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Decision
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Ottawa, 13 July 1990
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Decision CRTC 90-658
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Newfoundland Broadcasting Company Limited
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St. John's, Argentia, Bonavista, Corner Brook, Clarenville, Deer Lake, Gander, Grand Bank, Grand Falls, Lawn, Marystown, Red Rocks, St. Alban's, Stephenville, Swift Current, Glenwood, Twillingate, Bay Bulls and Tors Cove, Newfoundland - 894571900
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Following a Public Hearing commencing 3 April 1990 in St. John's, the Commission renews the broadcasting licences issued to Newfoundland Broadcasting Company Limited (NTV) for CJON-TV St. John's and its 18 rebroadcasting undertakings serving the other localities noted above from 1 September 1990 to 31 August 1993, subject to the conditions specified in the appendix to this decision and in the licences to be issued.
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This period will enable the Commission to monitor, and review at an appropriate date, the effectiveness of measures taken by the licensee to prevent the recurrence of any non-compliance with its conditions of licence or with the Television Broadcasting Regulations, 1987 (the regulations), as was found by the Commission during the past year in respect of the licensee's broadcast of advertising to children and its keeping of logs and records.
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The Commission last renewed the licences for CTV affiliate CJON-TV and its rebroadcasting undertakings in Decision CRTC 89-269 dated 17 May 1989. The renewed licences were for a term of 11 months only, reflecting the Commission's serious concerns with, among other things, the past performance of this licensee in the area of local program production and in providing its viewers with "the quality of service they might reasonably expect".
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Among the Commission's particular concerns were: the inadequacy of NTV's quantitative commitments for the production of original local programs; the absence of firm commitments, financial or otherwise, for the production of local drama or programming in any other under-represented category; the lack of adequate plans for the funding of program development; the licensee's practice of scheduling much of its local programming at times when it could not be expected to attract large audiences; and the absence of clear proposals for local talent development. The Commission also expressed concern regarding the poor reception quality of the NTV signal created by problems with the licensee's transmitters at Argentia and Marystown.
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In its decision, the Commission expected the licensee to effect a clear and substantial improvement in the overall quality of its local program production during the eleven-month licence term. To this end, the Commission imposed a condition of licence requiring NTV to broadcast a minimum of 11 hours 30 minutes per week of original local programs between the hours of 6:00 a.m. and midnight. The Commission also expected the licensee to expend a minimum of $1,425,000 on Canadian programming in the broadcast year ending 31 August 1990.
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Further, the Commission expected NTV to develop concrete plans for the production of drama programming, to present to the Commission at the time of licence renewal an adequate commitment for program development, to provide support for local talent by producing a minimum of three specials in the subcategories of variety or music and dance, to produce a minimum of six special documentaries or sports productions (over and above its regularly-scheduled programming), and to improve the scheduling of local programs with a view to making them available to the largest possible audiences. The Commission also expected NTV to proceed with plans to remedy the technical problems associated with its Argentia and Marystown transmitters.
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An additional concern addressed in Decision CRTC 89-269 arose from the Commission's analysis of logger tapes of CJON-TV programming during a week in early December 1988. This analysis revealed an apparent breach of subsection 10(5) of the regulations requiring the retention of clear and intelligible logger tapes. The Commission's analysis also revealed contraventions by NTV of its condition of licence requiring adherence to the Broadcast Code for Advertising to Children. In its decision, the Commission required NTV to report on the action taken to ensure its future compliance with the regulations and with its licence conditions, and reminded the licensee that the efficacy of the measures taken would be examined at licence renewal time. Subsequently, in a letter to the licensee dated 7 February 1990, the Commission informed NTV of the findings of a further program analysis indicating that the licensee continued to have difficulties in both of the areas noted in the proceeding paragraph. The analysis of logger tapes of programming for the week of 5 to 11 November 1989 revealed breaches of two sections of the above-noted code, specifically those stipulating that, in any half hour of programming directed to children, there be no more than four minutes of advertising material, and that individual products not be promoted more than once. There was also a gap of approximately seven minutes duration in the logger tapes NTV provided to the Commission. Further infractions of the Broadcast Code for Advertising to Children were detected in a monitoring of NTV's children's programs broadcast on 10 and 17 March 1990.
