ARCHIVED -  Decision CRTC 95-418

Decision

Ottawa, 12 July 1995

Decision CRTC 95-418

CHUM Limited

Halifax, Canning, Truro, Valley, Bridgetown, Sheet Harbour, Caledonia, Yarmouth and Marinette, Nova Scotia - 941317000Moncton, Upsalquitch Lake, Newcastle, Chatham, Blackville, Doaktown and Campbellton, New Brunswick, and Charlottetown and St. Edward, Prince Edward Island - 941326100Saint John, Florenceville-Woodstock and Boiestown, New Brunswick - 941327900Sydney, Inverness, Antigonish, Dingwall, New Glasgow, Bay St. Lawrence and Port Hawkesbury, Nova Scotia - 941314700

Licence renewals for CJCH-TV Halifax, CKCW-TV Moncton, CKLT-TV Saint John and CJCB-TV Sydney and their respective transmitters

Following a Public Hearing held in Halifax beginning on 4 April 1995, the Commission renews, from 1 September 1995 to 31 August 2002, the broadcasting licences for CJCH-TV Halifax, CKCW-TV Moncton, CKLT-TV Saint John and CJCB-TV Sydney and their respective transmitters. The transmitters for each station are listed in Appendix I to this decision. The licences will be subject to the conditions in effect under the current licences, as well as to those conditions specified in Appendix II to this decision and in the licences to be issued.

These broadcasting undertakings, collectively known as the Atlantic Television System (ATV), are owned and operated by CHUM Limited (CHUM). A publicly-traded company, CHUM is indirectly controlled by Allan Waters of Toronto and is the licensee of several radio and television programming undertakings across Canada. CHUM also owns the Atlantic Satellite Network (ASN), a satellite to cable programming undertaking serving communities in the Atlantic region and the eastern Arctic, as well as MuchMusic, an English-language specialty television service, and "Bravo!" an English-language specialty television service focusing on the performing arts. In addition, CHUM is a co-owner of MusiquePlus, a French-language specialty television service.

During the new licence term, CHUM will continue to offer ATV as an integrated service to its Maritime viewers. With the exception of some local commercial insertions, the four stations and their transmitters will continue to carry essentially the same programming. The four stations will broadcast, at a minimum, an average of 19 hours 15 minutes of local programming weekly, produced in Halifax, and will receive most of the remaining programming from the CTV Television Network. The licensee also purchases some programs from distributors.

Local reflection

On 24 March 1995, the Commission issued Public Notice CRTC 1995-48 in conjunction with the release of decisions renewing the licences of private English-language television stations in British Columbia, Ontario and Quebec. In that public notice, 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.

CHUM operates combined ATV/ASN news bureaux in Sydney, New Glasgow, Charlottetown, Moncton, Saint John, Fredericton and Newcastle. These offices feed news reports to CJCH-TV Halifax for incorporation into ATV's news service which is broadcast throughout the Maritime provinces. ATV's news service is currently carried via two-way microwave systems which enable news staff to broadcast live reports from many locations in the Maritimes. During the current licence term, CHUM enhanced ATV's capability with the addition of a mobile satellite uplink and a portable microwave truck. In the future, CHUM plans to replace these microwave systems with high-quality, fibre optic networks.

Having taken into consideration the licensee's technical capabilities to share programming, the Commission has decided that, for the duration of the new licence term, it will continue to consider the program material collected in the areas served by ATV's news bureaux and stations as local to each station which broadcasts them.

The Commission expects the licensee to adhere to its commitment to increase the amount of original local news broadcast on all four stations from the current level of an average of 5 hours 30 minutes weekly to an average of 11 hours 30 minutes weekly.

During the new licence term, ATV will continue to broadcast "Live at Five" and "Mass for Shut-ins" on all four stations.

In its evaluation of how ATV's stations reflect the communities they are licensed to serve, the Commission will no longer consider, as local productions, the licensee's contributions to programs such as "Sunday Report", "Canada in View" and "Up and Coming".

Children's programming

The Commission notes the licensee's commitment to broadcast an average of 9 hours 30 minutes weekly of Canadian programming directed to children (ages 2 to 11) and 2 hours 30 minutes directed to youth (ages 12 to 17).

Expenditures on Canadian programming

(i) CJCH-TV Halifax

As announced in Public Notice CRTC 1995-48, the Commission has adopted a policy, according to which the licensees of most private English-language 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.

In the case of CJCH-TV, the licensee's advertising revenues and network payments in the broadcast year ending 31 August 1994 were more than $10 million. Accordingly, the Commission offers the licensee the option described above for CJCH-TV. The licensee must advise the Commission 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 wishes to follow, that option becomes the condition of licence in effect throughout the new licence term.

