ARCHIVED - Broadcasting Decision CRTC 2002-82

Broadcasting Decision CRTC 2002-82

See also: 2002-82-1

Ottawa, 8 April 2002

Rogers Broadcasting Limited
Toronto, Ontario

Application 2001-0867-2
Public Hearing at Hamilton, Ontario
3 December 2001

New multilingual ethnic television station to serve Toronto

The Commission approves in part the application by Rogers Broadcasting Limited (Rogers), for a new ethnic television station in Toronto. The licensee must submit for approval, an application for the use of a television channel other than channel 52.

Rogers is a subsidiary of Rogers Communications Inc. (RCI), one of the largest companies in the Canadian broadcasting system. RCI has holdings in various sectors of Canada's broadcasting industry: radio, television, specialty television, and distribution undertakings. Rogers owns and operates a number of radio stations in markets across Canada and is also the licensee of the existing Toronto multilingual ethnic television station CFMT-TV. CFMT-TV also serves London and Ottawa, by means of rebroadcasters. The new station will be known as "CFMT Too", and will focus on the provision of programming of interest to the Asian and African communities of the Toronto area, communities not currently fully served by CFMT-TV.

The application by Rogers was predicated originally upon the use of channel 52 in Toronto. The use of that channel was also proposed in a number of other applications for new English-language television stations also considered at the 3 December public hearing. In New television station for Toronto/Hamilton, Broadcasting Decision CRTC 2002-81, released today, the Commission, by majority vote, has approved an application by Craig Broadcast Systems Inc., (Craig) for a new English-language television station to serve Toronto and Hamilton on channel 52.

The Commission notes that the majority of the programming offered by CFMT-TV and CFMT Too will be in different languages. Approval of the application is therefore consistent with the Commission's policy of permitting ownership of only one over-the-air television station in a given language, in the same market, set out in Building on success - A policy framework for Canadian television, Public Notice CRTC 1999-97, 11 June 1999.

In this decision, the Commission describes the licensee's programming plans for the new station, and the ways in which it will contribute to the ethnic broadcasting sector, and serve the diverse communities of Toronto.

Introduction

1.

In Introductory statement to decisions approving two new television stations to serve Toronto/Hamilton, Broadcasting Public Notice CRTC 2002-17 (Public Notice 2002-17), also published today, the Commission sets out the background to this proceeding, and provides a detailed discussion of the Toronto television market and its ability to sustain additional commercial television services, both general interest and ethnic.

2.

This decision deals with Rogers' proposal to establish a new ethnic television station in Toronto.

Regulatory and policy framework for ethnic broadcasting

3.

The Broadcasting Act (the Act), sets out a number of objectives for the regulation of broadcasting in Canada, including the stipulation that the Canadian broadcasting system should reflect the circumstances and aspirations of all Canadians as well as the multicultural and multiracial nature of Canadian society.

4.

The principal components of the Commission's policy on ethnic broadcasting were set out in A Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity, Public Notice CRTC 1985-139, 4 July 1985. The Commission reviewed the policy in 1999 and published its revised Ethnic Broadcasting Policy (the Ethnic Policy), Public Notice CRTC 1999-117, 16 July 1999. Among other things, the policy provides a framework for the licensing of an array of radio and television services in languages relevant to Canadian ethnocultural communities.

5.

In response to the objectives set out in the Act and within the framework of the Ethnic Policy, the Commission has licensed numerous ethnic radio services across the country, and three ethnic conventional television stations. CJNT-TV serves Montréal, CFMT-TV operates in Toronto with retransmitters in Ottawa and London, and Multivan Broadcast Corporation has recently been licensed to provide an ethnic television service in Vancouver. In addition to ethnic conventional broadcasting services, the Commission has also licensed a number of ethnic specialty services.

Rogers' proposal

6.

In support of its application, Rogers stated that with the limited airtime and finite economic resources of a single television channel, CFMT-TV, it cannot meet the increasing demand for ethnic programming. This application, which would essentially result in the splitting of CFMT-TV's programming into two channels, would address that problem.

