|
Decision
|
|
Ottawa, 9 November 1989
|
|
Decision CRTC 89-832
|
|
Metro-TV Limited Partnership
|
|
Ottawa, Ontario - 881296800CITY-TV, a Division of CHUM LimitedOttawa, Ontario - 883571200
|
|
Capital CanWest Television Inc.
Ottawa, Ontario - 883545600
|
|
At a Public Hearing in the National Capital Region commencing on 27 June 1989, the Commission considered three competing applications to establish a new independent English-language television broadcasting transmitting undertaking to serve Ottawa, Ontario. For the reasons stated in this decision, the Commission has determined that it is in the public interest to deny all three applications.
|
|
On 30 September 1988, the Commission issued Public Notice CRTC 1988-163, stating that it had received an application for such a service and inviting, therefore, other interested parties to submit applications. Five applications were filed in response to the call. However, Mid-Canada Communications (Canada) Corporation and Selkirk Communications Limited withdrew their applications prior to the hearing.
|
|
In his opening remarks at the hearing Acting Chairman Louis R. Sherman stressed that the Commission was "not committed to approve any proposal for a new station at this time, simply by virtue of having called for applications" or because an application for a new independent television service had been approved in 1987. He explained that, among other factors, the Commission would examine each of the applications in light of its potential contribution to the achievement of the objectives of the Broadcasting Act, the maximizing of programming alternatives and the means by which it would reflect the particular nature of the region. Mr. Sherman also stated that the Commission would wish to be convinced of the "capacity of the Ottawa market to absorb another television station" and of the financial viability of any proposed station noting that at stake is the "optimum utilization of one of the few remaining frequencies allotted to this region".
|
|
Ottawa forms an integral part of the country's fourth largest metropolitan area. According to the Bureau of Broadcast Measurement, the region's 1988 television market comprised 1,016,400 residents over the age of two. Many of the residents are not native to the area but have moved to the region from other communities across Canada. As the home for the nation's capital, the region provides a focus for the entire country. In addition to Parliament and federal government departments it houses museums, and other national heritage and performing arts institutions which provide a backdrop for the expression of Canadian culture. By virtue of its size and central location, wealth of resources and special nature, Ottawa is a key market for broadcasters. Given the limited number of frequencies available, and the fact that the new station would be the first local independent service in Canada's capital, it is crucial for the Commission to ensure that this market be endowed with a distinctive, high-quality television station, which would offer programming complementary to and diverse from that already available to area viewers.
|
|
The Commission notes that experienced broadcasters are involved in each of the applications. Metro-TV Limited Partnership (Metro-TV) is effectively controlled by Groupe Lavalin Ltée, a wholly-owned subsidiary of Lavalin Ltd. which controls Meteomedia Inc., licensee of a national all-weather specialty television network. Other broadcasting partners of Metro-TV include Allarcom Limited, a major Canadian broadcaster, Mr. Ted Billo, a broadcaster with 19 years of experience and Mr. Larry Nichols, President of New Brunswick Broadcasting Co. Limited.
|
|
CITY-TV, a Division of CHUM Limited (CITY-TV), is ultimately owned and controlled by Allan F. Waters. In addition to being licensee of the national specialty television network, MuchMusic, it owns 50% of the licensee of the French-language equivalent network, MusiquePlus. CHUM Limited also operates numerous other radio and television broadcasting undertakings in Canada.
|
|
Capital CanWest Television Inc. (Capital CanWest) is a wholly-owned subsidiary of Canwest Communications Enterprises Inc., a Winnipeg-based Canadian broadcasting company which ultimately controls four independent TV stations in western Canada and also owns approximately 60% equity and 50% voting interest in Global Ventures Western Ltd. which, in turn, owns 100% of Global Communications Limited, licensee of CIII-TV Toronto and its rebroadcasting undertakings in Ontario. CanWest Communications Enterprises Inc., is effectively owned and controlled by Mr. Israel Asper.
|
|
The Commission's high expectations reflected the extensive broadcasting experience and resources which characterize these applicants. The Commission is of the opinion that the potential exists for a licensee to provide a unique blend of information, cultural, educational and entertainment programming on an independent English-language service in Ottawa. It considers, however, that this potential was not sufficiently realized or developed in the applications before it nor were the uniqueness and resources of the market adequately captured or reflected in any of the three proposals.
|
|
Some of the weaknesses and shortcomings identified by the Commission with respect to the various applications are outlined below. The application by Metro-TV, for instance, was similar to other stations currently serving the market, heavily reliant upon the simulcasting of non-Canadian entertainment programming during popular evening viewing hours (7:30 to 10:30 p.m.) and therefore lacked diversity. Capital CanWest and CITY-TV proposed to broadcast a high level of non-Canadian feature films during the same hours. Further, a significant portion of the Canadian programming of CITY-TV's proposed service would have consisted of the rebroadcasting of programs produced by its Toronto station and therefore was not necessarily relevant to the Ottawa market. It also proposed an unacceptably low level of locally-produced programs.
|
|
Moreover, because the Commission supports the continuing development of programming in under-represented categories, it paid particular attention to the applicants' proposals for dramatic and variety programming, documentaries and children's programs. In this respect, the Commission is of the opinion that CITY-TV did not propose to address an adequate range of these under-represented programming categories in its regularly-scheduled, locally-produced programming. Capital CanWest proposed a wider variety of programming but, for the local component of its schedule, relied heavily on co-operative programs produced with associated stations, thereby diminishing the amount of time available in its weekly schedule for the reflection of local issues and concerns.
|
|
This is not to indicate that the three proposals were without merit. However, in the view of the Commission none of the three proposals was of sufficient strength to warrant the issuance of a licence.
|
|
Having determined that none of the applications justified the use of one of the region's few remaining frequencies, it was unnecessary for the Commission to pronounce conclusively on the ability of the market to absorb a new independent television station. It was noted at the hearing, however, that the three applicants themselves forecast a wide range of projected revenues and held varying opinions regarding the amount of untapped local revenues available to support a new television station. Pre-hearing studies undertaken by the Commission indicated a likelihood that the market was strong enough to support a further station, although the Commission held some concerns in this area. Any future proposals will have to address this question thoroughly, especially in light of the licensing of the new FM stations in the Ottawa market. Further, the Commission considers that none of the applicants provided conclusive evidence of viewer demand in the market for an additional English-language television service of the types proposed.
|
|
The Commission wishes to thank the 585 interested parties who intervened with respect to these applications.
|
|
Fernand Bélisle
Secretary General
|
|
|
|