ARCHIVED -  Decision CRTC 95-103

Decision

Ottawa, 24 March 1995

Decision CRTC 95-103

CHUM Limited

Barrie, Parry Sound and Huntsville, Ontario - 940629900

Renewal of licence for CKVR-TV Barrie, CKVR-TV-1 Parry Sound and CKVR-TV-2 Huntsville

Following a Public Hearing in Toronto beginning on 3 October 1994, the Commission renews the broadcasting licence for the television programming undertaking CKVR-TV Barrie and its transmitters CKVR-TV-1 Parry Sound and CKVR-TV-2 Huntsville from 1 September 1995 to 31 August 2000, subject to the conditions in effect under the current licence, as well as to those conditions specified in this decision and in the licence to be issued.

The Commission, during this five-year licence term, intends to assess carefully the licensee's performance in maintaining a local focus in the programming service provided by CKVR-TV to viewers in Barrie, Parry Sound, Huntsville and surrounding areas. The Commission expects the licensee to ensure that the primary focus of the station continues to be the audiences of Barrie and Central Ontario.

CHUM Limited is indirectly controlled by Mr. Allan Waters of Toronto, and is the licensee of several radio and television undertakings across Canada. In addition to CKVR-TV, CHUM Limited owns television stations in the Maritimes and elsewhere in Ontario, as well as ASN, a television network service distributed via satellite to cable undertakings in the Maritimes. It also owns and operates MuchMusic, Canada's original English-language music video specialty service as well as the specialty service known as "Bravo!" and is a co-owner of MusiquePlus, the French-language music video service.

Local Reflection

In Public Notice CRTC 1995-48 introducing this and other television renewal decisions issued today, the Commission reiterated the importance of the principle of local reflection and reminded television licensees that they have a special responsibility to serve the public within the particular geographic areas they are licensed to serve. In this regard, the Commission expects the licensee to adhere, throughout the licence term, to the commitment made in its renewal application to broadcast a minimum weekly average of 1l hours of original local news.

As noted above, the Commission also expects the licensee to ensure that the primary focus of the station continues to be the audiences of Barrie and Central Ontario. In this regard, the Commission notes the licensee's production of such local specials as "Save Our Lake" in co-operation with the Lake Simcoe Conservation Authority, and other specials promoting local talent.

Impact of CKVR-TV on Toronto Market

In Decision CRTC 94-745, dated 14 September 1994, the Commission approved the disaffiliation of CKVR-TV from the CBC television network. The Commission noted at that time that CHUM Limited, with common ownership of CITY-TV Toronto and a newly-independent CKVR-TV Barrie, would have a potentially unfair competitive advantage in the Toronto market, through its ability to present programming to that audience on two different television stations, only one of which is licensed to serve Toronto as its primary market, although both are available on cable in the market. In its decision, the Commission discussed safeguards that would address this concern, but which would not have any undue effect on CKVR-TV's ability to provide a viable local programming service to viewers in the Barrie area. The Commission advised the licensee of its intention to discuss the matter of appropriate safeguards at the time of CKVR-TV's licence renewal.

One of the possible safeguards discussed in Decision CRTC 94-745 was a prohibition against the broadcast of non-Canadian feature films on CKVR-TV during the evening broadcast period, other than those that would be simulcast on CITY-TV. At the hearing, the licensee expressed the view that a condition of licence which totally prohibited such programming would make it impossible for CKVR-TV to achieve revenues that would allow it to return to profitability following its disaffiliation from the CBC. The licensee further suggested that, if a restriction were deemed necessary by the Commission, CKVR-TV should be allowed to schedule foreign feature films other than those simulcast with CITY-TV, on two evenings per week.

The Commission has carefully reviewed all of the information related to this matter and is satisfied that the concerns raised in Decision CRTC 94-745 are significant but would be adequately addressed by the imposition of a condition of licence that prohibits CKVR-TV from broadcasting non-Canadian feature films which are not simulcast on CITY-TV, during more than one evening per week. A condition of licence to this effect is set out in the appendix to this decision.

Expenditures on Canadian Programming

In Public Notice CRTC 1989-27 dated 6 April 1989, which accompanied decisions renewing the licences for most private, English-language television stations across Canada, the Commission stated that licensees of such stations earning less than $10 million per year in advertising revenues and network payments would be expected, as a minimum, to spend on Canadian programming an amount equal to their first-year projections for such spending, and to adjust such expenditures in subsequent years in accordance with a prescribed formula linked to increases or decreases in their total advertising revenues and network payments. In Public Notices CRTC 1992-28 and 1992-89 dated 8 April and 23 December 1992, respectively, the Commission introduced revisions to the formula which allowed some flexibility in their expenditures on Canadian programming.

