ARCHIVED -  Decision CRTC 95-107

Decision

Ottawa, 24 March 1995

Decision CRTC 95-107

Electrohome Limited

Kitchener, Oil Springs, Wiarton and Huntsville, Ontario - 940623200 - 940838600 - 940837800

Licence renewal for CKCO-TV and new programming undertakings at Oil Springs and Wiarton.

Following a Public Hearing in Toronto beginning on 3 October 1994, the Commission renews the broadcasting licence for the television programming undertaking CKCO-TV Kitchener from 1 September 1995 to 31 August 2002, subject to the conditions in effect under the current licence, as well as to those conditions specified in the appendix to this decision and in the licence to be issued.

The licensee also applied to change Oil Springs and Wiarton from rebroadcasting undertakings to programming undertakings in order to comply with the Broadcasting Act. Accordingly, the Commission approves the licensee's request for broadcasting licences for English-
language television programming undertakings at Oil Springs, and at Wiarton, with a transmitter at Huntsville (CKCO-TV-4), using the presently approved facilities to broadcast separate programming assembled in Kitchener and split-fed to Oil Springs and Wiarton, as well as programming originating from CKCO-TV Kitchener.

The Commission will issue licences expiring 31 August 2002, subject to the conditions specified in this decision and in the licences to be issued.

Local reflection

In Public Notice CRTC 1995-48 of today's date introducing the decisions renewing this and other privately-owned English-language television stations, 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 area they are licensed to serve.

The Commission expects the licensee to adhere to the commitment made in its licence renewal application to broadcast a minimum weekly average of 16 hours 50 minutes of original local news.

The Commission notes that CKCO-TV will continue to reflect the local community through new episodes of children's programs such as "Magic Circus" and "Big Top Talent", and through a weekly church service, an information and interview program "Maclean and Company", and other programs such as "Sunday A.M.", "Inside Entertainment", "Country Life" and "Provincewide".

Requirement for either expenditures on or exhibition of Canadian programming - At the licensee's option

As also announced in Public Notice CRTC 1995-48, the Commission has adopted a policy, according to which the licensees of most private English-language television stations earning over $10 million in total annual advertising revenues and network payments are being offered the option of either adhering to a condition of licence on Canadian programming expenditures similar to the existing condition, or adhering to a condition of licence requiring the licensee to exhibit a specific number of hours of Canadian drama (category 7), music (category 8) and variety programming (category 9) during the evening broadcast period for each year of the new licence term. The options and the Commission's policy rationale are described more fully in that public notice.

The licensee, in its renewal application, had proposed that its annual expenditures on Canadian programming be determined as a fixed percentage of the previous year's advertising revenues. The Commission has considered the licensee's request and has determined, however, in the interest of consistency, that CKCO-TV should be required to choose from between the same options as those offered to other licensees.

Therefore, the licensee must advise the Commission regarding which option it has chosen before the new licence term begins on 1 September 1995. Once the licensee has advised the Commission which option it has chosen to follow, it must adhere to that condition of licence throughout the licence term.

Children's programming

The Commission notes the licensee's commitment, in its application, to provide an average of one hour of programming for children aged 2-11 and one hour for youth aged 12 to 17. The Commission expects CKCO-TV to fulfill this commitment. It further notes that this programming will be augmented by one hour per week of Canadian children's programming provided by the CTV network.

Program development

The Commission reminds the licensee of the Commission's expectations set out in Public Notice CRTC 1989-27 dated 6 April and entitled "Overview: Local Television for the 1990s" regarding the important role local television stations play in program development.

In this regard, the Commission notes that according to its financial projections, CKCO-TV will spend $54,000 during the first year on development of Canadian programming, increasing to $69,000 in year seven.

New undertakings in Oil Springs and Wiarton

Oil Springs

In its application, the licensee proposed to assume the specific condition of licence that authorizes the licensee to broadcast a maximum of 40% of the commercial availabilities on the Oil Springs station separately from those on CKCO-TV Kitchener, provided that it produces a minimum of six hours of original station programming broadcast exclusively each week. The licensee submitted that it will continue to provide an average of 8 hours 8 minutes of original separate programming.

However, the application also indicates the licensee's agreement with the imposition of an alternative condition. Therefore, consistent with its policy linking the authority to solicit local advertising with the provision of local programming, the Commission has decided to authorize the licensee, by condition of licence, to broadcast a maximum of 6.5% of the commercial availabilities on the Oil Springs undertaking separately from those broadcast on CKCO-TV Kitchener, for each hour of original, station-produced programming broadcast exclusively on its Oil Springs undertaking each week.

Earlier in this decision, the Commission reiterated the importance of the principle of local reflection. In this regard, the Commission notes that the licensee proposes to continue the current programming arrangements on the Oil Springs undertaking which include separate local news inserts in Canada A.M., plus separate portions of CKCO-TV's daily newscasts at 6:00 p.m. and 11:30 p.m. The Commission expects the licensee to fulfil its commitment to provide 4 hours 38 minutes weekly of separate first-run news programming and to continue to reflect the Sarnia, Chatham, and Windsor areas also through the broadcast of interview, public affairs and sports review programs.

Wiarton

With respect to the Wiarton undertaking, the Commission expects the licensee to broadcast a weekly average of 3 hours 13 minutes of separate original news for the Wiarton and Huntsville areas, which, under the current programming arrangements, are inserted during CKCO-TV's daily newscasts at 6:00 p.m. and 11:30 p.m.