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At the April 1990 hearing, the licensee offered the following explanation for the incidents described above:
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We expect the seven minute omission resulted from a power failure.... In order to overcome this problem we have installed an uninterruptable power supply dedicated to the logger recorder. With duplicated recording and this backup power supply we feel that the system is now as secure as we can possibly make it.
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The commercial content in our children's programming has been a very difficult problem to completely solve.... Some of our children's programming is delivered live from satellite, with some commercials already inserted, so that our operators must be very alert.... As a precaution, we have been regularly substituting non-commercial messages in the (satellite) programming.... We recently adopted financial incentives to make our operators even more vigilant, and this seems to be working.
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The Commission has examined the various mechanisms NTV has put in place to prevent any recurrence of problems in these two areas, and is reasonably satisfied that they should be sufficiently stringent to ensure the licensee's future compliance. Nevertheless, the Commission reminds NTV that its performance in this regard will be monitored closely by the Commission throughout the new licence term.
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The Commission has also assessed NTV's performance in respect of the other areas of concern noted in Decision CRTC 89-269; it is pleased to note that, in general, the licensee has made a conscientious and diligent effort to comply with the conditions of licence and expectations set out in that decision. During the new licence term, the Commission encourages NTV to pursue its present course towards bringing about an overall improvement in the calibre of its local program production.
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With respect to the production and broadcast of original local programming, the licensee is currently achieving a level of 14 hours 41 minutes per week. The Commission has taken note of the licensee's commitment to continue to produce that amount of local programming on a weekly basis, and will require NTV to adhere to this commitment, by condition of licence.
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In its application, the licensee requested that the Commission continue to treat as a "local" production the information program "Canada In View", produced co-operatively by CTV affiliates across the country. In Public Notice CRTC 1989-27, which introduced decisions renewing the licences of a number of English-language television stations across Canada, the Commission stated that, while it would no longer accept co-operatively produced sports or information programs as local programs on more than one station, it would make an exception in the case of programs, such as "Canada In View", that were in production at the time of release of that public notice. Specifically, the Commission stated that it would permit licensees to continue to claim such programs as local, but only for the duration of their new licence terms. In most instances, these licence terms extend to 31 August 1994; in view of this, the Commission considers NTV's request to be reasonable, and will permit the licensee to claim credit for "Canada In View" as a local program until the end of its new licence term.
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In its application, NTV appeared to request that its broadcast day consist of the 19-hour period from 6:00 a.m. to 1:00 a.m. the following day. This would be contrary to the definition of "broadcast day" contained in the regulations. The Commission notes, however, the licensee's statement at the hearing that the hours specified in its application were incorrect and that its broadcast day will be the period between 6:00 a.m. and midnight, with the evening broadcast period being the hours between 6:00 p.m. and midnight. As in the past, the Commission will continue to apply the provisions of subsection 4(11) of the regulations for the purpose of calculating the percentage of Canadian programs.
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NTV's current licence contains the expectation that the licensee spend $1,425,000 in the broadcast year ending 31 August 1990 on Canadian programming. The Commission notes, however, that the licensee expects to spend more than $1,600,000 in that period. In the renewal application, the licensee has projected a continuing upward trend in Canadian program expenditures, beginning with more than $1,700,000 in the year ending 31 August 1991.
