ARCHIVED - Decision CRTC 2001-457

See also: 2001-457-1, 2001-457-2, 2001-457-2-1, 2001-457-3, 2001-457-3-1, 2001-457-4, 2001-457-4-1, 2001-457-5, 2001-457-6, 2001-457-6-1, 2001-457-7, 2001-457-7-1, 2001-457-8, 2001-457-8-1, 2001-457-9, 2001-457-9-1, 2001-457-10, 2001-457-10-1, 2001-457-11, 2001-457-11-1, 2001-457-12, 2001-457-13

Decision CRTC 2001-457

Ottawa, 2 August 2001

Licence renewals for the television stations controlled by CTV

The Commission renews the licences for the television stations controlled by CTV for a seven year term. The licence renewal applications for these stations were considered at the 17 April 2001 public hearing held in the National Capital Region. A list of conditions of licence common to all stations controlled by CTV is set out in Appendix 2 to this decision.

Introduction

In Public Notice CRTC 1999-97, the Commission set out its new Television Policy, arrived at after extensive consultation with the industry, the public and other stakeholders. One of the basic tenets of the new policy was that the renewal of all the conventional television licences held or controlled by a group would be considered by the Commission at the same time. A group was defined as more than one conventional television station owned or controlled by the same person or entity.

In implementing this change, the Commission stated that it wished to consider the group's corporate strategy and the method for implementing this strategy by individual stations, when renewing the licences of those stations. The Commission also stated that commitments made by a group would be applied to individual stations within the group as either conditions of licence or expectations.

This approach reduces the administrative and cost burden for both broadcasters and the Commission, and provides an opportunity to make a strategic assessment of the contribution of all aspects of a licensee's operations to the broadcasting system.

The public hearing held in April 2001, at which all of the licence renewal applications for CTV's conventional television stations were heard, is the first time the Commission has simultaneously dealt with renewals of all the television licences of the largest private multi-station ownership groups. Consistent with the approach set out in the Television Policy, the Commission has today published this decision as well as Decisions CRTC 2001-457-1 to 2001-457-13, which renew the licences of CTV's television stations across Canada for seven years. Conditions of licence that are common to all of the CTV stations renewed today are set out in Appendix 2 to this decision, while those that are unique to particular stations are set out in the individual decisions addressing particular stations.

The Commission recognizes that the licences of conventional broadcasting undertakings which are before it had varying expiry dates. In the Television Policy, the Commission stated its intention of generally considering for renewal all of the licences for conventional undertakings held by a multi-station group at the same time. In part, the Commission's purpose in establishing such a process was to reduce the administrative and regulatory burden on the licensees while increasing the efficiency of the licence renewal process. In light of these objectives, the Commission notes its appreciation of the actions of CTV in bringing in some of their conventional licences early so that the new licence term for all of these conventional licensees will run from 1 September 2001 to 31 August 2008.

CTV's structure

In the Television Policy, the Commission noted that the Canadian broadcasting industry had undergone ownership consolidation, which resulted in efficiencies and synergies that provide increased investment in Canadian programming and the greater likelihood of the export of that programming. The Commission also stated its expectation that the consolidation of broadcasting, production and communications companies would continue, to the benefit of Canadian audiences, the broadcasting system and the public interest.

Broadcast holdings

CTV Inc., through its subsidiary CTV Television Inc. (CTV), is a leading private broadcaster in the English-speaking markets in Canada, providing a conventional television programming service that is capable of reaching 94.8% of the English-language population of Canada. It owns 18 stations providing CTV programming, six stations affiliated to the CBC, one independent station and an Atlantic region satellite to cable service. At the time of the public hearing, CKY-TV Winnipeg, CFCF-TV Montréal, and CJON-TV St. John's were affiliates, were owned by other parties, and were not considered for renewal as part of this proceeding. In Decision CRTC 2001-460 released today, the Commission has approved an application by CTV to purchase CKY-TV Winnipeg. The Commission notes that it is currently considering an application by CTV to purchase CFCF-TV Montreal (see Public Notice CRTC 2001-77).

CTV Inc. also is a leading presence in the pay and specialty industry, mainly through its controlling interest in NetStar Communications Inc. (NetStar), which is one of the strongest groups of specialty and pay channels in Canada. In 2000, CTV Inc., with its parent company Bell Globemedia, received approval for five new Category 1 and 21 new Category 2 digital specialty television services. BCE, through its subsidiary, also has an interest in two French-language specialty services Canal Évasion, a travel channel, arTV (La Télé des Arts), as well as the Bell ExpressVu direct-to-home (DTH) and pay-per-view services. It is anticipated that an application to transfer control (directly or indirectly) of ROBTv, a business news specialty service, to Bell Globemedia Publishing Inc., will be filed shortly.

Program production

CTV Inc. has, as of April 2001, a 41.7% interest in Landscape Entertainment Corp., a new Canadian production and content venture, which will produce content for film, television and the Internet. CTV Inc. also has 100% ownership of Agincourt Productions, as well as indirect controlling interests in Dome Productions and Exploration Production.

Newspapers and new media

BCE has entered into an agreement with The Woodbridge Company Limited and The Thomson Corporation for an interest in The Globe and Mail, a major Canadian newspaper with both a national edition and a Toronto edition.

Telecommunications

BCE, the controlling shareholder of CTV, is Canada's largest communications company. Its subsidiary, Bell Canada, has over 12 million telephone access lines and more than 11 million residence and business customers in Canada. BCE also has an extensive international presence through Teleglobe, an international telecommunications carrier.

Through its telecommunications services, BCE provides residence and business customers in Canada with systems integration expertise, development of electronic commerce, Internet access and high-speed data services. BCE also offers Sympatico, a leading Canadian Internet portal that serves 1 million subscribers across the country. As a result of the Woodbridge/Thomson transaction noted above, BCE also has an interest in Globe Interactive, a leading Internet content provider.

Distribution

BCE owns 100% of Bell ExpressVu via a limited partnership arrangement. Through Bell ExpressVu, BCE is involved in satellite distribution with both national direct-to-home (DTH) and satellite relay distribution (SRDU) undertakings. BCE's other distribution undertakings include a number of cable distribution undertakings serving smaller communities and the telecommunications carrier Telesat Canada, the largest wholesale satellite service provider in Canada.

Resulting synergies

At the hearing, CTV discussed the benefits to its conventional television service that result from common ownership of its various media interests. It indicated that, as CTV now owns most stations that broadcast CTV programming, it is able to eliminate duplication of resources devoted to the coverage of national news. This allows individual stations to concentrate on local news stories. Each local station can also play a role in program development and serve as an "on ramp" to the national program schedule. CTV stations are also able to cooperate more fully in sales, marketing and promotion. The licensee indicated that although doing business in some of its markets was challenging at times, it considered that, as a large organization, it could work to ensure its various local stations continue to exist.

