ARCHIVED -  Decision CRTC 95-585

Decision

Ottawa, 23 August 1995

Decision CRTC 95-585

BBS Ontario Incorporated

Pembroke, Sudbury, North Bay, Sault Ste. Marie and Timmins, Ontario - 940900400 - 940892300 - 940893100 - 940894900 - 940895600 - 940896400 - 940897200 - 940898000 - 940899800

Renewal of licences for CHRO-TV Pembroke; CICI-TV and CKNC-TV Sudbury; CKNY-TV and CHNB-TV North Bay; CJIC-TV and CHBX-TV Sault Ste. Marie; and CFCL-TV and CITO-TV Timmins

Following a Public Hearing in the National Capital Region beginning on 15 May 1995, the Commission renews the broadcasting licences for CHRO-TV Pembroke, CICI-TV and CKNC-TV Sudbury, CKNY-TV and CHNB-TV North Bay, CJIC-TV and CHBX-TV Sault Ste. Marie and CFCL-TV and CITO-TV Timmins 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.

BBS Ontario Incorporated (BBS) is a company indirectly controlled by four members of the Eaton family of Toronto, through their indirect ownership of a controlling interest in Baton Broadcasting Limited (Baton). BBS is the licensee of CHRO-TV, an affiliate of the CTV network, and of the CBC/CTV twin-stick operations in Sudbury, North Bay, Sault Ste. Marie and Timmins. BBS is also the licensee of CJOH-TV (CTV) Ottawa.

A twin-stick operation is one owned by a single licensee and which broadcasts two distinct services over the air in the same community. Such configurations were originally approved by the Commission as a means of introducing a second network service to communities whose only local Canadian service had been the CBC and whose markets could not otherwise support a second competitive service.

CKNY-TV North Bay, CICI-TV Sudbury, CHBX-TV Sault Ste. Marie and CITO-TV Timmins are affiliated with the CTV Television Network, and CHNB-TV North Bay, CKNC-TV Sudbury, CJIC-TV Sault Ste. Marie and CFCL-TV Timmins are affiliated with the CBC English-language television network.

Non-simultaneous programming on CHRO-TV Pembroke and CJOH-TV Ottawa

In Decision CRTC 90-1074 dated 22 October 1990, the Commission approved an application by Baton to acquire effective control of the former licensee of CHRO-TV Pembroke, Mid-Canada Communications (Canada) Corp.

In that decision, the Commission expressed concern related to the common ownership by Baton of CHRO-TV and CJOH-TV, especially in view of the fact that the CHRO-TV signal was distributed on Ottawa cable systems. The Commission noted that, if programs received from the CTV network were scheduled at different times on the two stations, Baton could extract a considerably greater portion of the advertising dollars available in the Ottawa market than would be possible if all network programming was broadcast simultaneously on the two stations. The Commission's concern was for the impact that this might have on other broadcasters serving the Ottawa market.

In light of this concern, the Commission imposed an expectation on BBS that it ensure the same programs originating with the CTV network are not broadcast at different times on the two stations unless authorized by the Commission. Since that time, CHRO-TV has complied with this expectation by filing requests for prior approval each time that CTV programming was to be carried on CHRO-TV at a different time than on CJOH-TV.

As a part of the current CHRO-TV application, BBS requested an amendment to the expectation which would allow it to reschedule CTV network programming in order to air local programming specials on CHRO-TV, such as sports presentations and telethons, without prior application to the Commission. In support of its request, the licensee stated that the proposed amendment would allow the broadcast of local programming of interest to Ottawa viewers that would not otherwise be presented in the market.

The Commission considers that the broadcasting of special programs that would be of local interest, but that are not regularly scheduled, does not raise the same concern that prompted the original scheduling restrictions. The Commission agrees that some flexibility for the broadcasting of such programming is thus warranted.

The Commission, therefore, will continue to expect BBS to ensure that, between the hours of 6:00 p.m. and midnight:

a) both CJOH-TV and CHRO-TV carry all of the network sales time programming provided by CTV; and

b) the above programming, together with any station service sales programming that is acquired from CTV for broadcast on both CJOH-TV and CHRO-TV, is scheduled at the identical time and date on both stations

unless such programming is preempted on CHRO-TV by locally-produced programming not regularly scheduled on that station, including such specials as locally-produced professional sports presentations, parades and telethons.

Local reflection

In Public Notice CRTC 1995-48 dated 24 March 1995, 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. In this regard, the Commission expects the licensee to adhere, throughout the licence term, to the commitments made in its renewal applications to broadcast a minimum weekly average of 12 hours of original local news on CHRO-TV Pembroke and an average weekly combined total of 12 hours on the two stations in each of the remaining four cities. The Commission notes that these commitments represent a significant increase in original local news from the commitments in the current licence term, and acknowledges that this increase is a result of the amalgamation of resources between the twin-stick operations in each community.

The Commission reiterates its statements in Public Notice CRTC 1995-48 that it considers that conventional local stations in any given market should continue to provide a diversity of programming, in particular, Canadian information and entertainment programming. In this regard, the Commission notes that the practice followed by BBS of combining staff and other resources for the production of local programming, in the case of its twin-stick operations in Sudbury, North Bay, Sault Ste. Marie and Timmins, will be reviewed at the time of the next licence renewal, to ensure that original local programming (other than news) is maintained on individual stations in each of the communities concerned. The Commission will review requests by the licensees of twin-stick operations to pool resources on a case-by-case basis; the Commission will generally expect such licensees to provide commitments to ensure that the pooling of resources in such cases will result in an overall increased number of hours of original local news.

