|
|
|
Ottawa, 28 September 1993
|
|
Decision CRTC 93-633
|
|
Power Broadcasting Inc./Diffusion Power Inc.
|
|
Oshawa, Ontario - 922047600 - 930419700
|
|
New Television Programming Undertaking
|
|
Following a Public Hearing held in the National Capital Region beginning on 6 July 1993, the Commission approves the application by Power Broadcasting Inc./Diffusion Power Inc. (Power) for a broadcasting licence to carry on an English-language, CBC-affiliated television programming undertaking at Oshawa, on protected channel 22, with an effective radiated power of 2445 watts, to broadcast station-produced programming as well as programming originating from CHEX-TV Peterborough, Ontario.
|
|
The Commission will issue a licence, expiring 31 August 2000, subject to the conditions specified in this decision and in the licence to be issued.
|
|
Deletion of Authority for CHEX-TV Oshawa
|
|
The Commission also approves Power's related application to amend the broadcasting licence for CBC affiliate CHEX-TV Peterborough, by deleting the condition of licence autho-rizing the operation of CHEX-TV-2 Oshawa as a rebroadcasting transmitter of CHEX-TV Peterborough.
|
|
As a result of the approvals granted herein, the status of CHEX-TV-2 Oshawa will change to that of a separate, CBC-affiliated television programming undertaking at Oshawa.
|
|
Purpose of the Current Applications
|
In Decision CRTC 92-258 dated 1 May 1992, the Commission authorized Power to add the transmitter at Oshawa to rebroadcast the programs of CHEX-TV. The transmitter was intended to provide improved, over-the-air service to viewers in Oshawa and the Durham region, by overcoming the shadow effect created by a topographical feature of this area, known as the Pine Ridge.
|
|
In support of its present applications, Power argued that there now exists a clear demand for a local service to meet the specific needs of residents of Oshawa and the Durham region for programming, including local news, targeted to their communities. At the same time, it noted that CHEX-TV would continue serving its original market of Peterborough by broadcasting programming oriented specifically to that community. As explained by the applicant at the hearing:
|
|
This application would allow us the flexibility to meet the information needs of both markets by having a dedicated news window in which we could group all of the stories relating to Oshawa and Durham region while, at the same time on our Peterborough station, group the stories relative to the Peterborough/Kawartha region. We would continue to cover regional, national and international news, as well as weather and sports stories in a joint presentation.
|
|
The CRTC's Common Ownership Policy
|
|
Oshawa and Peterborough are located within approximately 70 kilometres of each other. As well, all of the area enclosed by the Grade B contour of the proposed Oshawa station falls within the official Grade B contour of CHEX-TV Peterborough. For these reasons, the Commission examined Power's application for a new station at Oshawa against the background of the Commission's long-standing policy which generally prohibits one licensee from holding more than one licence of the same class in the same language in the same market.
|
|
In this regard, the Commission notes that the Bureau of Broadcast Measurement (BBM) identifies Oshawa and Peterborough as different markets. Moreover, as noted earlier, the Pine Ridge blocks CHEX-TV's signal, preventing quality reception in and around Oshawa. On this basis, the Commission has concluded that Oshawa and Peterborough are different markets and that Power's application does not contravene the Commission's policy on common ownership.
|
|
Programming
|
|
The new Oshawa station, like CHEX-TV, will broadcast 140 hours of programming each week, of which 37 hours and 20 minutes will be allocated to CBC reserve-time programming. At the hearing, Power indicated its intention to continue its affiliation with the CBC, stating that it was unlikely that CHEX-TV "would survive" if it were to disaffiliate from the CBC. The Commission notes that, in any event, should Power wish to disaffiliate either station from the CBC in the future, it would have to submit an application to the Commission requesting authority to do so.
|
|
In its written application, Power indicated that in the first year, and, on a weekly basis, it would produce for the Oshawa station one hour and twenty minutes of programming and, in subsequent years, acquire a further two hours thirty minutes of Canadian as well as three hours of non-Canadian programming. At the hearing, however, Power pre-sented revised programming proposals for the Oshawa station, stating that there would be a gradual introduction in local programming on the Oshawa station, eventually amounting to approximately three hours each week of original, station-produced programming directed to the residents of Oshawa and area. Power confirmed that there would be no acquired Canadian or non-Canadian programming broadcast on the Oshawa station separately from that carried on the Peterborough station. Specifically, Power indicated that, during the first year of the licence term, it will broadcast a ten-minute, locally-oriented Oshawa news segment split-fed in each of the early evening newscasts broadcast Monday to Friday. Power will add, in the second year, a thirty-minute, Oshawa-oriented, sports program to be broadcast on Saturdays at 6:30 p.m., and a thirty-minute, locally-oriented newsmagazine to be broadcast on Sundays at 5:00 p.m., featuring in-depth coverage of Oshawa news stories and events. Power proposed two programming options to begin during the third year: either it would expand on its split-fed, locally-oriented news programming, or it would add one hour per week, averaged over the year, of licensee-produced programming indigenous to Oshawa. The latter programming would be presented through periodic specials to be broadcast during the most popular viewing hours on weekday evenings.
