ARCHIVED - Broadcasting Decision CRTC 2002-40

Broadcasting Decision CRTC 2002-40

Ottawa, 15 February 2002

CTV Inc.
Montréal, Quebec

Acceptance of revised benefits package associated with the acquisition of CFCF-TV Montréal

1.

In Decision 2001-604 dated 21 September 2001, the Commission authorized CTV Inc. to acquire the assets of CFCF-TV Montréal, subject to the condition that CTV submit a revised proposal for the disbursement of tangible benefits representing incremental expenditures of at least $14.15 million, rather than the $12.15 million set out in its application.

2.

CTV was also directed to revise the proposed benefits to take into account the concerns noted in the decision with respect to its investigative journalism initiative and the establishment of a program development office in Montréal.

3.

In its revised benefits proposal, CTV committed an additional $1.8 million to the Signature Presentation Series accepted by the Commission in Decision 2001-604, and $50,000 each to Canadian Journalists for Free Expression, PEN, Conseil de Presse du Québec, and the Writers' Trust of Canada.

4.

CTV also proposed to broadcast, as a replacement for its investigative journalism initiative, thirteen original half-hour episodes per year of original news and local reflection programming. This program would be in addition to the 15.5 hours per week of local programming that CTV has committed to for CFCF-TV's next licence term.

5.

In its revised filing, CTV committed $1.125 million ($225,000 per year) for script and concept development and $750,000 ($150,000 per year) for administrative costs over the five years. This represents a reallocation of $25,000 per year from administrative costs to program development funding.

6.

CTV stated that this proposal involves the hiring of a development officer who will be totally dedicated to working with writers, producers and directors in Quebec and liaising with CTV's publicity, programming and sales divisions to ensure the success of each project chosen for production. The proposal would allow the development officer to attend work-shops, panels, screenings and festivals that are key to helping writers, producers and directors bring their stories to light. CTV stated that its proposal goes far beyond the current ability of CFCF to devote to program development.

7.

The Commission is satisfied that CTV has adequately addressed the concerns expressed in Decision 2001-604, and that the proposed benefits package, as revised, is significant, unequivocal, and commensurate with the size and nature of the transaction.

8.

The Commission requires CTV to file a detailed audited report, concurrently with the filing of the annual return, in each of the next five years, demonstrating that these benefits are incremental to all existing CFCF-TV commitments, in accordance with the Commission's requirements.

Secretary General

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