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Ottawa, 23 August 1990
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Decision CRTC 90-794
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Ontario Region
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Fourteen licensees serving numerous communities in Ontario as listed in the appendix to this decision
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Pursuant to Public Notice CRTC 1987-172 dated 24 July 1987, the Commission denies the applications by the licensees of the broadcasting receiving undertakings listed in the appendix to this decision to amend their licences by adding a condition of licence allowing them to add the distribution of the signal of WNEQ-TV (PBS) Buffalo, New York, as part of their basic service.
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WNEQ-TV commenced operation in May 1987. Its signal which is broadcast on channel 23 is generally available over-the-air throughout the Niagara Peninsula and throughout a 20- to 30-mile wide belt along the north shore of Lake Ontario extending from Hamilton to Oshawa and beyond.
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The applicants listed in the appendix are already distributing the signal of a PBS station as part of their basic service, namely that of WNED-TV, Buffalo, New York. WNEQ-TV and WNED-TV both broadcast from the same site on Grand Island, New York and are operated by the Western New York Public Broadcasting Association. The Commission notes the licensee's estimate that approximately 80% of WNED-TV's programming is distinct from that of WNEQ-TV. In a Public Announcement dated 26 March 1979, entitled 'A Review of Certain Cable Television Programming Issues', the Commission noted that 'in terms of hours of U.S. programming delivered by cable and number of signals provided by the operator, [the carriage of American duplicate network signals would result in] ... unnecessary and unacceptable predominance of U.S. programming and signals which would be in conflict with the policy objectives outlined in the Broadcasting Act'.
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In Public Notice CRTC 1986-182 dated 1 August 1986 announcing the enactment of Cable Television Regulations, 1986 (the regulations), the Commission noted that the carriage of non-Canadian television stations which commenced operation later than 1 January 1985 would not be authorized through the regulations. Instead, licensees wishing to carry such stations were directed to apply to the Commission for specific authorization on a case-by-case basis.
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In that Notice, the Commission explained that its approach was in response to the concerns expressed by Canadian broadcasters regarding the potential financial harm that could be caused by new U.S. television stations located on or near the Canadian border, 'where it is apparent that their target audience includes nearby Canadian cities'.
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Ontario's public educational broadcaster, TVOntario (TVO), submitted an intervention in opposition to these current applications. It stated in the intervention that: TVOntario does not advertise, but we do rely on Ontario donations for more than $2 million dollars each year. We compete for these donations with 8 border PBS stations soliciting support, including WTVS Detroit distributed widely by CANCOM. Like commercial broadcasters we hold territorial licences for the programs we broadcast. However, to date, our licensing arrangements do not enjoy protection of simultaneous substitution -- by choice.
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TVOntario asked the Commission to deny the applications on the grounds that one of the reasons WNEQ-TV was established was to attract Canadian viewers and that cable distribution of WNEQ-TV to the approximately 1.8 million cabled homes served by the applicants would constitute unfair competition for TVOntario membership drives and could have an impact on its efforts to solicit corporate sponsorships. TVO claimed that approval of the applications would further increase the outflow of Ontario dollars to the U.S., and would erode the investment made by Ontario taxpayers in provincial educational broadcasting. TVO argued that the 'siphoning' of its membership revenues would result in 'consequential damage to TVO's revenue-generating activities and as a result our ability to serve Ontarians with high-quality educational programming'.
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It also stated that WNEQ-TV would complicate TVOntario's acquisition of programs, its licensing and international co-production arrangements. TVO is obliged to generate programs through production, licensing or co-productions which are all subject to regulatory content rules and standards. By contrast, WNED-TV and WNEQ-TV have access to PBS resources and the network's programming which is not regulated in the same way.
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Several other interventions were received opposing the applications, expressing concerns that the cable distribution of WNEQ-TV would have considerable negative effect on the revenues derived by Canadian programming services including the provincial public broadcasting service, and the impact an approval would have on the cost of program rights. These interveners asked generally that the Commission maintain its policy with respect to the non-carriage of duplicate foreign network affiliates.
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For their part, the applicants argued that WNEQ-TV is a complementary part of the PBS service (WNED-TV) already being distributed; that WNEQ-TV, largely unduplicative of WNED-TV, would add a high quality non-commercial service and, therefore, add diversity to the broadcasting system. It is available off-air in the applicants' service areas and is increasingly demanded by the applicants' subscribers. They indicated that the incremental operating costs will amount to only 5 or 6% and that WNEQ-TV will be funded by proportional increases in the grants and donations from current sources. The applicants submitted that no multiweek membership drives are planned for WNEQ-TV, and that the longer fund-raising drives will continue to be aired on WNED-TV.