The CTV specialty channels share office space and technical facilities with the licensee's other services, thus reducing costs. The resources of the specialty services can also improve the quality and variety of information programming on the television stations. For example, material from TSN can augment sports coverage, and material from Discovery can augment the coverage of science issues. The specialty channels also, in some instances, develop programming that will eventually also be broadcast on the main service. For example, the talk show Open Mike with Mike Bullard began on the Comedy Channel, but now also appears as part of CTV's conventional television schedule.

CTV considered that its links withThe Globe and Mail would allow it to have access to the newspaper's network of correspondents, and cooperation between assignment editors could also lead to more efficient use of reporters. Issues and implications related to the cross-ownership of television stations and newspapers are explored later in this decision.

Priority programming

In the Television Policy, the Commission redefined the concept of "under-represented programming" (drama, music and variety programs) to include long-form documentaries, regionally-produced programs and entertainment magazine programs. At the same time, it renamed programming from under-represented categories as "priority programming." Also as part of the Television Policy, the Commission indicated that it would require major broadcasters to offer as a minimum, in each broadcast year, an average of eight hours per week of priority programming during peak time, 7 p.m. to 11 p.m. In various decisions issued on 6 July 2000, the Commission imposed conditions of licence to this effect on all CTV stations.

As part of the licence renewal process, the Commission wished to examine the programming strategies proposed by CTV for peak time priority programming, and whether those strategies demonstrated an appropriate commitment to high quality Canadian programming.

According to the block programming schedule for Fall 2000 - Spring 2001, the peak time schedule for CTV included Cold Squad, Twice in a Lifetime, The Associates, as well as three more new Canadian drama series, and a number of movies of the week. The drama content of CTV's priority programming formed roughly 65% of the total. At the hearing, CTV was asked about the scheduling of its priority programs, since the sample schedule in its application indicated that almost half of its Canadian priority programs would be broadcast on Saturday night, generally the night with the smallest available television audience. Three other nights listed no Canadian shows at all during peak time.

In support of this strategy, CTV stated that scheduling priority programs at times when the competition from foreign networks is not as strong will ultimately result in more viewers to Canadian programs. However, CTV added:

Our approach has been to find the best possible place for every program in our schedule and to vigorously support that scheduling through promotion. Within prime time, CTV has used and will continue to use every day and all time periods for scheduling priority Canadian programming.

Two years ago we averaged an hour of Canadian programming on Saturday evening. This year it went up to four. Next year it will probably go down again, depending on the make-up of the schedule.

Some interveners requested that the Commission reinstate expenditure requirements to ensure the production of high-quality Canadian programs and support for the independent production sector. Other groups called for the revision or elimination of the 125% credit for dramas attaining between 6 and 9 points, while yet others recommended that the Commission require that at least 70% of all priority programming be drama. In addition, the Canadian Film and Television Production Association (CFTPA) suggested that, in order to ensure that Canadian priority programs are available year-round, and to prevent the clustering of Canadian programs during low-viewing summer months, the Commission could require compliance in every six-month period.

A number of interveners, including the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), The Writers Guild of Canada, and the Directors Guild of Canada, called for an increase in the hours per week of priority programming. These groups noted that further consolidation of the major broadcast groups took place following the publication of the Television Policy, and considered that CTV now has the resources to do more than the minimum eight hours per week required by that policy.

The Commission notes that the first principle set out in the Television Policy is to "ensure quality Canadian programs at times when Canadians are watching." The Commission recognizes that developing a successful television programming schedule is a complex art, and that licensees must take many factors into account when creating one. The Commission, however, considers that it would not be appropriate for priority programs to be entirely absent from CTV's prime time schedule on three nights of the week. It also considers that the audiences that Canadian programs achieve are important. The Commission therefore reiterates its desire that Canadian programs be available when large numbers of Canadian could be watching, both on a weekly and on a seasonal basis. It intends to monitor both CTV's scheduling practices for Canadian priority programs and the audience levels that such programs obtain over the upcoming licence term in order to ensure that the goals of the Television Policy are achieved.

The Commission is satisfied that the priority programming proposed by CTV consists of a reasonable balance of programming genres, with an emphasis on drama. In the Commission's view, it is premature to make any substantive alterations to the Television Policy, a policy that has only been in effect for a year. The Commission will be monitoring and evaluating all aspects of this policy over the next several years.

The Commission has decided, therefore, to reimpose on the licence of each CTV station, a condition of licence that requires the licensee to broadcast in each week, as a minimum in each broadcast year, an average of 8 hours of Canadian programs in the priority program categories between the hours 7 p.m. and 11 p.m. The Commission will continue to monitor CTV's performance with respect to the provision of priority programming, and expects that each station's schedule will reflect a reasonable distribution of priority programming both throughout the broadcast week and the broadcast year.

Local reflection

The Commission's Television Policy requires licensees to demonstrate how they will "meet the demands and reflect the particular concerns of their local audiences, whether through local news or other local programming."

As part of the renewal process, CTV filed with the Commission commitments for each station related to local reflection and news programming. The commitment for local programming on each of CTV's major local stations is a minimum of 15.5 hours each week. This commitment relates to CFTO-TV Toronto, CJOH-TV Ottawa, CKCO-TV Kitchener, ATV Maritimes, MCTV Northern Ontario, CTV Saskatchewan, CFRN-TV Edmonton, CFCN-TV Calgary, and CIVT-TV Vancouver.

CTV has committed to maintain the current levels of local programming on each of its stations in smaller markets: Lethbridge, Red Deer, Ashmont and Whitecourt, Alberta; Oil Springs and Huntsville, Ontario; and the Atlantic Satellite Network.

CTV's primary local programming emphasis is on news. It noted, however, that its local news programs include material of local interest that would not normally qualify as "hard" news. The licensee considered that integrating such material into its news programming, which appears at times when viewing levels are high, increases viewing to programming that reflects the local community.

As well, many CTV stations offer some local programming outside of newscasts. For example, CFQC-TV produces Indigenous Circle, a weekly public affairs show that deals with issues that affect Saskatchewan First Nations, and Farmgate, which addresses agriculture. In the Atlantic region, ATV broadcasts Breakfast Television for two and a half hours each week day. This program promotes East Coast musicians. CFRN-TV in Edmonton produces the weekly business magazine program Profit Line, as well as In Touch, which features community profiles. In addition, the Commission notes that CTV produces two programs in British Columbia, Gabereau and Mason Lee: On the Edge, that are broadcast across the country. Although designed for a national audience, they play a role in reflecting the community in which they are produced.

Most of the stations currently broadcast more local programming than their commitment in this regard for the new term, but CTV opposed the imposition of its current levels as conditions of each licence. In support of this position, CTV referred to the flexibility envisioned by the Television Policy, as well as the business realities of a constantly evolving broadcasting environment.

The Commission notes that there is some evidence that the local reflection role traditionally played by conventional television is being supplemented by other media, such as cable community channels as well as the Internet. In view of these developments and the licensee's practice of including material of general local interest in newscasts, the Commission accepts and notes CTV's commitments for local programming on all CTV stations. The Commission also notes, however, that some markets in Canada could be better served with local non-news programming in the information and entertainment categories (2,7,8 and 9). The Commission therefore encourages CTV to broadcast regular local non-news programming in those categories, on all of its major stations.

