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Decision
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Ottawa, 6 April 1989
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Decision CRTC 89-97
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CFPL Broadcasting Limited London, Ontario - 880987300 -880988100
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CKNX Broadcasting Limited Wingham, Ontario -880986500
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Following a Public Hearing in Toronto commencing 3 October 1988, the Commission renews the broadcasting licences for CFPL-TV London and CKNX-TV Wingham from 1 October 1989 to 31 August 1994, subject to the conditions specified in the appendices and in the licences to be issued.
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The Commission also renews the licence issued to CFPL Broadcasting Limited for the purpose of operating a network consisting of CFPL-TV and CKNX-TV. This network licence, which will permit CFPL-TV to continue providing a microwave feed to distribute programs from London to Wingham for broadcast on CKNX-TV, will also be in effect from 1 October 1989 to 31 August 1994, and will be subject to the conditions of licence specified in the licence to be issued.
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CFPL-TV is owned by CFPL Broadcasting Limited, which is also the licensee of London radio stations CFPL and CFPL-FM. CKNX-TV is owned by CKNX Broadcasting Limited, which is also the licensee of Wingham radio stations CKNX and CKNX-FM. Both licensees are wholly owned by the Blackburn Group Inc.
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CFPL-TV began broadcasting in 1953 and CKNX-TV in 1955, both as affiliates of the Canadian Broadcasting Corporation. In Decision CRTC 87-331 dated 1 May 1987, the Commission approved applications by the licensees to disaffiliate from the CBC and to operate CFPL-TV and CKNX-TV as independent stations. CFPL-TV and CKNX-TV began operation as independent stations on 4 September 1988, approximately one month prior to the Public Hearing in respect of which the Commission considered their renewal applications.
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CFPL-TV
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CFPL Broadcasting Limited prides itself on its involvement in the community which it regards as "an integral part of our role as a local broadcaster". As an example of its commitment to the development of local talent within the community, the licensee highlighted its active participation over the past twelve years in a youth talent search in its coverage area. At the hearing, the licensee undertook to continue to contribute to the development of local talent through on-air and community exposure and underlined its commitment to the "continuation and growth of a record of community service and concern that has been the basis of our previous 35 years".
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As a CBC affiliate, CFPL-TV had committed to broadcast 18 hours 20 minutes of original local programs per week. The Commission commends the licensee for consistently exceeding this level of local production.
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In its application for disaffiliation from the CBC, the licensee undertook to introduce new local programs once it had attained independent status. At the 3 October hearing, the licensee identified the following new local programs which it has added to its weekly schedule this year: the human interest show "London Scene"; "Behind the News", which employs archival news footage to review and update important regional news stories from the past; "The UWO Report", which focuses on people and events at the University of Western Ontario; the regional talent showcase "Performance", which is produced in co-operation with CKNX-TV; and the church service "Visions of Faith". These programs represent 3 hours of new original local programs each week. The licensee also informed the Commission that 33 episodes of a new half-hour program, "Parliament in Review", would begin airing in December 1988.
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Local programs which CFPL-TV was producing prior to its disaffiliation from the CBC and which have been maintained in its schedule include the public affairs show "Inquiry", "This Business of Farming", both of which are now produced in co-operation with CKNX-TV, and "Reach for the Top".
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The Commission also notes that CFPL-TV has entered into a co-production venture with an independent producer and CKNX-TV to produce a pilot for a proposed children's variety series entitled "But I'm Just a Kid".
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CFPL-TV also undertook at the time of its application for disaffiliation to increase its hours of local news once it had attained independent status. As a result, CFPL-TV now offers 90 minutes more of news each weekday. In total, CFPL-TV broadcasts 24 hours 30 minutes of news each week, representing four local newscasts each weekday and two each evening on Saturday and Sunday.
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Based on the licensee's accomplishments as reviewed at the Toronto hearing, including its implementation of commitments made at the time of its disaffiliation, the Commission is satisfied with CFPL-TV's performance during the current licence term.