7.

Following the split of the programming schedule, the European immigrants who came to Canada during the 1950's through 1980's would most likely remain satisfied viewers of the original CFMT-TV, according to Rogers. The growing Pan Asian and African language populations would, however, be interested in the programming planned for CFMT Too.

8.

The new station will be an over-the-air television service, offering ethnic television programming to Toronto, focussing on the provision of programs targeted to audiences of Asian and African origins. CFMT Too will direct its programming each month to at least 22 ethnocultural groups, in a minimum of 18 distinct languages. The groups served and the languages used for programming on CFMT Too will not be duplicated on CFMT-TV during the same broadcast year.

9.

Approximately 28 hours weekly of existing CFMT-TV programs will be transferred to the new station, directed to 11 distinct ethnocultural groups, using 11 different languages, representing part of the 22 groups and 18 languages to be served by the new station. CFMT-TV will retain the remainder of its ethnic programming and be rededicated to serve people of European, Latin American and Caribbean origin only.

10.

In addition to the programming transferred from CFMT-TV, new weekday South Asian and Mandarin news programs will be launched on CFMT Too. Additional Chinese and South Asian programming will also be scheduled to better reflect the linguistic diversity in each of those large groups. CFMT Too will also provide increased programming for many groups already served in languages such as Tamil, Korean, Vietnamese, Arabic and Tagalog. It will also provide new, regularly scheduled programming in Gujarati, Hindi, Urdu, Bengali, Punjabi, Hebrew, and French. The latter would serve francophones of African origin.

11.

Service to many groups will also increase on CFMT-TV, and new languages will be added, such as Hungarian, Latvian, Lithuanian and Estonian. Service will also be added in English to those of Caribbean origin and in Portuguese to the Brazilian-Canadian community.

Demand for third-language programming

12.

To support its proposal, Rogers presented the results of a study of demand for additional third-language television programming. The key findings of the study were:

· Toronto continues to lead the country in ethnic diversity, with the greatest percentage of people born outside the country having a mother tongue other than English or French, or with non-Canadian parentage.

· The source of immigrant applications is undergoing change, with recent increasing immigration from the People's Republic of China, Sri Lanka, the Republic of Korea, and Russia.

· The percentage of immigrants with no or limited language ability in English or French is increasing, which will increase the need for "Ethnic Language" services, including media services.

· The Chinese community continues to be served better by the media than are other third language communities.

· The percentage of hours of radio broadcasts to languages other than Chinese, Italian and Portuguese, suggests an increased market for additional "Ethnic language" TV broadcasts.

13.

In formulating its application, Rogers noted that, in the Ethnic Policy, the Commission acknowledged the increasing demand for ethnic television programming, stating:

Overall, the comments received were supportive of the 1985 policy framework for ethnic broadcasting, recognizing its success in enhancing the diversity of the Canadian broadcasting system, particularly linguistic diversity. The comments also emphasized the high demand by Canadians for programming in a variety of languages.

The Commission considers that the primary goal of the policy is to ensure access to ethnic programming to the extent practicable given resource limitations.

Opposition to the proposal

14.

As discussed in Public Notice 2002-17, a number of interventions were submitted in opposition to any establishment of new television services in Toronto. The concerns raised by those interveners, the responses to those concerns and the Commission's findings are all included in that document.

15.

Interventions specifically in opposition to the establishment of a second ethnic television station in Toronto were submitted by a number of parties. Those parties included:

· Fairchild Television Ltd. (Fairchild), licensee of Fairchild Television and Talentvision, both national specialty television undertakings providing primarily Chinese-language programming,

· Asian Television Network International Limited (ATN), parent company of South Asian Television Canada Limited (SATV), licensee of a specialty channel aimed at the South Asian community, and of four regional Category 2 specialty television services aimed at ethnic communities,

· Crossroads Television System (Crossroads), licensee of CITS-TV, a television station devoted to religious programming, serving Hamilton, Burlington, St. Catharines and Toronto,

· CHUM Limited (CHUM), licensee of CITY-TV, CHUM and CHUM-FM, Toronto,

· Standard Radio Inc. (Standard), licensee of CFRB and CKFM-FM Toronto, and

· Telemedia Radio Inc. (Telemedia), licensee of CJCL and CJEZ-FM Toronto.