Independent production

Section 3(1)(i)(v) of the Broadcasting Act (the Act) states that the programming provided by the Canadian broadcasting system should include a significant contribution from the Canadian independent production sector. The Commission considers that television broadcasters have an essential role to play in the development and continued health of the Canadian independent production industry.

Further, the Commission notes that Section 3(1)(i)(ii) of the Act specifies that programming should, among other things, be drawn from regional sources. The Commission considers, therefore, that broadcasters have a responsibility to encourage regional production and to support such production at a level that is commensurate with their presence in the community. In this section of this decision, the Commission deals with two issues related to independent production that were explored at the hearing. The first is the issue of access to CTV's program schedule by producers who are not affiliated to the licensee. The second is the broadcast of independently-produced programming that reflects the regions that particular stations serve.

Access for unaffiliated production companies

In the Television Policy, the Commission indicated that, where a broadcasting licensee owns or has acquired a production company, either in whole or in part, it would expect the licensee to address issues arising from vertical integration at the time of licence renewal. The Commission's concern in such situations is to ensure that production companies that are unaffiliated to the licensee have reasonable access to the licensee's programming schedule. Affiliated production companies are considered by the Commission to be those in which a licensee and any company related to the licensee, own, in aggregate a 30% or greater equity interest. As noted earlier, CTV has a 41.7% interest in Landscape Entertainment, 100% ownership of Agincourt Productions, as well as indirect controlling interests in Dome Productions and Exploration Production.

In its application, CTV proposed that a preponderance of its priority programming would be produced by Canadian independent producers. It indicated that, in the last broadcast year, only eight of 126 hours per week of total programming were produced by affiliated producers, and none of this programming was broadcast during peak viewing hours.

At the hearing, the Commission explored this issue further, asking the applicant to comment on the possible imposition of conditions of licence that would:

· ensure that a certain amount of Canadian priority programs broadcast by the licensee is produced by unaffiliated production companies;

· guarantee access, at some determined level, by unaffiliated producers to the time period between 6 a.m. and 7 p.m.

CTV stated that it would be comfortable with an expectation that no more than 49% of its priority programming be produced by affiliated production companies. It did not consider that a cap at the level of 25% would be particularly wise or flexible. It further did not consider that limits on programming produced by its affiliates and aired at any time during the broadcast day would be useful, noting that important economies of scale result when daytime programs are produced in-house.

Interveners who addressed the issue all focused on the level of access that independent producers should have to the licensee's prime time schedule. The CFTPA suggested that at least 75% of priority programming broadcast by the licensee should come from non-affiliated production companies. The Alberta Motion Pictures Industry Association (AMPIA) suggested a level of 95%, the Directors Guild of Canada proposed 90%, the Independent Film and Video Alliance proposed a level of 75%, and the Writers Guild of Canada recommended 90%.

No intervener made a specific recommendation with respect to a level of access by unaffiliated producers to the time period between 6 a.m. to 7 p.m. The CFTPA indicated that a flexible approach would be best for this time period. The Commission concurs that it is not necessary to impose any condition of licence or expectation with respect to the time period between 6 a.m. and 7 p.m.

The Commission also considers that, given the relatively low level of priority programming produced by affiliated producers that is currently broadcast by CTV, significant immediate concerns in this area do not arise. However, it is concerned that in the absence of any safeguard or expectation, the circumstances could change substantially over the licence term, especially if the licensee were to acquire other major production houses or to significantly increase the amount of programming produced by its existing affiliated companies. The amount of priority programming in relation to the total schedule is relatively small. However, the budgets for these programs are high so programming decisions made by a major licensee in this area can have a huge impact on the Canadian independent production sector.

Therefore, the Commission expects the licensee to ensure that at least 75% of all Canadian priority programming broadcast by the licensee on average over the broadcast year is produced by independent production companies. For the purpose of this expectation, an independent production company is defined as a production company in which the licensee, and any company related to the licensee, owns or controls, directly or indirectly, in aggregate less than 30% of the equity.

Regional independent production

The Commission considers that CTV, as a national broadcaster, has a critical role to play in ensuring that all regions of the country are reflected in its programming. In the production of its drama, variety and long-form documentary programs, CTV relies on Canadian independent producers. The production industry is more mature in some parts of the country than in others. It is important that CTV make a conscious effort to develop Canadian talent through the licensing and broadcast of programming from all parts of Canada.

The Commission considers that program development expenditures are the cornerstone of the development of creative talent for television producers. As such, those expenditures have been characterized as the research and development of the broadcast industry's drama and long-form documentary production activities. The Commission was therefore encouraged by CTV's commitment for ongoing program development expenditures as well as its commitment made at the hearing, to obtain programs from independent producers across Canada.

During this proceeding, CTV stated that it places great emphasis on the role of its program development team, and that the regional offices in Vancouver and Halifax have real decision-making power to ensure that programming reflects and connects the regions. In the new licence term, CTV stated that each of these offices will have $200,000 at its disposal each year, and six other regional stations will each control $50,000 in annual development funds. These funds will be made available to independent producers in the local markets, representing a total of almost $5 million in development funding for regional programming, over a seven-year licence term.

CTV stated that it is "committed to maintaining (its) Atlantic and Western development offices in the coming licence term," and is confident that the regional offices in Vancouver and Halifax will continue to have a significant impact on the independent production scene. The Commission notes that CTV made the commitment to establish the Vancouver development office during a competitive process for a new television licence. The commitment for a similar office in Halifax was made as part of the benefits package when CTV purchased ATV. Since its establishment in 1997, the Western office has developed three drama series (including Cold Squad), as well as three variety series, 30 variety specials, 40 documentaries and a documentary series. The Halifax office, which was established in 1998, has supported the development of 15 documentaries, seven Storyteller drama programs, six movies, four drama series and nine comedy series. The Commission encourages CTV to continue these initiatives.

The Commission considers that CTV's program development initiatives are extremely important and is pleased with the funding provided to the regional development offices. However, one of the Commission's primary concerns is the level of programming produced in the regions that appears on the national system. The Commission notes that the Fall 2000-Spring 2001 schedule included regional production from Vancouver but no regular programs produced in the Prairies, Quebec or the Maritimes.

Some interveners proposed the imposition of specific annual quotas for regional programming, such as three out of each eight hours per week of priority programming. Others felt that the Commission could explore the possibility of commitments to regionally-produced programming averaged over the licence term. CTV was opposed to any form of production quota on a regional basis, taking the position that program production is very cyclical in nature, and imposing regional quotas would hinder its ability to choose the best programming available at any given time. The licensee stated

.if you build in a structure that makes access for all producers part of your daily work, then that is how it happens. We have an actual structure that gives equal access to producers from across the country. We have people in those offices who can be strong advocates for their region and their programming. So once you build that structure, things move through it.