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In 1988/89, CJON-TV continued to earn less than $10,000,000 in total advertising revenues. Accordingly, as it did with the licensees of other television stations earning less than $10,000,000 in advertising revenues, the Commission placed an expectation on the licensee regarding its Canadian program expenditures. Because the licence terms granted these other licensees were generally for full five-year periods, the Commission's expectation was that their expenditures on Canadian programming be in accordance with a formula devised by the Commission to take into account changes in their advertising revenues from year to year. The said formula, as set out in Public Notice CRTC 1989-27, will now apply to NTV, as an expectation, during the term of licence herein granted. For the purposes of this expectation, year 1 shall be deemed to have been the broadcast year ending 31 August 1990, and the expected expenditure for that year to have been $1,425,000, that being the dollar amount committed by the licensee in its Promise of Performance for the current licence term expiring on that same date.
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In the area of local drama production, NTV noted its successful production, in association with St. John's Rising Tide Theatre, of "Revue '89" broadcast earlier this year. It confirmed plans to negotiate with that theatre company for the production of the "Revue" as an annual special. At the hearing, NTV also made a commitment to produce and broadcast a minimum of one additional drama special in each year of its new licence term, either in association with Rising Tide Theatre or with other theatre groups and independent producers in Newfoundland. The Commission expects the licensee to adhere to its commitment for the production of at least two drama specials in each year of its new licence term.
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In further support of Canadian talent, and once again going beyond the Commission's expectation stated in Decision CRTC 89-269, NTV stated at the hearing that it has produced and broadcast 11 musical/variety specials during its current licence term, including a series of six programs entitled "Havin' A Time". These programs, featuring traditional Newfoundland music, were taped at various music festivals across the province and aired in the fall of 1989. In the same period, NTV introduced the music and dance series "Newfoundland Dance Party", featuring dance music of appeal to a teenage audience, with occasional live contributions by local solo performers and groups.
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The Commission notes NTV's plans expressed at the hearing to continue to produce a minimum of six original episodes of "Havin' A Time", and 32 original episodes of "Newfoundland Dance Party", for broadcast during the evening broadcast period in each year of its new licence term. The Commission also notes the licensee's commitment to increase its efforts to improve the production values present in these and other local productions.
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In this regard, it encourages the licensee to allocate an equitable portion of the direct costs associated with such productions to the payment of talent fees to local musicians and other Canadian performers appearing on the locally-produced programs.
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Over the current licence term, in response to the Commission's expectation that it produce more documentaries or sports productions, NTV has produced and broadcast five documentary specials and part of its new six-episode series entitled "Sports Heroes and Heritage". The Commission encourages NTV to continue to produce a minimum of six documentary and sports specials in each year of the new licence term.
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NTV has also introduced such new programs as: "Children's Checkpoint", a series of short educational and entertainment program segments or vignettes which the licensee intersperses with its Saturday morning children's programming; "Newfoundland Today", a weekday interview/call-in program; and new morning and noon editions of locally-produced news.
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The Commission encourages the licensee to examine the possibility of expanding the "Children's Checkpoint" vignettes into a regularly-scheduled children's series during the new licence term, and to investigate the production of at least one children's special in each year.
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As for the program "Newfoundland Today", the Commission considers this to be a valuable new weekday forum for the expression of views on matters of local, regional and provincial concern. The Commission encourages NTV to consider expanding the representation of visible minorities in the context of "Newfoundland Today" and other such local productions.
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The Commission also welcomes the expansion in the licensee's local news coverage. At the hearing, the Commission discussed with the licensee the possibility of it adding closed captions to its local newscasts. According to NTV, the cost of acquiring the equipment needed to produce such captions would be prohibitive. The Commission, however, understands that at least one system suited to the task of captioning televised news programming is available at a capital cost of well under $8,000. Accordingly, and in keeping with the expectations imposed on other television licensees, the Commission expects NTV, at a minimum, to provide closed captions for the headlines and appropriate scripted portions of its noon and early evening newscasts during the new licence term.