Service to the deaf and hard of hearing

The Commission notes the licensee's intention to caption 100% of locally-produced programming and to spend a minimum of $961,000 on closed captioning over a seven-year term if revenue expectations are realized.

Nothwithstanding this plan, consistent with its policy approach for closed captioning announced in Public Notice CRTC 1995-48, the Commission requires CKCO-TV, from 1 September 1998 to the end of the licence term, to caption all local news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

In addition, the Commission requires the licensee to close caption at least 90% of all programming during the broadcast day by the end of the licence term. Furthermore, the Commision encourages the licensee to ensure captioning of local programming on the Oil Springs and Wiarton undertakings on the same schedule as CKCO-TV.

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.
The Commission notes the applicant's statements that, until recently, the management and operation of CKCO-TV were not sufficiently dedicated to the goal of employment equity.

However, the Commission has taken note of the specific actions taken recently and planned for the immediate future, including such initiatives as the completion of a formal employment systems review and the formation of a communication strategy and an employment equity committee. The Commission expects the licensee to ensure that the recent progress as described in the application will continue through the next licence term and that adequate employment equity practices are followed throughout its organization. The Commission will review these matters at the time of the next licence renewal.

In view of the approval granted herein, references to Oil Springs, Wiarton and Huntsville rebroadcasters will be deleted from the CKCO-TV Kitchener licence.

The Commission acknowledges and has considered the many interventions submitted regarding these applications.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CKCO-TV and the new undertakings in Oil Springs and Wiarton

Conditions of licence for CKCO-TV

1. The licensee shall operate this broadcasting undertaking as part of the network operated by CTV Television Network Ltd.

2. The licensee shall adhere to either condition of licence A or condition of licence B set out below, as chosen by the licensee and communicated to the Commission before 1 September 1995. Should the licensee choose option A, it is also required to advise the Commission, no later than 31 August 1995, as to whether it wants to adopt a one-year, two-year or three-year averaging mechanism. The licensee shall adhere to its selection thoughout the entire licence term.

Condition of licence A

The licensee shall expend on Canadian programming, at a minimum,

(i)  In the year ending 31 August 1996, the minimum required level of expenditures in the year ending 31 August 1995, (before consideration of any overexpenditures or underexpenditures from prior years), increased (or decreased) by the year-over-year percentage change in the total of the station's annual advertising revenues and network payments, as reported in the relevant Annual Return for the year (or years) ending 31 August, averaged over the period chosen by the licensee and communicated to the Commission pursuant to paragraph 2 above;

(ii) In each subsequent year of the licence term an amount calculated in accordance with the following formula: the amount of the previous year's expenditures (before consideration of any overexpenditures or underexpenditures from prior years), increased (or decreased) by the year-over-year percentage change in the total of the station's annual advertising revenues and network payments, as reported in the relevant Annual Return for the year (or years) ending 31 August, averaged over the period chosen by the licensee and communicated to the Commission pursuant to paragraph 2 above;

(iii) In any year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year as set out or calculated in accordance with paragraph (i) and/or (ii) above; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure;

(iv) In any year of the licence term, excluding the final year, where the licensee expend an amount on Canadian programming that is greater than the minimum required expenditure for that year, as set out or calculated in accordance with paragraph (i) and/or (ii) above, the licensee may deduct:

  a) from the minimum required expenditure for the next year of the licence term an amount not exceeding the amount of the previous year's overexpenditures; and

  b) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpendi- ture and any amount deducted under a) above;

(v) Notwithstanding paragraphs (iii) and (iv) above, during the licence term, the licensee shall expend on Canadian programming at a minimum the total of the minimum required expenditures as set out in or calculated in accordance with paragraphs (i) and/or (ii) above.

For the purpose of the above condition, "expend on Canadian programming" shall have the same meaning as that set out in Public Notices CRTC 1993-93 and 1993-174 dated 22 June and 10 December 1993, respectively.

For the purpose of the above condition, the licensee is not permitted to credit any overexpenditure made in the previous licence term towards Canadian programming expenditures in any year or years of the upcoming licence term.

Condition of licence B

The licensee shall broadcast in the evening broadcast period (between 6 p.m. and midnight) the following average number of hours per week of Canadian drama, music or variety programming in each year of the licence term:

1995-1996 5:30 hours
1996-1997 6:00 hours
1997-1998 6:00 hours
1998-1999 6:00 hours
1999-2000 6:30 hours
2000-2001 6:30 hours
2001-2002 7:00 hours

For the purpose of the above condition, the categories drama, music and variety are defined as set out in Schedule I of the Television Regulations, 1987.

3. 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).

4. 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.

5. 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.

Condition of licence for the new Oil Springs undertakging

1. The licensee shall operate this broadcasting undertaking as part of the network operated by CTV Television Network Ltd.

2. The licensee may broadcast a maximum of 6.5% of the commercial availabilities on the Oil Springs undertaking separately from those broadcast on CKCO-TV Kitchener, for each hour of original, station-produced programming broadcast exclusively on its Oil Springs undertaking each week.

3. 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).

4. 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.

5. 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.

Conditions of licence for the new Wiarton undertaking

1. The licensee shall operate this broadcasting undertaking as part of the network operated by CTV Television Network Ltd.

2. 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).

3. 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.

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 accepted by the Commission.