In the Television Policy the Commission expressed the view that audiences have a strong desire for a better reflection of Canada's regions to the country as a whole, and set out a flexible, incentive-based approach to achieve that goal. Given that approach, the Commission considers that the imposition of specific regional production quotas would not be in keeping with the spirit of the Television Policy. The Commission is, however, of the opinion that CTV should be expected to engage in a level of production activity that is commensurate with its presence in its respective markets. The Commission therefore expects CTV to commission its priority programming from all regions of Canada, throughout the course of the new licence term.

Reports on independent production

In order that the Commission may monitor the licensee's success in meeting these expectations, CTV must submit annual reports outlining all activities related to the licensing of independent production. The reports must include details on project budgets, the number of hours of independently-produced programming that is produced and broadcast, production locations and details regarding the location of the producer's home base. The reports will be made public so that producers and other interested parties can monitor progress in this area. The licensee will be expected to consult with Commission staff regarding further details with respect to the content and format of such reports.

Cultural Diversity

Pursuant to section 5(3) of the Act, the Commission does not regulate or supervise matters concerning employment equity in relation to broadcasting undertakings with more than 100 employees, as they are subject to the Employment Equity Act. However, as indicated in Public Notices CRTC 1994-69 and 1995-98, the Commission continues to regulate matters such as on-screen presence.

With respect to cultural diversity, in the Television Policy the Commission stated that it

.will expect all conventional television licensees (at licensing or licence renewal), to make specific commitments to initiatives designed to ensure that they contribute to a system that more accurately reflects the presence of cultural and racial minorities and Aboriginal peoples in the communities they serve. Licensees are expected to ensure that the on-screen portrayal of all minority groups is accurate, fair and non-stereotypical.

Accordingly, the Commission explored with CTV the measures that might be implemented to improve the portrayal and representation of Canada's cultural diversity. At the hearing, CTV made a number of valuable commitments in this area. These included the development and provision to the Commission of a plan dealing with cultural diversity, submission of annual reports on progress made in achieving the goals set out in the plan, and participation in and financial support for an industry task force on cultural diversity. In light of these commitments, the Commission expects the licensee to implement the measures related to the reflection of cultural diversity that are set out and discussed below.

Plan: Portrayal and representation of cultural diversity.

The Commission expects CTV to submit, within three months of the date of this decision, a detailed plan that includes specific commitments relating to corporate accountability, reflection of diversity in programming and community involvement, as they relate to on-screen presence and portrayal of cultural diversity. The Commission considers that this plan should include goals whose purpose is to ensure that the diversity of Canadian society is reflected fairly and consistently in the programming that CTV presents.

Corporate accountability

The Commission considers that the elements set out below will help ensure that the corporate culture of CTV supports the reflection of cultural diversity in the programming that CTV presents. In this section of its plan, the licensee should:

· Set goals toward creating a corporate culture that supports a programming service reflective of Canada's cultural diversity, including its Aboriginal reality.

· Identify a senior executive who will be accountable for diversity practices and ensuring that management becomes more reflective of Canada's multicultural reality.

· Set clear goals for station managers so that their stations reflect the diversity that exists in their communities.

· Ensure that all managers receive appropriate training.

· Ensure that regular opportunities are provided for staff assessment of progress made toward the reflection of diversity, as well as for identification of future challenges.

· Set out the licensee's plans for hiring and retention of visible minorities, as well as training in this area that it will provide to staff.

Reflection of diversity in programming

The licensee's plan should address the presence of people from diverse backgrounds, both in programming that the licensee produces and in programming that the licensee acquires. As well, the plan should address the way that cultural minority groups including Aboriginal peoples are portrayed in programming. More specifically, with respect to news programming, the licensee should identify mechanisms to assess progress in the following areas:

· The use of people from minority groups as sources regardless of whether the issue being discussed is particularly related to a minority community.

· Ensuring that stories about ethnic communities do not appear solely within the context of coverage of cultural celebrations or reporting of negative stories.

· Ensuring that on-air personalities reflect the diversity of the community that the station serves.

· Ensuring that reporters and journalists from minority communities are not assigned exclusively to covering stories of principal concern to cultural groups.

The plan should also address how the portrayal and presence of cultural minorities will be incorporated into all stages of the production and acquisition of non-newsprogramming, including decisions about which programs will be broadcast. For instance, the plan should address how the licensee will ensure that:

· Those responsible for casting make a concerted effort to hire visible minority actors in leading and recurring roles.

· Those persons responsible for script development ensure that minorities are not portrayed in a stereotypical manner.

· Programming from independent producers reflects the presence and accurate portrayal of visible minorities.

Community involvement

The plan should set out mechanisms that the licensee will put in place to ensure that it receives effective input and feedback from its community with respect to the reflection of cultural diversity, including Aboriginal cultures, in its programming.

Annual reports

The licensee must file annual reports on progress made to achieve the goals with respect to the reflection of diversity that are set out in the plan. Such reports should be filed no later than 31 December of each year of the new licence term.

Participation in an industry and community task force

In Public Notice CRTC 2001-88 issued today, the Commission calls for a proposal and action plan for an industry and community task force to address matters related to the reflection of Canada's cultural diversity in broadcasting. The task force will identify best practices for broadcasters so that reflection of cultural diversity is achieved, sponsor research that will serve as a baseline for measuring progress, and help define issues and present practical solutions. The Commission expects CTV to participate in the work of this task force and to support the work of the task force financially.

Service to the hearing impaired

In the past, closed captioning requirements for private English-language conventional television stations have differed depending on the level of revenues. At the hearing, the Commission explored with the licensee the possibility of requiring all of its stations, regardless of revenues, to meet requirements for closed captioning by September 2001, and to caption all news programming, not just local news. The Commission notes that, at the hearing, the licensee indicated that it had been successful in selling sponsorships for its closed captioning.

At the hearing, CTV indicated that all of its major stations could meet requirements related to closed captioning by September 2001. It was, however, concerned that such an early implementation could result in problems with respect to the quality of captioning at its smaller stations. CTV therefore suggested that smaller stations be obligated to reach the required levels by September 2003. The licensee agreed that captioning requirements should apply to all news programming that is broadcast.

After discussion at the hearing, and in light of commitments made by the applicant, the Commission has decided that it is reasonable to require all of CTV's stations, regardless of revenues, to caption 90% of all programming that they broadcast, including all news (category 1) programming. The Commission is imposing these requirements as a condition of licence for each of the CTV stations being renewed today, except stations affiliated to the CBC. The imposition of a condition of licence emphasizes the importance that the Commission places on commitments with respect to closed captioning and does not reflect any concerns with CTV's performance in meeting previous requirements. The Commission reminds the licensee that closed captioning obligations include live feeds.

For all stations earning $10 million or more in annual advertising revenues and network payments, the condition of licence will be effective on 1 September 2001, the beginning of the new licence term. For CTV stations earning less than $10 million in annual advertising revenues and network payments, the condition of licence will come into effect starting 1 September 2003. The Commission considers that some short-term flexibility for smaller stations is appropriate.

