ARCHIVED -  Decision CRTC 95-635

Decision

Ottawa, 29 August 1995

Decision CRTC 95-635

Moffat Communications Limited

Winnipeg, Brandon, Dauphin/Baldy Mountain, Fisher Branch, Flin Flon, McCreary, Snow Lake, The Pas and Thompson, Manitoba - 940948300

Licence renewal for CKY-TV Winnipeg and its transmitters

Following a Public Hearing held in Winnipeg beginning on 5 June 1995, the Commission renews the broadcasting licence for the television programming undertaking consisting of CKY-TV Winnipeg, CKYB-TV Brandon, CKYD-TV Dauphin/Baldy Mountain, CKYA-TV Fisher Branch, CKYF-TV Flin Flon, CKYB-TV-1 McCreary, CKYS-TV Snow Lake, CKYP-TV The Pas and CKYT-TV Thompson, from 1 September 1995 to 31 August 2002, 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.

Moffat Communications Limited (Moffat) is controlled by Randall L. Moffat of Winnipeg.

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 licenced to serve.

In this regard, the Commission expects the licensee to adhere to the commitment made in its renewal application to broadcast, at a minimum, an average of 8 hours 55 minutes each week of original, local news during the new licence term.

The Commission notes the licensee's plans to continue, during the new licence term, to reflect the region through programs such as "Two Sports Guys" and "Sunday Scope" as well as other regular program features such as "Sylvia's Spotlight", "Sports Star of the Week" and "Weather Spotters".

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

As 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.

Licensees are required to advise the Commission of their selection before 1 September 1995 and to adhere to their choice throughout the entire new term of licence.

The Commission notes that the licensee's Canadian programming expenditure projections for 1989-1990, the first year of the current licence term, filed in CKY-TV's 1988 application for licence renewal, were overstated by $228,000. The licensee advised the Commission that it had incorrectly included in its projections for 1989-1990, which became the base amount of the expenditure formula, proposed expenditures of $228,000 for programs produced by CKY-TV for the CTV Television Network. In view of the foregoing, condition of licence 2, Option A outlined in the appendix to this decision will be calculated using a 1989-1990 base amount of $4,405,000.

Canadian children's programming

At the hearing, Moffat stated that, because of decreasing audiences for children's programming, CKY-TV will focus on programming directed to adults, primarily news and information. Moffat, nevertheless, made a commitment to maintain, during each year of the new licence term, one hour each week of Canadian programming directed to children (ages 2 to 11).

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. In this regard, the Commission notes the licensee's commitment to spend $50,000, over the new licence term, in direct payments for script and concept development.

Service to the deaf and hard of hearing

The Commission acknowledges the concerns expressed in the interventions submitted by Closed-Captioning & Subtitles as well as by the Winnipeg Community Centre of the Deaf and the Manitoba Chapter of the Canadian Hard of Hearing Association. The Commission has noted Moffat's responses thereto.

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 this licence, to caption all local news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

The Commission also requires the licensee to close caption not less than 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 that Moffat is currently developing a scholarship and bursary program to assist individuals in the designated groups (namely, women, visible minorities, persons with disabilities and aboriginal persons) to acquire the skills and training necessary to participate in the broadcasting industry. The Commission commends the licensee on this initiative and encourages it to continue its efforts in the area of employment equity.

Interventions

The Commission acknowledges the intervention submitted by Craig Broadcast Systems Inc. (Craig), licensee of CKX-TV Brandon and CHMI-TV Portage La Prairie/ Winnipeg, opposing the renewal of CKYB-TV Brandon and CKYD-TV Dauphin. The intervener requested that the Commission impose a condition of licence on Moffat requiring it to permit Craig to continue to delete local Winnipeg commercials from CKYB-TV and CKYD-TV, and insert in the Brandon and Dauphin signals local commercials sold by Craig and inserted in the schedule of Craig's Brandon undertaking, CKX-TV. The Commission notes that Moffat and Craig currently cooperate in such a fashion, based on an informal agreement.

In responding to this intervention, Moffat referred to Craig's application regarding its television undertaking, CHMI-TV Portage La Prairie/ Winnipeg, also heard at the 5 June hearing. In that application, Craig requested to be relieved from the expectation that it not solicit local advertising in Winnipeg. Moffat stated that it would allow Craig to continue to delete local Winnipeg commercials from CKYB-TV and CKYD-TV, and substitute local commercials from CKX-TV, as long as Craig was not permitted to solicit local advertising in Winnipeg. During discussions at the hearing, Moffat expressed concern that, if Craig is permitted to continue commercial deletion and substitution on the Brandon and Dauphin undertakings at the same time it is allowed to solicit local advertising in Winnipeg, "the existing balance of competition for local advertising revenues in the province" would be disrupted.

In a related decision issued today (Decision CRTC 95-634), the Commission has approved Craig's request to be relieved from the expectation that CHMI-TV not solicit local advertising in Winnipeg.

Having considered the views of the licensee and the intervener, the Commission is not convinced that the imposition of a condition of licence requiring Moffat to allow Craig commercial deletion and substitution on CKYB-TV and CKYD-TV is warranted. Moreover, the Commission notes that separate licences would be required for CKYB-TV and CKYD-TV if the programming broadcast by these transmitters is not solely rebroadcast from CKY-TV.

The Commission acknowledges the concerns expressed in the intervention submitted by the Canadian Association of Broadcasters (CAB) concerning the applications heard at the 5 June hearing for the licence renewal of private, television stations earning more than $10 million in annual advertising revenues and network payments. The Commission has addressed this intervention in Decision CRTC 95-589 dated 24 August 1995 renewing the licence for CICT-TV Calgary.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

Conditions of licence for CKY-TV Winnipeg, CKYB-TV Brandon, CKYD-TV Dauphin/Baldy Mountain, CKYA-TV Fisher Branch, CKYF-TV Flin Flon, CKYB-TV-1 McCreary, CKYS-TV Snow Lake, CKYP-TV The Pas and CKYT-TV Thompson

1. The licensee shall operate this broadcasting undertaking as an affiliate of the network operated by the CTV Television Network Ltd.

2. The licensee shall adhere to either Option A or Option B set out below. Licensees are required to advise the Commission of their selection before 1 September 1995 and to adhere to their choice throughout the entire new term of licence.

Option 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.

Option 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 have the same meaning as set out in Schedule I of the Television Broadcasting 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.