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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-136
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Thunder Bay Electronics Limited
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Thunder Bay, Ontario -881131700 -881130900
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Following a Public Hearing in the National Capital Region commencing 22 November 1988, the Commission renews the broadcasting licences for CKPR-TV and CHFD-TV Thunder Bay from 1 September 1989 to 31 August 1994, subject to the conditions specified in the appendices to this decision and in the licences to be issued.
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Thunder Bay Electronics Limited (TBE) is the licensee of the CBC-affiliated station (CKPR-TV) the CTV-affiliated station (CHFD-TV), and radio stations CKPR and CJSD-FM in Thunder Bay. The company is 100% owned and controlled by local resident, Mr. H.F. Dougall through H.F. Dougall Company Limited. Mr. Dougall stated at the hearing that the company's management "are all local people ... intimately involved in every aspect of the community".
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CKPR-TV was first licenced in 1954 and CHFD-TV in 1972, and being owned by the same company became the first twin-stick facility in Canada. In addition to serving the City of Thunder Bay, the stations are received over-the-air in communities within a 60-to 70-mile radius of the lakehead; from Shebandowan in the west to Nipigon at the northeast extreme of the coverage area. The licensee stated that it relies on cable systems to extend service to the widely-separated communities of northwestern Ontario located outside its coverage area.
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TBE indicated that the population configuration of the vast area and the fact that 26 television signals are received in Thunder Bay, requires that the stations be "distinctly local and regional" and that TBE make a "significant distinction between our service and all the others". In addition, the licensee ensures that the two stations provide complementary service, in that CKPR-TV provides high-quality local and regionally-relevant programming with a particular emphasis on news, information and children's programming, while CHFD-TV entertains viewers though the provision of variety, drama and entertainment specials. At the hearing, the licensee stated that the operative words in this twin-stick operation are "synergy" and "distinction". The Commission considers that TBE has been successful in this area and encourages it to ensure that the stations continue to broadcast distinctive and diverse programming.
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TBE indicated at the hearing that its corporate philosopy is to ensure that community concerns and the programming aspects of its operations are given priority:
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The programming and the public service goals of Thunder Bay television are approved before the total revenue, expenses and profitability are known for that particular year. To the extent possible, programming and public service goals determine the budget and not the other way around. If there is an accommodation to be made, and there sometimes is, that accommodation comes out of other areas, not out of programming.
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One of the measures used by the licensee to identify and respond to viewer preferences and concerns is extensive consultation with the stations' advisory councils. Voluntarily established in 1972, they advise TBE on a broad range of issues, notably with respect to programming.
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The licensee indicated that public representation on the two councils is regularly solicited, that they are distinct one from the other and that the councils are broadly representative of the community at large. Ms. Rebecca Johnson, Chairman of the CKPR Media Advisory Council related at the hearing that matters are raised with TBE either through formal letters from the councils or at the more informal meetings which, in the case of CKPR-TV are held five times per year, and of CHFD-TV, ten. The Commission commends TBE for its active use of these broadly-based, independent advisory councils.
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TBE also made note of its extensive interaction with the community. It cited as examples fund-raising telethons and support for numerous community associations and organizations. The Commission notes that TBE also produces segments for the "Crime Stoppers" program.
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In presenting its CKPR-TV licence renewal application, TBE stated that during the current licence term it has systematically augmented its news and information programming. The licensee has also increased its staff and the frequency of its news gathering excursions into rural and district areas and has established stringers in many northwestern Ontario communities.
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CKPR-TV introduced a once-weekly early evening local news program in 1982 and, in 1984 when it was comfortable with the format and the program had received public acceptance, began producing an hour-long newscast each weekday evening at 6:00 p.m. which features primarily local and regional issues and events. Each newscast also includes one short public affairs feature such as "Business Report", "To Your Health", "Portrait", or "Centre Stage".
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CKPR-TV also produces a one-hour late evening news program which is broadcast Sunday through Friday at ll:00 p.m. and on Saturdays at 11:30 p.m. At the time of the hearing, CKPR-TV reported that it was producing 7 hours 59 minutes of news and information programming each week, well in excess of the 5 hours 30 minutes commitment set out in its 1983 Promise of Performance.
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When combined with the 5:30 p.m. news program produced daily by CHFD-TV, which the licensee described as a "fast video wrap of national and international news", a full 90 minutes of news is available to Thunder Bay and area viewers at the supper hour on weekdays. In fact, TBE reported at the hearing, that it "spends more money on our local news facilities that we do on all of our foreign programming".
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Between 1985 and 1988, CKPR-TV also expanded its public affairs programming. It introduced a program which updates previous news stories and one which addresses, from a regional perspective, issues arising from Queen's Park in Toronto. It also produces a program dealing with civic and municipal matters and one which takes a "light-hearted look at ourselves in a public affairs way".