In the case of CBC-affiliated stations, the Commission recognizes that, other than local programming, most of the schedule of these stations is provided by the CBC. The Commission notes that Decision CRTC 2000-1 requires the CBC to ensure that at least 90% of the programming distributed nationally is closed captioned in each year of the licence term. Consistent with the approach adopted for the CBC, the Commission therefore expects CBC-affiliated stations owned by CTV to provide captioning of at least 90% of all programming, including 100% of all news.

The Commission notes that the 90% obligation is based on the recognition that requiring 100% captioning at all times may not be reasonable or appropriate. Thus, the obligation is designed to provide some flexibility to cover unforeseen circumstances (such as late delivery of captions, technical malfunctions, or the lack of availability of captions for programs acquired outside North America), or programming where captioning may not be feasible, such as third language programming.

The Commission further expects CTV to focus on improving the quality, reliability and accuracy of captioning on each of its stations, and to work with representatives of the deaf and hard of hearing community to ensure that its captioning continues to meet their needs at a consistent high quality level.

Service to the visually impaired

"Audio description" and "video description" or "described video" are methods of improving the service that television broadcasters provide to the visually impaired. Audio description involves the provision of basic voice-overs of textual or graphic information displayed on the screen. A broadcaster providing audio description will, for example, not simply display sports scores on the screen, but also read them aloud so that the visually impaired can receive the information.

Video description, or described video as it is also known, consists of narrative descriptions of a program's key visual elements so that people who are visually impaired are able to form a mental picture of what is occurring on the screen. These descriptions can be provided on the Secondary Audio Programming (SAP) channel. Not all broadcasters are currently equipped to deliver a SAP signal. Thus, the introduction of descriptive video via the SAP channel requires significant capital expenditures to upgrade a licensee's transmission facilities.

Audio description

CTV indicated that it is committed to its general practice of providing audio description of important graphic information. It conveys all emergency information, such as weather warnings, in audio form as well as in video form. The Commission notes this commitment, and expects CTV to ensure that it provides audio description where appropriate. It further expects the licensee to take the necessary steps to ensure that its service responds to the needs of visually impaired audiences.

Described video

At the hearing, CTV made a significant commitment to roll out descriptive video programming. CTV originally proposed a seven-year plan for upgrading the technical facilities of all of its stations so that they could transmit described video. Roll out would begin in the largest markets, and other markets would be upgraded over the licence term. At the reply stage of the hearing, however, CTV committed to an accelerated schedule, making a commitment that it would complete the process by the end of the second year of the licence term.

CTV also committed to a ramp up of the amount of described programming. As they are upgraded, stations will provide two hours a week of described Canadian priority programming within the first two years of the licence term. This minimum level will increase to three hours per week in the third year, and to four hours per week in year five. At least 50% of the described video programming aired each week will be original, with the remainder consisting of program repeats. The Commission commends CTV on this significant commitment.

The National Broadcast Reading Service (NBRS) recommended that obligations with respect to described video relate to all categories of priority programming. The Commission notes, however, that some types of programming lend themselves more readily to video description. These types of programming are drama, long-form documentaries and children's programming. The Commission considers that requirements related to described video should apply, first and foremost, to these types of programs, aired during peak viewing time.

In light of the above, the Commission is imposing a condition of licence on each CTV station relating to the provision of described video. The condition requires CTV's largest stations (in Toronto, Ottawa and Vancouver) to broadcast, between 7:00 p.m. and 11 p.m., an average of two hours per week of described video programming during the first two years of the licence term. All of CTV's stations are required to provide three hours per week in year three, and four hours per week in year five. A minimum of 50% of the hours must be original broadcasts. This programming must be Canadian and be from categories 2 (b) and 7. The licensee may, however, count toward fulfilment of this condition a maximum of one hour per week of described video programming that is directed to children and broadcast during an appropriate children's viewing time.

The Commission further expects CTV, wherever possible, to acquire and exhibit described versions of the Canadian and non-Canadian programming that its stations broadcast. It notes that some American programs already include descriptions in order to fulfil requirements in this area that are in effect in the United States. Finally, the Commission commends the licensee for making concrete proposals with respect to the broadcast of programming that includes described video. The Commission considers that the presence of such programming in the Canadian broadcasting system is an important contribution.

Children's programming

As part of this proceeding, the Commission explored CTV's role in the provision of children's programming. CTV stated that it "remains dedicated to providing Canadian television that serves a broad range of interests," and confirmed that it plans to provide two and one-half hours of children's programming each week, in addition to programs that could be shared by the whole family.

In the Television Policy, the Commission stated that the Canadian broadcasting system as a whole offered children's programming on a regular basis, and that a wide variety of both Canadian and foreign children's programs of high quality were available to audiences. In recognition of this availability, the Commission decided to maintain its policy of not requiring conventional television licensees to broadcast minimum quantities of programming directed to children and youth.

Interventions from the CFTPA and the Writers Guild of Canada both requested that the Commission require CTV to broadcast a minimum of three hours per week of children's programming. The CFTPA also recommended that broadcasters be given an incentive to invest in new programs by restoring the 150% credit for first-run Canadian children's programming.

The Commission considers that imposing minimum levels of children's programming would not be in keeping with the Television Policy. At the same time, it notes that 25% of Canadian homes receive television over the air, and therefore do not have access to the children's programming available from specialty and pay television services and the Commission is concerned that they too have access to a reasonable diversity of program genres.

CTV is a national conventional broadcaster with significant viewership across Canada, and its stations have priority status for cable carriage under the Broadcasting Distribution Regulations. The Commission considers that, given these factors, it is reasonable that CTV be expected to provide programming that meets the needs of all age groups, including children.

The Commission therefore, expects CTV to continue to provide children's programming, and notes its commitment to provide a minimum of 2.5 hours each week.

Advertising issues

Local advertising on ASN

As part of this proceeding, CTV requested that the Commission delete the condition of ASN's licence which prohibits the licensee from soliciting local advertising in the Halifax/Dartmouth area. The Commission denied a similar request in the context of ASN's last licence renewal.

In support of its request, CTV stated that there have been significant changes in the Halifax/Dartmouth market since the last time the ASN licence was renewed. The changes noted were the significant growth in the Halifax/Dartmouth economy, the fact that Global now owns the Halifax Daily News and thus has two media outlets, and that five local radio stations currently have a local management agreement through which they compete for local advertising dollars with ASN. CTV further noted that their advertising clients have been requesting combined advertising on ASN and ATV, which have an integrated staff, studio facilities and service for much of the day.

The Commission considers that the Halifax region remains unable to support further local advertising. It therefore denies the request to remove the condition of ASN's licence that prohibits the solicitation of advertising in the Halifax/Dartmouth area.

Virtual advertising

Virtual advertising is a technique whereby commercial messages are broadcast with no interruption to program content. This can be achieved through the digital superimposition of advertising graphics or the creation of "virtual" billboards carrying messages that do not exist in reality, and can be seen only by the television audience. The Commission discussed issues related to virtual advertising with the licensee as a result of interventions that raised concerns about this practice.

