ARCHIVED -  Decision CRTC 95-108

Decision

Ottawa, 24 March 1995

Decision CRTC 95-108

South Western Ontario Broadcasting Incorporated

London, Wingham and Wheatley, Ontario - 940632300 - 940633100 - 940634900

Licence renewals for CFPL-TV, CKNX-TV and CHWI-TV

Following a Public Hearing in Toronto beginning on 3 October 1994, the Commission renews the broadcasting licences for the television programming undertakings CFPL-TV London, CKNX-TV Wingham and CHWI-TV Wheatley, from 1 September 1995 to 31 August 2002, subject to the conditions in effect under the current licences, as well as to those conditions specified in the appendix to 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 commitments made in its licence renewal applications to broadcast a minimum weekly average of 17 hours original, or first play, local news programming on CFPL-TV, 5 hours and 40 minutes on CKNX-TV and 10 hours on CHWI-TV during the new licence term. The licensee is also encouraged to serve the community by providing local programs in a diverse range of categories.

The Commission commends the licensee for its performance in the areas of "one time" specials, documentary and Town Hall specials and drama productions. In this regard, the Commission notes that the station met or exceeded its commitments regarding locally-produced drama in each year of the past licence term and in year 5, almost tripled its commitments through its involvement in 13 hours of "The Red Green Show".

In its application, the licensee proposed to amend the specific condition of licence that authorizes the licensee to broadcast a maximum of 40% of the commercial availabilities on the Wheatley station separately from those on CFPL-TV, provided that it produces a minimum of six hours of original station programming broadcast exclusively each week. The licensee submitted that it presently provides 11 hours of local production and proposes to change the percentage of commercial availabilities from 40% to 100% to reflect the full measure of local service now being
provided.

The Commission notes that most of the programming provided by the Wheatley station will be a rebroadcast of material originating from and produced by CFPL-TV London. Therefore, the Commission does not consider there to be a "full measure of local service" provided by the Wheatley station.

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 CHWI-TV separately from those broadcast on CFPL-TV London, for each hour of original, station-produced programming broadcast exclusively on CHWI-TV each week.

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 that local television stations play in program development.

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

In its application, the licensee proposed that operations for all three stations be consolidated for the purposes of determining required expenditures on Canadian programming. As reported by the licensee, the combined total annual advertising revenues of all three stations are over $10 million.

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 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.

Service for the deaf and hard of hearing

The Commission notes the licensee's efforts in this area and reiterates the importance of captioned programs to serve deaf and hard-of-hearing viewers.

Consistent with its policy approach for closed captioning announced in Public Notice CRTC 1995-48, the Commission requires CFPL-TV, from 1 September 1998 to the end of the licence term, and encourages CKNX-TV and CHWI-TV, by 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 CFPL-TV and encourages CKNX-TV and CHWI-TV, to close caption at least 90% of all programming during the broadcast day by the end of the licence term.

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 particular initiatives enabling greater representation of all designated groups in its workforce and facilitating more equal representation and the progression of women within its ranks. It encourages the licensee to continue its efforts in the area of employment equity.

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

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for the combined operations of CFPL-TV London, CKNX-TV Wingham and CHWI-TV Wheatley

1. The licensee is authorized to broadcast a maximum of 6.5% of the commercial availabilities on CHWI-TV separately from those broadcast on CFPL-TV London, for each hour of original, station-produced programming broadcast exclusively on CHWI-TV each week.

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. The licensee shall adhere to its selection thoughout the entire licence term.

Condition of licence A

The licensee shall, for CFPL-TV, CKNX-TV and CHWI-TV combined, 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 stations' annual advertising revenues and network payments, as reported in the relevant Annual Returns for the years ending 31 August, averaged over the three previous years;

(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 Returns for the years ending 31 August, averaged over the three previous years;

(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 expends 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.