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CKPR-TV also produces the weekly half-hour high school quiz program "Reach for the Top". The licensee stated at the hearing:
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On CKPR fully one-third of the entire broadcast schedule is devoted to children and young people, so it's quite an extensive offering.
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In this regard, TBE noted that there is a "wealth of good Canadian programming for the pre-school age children" but that this is not the case for older children, particularly teens.
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For its part, CHFD-TV produces approximately 2 hours 15 minutes weekly of news programming which is comprised of its 5:30 p.m. early evening weekday newscast, "First News". Other programs produced by CHFD-TV include "Rock'n N' Reel'n", a half-hour program featuring music, music videos and movie information, "Wednesday at 7:00", a musical variety show and "Monday at 7:00", a public affairs program. In 1988/89, the station is also producing a 13-episode series called "Indian Portraits". Each of the programs is 30 minutes in length and deals with native legends and traditions.
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The Commission notes that there are only two locally-produced programs which are regularly aired on both stations on either a simulcast or tape-delayed basis. The CHFD-TV program "Rock'n N' Reel'n" is broadcast on CKPR-TV, while the latter station's late evening newscast is broadcast on CHFD-TV following the CTV network's national news program. In addition, special programs are occasionally simulcast on both stations and CKPR-TV distributes CHFD-TV's "Community Clipboard" announcements.
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In this regard, the Commission notes that CHFD-TV receives its CTV programs via microwave from CKY-TV Winnipeg, Manitoba and that the one-hour time zone difference results in the broadcast of CTV's 11:00 p.m. newscast at midnight in Thunder Bay. TBE stated at the hearing that it has raised this matter with network representatives and may, in the future, receive the CTV programs via satellite which would permit it to be broadcast at 11:00 p.m. In response to Commission inquiries, TBE also stated that it will examine the possibility of updating the CKPR-TV late evening newscast prior to its broadcast on CHFD-TV.
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The Commission notes that TBE anticipates future negotiations with both the CBC and CTV networks which may have an impact on programming matters. TBE stated that, as indicated in the renewal applications, the stations will continue to be affiliated with the CBC and CTV networks respectively.
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The licensee's application indicates that ethnic programming is scheduled on both stations on Sundays. The stations have maintained diversity with CKPR-TV broadcasting programs to the Finnish and Ukranian communities while CHFD-TV's three programs, including the partly locally-produced program "Panorama", are directed to persons of Italian heritage.
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TBE also advised the Commission that CKPR-TV has made a commitment to produce with other CBC-affiliated stations, "Traditions", a 13-part series on the immigrant peoples of Canada, and, with other Canadian broadcasters, a two-hour made-for-television movie "Superconductor".
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Having reviewed all of the evidence before it including information provided in the applications and at the hearing, the Commission is satisfied that TBE has fulfilled its role to provide diversity in programming and to ensure that its local and regional programs, particularly in the news and information category, are balanced and adequately reflect the interests and concerns of its viewing audience. Further, given TBE's plans to maintain this diversity and the respective levels of local programming in the new licence term, the Commission considers that full-term renewals are warranted.
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With respect to its revenues, TBE stated at the hearing that during the current term of its licences, it has enjoyed "positive growth", a situation which it particularly attributes to an aggressive local advertising effort. TBE indicated that it offers very flexible advertising plans to local clients and considers that it has a responsibility to support local small business enterprises. While noting that national advertising sales have not realized the appreciable annual growth rate experienced in the past, TBE nevertheless has forecast modest increases in revenues which it projects will be offset by increases in its operating expenses. It stated at the hearing that it considers that its projections are "realistic" and that the goals it has established are "achievable".
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According to the financial projections provided with the licence renewal applications TBE will expend a total of $1,406,000, which represents an arbitrary allocation of $703,000 on behalf of each of the stations, for Canadian programming during the first year of the new licence terms. As stated in the Public Notice introducing this and other television renewal decisions issued today, the Commission expects licensees of television stations that earned less than $10 million in total advertising revenues in 1987/88 to adhere to their projected first-year expenditures for Canadian programming at a minimum, and to adjust such expenditures in subsequent years in accordance with the prescribed formula, which is 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 revenue. Accordingly, inasmuch as the advertising revenues of CKPR-TV and CHFD-TV were less than $10 million in 1987/88, this expectation applies in respect of these stations. The Commission also wishes to thank the licensee for having provided it with a comprehensive discussion paper outlining various approaches to conditions of licence respecting expenditures for Canadian programming.
