ARCHIVED -  Decision CRTC 95-569

Decision

Ottawa, 18 August 1995

Decision CRTC 95-569

CTEQ Télévision Inc.

Montréal, Quebec - 941001000

New Multilingual Television Service - Approved

Following a Public Hearing in the National Capital Region beginning on 15 May 1995, the Commission approves the application for a broadcasting licence for a multilingual television programming undertaking at Montréal, on channel 62B, with an effective radiated power of 11,000 watts.

The Commission will issue a licence to CTEQ Télévision Inc. (CTEQ), expiring 31 July 2002, subject to the conditions specified in the appendix to this decision and in the licence to be issued.

CTEQ proposes to serve the various ethnic communities in the Montréal area through a conventional multilingual television undertaking. This is the second multilingual television undertaking authorized by the Commission, the first being CFMT-TV Toronto. The new service is intended to replace the special ethnic programming service distributed on cable in Montréal by Vidéotron Ltée and CF Cable TV Inc. The ethnic programming on cable, which is produced in cooperation with independent ethnic producers operating under the name Télévision ethnique du Québec (TEQ), is also distributed by a number of other cable undertakings in Quebec.

CTEQ stated that its application is the culmination of an evolutionary process that began some twenty years ago, when ethnic programs were first introduced to Montréal cable subscribers on the community channel. Over time, an increasingly cosmopolitan community created greater demand for this type of programming. In response to this demand, the Commission authorized cable systems in Montréal to distribute the programming on a separate ethnic channel, today known as TEQ's channel 24.

Market Issues

Montréal, Toronto and Vancouver are home to Canada's largest ethnic communities. The latest Statistics Canada census, conducted in 1991, revealed that the greater Montréal area was second only to Toronto in the number of residents of other than British, French or aboriginal origin. The market study commissioned by the applicant found that ethnic communities now account for over 30% of the population of greater Montréal. CTEQ concluded that only a new multilingual commercial television station would have the necessary resources to serve this growing population adequately.

The applicant's projections indicate that CTEQ's advertising revenue in its first year of operation would be approximately $5.3 million. This would be more than double TEQ's 1994 revenues, reflecting the fact that, as a special programming service distributed by cable, TEQ is now only permitted to distribute restricted advertising. The applicant indicated at the hearing that it had deliberately taken a conservative approach in its projections; it was confident that its actual performance, and hence its profitability, would be considerably greater than these forecasts.

Asked at the hearing about the potential repercussions of the CTEQ service on existing broadcasters in the market, the applicant noted that no other broadcasters had intervened to oppose its application. It does not expect that any serious impact will be felt by local radio and television stations since, as is now the case with TEQ, the primary advertising market will be local businesses that serve an ethnic clientele, and that are not in the habit of advertising on conventional English- or French-language stations. The Commission noted in this regard that the applicant intends to sell advertising jointly with the ethnic AM radio station CFMB Montréal, thus minimizing any potential negative impact on that station.

Access Issues

The Commission received numerous written interventions in support of the CTEQ application submitted, for the most part, by individuals, organizations and associations representing the ethnic communities of the Montréal area. Other interveners, mainly independent ethnic producers who work with TEQ now or who would like to produce ethnic programming, appeared at the hearing to oppose the application or voice concerns regarding certain aspects of it, including the issue of access to CTEQ.

It was submitted that effective control of CTEQ would be in the hands of a small group that excludes most current TEQ producers. The Commission notes in this regard that 60% of CTEQ's common voting shares will be held by 2922045 Canada Inc., a corporation whose shares are held equally by Milton Winston and Marie Griffith. Historically, these two individuals have had a particularly strong involvement in the operations of TEQ, and they will hold the positions of chairperson and vice-chairperson, respectively, of the CTEQ Board of Directors.

In addition to the fact that the proposed ownership structure did not guarantee them access to CTEQ air time, some producers expressed concern that, in future, the station could neglect the smaller producers or smaller communities for financial reasons, and expand the share of services targeted at ethnic groups that are larger and more attractive to advertisers.

In Public Notice CRTC 1985-139, entilted "A Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity", and dated 4 July 1985, the Commission stated that its licensing approach for ethnic stations would be aimed specifically at ensuring that licensees provide broader service to ethnic groups in the coverage area of the undertaking, and that they take into account the diverse needs of these groups in their programming, including the needs of smaller groups. Accordingly, in approving this application, the Commission seeks to ensure that, through implementation of the applicant's proposals and commitments, together with its adherence to the expectations set forth in this decision and the conditions of licence in the appendix, the diverse ethnic communities in the Montréal area will have a reasonable guarantee that they will be adequately served in accordance with the requirements of the above policy.

The applicant stated at the hearing that it did not wish to avail itself of the flexibility provided under the policy for broadcasting non-ethnic programming. It committed to devote its entire programming schedule to ethnic material, and adherence to this commitment will be a condition of licence. CTEQ programming will be targeted at four main linguistic sub-groups. One of these sub-groups (identified by the applicant as Group I) is comprised of the Italian, Portuguese and Lebanese communities. The Commission notes that, because of the demographic importance of the ethnic communities in Group I, and advertiser interest in addressing these communities, the applicant will devote a larger portion of its broadcast hours, ie, about 32% of the total according to the application, to this sub-group. The Commission notes in this regard that, as explained by the applicant at the hearing, revenues derived from Group 1 will be used to provide stablity for the undertaking and to subsidize the production of programs directed to ethnic groups with more modest financial resources.

The Commission reminds the applicant that its annual reports must declare the total revenues derived from advertising broadcast on CTEQ, including revenues from the eight minutes per hour of advertising that the producers of brokered programming directed to Group 1 audiences will be permitted to sell. However, the income statement for revenues derived from such brokered Group 1 programming must be filed separately from the CTEQ annual report.