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In the Commission's view, NTV has reacted positively to the expectation that its scheduling of local programs be improved. While there is still room for NTV to better its performance, the Commission is satisfied that the licensee is making an effective effort to provide its audiences across the province with enhanced production values and improved content in its news, information and other programming. It also notes NTV's efforts to ensure that such programming is well dispersed throughout the broadcast day. For example, NTV has replaced the former 6:00 a.m. program "Talk of the Town" with "Newfoundland Today", which is broadcast at the more appropriate hour of 10:30 a.m. It also notes the licensee's statement at the hearing that, "...of the 20 specials we have produced (since 1 September 1989), 14 have been broadcast in prime time".
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The Commission notes the licensee's plans to continue to produce "Festival of Carols", "Salvation Army Christmas", and other such annual music and dance and variety specials, as listed in Schedule C of its renewal application. The Commission is satisfied that NTV intends to review the scheduling of all of its first-run local programs, particularly in the under-represented categories, with a view to making them available to the largest possible audiences. As regards NTV's efforts to maintain and improve the technical quality of its extensive network of television transmitters, at the hearing the licensee informed the Commission of a number of recent steps it has taken, including the replacement of its transmission facilities at Marystown, Argentia, Grand Bank and Corner Brook, and the upgrading or installation of standby transmitters at Marystown and St. John's. NTV explained that it was also installing computerized remote control systems at all of its major transmitter sites.
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The Commission encourages the licensee to continue its efforts to effect further improvements to both the audio and video quality of its service. In this respect, the Commission continues to expect NTV to maintain a complete record of transmitter outages. This information, together with reports on its progress in installing the on-site monitoring equipment and computerized remote control systems referred to above, should be filed with the Commission at the end of each six-month period of the new licence term. The Commission also requires the licensee, within six months of the date of this decision, to submit a definite plan to effect the improvements discussed at the hearing with respect to the transmitters at Stephenville and Red Rocks.
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The one significant problem referred to in Decision CRTC 89-269 that, in the Commission's view, remains largely unresolved, concerns the adequacy of NTV's commitment to program development funding. In its previous application for licence renewal NTV had not proposed any funds for the development of programs in under-represented categories. In the current application, NTV indicated that an average of $93,600 per year would be allocated for this purpose over a projected five-year licence term. From its responses to the Commission's questions at the hearing, however, it became apparent that a substantial part of this budget, or approximately $25,000 per year, was in fact earmarked to meet the costs of producing the annual dramatic "Revue" special described earlier in this decision. From the evidence, it appears to be the licensee's intent that the actual development costs behind this, and perhaps other projects it proposes to pursue in drama and in other under-represented program categories during the new licence term, be borne not by NTV, but by Rising Tide Theatre and other independent producers.
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The Commission therefore draws the licensee's attention to the following guidelines for program development funding, first set out in Public Notice CRTC 1989-27:
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The objective of program development funding is to ensure continuous investment in the script and concept phases of entertainment and documentary projects. Emphasis should be upon providing "seed" money to less experienced writers, directors, performers and producers in order to encourage the development of innovative projects and Canadian creative talent. Script and concept development expenses should be restricted to those expenses incurred prior to the commencement of pre-production before the financing of the project is in place. Spending on programs that are assured of going to air at the time of the expenditure will not be considered as program development.
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The Commission encourages the licensee to review its plans with a view to ensuring an adequate budgetary allocation to program development in each year of its new licence term, to be spent in conformity with the above guidelines.
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In renewing these licences, 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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The Commission acknowledges the views expressed by the many groups and individuals who submitted interventions concerning NTV's application for licence renewal.
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Alain-F. Desfossés
Secretary General
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APPENDIX/ANNEXE
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Conditions of licence for Newfoundland Broadcasting Company Limited
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1. The licensee shall operate its television broadcasting undertakings as part of the network operated by CTV Television Network Ltd.
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2. The licensee shall provide at least 14 hours 41 minutes per week during the broadcast day (as defined in the Television Broadcasting Regulations, 1987) of original locally-produced programming (exclusive of simulcasts with other undertakings operated by the licensee).
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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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4. 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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