Expenditures on Canadian programming by CHRO-TV Pembroke

In Public Notice CRTC 1989-27 dated 6 April 1989, the Commission stated that, at licence renewal, 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 CRTC 1995-48, the Commission shall continue to expect such licensees to expend on Canadian programming in accordance with the formula. Under the Commission's policy, this expectation is applied in a seamless fashion moving from the current into the new licence term, without consideration of any overexpenditures or underexpenditures from prior years. 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.

Accordingly, inasmuch as the licensee's advertising revenues and network payments in the broadcast year ending 31 August 1994 were less than $10 million for CHRO-TV, the Commission expects the licensee to expend, as respects CHRO-TV, in the first year of the new licence term, at a minimum, an amount of $2,694,736 increased or 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.

Sudbury, North Bay, Sault Ste. Marie and Timmins Stations: 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 offered the option of either adhering to a condition of licence on Canadian programming expenditures similar to their existing condition, or adhering to a condition of licence requiring the licensee to exhibit a specific number of hours per week 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 Decisions CRTC 89-135 and 89-137 dated 6 April 1989, the Commission renewed the licences for the eight BBS television undertakings in Sudbury, North Bay, Sault Ste. Marie and Timmins, and imposed an expectation for Canadian programming expenditures in line with the Commission's policy for stations earning under $10 million annually in advertising revenues.

In 1993, however, the Commission approved a request by the licensee that, for purposes of requirements related to Canadian programming expenditures only, the revenues of the eight twin-stick stations in question be calculated on a group basis, rather than individually. Although the combined revenues for the stations in question were over $10 million annually, the individual stations remained subject to the spending expectations only. In the new licence term, however, the choice of options outlined above and repeated in the appendix to this decision, is applicable to BBS in respect of these stations on a consolidated basis.

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 has chosen to follow, that option becomes the condition of licence in effect 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 dated 6 April 1989 and entitled Overview: Local Television for the 1990's regarding the important role that local television stations play in program development. In this regard, the Commission notes the licensee's commitment to continue to make a combined annual financial contribution of $100,000 on behalf of CHRO-TV and the other eight television undertakings, to the existing BBS development fund.

Children's programming

With respect to programming directed to children, the Commission notes the licensee's commitment to broadcast on CHRO-TV an average of 2 hours 30 minutes per week of programming directed to children aged 2-11 and a weekly average of 1 hour 30 minutes of programming of interest mainly to youth aged 12-17. The Commission also notes the licensee's commitment to broadcast on the eight twin-stick stations a combined average of 12 hours per week of programming for children and 2 hours weekly directed to youth.

Service to the deaf and hard of hearing

The following expectations and encouragements are consistent with the Commission's approach to the closed captioning of programming set out in Public Notice CRTC 1995-48.

With respect to CHRO-TV Pembroke, CICI-TV and CKNC-TV Sudbury, the Commission expects the licensee, by the end of the licence term, to caption all locally-produced news programs broadcast on these stations, including live segments, using either real-time captioning or another method capable of captioning live programming. Additionally, the Commission expects the licensee to caption not less than 90% of all programming broadcast on these stations, throughout the broadcast day, by the end of the licence term.

With respect to CKNY-TV and CHNB-TV North Bay, CHBX-TV and CJIC-TV Sault Ste. Marie and CITO-TV and CFCL-TV Timmins, the Commission encourages the licensee, by the end of the licence term, to caption all locally-produced news programs broadcast on these undertakings, including live segments, using either real-time captioning or another method capable of captioning live programming. Additionally, the Commission encourages the licensee to caption not less than 90% of all programming broadcast on these stations, throughout 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 consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Interventions

The Commission acknowledges the concerns expressed by Reverend J.A. Collins, regarding BBS's lack of commitment to continue to produce quality local religious programming at CHRO-TV. The Commission also acknowledges all of the interventions submitted in support of these applications.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CHRO-TV Pembroke

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

2. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' (CAB) "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 Canadian Broadcast Standards Council.

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.

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.

Conditions of licence for CICI-TV Sudbury; CKNY-TV North Bay; CHBX-TV Sault Ste. Marie; and CITO-TV Timmins

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

2. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' (CAB) "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 Canadian Broadcast Standards Council.

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.

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.

Conditions of licence for CKNC-TV Sudbury; CHNB-TV North Bay; CJIC-TV Sault Ste. Marie; and CFCL-TV Timmins:

1. The licensee shall operate each of these programming undertakings as part of the English-language television network operated by the Canadian Broadcasting Corporation.

2. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the Canadian Association of Broadcasters' (CAB) "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 Canadian Broadcast Standards Council.

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.

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.

Condition of licence for CICI-TV and CKNC-TV Sudbury, CKNY-TV and CHNB-TV North Bay, CHBX-TV and CJIC-TV Sault Ste. Marie, and CITO-TV and CFCL-TV Timmins

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

On behalf of all 8 undertakings noted above, 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: 1995-19965:30 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.