CTV stated that it has no plan to implement virtual advertising in the new term of licence. It considered that virtual advertising implemented using current technology does not bring benefits significant enough to balance the disruption, annoyance or rights problems that such advertising might cause. CTV indicated, however, that it would be prepared to include information related to the development and use of virtual advertising in its annual reports to the Commission.

The Commission considers that the use of non-traditional advertising, including virtual advertising, is in its infancy. Revenues are relatively low at this time, and the cost of the technology restricts its use to events that draw very large audiences. The Commission will monitor the development of all non-traditional forms of advertising, and continue to assess its impact on the public and the industry as a whole. If required, further discussion of non-traditional advertising could take place as part of a broader review of advertising policy at some future date.

Compliance with industry codes

In accordance with its usual practice, the Commission is imposing conditions of licence on each of the CTV stations requiring that they adhere to the industry codes related to violence in television programming, gender portrayal, and advertising to children. Application of the codes related to gender portrayal and violence will be suspended so long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.

Cross-media ownership

In Decision CRTC 2000-747, the Commission approved transfer of effective control of CTV Inc. to BCE Inc. In that decision, the Commission indicated that it would examine questions related to cross-media ownership in its consideration of applications to renew the television licences held by CTV.

The Commission's concerns

CTV is part of a corporate family with significant cross-media holdings, as described earlier in this decision. At the hearing, issues relating to the diversity of voices at the national level, as well as in Toronto, were raised by the Commission and by interveners.

CTV, as of Fall 2000, through its broadcasting assets, has a potential reach of 94.8% of the English-language population of Canada.

In 1999, CTV's conventional and specialty assets accounted for close to 20% of the English-language television market audience in Canada. CTV's market share represents the largest portion of the market held by a single Canadian broadcaster.

Bell Globemedia, the parent company of CTV, also owns The Globe and Mail newspaper. Although The Globe and Mail is primarily a national newspaper, CTV acknowledged at the hearing that The Globe and Mail publishes a separate Toronto edition that contains a limited amount of content which is different from the national edition.

The Globe and Mail, as acknowledged by CTV, is a well-known brand both nationally and in the Toronto market specifically. Sixty percent of The Globe and Mail's circulation is in Ontario. The remaining 40% of the circulation is spread across the country.

The Commission is concerned that cross ownership of television stations and newspapers, such as is the case with Bell Globemedia, could potentially lead to the complete integration of the owner's television and newspaper news operations. This integration could eventually result in a reduction of the diversity of the information presented to the public and of the diversity of distinct editorial voices available in the markets served. For example, under a completely integrated structure, the same editor could decide what matters would be investigated and what stories would be covered by a commonly owned television station and newspaper. Under such an integrated structure, the television station and the newspaper may no longer compete and might present a single editorial position and approach to the selection of stories considered relevant to the viewers and readers.

Concerns of interveners

Interveners expressed a number of views regarding cross-media ownership and its potential effects on CTV's journalistic practices.

The Communication, Energy and Paper Workers Union of Canada (CEP) objected to a scenario under which a single journalist would cover the same story for both newspapers and television stations. It referred to the code developed by Quebecor Média Inc. (Quebecor) and imposed by the Commission as a condition of licence in Decision 2001-384. This code is substantially the same as the one that has been in place at Quebecor since 1997. The code essentially ensures that the newsgathering activities of Quebecor's newspapers and television stations are completely separate. CEP considered that the Commission should impose the Quebecor Code on CTV. The Newspaper Guild of Canada also emphasized the importance of maintaining separate newsrooms rather than the approach suggested by CTV. It considered that the Commission should ensure that newsrooms work separately from and independent of owners' interests. It further was of the view that any cross-media safeguards should be imposed as a condition of licence.

The Friends of Canadian Broadcasting (Friends) considered that, in addition to separate news management, separate news gathering facilities must be maintained to ensure that a diversity of voices is available to Canadians. Friends suggested that the applicant undertake to ensure that its television newsrooms would gather information independently from the newsrooms of newspapers in which it has a financial interest.

Three university professors generally considered that separation of news management functions was sufficient and that the Commission should not impose on CTV structural separation of newsgathering activities. They considered that in certain cases, such as in the gathering of routine news stories, some co-ordination of newsgathering efforts between newspapers and televisions stations would be appropriate and could lead to an increase in the quality of news and information made available. They also generally considered that imposition of the Quebecor Code, or a similar code, in the markets concerned could unnecessarily limit the development of innovative journalistic techniques that make use of new media such as the Internet.

The Commission's jurisdiction

The Commission's concerns about cross-media ownership arise from sections 3(1)(d)(i), 3(1)(d)(ii) and 3(1)(i)(iv) of the Act. Section 3(1)(d)(i) states that the Canadian broadcasting system should:

serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada.

Section 3(1)(d)(ii) states that the programming provided by the Canadian broadcasting system should:

encourage the development of Canadian expression by providing a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity, by displaying Canadian talent in entertainment programming and by offering information and analysis concerning Canada and other countries from a Canadian point of view.

Section 3(1)(i)(iv) of the Act states that the programming provided by the Canadian broadcasting system should:

provide a reasonable opportunity for the public to be exposed to the expression of differing views on matters of public concern.

In light of the policy objectives set out in the Act, the Commission considers that it has a responsibility to ensure that a sufficient diversity of broadcasting news and information voices remains as convergence continues to take place between broadcasters and related industries.

Given these concerns, the Commission discussed with the applicant possible safeguards that might be put in place to ensure editorial independence between the applicant's interests in the broadcast and print media at both the national and local levels.

CTV's position

The Statement of Principles and Practices submitted by CTV at the hearing set out the following seven points:

· CTV adheres to the Broadcasting Act in its entirety and specifically in this context to sub-section 3(1)(i)(iv) of the Broadcasting Act;

· CTV will maintain its own news management structure for CTV television operations that is separate and distinct from that of CTV newspaper holdings. Journalistic content and presentation decisions for CTV will be made by CTV television news management;

· CTV news managers will not sit on editorial boards of any affiliated newspapers;

· CTV will establish an internal mechanism to deal with complaints arising from any of the principles and practices included herein, and will report back to the Commission on an annual basis;

· CTV will maintain its membership with the Canadian Broadcast Standards Council (CBSC) and will continue to adhere to each of the Codes under its purview, including the CAB Code of Ethics, and will continue to adhere to the Radio and Television News Directors Association (RTNDA) Code of Ethics;

· This statement shall be communicated to employees; and

· Through Public Service Announcements, our audiences shall be made aware of this statement and the new complaints mechanism as well as the existing complaints mechanism through the CBSC.

