome informed the Commission that the 25 minutes was in respect of a 5 minute addition to the licensee's late night newscast, Monday to Friday.
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The Commission is concerned by the difficulties it confronted in attempting to obtain precise information from Electrohome in a timely fashion regarding, among other things, its commitment for the production of original local programs. In the Commission's view, the co-operation of all licensees in providing information is essential in establishing a proper record on which to base its decisions. As noted above, even after the licensee filed the revised Schedule I, some questions remained unanswered and had to be clarified through further communication with the licensee. The Commission regards as unacceptable Electrohome's inability to provide accurate information on a timely basis, and expects the licensee to take whatever steps are necessary to ensure these problems do not recur. The Commission also expects Electrohome to adhere to its commitment to produce and broadcast a minimum of 26 hours per week of original local programs on CFRN-TV throughout the new licence term.
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The Commission notes the licensee's commitment to allocate a total of $841,000 over five years to program development; it draws the licensee's attention to the program development funding guidelines set out in the Public Notice introducing this and other television renewal decisions issued today.
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The financial projections submitted by the licensee indicate proposed expenditures of $7,549,000 for Canadian programming during 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 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. The condition of licence pertaining to Electrohome in respect of its Alberta television undertakings is set out in the appendix to this decision.
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In Decision CRTC 88-276, the Commission expected the licensee to fulfill its commitment to spend no less than $1,892,000 to implement its plans with respect to the provision of split-feed newscasts, closed captions and the production of new television programs over a five-year period. The Commission emphasized that this amount was to be over and above what CFRN-TV's operational expenditures would otherwise have been in the absence of the application for the transfer of control, based on the station's actual 1987/88 expenditures as adjusted for inflation in subsequent years. The Commission reminded the licensee that this expectation might be imposed as a condition of licence at the time of licence renewal.
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The Commission has reviewed the information provided by the licence with respect to its past and projected costs for implementation of the program benefits mentioned above. Based on this evidence, the Commission is satisfied that the licensee has made adequate provision for the fulfillment of its commitments noted above. Moreover, the Commission considers that the condition of licence described above, which ties Canadian program expenditures to station revenues, renders a condition of licence with respect to the expenditure of the $1,892,000 unnecessary.
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The Commission has reviewed Electrohome's programming proposals and commitments and, on the whole, considers these to be commensurate with the licensee's financial and other resources. In those areas where the Commission considers that some greater effort and attention is required of Electrohome, the Commission has expressed expectations and encouragements regarding the licensee's future performance, and is confident that the licensee will respond fully to these. Accordingly, the Commission is satisfied that the licences for CFRN-TV and its rebroadcasting undertakings should be renewed for a full term.
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The Commission acknowledges the support expressed for the renewal of these licences in the interventions submitted by the Canadian Association of Broadcasters and 52 other interested groups and individuals. The Commission notes that matters raised in the intervention submitted by the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) are addressed in the notice accompanying this decision.
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Fernand Bélisle
Secretary General
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APPENDIX
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Conditions of licence for CFRN-TV Edmonton, CFRN-TV-1 Grande Prairie, CFRN-TV-2 Peace River, CFRN-TV-3 Whitecourt, CFRN-TV-4 Ashmont, CFRN-TV-5 Lac La Biche, CFRN-TV-6 Red Deer, CFRN-TV-7 Lougheed, CFRN-TV-8 Grouard Mission, CFRN-TV-9 Slave Lake, CFRN-TV-10 Crimson Lake and CFRN-TV-11 Rocky Mountain House
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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 shall expend on Canadian programming, at a minimum:
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(a) for the year ending 31 August 1990, the amount of $7,549,000;
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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 may broadcast local advertising solicited within the areas to be served by CFRN-TV's split-feed newscasts only within such newscasts and not during the surrounding periods or at any other time.
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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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