|
|
The Commission expects Power to fulfil the programming commitments presented at the hearing and described above covering the first three years of the licence term. The Commission also expects Power to provide, at the beginning of year three and for the remainder of the licence term, a minimum average of three hours per week of original, station-produced programming, distinct from that broadcast on CHEX-TV.
|
|
Further, the Commission expects Power, by year three and in each subsequent year of the licence term, to spend on original, station-produced programming for the Oshawa station, as a minimum, the annual amounts specified for this purpose in its projections, or 15% of the time sales revenues generated by the Oshawa station, whichever amount is the greater.
|
|
Commercial Availabilities
|
|
In its application, Power proposed to sell commercial availabilities locally for broadcast on the Oshawa station, separately from those broadcast on CHEX-TV. At the hearing, Power stated that it would be willing to accept a condition of licence, authorizing the broadcast of a maximum of 40% of the commercial availabilities on the Oshawa station separately from those on CHEX-TV Peterborough. This would be similar to the condition of licence imposed on Electrohome Limited (Electrohome) in Decision CRTC 80-98 with respect to its Oil Springs transmitter. The Commission notes, however that Electrohome's access to 40% of the local availabilities at Oil Springs is contingent upon the licensee's provision of a minimum of six hours of local programming per week.
|
|
Consistent with its policy linking the authority to solicit local advertising with the provision of local programming, the Commission has decided to authorize Power to broadcast a maximum of 6.5% of the commercial availabilities on the proposed Oshawa station separately from those broadcast on CHEX-TV, for each hour of original, station-produced programming broadcast exclu- sively each week. A condition of licence to this effect is set out in the appendix to this decision.
|
|
Accordingly, based on Power's commitment to offer one hour of original, station-produced programming in year one, increasing to a minimum of three hours by year three of the licence term, the applicant may access 6.5% of the total amount of commercial availabilities on the Oshawa station for the broadcast of Oshawa/Durham Region advertising in year one, increasing to approximately 20% of the total amount of commercial availabilities beginning in year three of the licence term.
|
|
Impact on Toronto's Broadcasting Market
|
|
Oshawa is located a distance of some 40 kilometres from Toronto. Nevertheless, in its application and at the hearing, Power stressed that it does not intend to seek access to the Toronto market.
|
|
The Commission notes in this regard that the proposed station will not provide a quality, over-the-air signal to Toronto. Although the signal may be receivable by Toronto cable operators, it will not have priority status under the Cable Television Regulations, 1986 (the regulations) for carriage on any Toronto cable undertaking. Moreover, the Commission notes that there were no interventions from Toronto broadcasters opposing this application. Based on the foregoing, the Commission is satisfied that the introduction of the proposed station at Oshawa should not have any undue impact on broadcasters operating in the Toronto market.
|
|
Impact on the Cable System Serving Oshawa
|
|
Currently, under the regulations, Rogers Cable T.V. Limited (Rogers), licensee of the cable undertaking serving Oshawa, must carry either CHEX-TV Peterborough or CHEX-TV-2 Oshawa. With the establishment of a separate, originating station at Oshawa, however, the regulations would normally require Rogers to distribute the signals of both the Peterborough and the Oshawa stations as priority services on the basic band.
|
|
The Commission notes that Rogers filed an intervention concerning this application indicating its intention to submit an application to the Commission requesting that it be relieved of the requirement to distribute CHEX-TV Peterborough on the basic band. At the hearing, Power acknowledged the difficulty that the introduction of the proposed station at Oshawa would pose for Rogers. Accordingly, Power stated that it would not object to any such request by Rogers.
|
|
Employment Equity
|
In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. At the hearing, Power stated that it is developing a corporate plan for ensuring employment equity in its organization, and that this plan would be in place by 1994. The Commission will review this area more fully with Power at a future public hearing.
|
|
The Commission acknowledges the twenty-six interventions submitted in support of these applications from individuals, organizations and elected officials of various levels of government in Oshawa and the Durham region.
|
|
Allan J. Darling
Secretary General
|
|
APPENDIX/ANNEXE
|
|
Conditions of licence for Power's Television Programming Undertaking at Oshawa
|
|
1. The licensee shall not affiliate or disaffiliate with any network operator without first having obtained the written approval of the Commission.
|
|
2. The licensee may broadcast a maximum of 6.5% of the commercial availabilities on the Oshawa undertaking separately from those broadcast on CHEX-TV Peterborough, for each hour of original, station-produced programming it broadcasts exclusively on its Oshawa undertaking each week.
|
|
3. The licensee shall adhere to the self-regulatory guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.
|
|
4. The licensee shall adhere to the provisions of the CAB's Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
|
|
|