In accordance with the applicant's commitments, it is also a condition of licence that CTEQ serve, on a monthly basis, not fewer than 25 distinct ethnic groups in not fewer than 25 different languages. The Commission notes that CTEQ has committed to serve seven more ethnic groups than are served by CFMT-TV Toronto, and to broadcast programs in ten more languages. It is a condition of licence that, in each broadcast year, CTEQ devote to the broadcast of Canadian programs not less than 50% of its broadcast hours between 7:00 a.m. and 1:00 a.m. and between 6:00 p.m. and midnight.

In order to address more specifically the concerns relating to access, the applicant proposed to establish an advisory council to oversee implementation of CTEQ's Code of Programming Standards and Practices. This Code, which the applicant filed with its application, contains the following commitment relating to access:

 CTEQ is committed to: ...

 (ii) make access to CTEQ's airwaves available to any person, group or entity who represents one of the recognized ethnic communities in the greater Montréal area or any of Canada's aboriginal peoples, who agrees to conform to this Code of Programming Standards and Practices, and subject to the   availability of air time, based on the following criteria: - air time allotted will be, to the extent possible, proportionally representative for the ethnic group in question vis-à-vis all ethnic communities in the greater Montréal area, based upon the most recent census results from Statistics Canada...

The Commission considers the commitments set forth by the applicant in this Code to be important, and has made compliance with the CTEQ Code a condition of licence, including the above commitment relating to access as set out in article 5 of the Code.

The applicant indicated at the hearing that the CTEQ Advisory Council would consist of at least five persons who would report directly to the president of CTEQ. Following a discussion on the matter, however, the applicant acknowledged that the structure and terms of reference of the advisory council were not determined as yet. It also indicated that it intended to expand the council to include other representatives of ethnic communities. In view of the concerns raised at the hearing and the large number of ethnic communities in the greater Montréal area, the Commission encourages the applicant to increase advisory council membership from five to at least ten. To ensure that the advisory council is sufficiently representative of Montréal's diverse ethnic population, the Commission expects at least two representatives to be selected from each of the four linguistic sub-groups proposed in the application, and the remaining two members to be appointed as representatives of the fifth programming sub-group proposed in the application, representing the ethnic population as a whole. The Commission further expects the applicant within 90 days of the date of this decision, to provide confirmation of the structure adopted for its advisory council, and full details of its terms of reference.

Other Issues

With regard to the broadcast of feature-length films, the applicant stated that priority would be given to foreign-language films. However, it requested some latitude in this area to allow it occasionally to broadcast films in English or French where English or French is indigenous to the film's country of origin. This commitment forms the basis for a condition of licence.

With regard to children's programming, the Commission notes CTEQ's commitment to offer a variety of children's programs in several languages on Saturday mornings. The Commission also notes CTEQ's plans to collaborate with other broadcasters, including a proposal to exchange services and programming with CFMT-TV Toronto.

At the hearing the Commission discussed with the applicant the particular problems involved in providing services to the deaf and hard of hearing in a multi-ethnic environment. In Public Notice CRTC 1995-48 dated 24 March 1995, as an introduction to decisions renewing the licences of privately-owned English-language television stations, the Commission acknowledged that captioning may not be appropriate for some types of programming, including ethnic programs in languages other than English and French.

Nevertheless, the Commission considers that CTEQ might consider the possibility of introducing captioning by 1 September 1998 in its news and information programming, for example, the morning newsmagazine and the late afternoon newscasts on weekdays. In this regard, the Commission expects the applicant to file a progress report by 1 September 1997 describing its plans to achieve this objective.

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 noted the applicant's commitment to comply with this policy and encourages it to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Discussion at the hearing also touched upon this application's potential impact on cable television operators in the Montréal area. Under the Cable Television Regulations, 1986, the signal of this new television station would normally be distributed as a priority service on a basic band channel (channels 2 to 13) of the basic service of local cable television undertakings, thus displacing existing services. The applicant, however, confirmed at the hearing that it is prepared to accept the distribution of its signal on a non-basic band channel on Montréal area cable systems in order to avoid the displacement of any services currently distributed on such channels. The Commission notes that, for this to occur, the licensees of local cable television systems must first apply for, and be granted relief from, the general requirement that the CTEQ signal be distributed on a basic band channel. The applicant stated at the hearing that it had discussed this matter with Vidéotron Ltée and CF Cable TV Inc., and that both were prepared to file the required application. The Commission also notes the written interventions filed by these two cable undertakings in support of the CTEQ application.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CTEQ

1. The licensee shall adhere to the CTEQ's "Code of Programming Standards and Practices", as filed with the approved application, and as amended from time to time and accepted by the Commission.

2. The licensee shall devote all of its programming (100%) to the broadcasting of ethnic programs.

3. The licensee shall devote to the broadcasting of programs of Types A and B not less than 80% of the total number of hours devoted to the broadcasting of programs monthly.

4. The licensee shall broadcast ethnic programs directed toward not less than 25 distinct ethnic groups monthly.

5. The licensee shall broadcast ethnic programs in not less than 25 different languages monthly.

6. The licensee shall devote to the broadcasting of Canadian programs:
 a) not less than 50% of the total number of hours broadcast annually between 7:00 a.m. and 1:00 a.m.; and
 b) not less than 50% of the total number of hours broadcast annually between 6:00 p.m. and midnight.

7. The licensee shall not distribute films and/or feature length films which are not in a foreign language, except when French or English is indigenous to the country of origin.

8. 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 this condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council (CBSC).

9. 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 this condition of licence will be suspended as long as the licensee remains a member in good standing of the CBSC.

10. 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.

11. The construction of this undertaking must be completed and it must be in operation within twelve months of the date of this decision or, where the applicant applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.