CTV noted that the Globe and Mail is essentially a national paper while most of the journalism done by CTV stations was rooted in local newsrooms. This fact alone, according to CTV, would serve to limit collaboration between the newspaper and television stations. It did consider, however, that material from The Globe and Mail's correspondents could augment the information that its local stations have at their disposal. CTV also indicated that some cooperation and sharing could increase the amount of original journalism that Canadians receive. Further, such collaboration could allow for the development of a new generation of journalists able to work in different media.

As indicated earlier, CTV submitted a Statement of Principles and Practices based on the separation of news management rather than newsgathering. At the hearing, CTV elaborated on its focus on news management as follows:

We have laid out in our deficiency answers a fairly elaborate approach that we think will ensure the commitment under the Broadcasting Act. That approach is to be able to find synergies and better and higher-quality journalism in the ability to combine some newsgathering to make sure that the presentation of the news remains the independent preserve of each of the news organizations. To us, diversity comes not at the point when you are gathering what I would call the ingredients for journalism, but when the chef prepares those ingredients; in other words when the editor or the news director decides what items will be selected, how those items will be played, what elements will be included, and, of course, whether the story will appear or not. To us, the cutting edge of diversity is the actual decisions on what news will be presented and how it will be presented.

CTV further provided to the Commission its "assurances for preserving separate news presentation structures, as well as separate management structures and separate budgets."

CTV, however, objected to the introduction of measures such as the Quebecor Code that would enforce structural separation between the newsrooms and newsgathering activities of its television stations and newspapers. As indicated earlier, the licensee considered that the news coverage provided by its television stations would be enhanced if they had access to the information gathered by newspaper reporters, without limiting diversity in the markets served.

CTV also indicated that it would institute "right of reply programming", so that those with points of view different from those expressed by CTV would be able to make them known. It further indicated that it would spend $1 million annually to promote the Statement of Principles and Practices and the mechanism for dealing with complaints that would be established.

The Commission's conclusions

The Commission considers that Bell Globemedia's position in both newspapers and television raise concerns related to cross-media ownership in the markets that it serves and that safeguards are required.

Specifically, the Commission considers that CTV must, as a minimum, maintain news management for its television stations that is separate from news management for the newspapers controlled by Bell Globemedia. The Commission has therefore set out, in Appendix 1, a Statement of Principles and Practices that it is imposing on CTV as a condition of licence. The Commission will monitor developments with respect to news and information programming over the upcoming licence term to determine if other action is necessary.

In essence, the Statement of Principles and Practices requires the licensee to maintain separate and independent news management and presentation structures for CTV television operations that are distinct from those of any CTV affiliated newspapers. It thus requires separation of news management functions, but not newsgathering activities. Therefore, cross promotion and some cooperation between CTV's television stations and Bell Globemedia's newspapers in newsgathering would be permissible.

The Commission notes that, when discussing the notion of separate news management and presentation structures at the hearing, CTV stated its intention to maintain news directors, executive producers, assignment editors, writers and reporters that are separate and independent from those of its newspaper affiliates.

Further, the Commission is requiring CTV, by condition of licence, to establish a Monitoring Committee as set out in Appendix "A" to the Statement of Principles and Practices. The licensee must establish an impartial, neutral committee to receive and handle all complaints concerning CTV's compliance with the Statement of Principles and Practices. The Committee will, among other things, provide an annual report to the Commission that will also be available to the public. The Commission further notes CTV's commitment to spend $1 million a year in announcements to publicize the Statement of Principles and Practices, including the existence and responsibilities of the Monitoring Committee.

The Commission further expects the licensee to respect the Statement of Principles and Practices in the operations of its other broadcasting services that provide news and information.

The Commission will be prepared, however, to consider suspending the application of the conditions of licence respecting cross-media issues if the licensee is able to enter into an agreement with the CBSC resulting in an industry-wide code approved by the Commission and while CTV is a member in good standing of the CBSC. The CBSC code of conduct must include an appropriate monitoring mechanism to be administered by the CBSC. Any application by the licensee to suspend these conditions of licence should include confirmation that the licensee supports the CBSC code of conduct, including the monitoring mechanism, and that the licensee is a member in good standing of the CBSC.

The Commission further expects CTV to implement right of reply programming, as proposed.

Other matters

Reporting requirements

In Decision 2000-747 the Commission approved the acquisition of CTV by BCE Inc. (BCE). This decision included a number of conditions of approval related to the benefits package proposed by BCE, as well as reporting requirements to enable the Commission to ensure that BCE fulfilled its commitments. The Commission is imposing conditions of licence on the CTV stations designed to ensure that the licensee's benefits commitments continue to be fulfilled during the new licence term, and that the benefits, particularly those relating to the creation of new priority programming and to other such "on-screen" initiatives, are incremental to all existing and outstanding requirements. These conditions require that CTV file a detailed audited report, concurrent with the filing of the annual return for CTV, setting out the actual expenditures (not less than $24.9 million in any given year) at the base level amount of eight hours per week of priority programming. They also require, consistent with the benefits package put forward by BCE, the broadcast of a minimum of 175 hours of original Canadian priority programming over the licence term (in addition to the base level of eight hours per week), and a minimum total incremental expenditure of $140 million over the licence term on the benefits-related priority programming.

Interventions

The Commission wishes to thank all those who participated in the process leading to this decision, either through their written interventions or through presentations at the public hearing.

Related CRTC documents:

. Decisions 2001-457-1 to 2001-457-13: Licence renewal decisions for individual CTV stations

. Decision 2001-458: Renewal of Global licences

. Decision 2001-459: Cable carriage of CIVT-TV Vancouver

. Decision 2001-460: Approval of the transfer of assets of CKY-TV Winnipeg

. Public Notice 2001-88: Representation of cultural diversity on television - Creation of an industry/community task force

. Decisions 2001-384 and 2001-385: Transfer of effective control of TVA to Quebecor Média inc. and TVA renewal

. Decision 2000-747: Transfer of effective control of CTV to BCE Inc.

. Public Notice 2000-94 and Decisions 2000-229 and 2000-250: Implementation of TV policy - New conditions of licence

. Public Notice 1999-205: Definitions for new types of priority programs; revisions to the definitions of television content categories; definitions of Canadian dramatic programs that will qualify for time credits towards priority programming requirements.

. Public Notice 1999-97: Building on success - A policy framework for Canadian television

. Public Notices 1992-59, 1994-69 and 1995-98 - documents related to employment equity

Secretary General

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca

Appendix 1 to Decision CRTC 2001-457

Statement of Principles and Practices

Introduction

WHEREAS CTV Television Inc. ("CTV") acknowledges the importance of diversity of voices in the context of cross ownership of media; and

WHEREAS CTV recognizes the public's right to information and its duty to provide that information for television viewers in a fair and accurate manner; and

WHEREAS CTV acknowledges the importance of its contribution to the fulfillment of the objectives contained in the following provisions of the Broadcasting Act:

s. 3 (1) It is hereby declared as the broadcasting policy for Canada that

(d) the Canadian broadcasting system should

(i) serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada,

(ii) encourage the development of Canadian expression by providing a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity, by displaying Canadian talent in entertainment programming and by offering information and analysis concerning Canada and other countries from a Canadian point of view

(i) the programming provided by the Canadian broadcasting system should

(iv) provide a reasonable opportunity for the public to be exposed to the expression of differing views on matters of public concern

Principles

CTV, therefore, commits to adhere to the following principles and practices:

1) CTV will maintain separate and independent news management and presentation structures for CTV television operations that are distinct from those of any CTV affiliated newspapers. Decisions on journalistic content and presentation for CTV will be made solely by CTV television news management.

