ARCHIVED -  Decision CRTC 95-478

Decision

Ottawa, 24 July 1995

Decision CRTC 95-478

Newfoundland Broadcasting Company Limited

St. John's, Argentia, Clarenville, Lawn, Deer Lake, Marystown, Bay Bulls, Grand Bank, Red Rocks, Swift Current, St. Alban's, Stephenville, Bonavista, Norris Arm, Glenwood and Corner Brook, Newfoundland - 941499600

Licence renewal for CJON-TV

Following a Public Hearing in Halifax beginning on 4 April 1995, the Commission renews the broadcasting licence for the television programming undertaking consisting of CJON-TV St. John's and its transmitters, 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 the appendix to this decision and in the licence to be issued. CJON-TV's transmitters are listed in Appendix I to this decision.

Newfoundland Broadcasting Company Limited (NTV) is owned and controlled by Geoffrey
W. Sterling.

CJON-TV broadcasts 7 hours of local news programming each week and receives programming from CTV Television Network Inc.

Non-compliance with the required level of Canadian content

Subsections 4(6) and 4(7) of the Television Broadcasting Regulations, 1987 (the regulations) require that a licensee devote not less than 60% of the broadcast year and of any six-month period specified in a condition of licence, and not less than 50% of the evening broadcast period (between 6:00 p.m. and midnight) to the broadcasting of Canadian programs. The Commission notes with concern that, according to its monitoring of CJON-TV's programming, the licensee did not comply with the regulations during the 1992-1993 and 1993-1994 broadcast years. Specifically, in 1992-1993, the licensee broadcast a Canadian content level of 48.94% during the evening period. In 1993-1994, the licensee broadcast a Canadian content level of 59.76% during the broadcast day, and 49.38% during the evening period.

The Commission puts the licensee on notice that its performance in adhering to the regulations respecting the required levels of Canadian content will be monitored in each year of the licence term.

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 privately-owned, 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.

The Commission expects the licensee to adhere to the commitment made in its licence renewal application to broadcast a minimum weekly average of 7 hours each week of original, local news during the new licence term.

Beginning in September 1994, NTV, through the use of satellite, extended CJON-TV's coverage to include Labrador. Accordingly, CJON-TV's signal now covers virtually all of the province of Newfoundland and Labrador. The Commission encourages NTV to reflect in its news programming the activities of all the communities within its market.

In addition to the local news programming broadcast by CJON-TV, the Commission encourages NTV to fulfil the commitment made in its licence renewal application to produce diversified, original programming of interest to the communities within its market, and to continue to present local events, as funds become available.

Exhibition of Canadian programming

In its licence renewal application, NTV indicated that, during the new licence term, it would broadcast an average of 7 hours 30 minutes of Canadian entertainment programming (categories 7, 8 and 9) between 6:00 p.m. and midnight.

The Commission notes NTV's commitment that, during the new licence term, it would broadcast an average of 15 hours of Canadian programming each week directed to children (ages 2 to 11) and an average of 3 hours of Canadian programming each week directed to youth (ages 12 to 17).

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.

Expenditures on Canadian programming

In Public Notice CRTC 1989-27 dated 6 April 1989, the Commission stated that licensees of private, English-language television stations earning $10 million or less in total advertising revenues and network payments annually would be expected to adhere to their projected first-year expenditures for Canadian programming, at a minimum, and adjust such expenditures in subsequent years in accordance with the prescribed formula linked to the station's advertising revenues.

As stated in Public Notice 1995-48, the Commission shall continue to expect such licensees to expend on Canadian programming in accordance with the formula. 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.

As part of CJON-TV's one-year licence renewal in 1989 (Decision CRTC 89-269 dated 17 May 1989), the Commission expected the licensee to spend a minimum of $1,425,000 on Canadian programming in the broadcast year ending 31 August 1990. The Commission extended this expectation in a seamless fashion as part of the licensee's subsequent licence renewals (Decisions CRTC 90-658 dated 13 July 1990 and CRTC 94-90 dated 18 March 1994).

In its present application for licence renewal, NTV advised the Commission that, in projecting $1,425,000 as its first-year expenditures on Canadian programming at the time of its 1989 licence renewal, it had included all the costs for programming, production, shipping, VTR, traffic and master control. NTV indicated that, beginning in 1990, it changed its method of reporting its expenditures on Canadian programming to conform with the format set out in the Commission's form for annual returns. In identifying its expenditures on Canadian programming in its present application for licence renewal, the licensee has excluded any costs, including salaries and operations, which are not directly related to Canadian programming. The licensee stated that this change in reporting formats has reduced the 1989-1990 base amount of NTV's annual expenditures on Canadian programming from $1,425,000 to $733,000.