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At the hearing, the licensee stated that "all of the [local] programs on our current schedule are expected to continue in their present form and in most cases with some upgrade in terms of resources". CFPL-TV's schedule currently contains 29 hours 30 minutes of original local productions each week. The Commission expects the licensee to maintain, at a minimum, this level of original local production in each year of the new licence term. As well, the Commission encourages the licensee to continue its efforts to provide Canadian talent in the London region with regular on-screen exposure and to promote, actively and effectively throughout its market area, the scheduling of local programs featuring such Canadian talent.
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The Commission notes that CFPL-TV has budgeted $50,000 each year to continue the annual production of at least six documentary news specials, as well as an additional $160,000 each year for the development and production of 50 hours annually of "one-time specials covering a wide spectum of local events and happenings". During each year of the new licence term, the station will also provide four segments of "Town Hall Meeting", a live, on location, quarterly program "dealing with pertinent and topical issues in a public forum venue".
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According to its financial projections, CFPL-TV will expend $8,454,000 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 CFPL-TV is set out in the appendix to this decision.
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The Commission notes that CFPL-TV has committed a minimum of $735,000 for program development over the course of the new licence term and has secured the services of an experienced local script consultant to search for, review and advise on manuscript proposals. With respect to program development funding, the Commission refers the licensee to the guidelines set out in the Public Notice introducing this and other television renewal decisions issued today.
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In its application, the licensee identified twelve independent production projects in which it has contributed financing, facilities and crews. One of these projects is a two-hour drama currently in production for which CFPL-TV has acquired the support of three other Canadian television broadcasters as minor equity partners. With respect to the other projects, the licensee stated at the hearing that CFPL-TV "is directly involved in station production, seeding, co-production and straight equity support in other programs representing 35 hours of broadcast time with a further 37 original hours when series are produced as a result of successful pilots". In total, according to the licensee, this involvement represents "a potential of 142 total broadcast hours generated in most cases as a result of CFPL-TV's initial support in drama, youth-oriented and talent development categories".
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The licensee also stated that it has brought together a group of Ontario stations "to review and consider the production and financing of original Canadian drama and entertainment programs". One project which has resulted from this initiative is the drama series "Chestnut Avenue".
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In its decision approving CFPL-TV's application to disaffiliate from the CBC, the Commission stated that it expected the station, upon disaffiliation, "to devote at least one hour per week in the 8 p.m. to 11 p.m. time period to Canadian dramatic programming, either station-produced or co-produced". At the 3 October hearing, however, the licensee stated that, after exploring a number of avenues in an attempt to meet this expectation, it determined that it did not possess the resources to do so. Subsequent to the hearing, in a letter dated 14 October 1988, the licensee committed, over and above the initiatives outlined in its application, a minimum of two hours of original station-produced or co-produced drama in the 8:00 p.m. to 11:00 p.m. time period in year one of its new licence term, rising to three hours in year three and to five hours in year five.
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The Commission remains of the opinion that significant investment in, and appropriate scheduling of, new Canadian programs constitute the most important areas in which television licensees can contribute to fulfilling the objectives of the Broadcasting Act and that independent stations can and should play a significant role in the production and broadcast of Canadian dramatic programming. At the same time, the Commission acknowledges the licensee's concern that increasing substantially its output of dramatic programming now could result in a reduction of "the service that we presently have on the station ... in terms of news and public affairs". Accordingly, the Commission expects the licensee during the course of its new licence term to abide by its commitment to dramatic programming hours as noted above.
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The Commission notes the licensee's intention to spend $7.5 million in capital improvements over the new licence term. CFPL-TV's plans include a major enhancement of live mobility with the addition of satellite uplink facilities and a new production mobile, and the purchase of a new television transmitter.
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In renewing this licence, the Commission 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 services for the deaf and hearing impaired, the licensee indicated that, beginning in June 1989, it will close caption its half-hour noon news, its 90-minute evening report and its 60-minute final evening news package. Over the course of a year, this will amount to a minimum commitment of 780 hours of captioned local news programming. In addition, CFPL-TV stated in its application that, as its capabilities increase, more news programming will be captioned and efforts will be made to caption co-produced specials utilizing the services of an outside captioning agency. The Commission commends the licensee for its initiative in ensuring that the majority of its news programming will be readily accessible to deaf and hearing-impaired viewers and notes that CFPL-TV's commitments in this respect exceed the minimum expectation the Commission is imposing on other television licensees.
