ARCHIVED -  Decision CRTC 98-484

Decision

Ottawa, 15 October 1998

Decision CRTC 98-484

Learning and Skills Television of Alberta Limited

Application processed by
Public Notice CRTC 1998-48
dated 15 May 1998

Increase in commercial content - denied

1. The Commission denies the application by Learning and Skills Television of Alberta Limited (Learning and Skills), to amend the broadcasting licence for the English-language satellite to cable programming television service responsible for delivering educational programming throughout the province of Alberta. The applicant is licensee of the only privately owned and operated provincial educational television service.

2. Commercial messages broadcast during air time purchased by the Alberta Government Ministry of Education or by the Ministry of Advanced Education and Career Development are limited to those intended to sell or promote goods, services or activities integrally related to education and learning. The licensee is currently limited to the broadcast of no more than six minutes of advertising material during each clock hour, and a total of no more than 501 minutes of advertising material per broadcast week, exclusive of the type described above. These limitations are set out in Decision CRTC 95-472 as conditions of licence 9 and 10.

3. The proposed amendment would have allowed Learning and Skills to distribute 12 minutes of advertising material during each clock hour, with no weekly maximum limit.

4. As part of its application, Learning and Skills noted that, while its limited advertising availabilities are essentially sold out, the nature of the programming does not allow the licensee to charge rates for its advertising that are comparable to those of other broadcasters.

5. It stated that most major media buyers make decisions based on audience ratings; since the ratings for Learning and Skills programs are significantly lower than those for most commercial programming, rates must also be significantly lower in order to attract buyers. It added that an increase in the number of advertising minutes available for sale would allow Learning and Skills to reach the advertising revenue projections made as a part of its application to acquire the service, noting that the advertising revenues earned by the service have been more than 50% lower than projected.

6. Interventions in opposition to this application were submitted by a number of parties, including Veronica and Gretton Swan, the Alberta Broadcasters' Association, Craig Broadcasting Alberta Inc., WIC Western International Communications Ltd., Monarch Broadcasting Ltd., Nornet Broadcasting Ltd., and CKKY Radio.

7. The interventions all opposed an increase of commercial activity on Learning and Skills. Among other things, the interveners noted that Learning and Skills seemed to be already increasing the general interest component of its programming, and that an increase in commercial activity would have a further negative impact on the commercial broadcasters of Alberta. The interveners argued that increased advertising on the service would be inconsistent with the Commission's treatment of other educational broadcasters. Several interveners also made the assertion that the applicant has under-estimated projected revenues, and that the currently allowable commercial activity, if maximized, would be more than adequate to fulfil the service's original revenue projections.

8. In its replies to the interventions, Learning and Skills argued that commercial broadcasters have not accepted the fact that educational broadcasting in Alberta is no longer a public sector service. The licensee asserted that Learning and Skills should be on a "level playing field" to be able to compete fairly with other broadcasters.

9. The Commission has considered the views of the applicant and those of the interveners. In making its decision, the Commission has taken account of the fact that, as a privately owned provincial educational broadcaster, Learning and Skills must have access to some commercial advertising revenues to support its programming. At the same time, the Commission is convinced that educational broadcasters should remain distinctly different from commercial broadcasters. It is concerned that an educational broadcaster that relies too heavily on advertising revenue would be compelled to offer more popular programming to increase its appeal to advertisers, and that this would have a negative influence on the educational broadcaster's performance in fulfilling the principal mandate of the service.

10. The Commission has not permitted provincial educational broadcasters, other than Learning and Skills and Télé-Québec, to carry any advertising. The Commission notes that, in Decision CRTC 95-472 approving the acquisition by Learning and Skills of the assets of The Alberta Educational Communication Corporation, it stated:

The figure of 6 minutes of advertising per hour is the same amount that the Commission, in the mid-eighties, permitted [Télé-Québec] to sell, in light of that licensee's exceptional circumstances. In the present case, given the Commission's concerns regarding the potential impact of [the applicant's] commercial activities on existing broadcasters, it has imposed [a similar condition of licence].

It added:

The Commission considers that all of the licensing requirements it has imposed [on Learning and Skills] are necessary. This is based on the unprecedented nature of the applications, particularly the unique attributes of the applicant as the only privately-owned, for-profit commercial enterprise to be licensed as a provincial educational broadcaster.

11. The Commission is not convinced that a departure from its position, as set out above, is warranted.

Secretary General

This document is available in alternative format upon request and may also be viewed at the following Internet site: http://www.crtc.gc.ca