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The Commission received over 1900 written interventions in support of the applications, the vast majority of which came from subscribers to the applicants' cable sytems, expressing their interest in viewing the proposed PBS service.
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The Commission has considered all of the evidence before it, including the arguments advanced by the applicants and by both the opposing and supporting interveners. In the Commission's view, it is apparent from the evidence that the addition of WNEQ-TV would further fragment the audience for Canadian television stations and that the service would be competiting with TVO for public contributions. While WNEQ-TV is not a commercial station, it is dependent to a significant degree on financial contributions from Canadian viewers. The Commission notes that WNEQ-TV is under no obligation to limit its membership drives, especially if increasing the number of on-air fund-raising campaigns would be to its advantage. Moreover, it is possible that WNED-TV and WNEQ-TV could solicit higher donations from viewers on the basis that two, or in a few instances, three PBS channels would be available. This direct competition for public contributions could impact significantly on the ability of TVO to maintain and strengthen the quality of the educational television service it provides.
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Given that an approval of these proposals filed by the licensees listed in the appendix could have a negative impact on Canadian broadcasters and would be contrary to well-established Commission policy, the Commission denies the applications. At the same time, the Commission considers it appropriate to discuss further the carriage of U.S. border television stations and duplicate programming on cable undertakings in the context of the review of the structure and cost of cable service, including tiering and linkage policies, announced in Public Notice CRTC 1990-53 and tentatively scheduled for a public hearing in mid-1991.
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The two applications (#870955200 and 870956000) submitted by Trillium Cable Communications Limited for distribution of WNEQ-TV were withdrawn following the issuance of Public Notice CRTC 1987-172.
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Alain-F. Desfossés
Secretary General
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APPENDIX/ANNEXE
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Application No./Licensee/Titulaire Location/Endroit N° de la demande
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Aurora Cable TV Limited Aurora and surrounding 870936200
area/et la région avoisinante, Ontario
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Armstrong Communications Niagara Falls, Welland, 870937000
Limited Port Colborne, Fonthill,
and surrounding area/et la région avoisinante, Ontario
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Cablecasting Limited Part of Metropolitan/ 870939600
Secteur du Grand Toronto,
Ontario
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Cablenet Limited Oakville and surrounding 870945300
area/et la région avoisinante and/et Burlington,
Ontario
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Classic Communications Ltd. Parts of the towns of/ 871148300
Secteurs des villes de Vaughan, Richmond Hill,
Markham, Whitechurch-Stouffville; Ballentrae
and/et Musselman Lake,
Ontario
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Grimsby Cable TV. Ltd. Grimsby and 870940400
surrounding area/et la
région avoisinante,
Ontario
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Halton-Triangle Investments Rockwood, Georgetown, 870941200
Limited Acton, Milton, and 870957800
surrounding area/et
la région avoisinante,
Ontario
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Lindsay CATV System Limited Lindsay, Ontario 870942000
Maclean-Hunter Limited, Part of/Secteur de Missi- 870942000
operating under the name of/ ssauga, Parts of Metro- 871154100
faisant affaires sou la raison politan/Secteurs du Grand 871155800
sociale de Maclean-Hunter Toronto, St. Catharines, 870958600
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Cable TV Ontario
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Application No./Licensee/titulaire Location/Endroit N° de la demande
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Mountain Cablevision Limited Parts of/Secteurs de 870944600
Hamilton and surrounding
area/et la région avoisinante, Ontario
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Niagara Co-Axial Limited Part of/Secteur de Hamilton and part of/et secteur de Stoney Creek, Ontario - 871293700
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Orangeville Cable-Vu Limited Orangeville, Erin, Hillsburgh, Caledon, and/et 870959400- 870946100
Caledon East, Ontario
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Rogers Cable TV Limited Brampton and part of/et 870947900
secteur de Caledon; 870948700
Brantford, Paris, 870949500
Kitchener and/et 870950300
Stratford; Newmarket, 870951100
Bradford, Holland 870952900
Landing, River 870953700
Drive Park and/et 870954500
Sharon, Oshawa, Bowmanville and/et Whitby;
and surrounding area/et la région avoisinante,
parts of/secteurs de
Mississauga; parts of
Metropolitan/secteur du
Grand Toronto, part of/
secteur de Hamilton and
part of the Township of/
et secteur du canton de Glanbrook, Ontario
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Southmount Cable Limited Part of/secteur de 870954500
(formerly/autrefois South- Hamilton and part of the
mounth Tel-E-Vents Limited) Township of/et secteur du
canton de Glanbrook,
Ontario
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