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The Commission has taken note of TBE's commitment, as set out in the Promise of Performance for CKPR-TV, to broadcast a minimum of 9 hours 9 minutes per week of original local programs including a minimum of 7 hours 59 minutes of news and 36 minutes of information programming. It intends to increase its regional news gathering activities, to introduce a 30-minute weekly program in the late spring of 1989 to review regional news stories and, in a third phase, to intensify current activities related to the distribution of its news and information programming.
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Having noted that there is an inadequate amount of Canadian programming directed towards teenagers, the licensee reported that in 1987 it had commissioned a study group of high school students to provide the station with planning assistance for the development of appropriate programming. At the hearing, TBE stated its intention to produce a public affairs program specifically for teens and specials for pre-school children.
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With respect to CHFD-TV, the Commission notes the licensee's commitment to broadcast a minimum of 11 hours 8 minutes per week of original local programs. The licensee indicated that it will preserve the station's identity as "the entertainer".
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The Commission expects TBE to adhere, at a minimum, to the levels of local production specified in the Promises of Performance throughout the new licence term.
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At the hearing, the licensee advised the Commission that there is now a local independent producer in Thunder Bay and that TBE has been exploring potential co-production activities with the "fledgling" company. It indicated that it intends to set aside funds for this purpose or for productions with other television licensees.
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The Commission notes that CKPR-TV has made an annual program development commitment of $7,500 in 1989/90 increasing to $9,000 by 1993/94 and that CHFD-TV's commitment in this area ranges from $7,700 to $9,000 over the new licence term. TBE has indicated that these funds will be allocated for productions in under-represented categories. The Commission refers TBE to the guidelines for program development funds set out in the Public Notice of today's date introducing this and other renewal decisions.
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At the hearing, TBE advised the Commission that it is undertaking major improvements to its technical facilities which include, among other things, the replacement of the CKPR-TV transmitter, an upgrading of the newsroom facilities, new ENG cameras and videotape recorders, the completion of its post-production editing suite and a conversion to stereophonic sound. The Commission notes that TBE will install a direct cable connection between CKPR-TV and the local cable company in order to make stereo sound available for cable distribution on an interim basis. The Commission encourages TBE to implement its plans with respect to the installation of stereophonic facilities for CKPR-TV when the transmitter is replaced and to the conversion of the CHFD-TV transmitter to stereophonic capability. It notes that the licensee has made a commitment to expend $875,000 during the new licence term for capital improvements for both stations.
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In renewing these licences, the Commission also authorizes the licensee to make use of the Vertical Blanking Interval on both 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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As regards services for the deaf and hearing impaired, the Commission notes that TBE has met with the Thunder Bay Society for the Hearing-Impaired and plans to issue reprints of its program schedules identifying programs which are closed captioned. While TBE does not currently close caption any local productions, it noted that the recent computerization of its newsroom will facilitate the introduction of captioning equipment and software. Further, the licensee indicated in its renewal applications that it intends to have "all prime-time acquired" programming captioned by the second year of the new licence term.
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The Commission will expect CKPR-TV and CHFD-TV at a minimum, to close caption the headlines and appropriate scripted portions of their early evening newscasts during the first year of the new licence terms. The Commission notes that this will complement the CBC-and CTV-originated closed-captioned programs as well as those which are acquired by the Thunder Bay stations. In this regard, the Commission notes further that TBE has allocated $74,100 over the new licence term for the captioning of acquired programs.
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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 to both CKPR-TV and CHFD-TV by deaf and hearing-impaired viewers over the entire broadcast day.
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The Commission acknowledges the 45 interventions filed in support of these applications including that presented at the hearing by Iain Angus, Member of Parliament for the federal constituency of Thunder Bay-Atikokan. While Mr. Angus supported the renewal of the licences, he recommended that the licensee of this twin-stick operation should be required to offer on one of its stations broadcast time for news reporting to a third-party organization within the community in order to ensure a diversity of news voices in the market.
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In response, the licensee noted that it has a responsibility under the Broadcasting Act for the content of all programming broadcast on its services and would have "great difficulty in just abdicating or delegating [this responsibility] to a special interest group beyond my control".
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As stated previously in this decision, the Commission has examined the licensee's policies and practices aimed at ensuring balanced programming and diversity in the market served by CKPR-TV and CHFD-TV and is satisfied that sufficient diversity exists in Thunder Bay.
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Fernand Bélisle
Secretary General
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APPENDIX I
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Conditions of licence for CKPR-TV Thunder Bay.
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1. The licensee shall operate this broadcasting undertaking as part of the English-language television network operated by the Canadian Broadcasting Corporation.
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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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APPENDIX II
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Conditions of licence for CHFD-TV Thunder Bay
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1. The licensee shall operate this broadcasting undertaking as part of the network operated by CTV Television Network Ltd.
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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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