ARCHIVED - Decision CRTC 2000-219

In Vancouver, you will recall we have an $18 million commitment to feature film, plus the $6.7 million commitment to the dramatic serial for a total of $24.7 million.

In looking at the revenue that we would generate on the Victoria alone scenario, we are comfortable with bringing some of those commitments over to the Victoria alone scenario. The commitment we would be prepared to make is a $12 million special Canadian programming commitment on the Victoria alone scenario.

• Public Notice 1999-97 – Building on success – A policy framework for Canadian television

• Public Notice 1999-206 – Implementation of the TV Policy

The Commission shares the views of those who consider that Vancouver's ethnic communities should have access to additional local programming, especially given the increasingly multicultural nature of the market. (Paragraph 31)

Given its decision to license only one station [in the Vancouver/Victoria market], the Commission considers that the need for an additional television service to serve Vancouver Island should take priority at this time. (Paragraph 31)

The Vancouver revenue that you could generate against that station if there was no new Vancouver station would really be national selective dollars by and large. There aren’t a lot of retailers in Vancouver who are going to spend a lot of money on the Island at retail, certainly not to get back to Vancouver because they are not going to be watching the Victoria based newscasts. The local programs that are designed for the Island, the Islanders are going to watch those. (Page 427)

The Commission has decided to continue the basic framework of the 1985 ethnic broadcasting policy. It considers that this policy has led to a substantial increase in the diversity of the Canadian broadcasting system through the emergence of many new ethnic broadcasting stations. Many participants in the review emphasized how valuable the programming of these stations was to them, their families, their cultural groups and to their integration into Canadian society... The policy will continue to provide a framework for broadcasting that fosters opportunities for greater understanding among people with different cultural backgrounds. As is the case with larger groups, the Commission continues to consider that smaller ethnic groups benefit from a basic level of broadcasting in their own languages and from programming that assists in their full participation in Canadian society, reflects their culture and promotes cross cultural understanding.

expects that the revised policy will support the continued growth of high quality third-language Canadian programming.

today’s applicants should clearly demonstrate to us that there is a need in the market for the proposed station and service. The Commission will examine these applications in light of the objectives of the Broadcasting Act and the new television policy issued last June. With this in mind the Commission will pay particular attention to the following elements which can be found in Public Notice CRTC 1999-101:

• The contribution that the new service will make toward achieving the objectives of the Broadcasting Act, notably the production of local and regional programs;

• How the applicant intends to promote the development of Canadian talent, particularly local and regional talent;
  

• How the applicant will contribute to the priority programs nationally as defined by the TV policy;
  

• The possibility of concluding program co-investments and co-purchase agreements with Canadian or foreign broadcasters;
  

• The new services proposed audience;
  
  

• The soundness or the feasibility of the business plan, the validity of the market analysis and the advertising revenue forecasts;
  
  

• The availability of financial resources to meet the requirements identified in the business plans financial projects; and
  
  

• Finally, the impact on the existing players in the Vancouver extended market as well as nationally.
  

Of course, while being aware of Canadian television programming, the applicants should also address the needs and tastes of their respective markets, not forgetting the viewers.

Most notably, we did not apply for Alberta in the competitive round four years ago because we wanted to signal that Vancouver was the one that counted most in CHUM Television’s future. This is still the case. (Page 15)

We are absolutely prepared to live by what we have here by way of proposals. We are offering this application (Vancouver) as separate from the other application (Victoria). They each stand alone and each stood independently and on their own. (Page 68)

It would certainly affect the business plan, but each variable will change it in a different way. (Page 35)

We think our revenue projections would go up about 25 to 30 percent, so we would come in around thirteen and a half million dollars. (p. 414 transcript)

We might take some of the programming that we had on the Vancouver station, some of that, and put it over to Victoria" (ibid.)... But we would not in any way adjust the local programming schedule. (p.416, transcript)

we looked at it, it is obviously theoretically possible for someone to come up with an application that would just serve Vancouver Island, but the economics would be such that they couldn't commit to the same level of local programming that we are able to commit to by virtue of the revenues from the broader Vancouver area, so for us it was a balancing of how do you provide local service and sustain that on a reasonable revenue base. We felt this was the best approach [this referring to dual licensing]. (p. 420-421 transcript)

These numbers were developed and all of the projections developed on this premise of having the two stations. Ron made the point that if we licensed for Victoria alone the revenues would go up but so would the costs... (p. 423 transcript)

In looking at the revenue that we would generate on a Victoria alone scenario, we are comfortable with bringing some of those commitments over to the Victoria alone scenario. The commitment we would be prepared to make is a 12 million special Canadian programming commitment on the Victoria alone scenario. (p. 437 transcript)

a) Whilst CHUM is made strong, this is at the expense of Craig which now runs the risk of becoming a marginal player. By the numbers of the majority CHUM will now have a reach of 60% and Craig will have 17%. By Craig’s numbers, Craig and CHUM would have been approximately equal in reach if they had been licensed.

b) CHUM now has a reach of 60% but it is significant as to where this reach is. CHUM was very clear at the hearing that it chose not to apply for the Alberta stations when they were licensed. CHUM sold its stations in the Maritimes. Thus the reach of CHUM extends only to the more densely populated areas of Canada such as Ontario and now Vancouver. CHUM has no smaller market coverage or obligations however its competitors, Global, CTV and Craig, do. Thus while Global and CTV use their revenues from larger markets to subsidize their smaller markets, CHUM has no such smaller markets. Thus, licensing of CHUM may very well reduce the strength of the national "strong" players and may well have an impact on their ability to continue to cover the smaller markets.

c) I do not believe strong ‘players’ are created in this manner. In this and any other marketplace, strength is gained by succeeding in competition. Our role, I believe, is to create a level playing field for all the various parties and to maintain as far as possible a fair and level field. Thereafter, by skill, innovation, creativity, the stronger ‘players’ emerge. Moreover they have gained the skills to continue to succeed in the increasingly competitive national and global environment.

a) The population of Vancouver Island is 700,000 whereas the relevant ethnic population at present in the Vancouver area, as stated by Rogers, is 800,000. Further, the Vancouver Island population can only be expected to increase at approximately the normal population growth rate whereas the ethnic population will increase far more given the annual immigration into the Vancouver area plus the normal growth rate. Thus, the demand for an ethnic station will increase more quickly.

b) The ethnic fact is far more visible in Vancouver than in Toronto. Both cities have, according to Statistics Canada, approximately the same number in ethnic population but due to the lower total population of Vancouver, the fact that Vancouver is a mosaic is far more apparent.

c) It also appears at least to me that the ethnicity of Vancouver and environs is an accepted fact, in that many politicians, federal, provincial and municipal and many prominent professionals come from the various ethnic communities.

d) Even if all immigration would cease entirely, which is very unlikely, there would continue to be a demand for ethnic broadcasting for the foreseeable future. At the hearing, Rogers referred to a 30-year entry time span of demand for ethnic broadcasting, this based on their experience in Toronto.

e) Finally, the Vancouver area is home to the largest ethnic population in Canada not being served by an off-air television ethnic station.