The Commission accepts NTV's explanation and has, therefore, reduced the 1989-1990 base amount of CJON-TV's formula from $1,425,000 to $733,000.

Accordingly, inasmuch as NTV's advertising revenues and network payments in the broadcast year ending 31 August 1994 were less than $10 million, the Commission expects the licensee to expend in the first year of the new licence term the amount requested, based on a seamless continuation of its existing formula, before consideration of any overexpenditures or underexpenditures from prior years, using the 1989-1990 base amount of $733,000. 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 licensee is not permitted to credit any overexpenditures made in the current licence term towards Canadian programming expenditures in any year of the upcoming licence term.

The Commission notes that the licensee has elected to average the percentage increase in total advertising revenues and network payments 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 the same three-year averaging mechanism throughout the new licence term.

The Commission expects that, during the new licence term, the licensee will prepare its annual returns on expenditures on Canadian programming in a manner consistent with that which it has followed since 1990.

The Commission notes that NTV's practice has been to submit separate annual returns for CJON-TV St. John's, CJWN-TV Corner Brook and CJCN-TV Grand Falls. However, the Commission advises NTV that, in view of the fact that the Corner Brook and Grand Falls transmitters receive all of their programming from CJON-TV, the licensee is required to provide only one annual return for CJON-TV and all of its transmitters.

Report on transmitter outages

In Decision CRTC 90-658, the Commission reiterated its requirement that the licensee submit at the end of each six-month period of the licence term a complete record of NTV's transmitters outrages. The Commission initially imposed this requirement on the licensee in Decision CRTC 84-798 dated 14 September 1984. As part of its licence renewal application, NTV asked to be relieved of this requirement for the new licence term.

The Commission is now satisfied that the licensee has achieved significant improvement in the technical quality of NTV's service and has made good progress in upgrading equipment as well as installing computerized remote control and monitoring systems. Accordingly, the Commission will no longer require the licensee to submit these reports during the new licence term.

In its application, NTV referred to the long-standing technical problems associated with the transmitter located at Red Rocks. NTV stated that, while it rebuilds portions of this transmitter each year, it expects that "within the next two to three years, [it] will require detailed asessment and consideration". In view of the foregoing, the Commission encourages the licensee to replace the Red Rocks transmitter with a new solid-state unit within three years of the new licence term.

Projected fee for carriage of CJON-TV by cable operators

In its renewal application, NTV indicated its intention to seek subscription revenues from cable companies operating in northern Newfoundland for the carriage of CJON-TV. NTV also stated that it would like to market CJON-TV's signal for carriage for a fee by Part III cable licensees in the other Atlantic provinces.

The Commission reminds the licensee that, should it wish to pursue these objectives, it must submit an application to the Commission requesting authority to provide a distant signal for a fee to cable operators. Furthermore, cable operators wishing to distribute CJON-TV as a distant signal would also be required to submit an application to the Commission requesting authorization to do so.

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 expects the licensee to caption, by the end of the new licence term, all local news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

The Commission also expects the licensee to close caption, by the end of the licence term, at least 90% of all programming during the broadcast day.

The Commission expects the licensee to adhere to the guidelines set out in Appendix A to Public Notice CRTC 1989-23 dated 23 March 1993 entitled "Services Using the Vertical Blanking Interval (Television) or Subsidiary Communications Multiplex Operation
(FM)".

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 consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. The Commission notes that NTV has submitted a detailed plan of action intended to ensure that adequate employment equity practices are followed throughout its organization.

The Commission acknowledges the five interventions submitted in support of this application as well as the concerns expressed in one other intervention and the licensee's reply thereto.

Allan J. Darling
Secretary General

APPENDIX I / ANNEXE I

CJON-TV's transmitters

Newfoundland

CJOM-TV Argentia
CJCV-TV Clarenville
CJLN-TV Lawn
CJLW-TV Deer Lake
CJMA-TV Marystown
CJON-TV-4 Bay Bulls
CJOX-TV-1 Grand Bank
CJRR-TV Red Rocks
CJSC-TV Swift Current
CJST-TV St. Alban's
CJSV-TV Stephenville
CJWB-TV Bonavista
CJCN-TV Norris Arm
CHSG-TV Glenwood
CJWN-TV Corner Brook

APPENDIX II / ANNEXE II

Conditions of licence for CJON-TV St. John's and its transmitters

1. The licensee shall operate this 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.