In general, as indicated in today´s Public Notice, expectations regarding the Canadian programming expenditures of such licensees will be re-imposed in the new licence term. In most cases, the formula will continue to apply in a seamless fashion, moving from the current into the new licence term. All policies in Public Notices CRTC 1989-27, 1992-28, 1992-89, 1993-93 and 1993-174 will continue to apply, with the exception that licensees will not be permitted to credit any overexpenditure made in the previous licence term towards Canadian programming expenditure requirements in any year or years of the upcoming licence term.

At the hearing, the Commission discussed with the licensee the suitability of continuing with the existing formula, unaltered, given the station´s new independent status to take effect early in the new licence term. The Commission considers that it would be inappropriate to use the expenditure level expected under the formula in 1994/95 to calculate the base amount for 1995/96.

The licensee agreed at the hearing that, given its change in circumstances, and based on its projections that it will earn in excess of $10 million during its first year as an independent station, it would be appropriate to set as the base amount for the new term, the $3,036,000 specified in its renewal application as its projected expenditures on Canadian programming for 1995/96:

 I think it is appropriate ...because in this instance we are talking about a new and different television station, as opposed to the renewal of an existing licence...

Consistent with the policy adopted by the Commission in 1989 with respect to Canadian program expenditures, inasmuch as the licensee´s advertising revenues and network payments during each year of the current licence term were less than $10 million, the Commission expects the licensee to expend on Canadian programming, at a minimum, the amount of $3,036,000 in each of the first and second years of its new licence term, and to increase or decrease expenditures in the third year by the percentage change in total station advertising revenues from year one to year two, as reported in the relevant Annual Return for the year ending 31 August.

In the fourth year, the licensee shall be expected to expend, as a minimum, the amount specified in year three, increased or decreased by the average percentage change in total annual revenues from year one to year two, and from year two to year three, as reported in the relevant Annual Returns for the years ending 31 August.

In accordance with the election specified by the licence in its renewal application, the Commission expects the licensee to adhere to a three-year averaging mechanism commencing in the fifth year of the new licence term.

Program Development

The Commission reminds the licensee of the Commission's expectations set out in Public Notice CRTC 1989-27 dated 6 April 1989 and entitled Overview: Local Television for the 1990s regarding the important role that local television stations play in program development. In this regard, the Commission notes the licensee's commitment to continue to make annual financial contributions to script and concept development. The licensee has committed to contribute a minimum of $15,000 in year one of the new term for such development, increasing to $17,000 annually by year five.

Children's Programming

The proposed programming schedule for CKVR-TV in the new licence term includes one hour per week of programming directed to children.

At the hearing, the licensee stated that there was a great deal of children's programming available to the viewers of CKVR-TV from other sources, and that it had not therefore made the acquisition of such programming a priority.

The Commission notes, however, the commitment made by CHUM Limited at the hearing that,

 ...if we have the opportunity to acquire top quality Canadian programming as part of a family-oriented service, we would be more than anxious to include it in our schedule. ...We will undertake to look for them...should such programming be available, that would increase the amount of children's programming in the schedule.

Service to the Deaf and Hard of Hearing

At the hearing, the Commission discussed with the licensee its performance with respect to providing service to deaf and hard-of-hearing viewers. The Commission notes that the scripted portion of all "Total News" programming is currently captioned.

Consistent with the Commission's policy approach outlined in Public Notice CRTC 1995-48, the Commission expects the licensee, by the end of the licence term, to caption all locally-produced news programs broadcast on CKVR-TV, CKVR-TV-1 and CKVR-TV-2, including live segments, using either real-time captioning or another method capable of captioning live programming. Additionally, the Commission expects the licensee to increase the amount of closed captioning provided with its other programming within the new licence term.

Employment Equity

In Public Notice CRTC 1992-59, the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment.

In its application to renew the licence of CKVR-TV, CHUM Limited indicated that with respect to CKVR-TV, it would follow its corporate plan for employment equity. The Commission may wish to review this corporate plan at the time of licence renewal of other CHUM Limited undertakings. In the meantime, the Commission encourages the licensee to continue its efforts in the area of employment equity in the operation of CKVR-TV.

The Commission acknowledges and has considered the intervention submitted in support of the application for the renewal of CKVR-TV, CKVR-TV-1 and CKVR-TV-2's licence.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CKVR-TV Barrie, CKVR-TV-1 Parry Sound and CKVR-TV-2 Huntsville

1. The licensee shall adhere to the 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 accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council (CBSC).

2. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC.

3. The licensee shall adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and accepted by the Commission.

4. Any non-Canadian feature films broadcast by the licensee in the evening shall be simulcast with CITY-TV Toronto, with the exception of one evening per week. For the purpose of this condition, evening means the period between 6:00 p.m. and midnight.