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The Commission expects CFPL-TV 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 the deaf and hearing impaired over the entire broadcast day.
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Overall, taking into account the licensee's commitments to contribute to the production of Canadian programs over the next five years, particularly local programs, the Commission is satisfied that the licence for CFPL-TV should be renewed for a full term.
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Interventions in response to CFPL-TV's renewal application were submitted by The Canadian Association of the Deaf, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) and the Canadian Association of Broadcasters (CAB). Matters raised in these interventions have been addressed in the Public Notice introducing this and other television renewal decisions issued today.
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CKNX-TV
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According to the licensee, approximately 85% of CKNX-TV's programming originates with CFPL-TV London. In those local programs that make up the remaining 15% of the CKNX-TV schedule, the station attempts to reflect the unique rural lifestyle, interests and concerns of its viewing audience. In its application, the licensee stated:
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After 33 years of serving the midwestern Ontario region, CKNX Television continues to be a very community-minded broadcaster. Many of the programs and features produced by CKNX-TV would not be considered by a metropolitan station, but they are a valuable communication link for over 30 small communities, scattered throughout our five county market.
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In its application for disaffiliation from the CBC, the licensee undertook to expand its hours of original local production from 13 hours per week to 20 hours per week.
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In line with its commitment, CKNX-TV has increased its local news production by 5 hours per week and now produces a new half-hour weekly series dealing with farm issues entitled "The Family Farmer", as well as, in co-operation with CFPL-TV, the regional musical talent program "Performance" and "This Business in Farming".
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The station continues to produce "Reach for the Top" and the public affairs show "Inquiry", the latter also being a co-operative venture with CFPL-TV.
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The Commission notes that CKNX-TV is also involved with CFPL-TV in production of the proposed children's variety series "But I'm Just a Kid".
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Given the licensee's accomplishments as reviewed in the course of considering CKNX-TV's renewal application, including its implementation of commitments made at the time of its disaffiliation, the Commission is satisfied with the licensee's performance during its current term of licence.
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Based on CKNX-TV's 1988/89 program schedule and the licensee's commitment at the time of its disaffiliation, the Commission expects CKNX-TV to maintain, at a minimum, a level of 20 hours per week of original local production during each year of the new licence term.
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According to its financial projections, CKNX-TV will expend $1,238,000 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 expects licensees of television stations that earned less than $10 million in total advertising revenue in 1987/88 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 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 revenues. Accordingly, inasmuch as CKNX-TV's advertising revenues in 1987/88 were less than $10 million, this expectation applies in respect of this station.
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The Commission notes that CKNX-TV has committed $105,000 to program development over the course of the new licence term. In this regard, the Commission refers the licensee 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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In renewing this licence, the Commission 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 services for the deaf and hearing impaired, the licensee indicated that all acquired programs that have been closed captioned will be transmitted in that form. It stated, however, that it has no immediate plans for producing local programming that is closed captioned. As noted in the Public Notice introducing this and other television licence renewal decisions issued today, the Commission considers that television licensees have an obligation to take steps to ensure that their local programming is made accessible to deaf and hearing-impaired viewers. Accordingly, the Commission expects CKNX-TV to caption, at a minimum, headlines and appropriate scripted portions of its early evening newscast during the new licence term.
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The Commission also expects CKNX-TV to acquire 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 the station by deaf and hearing-impaired viewers over the entire broadcast day.
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Overall taking into account the licensee's commitments to contribute to the production of Canadian programs over the next five years, particularly local programs, the Commission is satisfied that the licence for CKNX-TV should be renewed for a full term.
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The Commission received no interventions specific to CKNX-TV's renewal application.
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Fernand Bélisle
Secretary General
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APPENDIX I
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Conditions of licence for CFPL-TV London, Ontario
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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 $8,454,000;
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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 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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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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APPENDIX II
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Conditions of licence for CKNX-TV Wingham, Ontario
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1. 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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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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