(ii) CKCW-TV Moncton, CKLT-TV Saint John and CJCB-TV Sydney

In Public Notice CRTC 1995-48, the Commission also stated that it would continue to expect licensees of private, English-language television stations earning $10 million or less in total advertising revenues and network payments annually to expend on Canadian programming in accordance with the formula first introduced in Public Notice CRTC 1989-27. The Commission will continue to apply this expectation in a seamless fashion moving from the current into the new licence term. All policies pertaining to the formula as set out in Public Notices CRTC 1989-27, 1992-28, 1992-89, 1993-93 and 1993-174 will continue to apply, with the clarification that licensees will not be 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.

At the time of the last licence renewals for these three stations, the Commission imposed an expectation on the licensee to adhere to the prescribed formula in the case of CJCB-TV, because this station earned less than $10 million annually in advertising revenues and network payments. With regard to CKCW-TV and CKLT-TV, the licensee reported its financial results and projections for both stations on a consolidated basis. In view of the fact that these reports indicated that the two stations together earned more than $10 million in advertising revenues and network payments annually, the Commission applied the condition of licence on Canadian programming expenditures to CKCW-TV and CKLT-TV. As part of its renewal applications, the licensee advised that the combined revenues of CKCW-TV and CKLT-TV have declined to less than $10 million annually and asked that the Commission, therefore, not impose a condition of licence for expenditures on Canadian programming.

Accordingly, inasmuch as the licensee's advertising revenues and network payments in the broadcast year ending 31 August 1994 for CKCW-TV, CKLT-TV and CJCB-TV were less than $10 million, the Commission expects the licensee to expend, in the first year of the new licence term for each of these stations, at a minimum, the amount it was expected to expend in the 1994-1995 broadcast year, before consideration of any overexpenditures or underexpenditures from prior years, increased of decreased in accordance with the prescribed formula linked to the station's advertising revenues and network payments. In each subsequent year of the licence term, the Commission expects the licensee's Canadian programming expenditures to be adjusted in accordance with the Commission's prescribed formula.

The Commission notes that the licensee has elected to average the percentage increase in total advertising revenues and network payments for each of these three stations over a period of three years. In accordance with the provisions contained in Public Notice CRTC 1995-48, the Commission expects the licensee to adhere to this same three-year averaging mechanism throughout the new licence term.

Program development

The Commission reminds the licensee of the Commission's expectations set out in Public Notice CRTC 1989-27 regarding the important role that local television stations play in program development. The Commission notes the licensee's commitment, on behalf of all four stations, to spend $30,000 annually on program development.

Service to the deaf and hard of hearing

Consistent with its policy approach for closed captioning announced in Public Notice CRTC 1995-48, the Commission requires the licensee, from 1 September 1998 to the end of the term of these licences, to caption all news programming produced and broadcast by the ATV stations and/or news bureaux 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 a minimum, 90% of its 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. In this regard, the Commission encourages the licensee to continue to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

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

Allan J. Darling
Secretary General

APPENDIX I / ANNEXE I

Transmitters for CJCH-TV Halifax, CKCW-TV Moncton, CKLT-TV Saint John and CJCB-TV Sydney

CJCH-TV Halifax

CJCH-TV-1 Canning, CJCH-TV-2 Truro, CJCH-TV-3 Valley, CJCH-TV-4 Bridgetown, CJCH-TV-5 Sheet Harbour, CJCH-TV-6 Caledonia, CJCH-TV-7 Yarmouth, CJCH-TV-8 Marinette

CKCW-TV Moncton

CKCW-TV-1 Charlottetown, CKCW-TV-2 St. Edward, CKAM-TV Upsalquitch Lake, CKAM-TV-1 Newcastle, CKAM-TV-2 Chatham, CKAM-TV-3 Blackville, CKAM-TV-4 Doaktown, CKCD-TV Campbellton

CKLT-TV Saint John

CKLT-TV-1 Florenceville-Woodstock, CKLT-TV-2 Boiestown

CJCB-TV Sydney

CJCB-TV-1 Inverness, CJCB-TV-2 Antigonish, CJCB-TV-3 Dingwall, CJCB-TV-4 New Glasgow, CJCB-TV-5 Bay St. Lawrence, CJCB-TV-6 Port Hawkesbury

APPENDIX II / ANNEXE II

Conditions of licence for CJCH-TV Halifax, CKCW-TV Moncton, CKLT-TV Saint John and CJCB-TV Sydney and their respective transmitters

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

2. In addition to the 12 minutes of advertising material permitted by subsection 11(1) of the Television Broadcasting Regulations, 1987, the licensee may broadcast infomercials as defined in Public Notice CRTC 1994-139 and in accordance with the criteria contained in that public notice, as amended.

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.

CJCH-TV Halifax and its transmitters

6. 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 throughout 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 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 Return 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 paragraphs (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 paragraphs (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 overexpenditure 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 this licence term.

Condition of Licence B

The licensee shall broadcast in the evening broadcast period (between 6:00 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 Broadcasting Regulations, 1987.