2) CTV news managers will not sit on the editorial board of any CTV affiliated newspaper; nor will any member of the editorial board of any CTV affiliated newspaper participate in the news management of CTV television operations.

3) CTV shall establish a Monitoring Committee as set out in Appendix "A" to this Statement to deal with complaints from all sources, including employees and the general public, arising from any of the principles and practices included in this Statement.

4) CTV shall report to the Commission on an annual basis, concurrent with its annual return, regarding the number and nature of the complaints received by the Monitoring Committee and how CTV resolved each complaint.

5) CTV shall provide a copy of this Statement to each of its employees and shall emphasize the importance of complying with the principles and practices set out in this Statement.

6) CTV shall, through the use of Public Service Announcements, make its viewers aware of the principles and practices set out in this Statement, and the Monitoring Committee.

Definitions

"CTV affiliated newspaper" - means The Globe and Mail and any other newspaper in which Bell Globemedia or its affiliates, now or in the future, has effective control;

"CTV television operations" - means all of the conventional television licensees controlled by CTV now or in the future.

"separate and independent news management and presentation structure" - means that all journalistic decisions will be made autonomously by each newsroom.

Appendix "A"

Monitoring Committee

The role of the Monitoring Committee is to receive and review complaints from all sources about the compliance of CTV with the Statement of Principles and Practices.

a) The Committee is an impartial, neutral body charged with receiving all complaints concerning the compliance of CTV with the Statement of Principles and Practices.

b) The Committee shall be composed of three people, including a Chairperson. The Committee members shall be individuals of unquestioned impartiality and credibility who have no existing relationship with Bell Globemedia or its affiliates and subsidiaries.

c) The Committee members shall be paid by CTV at rates to be agreed upon. All costs, transportation expenses, communication expenses and research costs incurred in connection with their participation or attendance at Committee meetings shall be reimbursed by CTV upon submission of supporting documents.

d) The Committee members shall be appointed by CTV for the duration of the current licence term, which appointment shall be renewable upon completion, at the discretion of CTV. Should a Committee member be unable to complete the term of their appointment due to death, incapacity or by voluntarily terminating their appointment, CTV shall appoint a replacement member to serve for the remainder of the current licence term.

a) The Committee shall receive and review complaints from all sources concerning the compliance of CTV with the Statement of Principles and Practices, and shall investigate the merit of each complaint, when appropriate. The Committee shall forthwith provide a copy of every complaint to CTV.

b) First, the Committee shall determine whether there are reasonable grounds to investigate whether there has been a violation of the Statement of Principles and Practices.

c) If there are grounds for an investigation, the Committee is authorized to obtain information from the management of CTV and its subsidiaries and any employee involved, to question any employee involved, and to examine the files, relevant to the complaint and subject to any constraints relating to privacy and protection of sources.

d) If there are grounds for an investigation, the Committee shall hear the views of all the parties, and then deliberate and make a report within 45 days after the receipt of the complaint. A two-thirds majority shall be required for a report.

e) The Committee shall report to the Bell Globemedia Board of Directors and recommend appropriate corrective action to dispose of the complaint.

f) The Bell Globemedia Board of Directors shall respond to each recommendation from the Committee within 60 days after it is received.

g) The Committee shall submit an annual report to the Bell Globemedia Board of Directors reporting all complaints received, the Committee's recommendations with regard to each complaint received and CTV's response to each recommendation.

h) The report shall be public and a copy shall be sent to the Canadian Radio-television and Telecommunications Commission.

i) Employees of CTV and its subsidiaries and affiliates who are called to appear before or to provide information to the Monitoring Committee shall be subject to no sanction and no loss of pay for the resultant absences from work.

Appendix 2 to Decision CRTC 2001-457

Conditions of licence applicable to all CTV television stations

a) The licensee must broadcast, at a minimum, in each broadcast year, an average of eight hours per week of Canadian programs in the priority program categories between 7 p.m. and 11 p.m., from Monday to Sunday. As defined in Public Notice 1999-205, the priority program categories are:

Canadian drama programs; Canadian music and dance and variety programs; Canadian long-form documentaries; Canadian regionally-produced programs in all categories other than News and information and Sports; Canadian entertainment magazine programs.

b) For the purpose of fulfilling the above-noted condition, the licensee may claim the new dramatic programming credit set out in Public Notice CRTC 1999-205, as may be amended from time to time.

In addition to the 12 minutes of advertising material permitted by subsection 11(1) of the Television Broadcasting Regulations, 1987, the licensee may broadcast more than 12 minutes of advertising material in any clock hour in a broadcast day, in order to broadcast infomercials as defined in Public Notice CRTC 1994-139 and in accordance with the criteria contained in that public notice, as amended.

The licensee shall adhere to the provisions of the Statement of Principles and Practices asset out in Appendix 1 to Decision CRTC 2001-457, including the establishment of an independent Monitoring Committee as set out in Appendix "A" to the Statement of Principles and Practices.

A detailed audited report shall be filed with the Commission, concurrent with the filing of the annual return for CTV Television Inc., setting out the actual expenditures on the base level amount of 8 hours per week of priority programming. Such spending may exceed, but shall not be less than $24.9 million in any given year.

In addition to the eight hours per week of priority programming required under condition of licence 1 above, the licensee shall broadcast a minimum of 175 hours of original Canadian priority programming over the licence term.

The licensee shall expend a minimum of $140 million, over the licence term, on the 175 hours of priority programming accepted as benefits in the BCE/CTV transaction, and referred to in condition of licence 5.

a) The licensee shall broadcast in years 3 and 4 of the licence term an average of 3 hours per week of described Canadian priority programs from categories 7 (Drama) and 2b (Long-form documentary), between 7 p.m. and 11 p.m.

b) The licensee shall broadcast in year 5, and for the remainder of the licence term, an average of 4 hours per week of described Canadian priority programs from categories 7 (Drama) and 2b (Long-form documentary), between 7 p.m. and 11 p.m.

In fulfilling this condition, a minimum of 50% of the required hours must be original broadcasts. Further, the licensee may broadcast up to one hour per week of described children's programming at an appropriate children's viewing time.

The licensee must 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 approved 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.

The licensee must adhere to the provisions of the CAB's Broadcast code for advertising to children, as amended from time to time and approved by the Commission.

The licensee must 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 approved 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.

The licensee shall not affiliate with or disaffiliate from any network operator without the prior written approval of the Commission.

The undertaking shall be operated on the basis of the contours and particulars contained in the approved application.