16.

The interventions submitted by Fairchild, ATN, Crossroads, CHUM, Standard and Telemedia all argued that the entry of a second ethnic over-the-air broadcaster would result in economic harm to existing broadcasters.

17.

In reply, Rogers submitted that the addition of a new ethnic programming service would stimulate growth in the ethnic advertising market, and Rogers would achieve its revenue projections by taking advantage of that growth, with no resulting economic impact on other broadcasters. Rogers also stated that impact on other services would be limited by virtue of the fact that CFMT Too's programming would be locally oriented, no matter what issues are examined.

18.

With the exception of ATN, each of the same interveners also expressed the concern that the Toronto market for Chinese-language programming is saturated, and that Rogers had not adequately demonstrated that a high degree of demand existed for the proposed programming. Fairchild also contended that, if approved, Rogers could increase its proposed level of Chinese-language programming, to Fairchild's further detriment.

19.

In response to the concerns related to demand for ethnic programming, Rogers stated that, on average, CFMT-TV receives over 300 proposals each year for new ethnic television programs. These proposals include those from larger groups seeking greater programming choice, as well as those from smaller, newly arrived ethnic communities seeking information about life in Canada, broadcast in their language of comfort. Rogers noted that the demand for third-language programming is driven by the rapid growth in the size and diversity of the ethnic population in the Toronto/Hamilton area.

20.

With respect to Fairchild's concern that CFMT Too could broadcast a higher level of Chinese-language programming than that proposed by the application, Rogers stated that, if approved, it would accept a condition of licence limiting the amount of programming that CFMT Too could provide in any single language.

21.

The interventions submitted by Crossroads, CHUM, Standard and Telemedia also expressed concerns as to how the Rogers proposal would contribute to increased choice and diversity as well as to local and regional Canadian talent development. CHUM in particular, suggested that CFMT Too would be a virtual clone of CFMT-TV.

22.

In reply, Rogers disagreed, stating that CFMT Too would significantly increase, and vastly expand the diversity of ethnic television programming available free over-the-air in the Toronto/Hamilton market. It reiterated that CFMT Too would serve the needs of the large and rapidly growing Pan Asian/African population, while CFMT-TV would concentrate on the demand for more ethnic programming directed to the EuroLatino population.

23.

The contributions to be made to Canadian talent development by the new station were also outlined in Rogers' response. It noted that, under its proposal, at least $45 million, over and above normal course-of-business expenditures, would be spent on independent production over the licence term. Rogers submitted the view that this would provide independent producers in Ontario with access to a substantial new source of funding for third-language dramatic and documentary programming. Included in this amount is $7 million to support the independent production of a new cross-cultural dramatic series.

The Commission's determination

24.

The Commission considered the results of Rogers' study of demand for additional third-language programming, and is convinced, given the large ethnic community in the Toronto area and its growing diversity, that additional television service devoted to a wider range of ethnic communities is warranted, and is consistent with the objectives of the Act. The Commission agrees with Rogers' position that new ethnic services will stimulate growth in the ethnic advertising market. It also finds that, since the focus of the new station will be on service to local communities, any negative impact on other services will be limited.

25.

In addition, the Commission notes Rogers' proposal of a "cap" of 15% of the broadcast month, on the broadcast of programs in any given language, in the first two broadcast years of the licence term. This is likely to limit the negative impact on other Chinese-language services. A condition of licence specifying the monthly limitation on programs in any one foreign language is therefore set out in the appendix to this decision.

26.

The Commission is further of the opinion that Rogers' financial commitments over and above normal programming expenses will have a significant and positive effect upon the provision of original Canadian ethnic programming. It notes in particular that the Rogers' funding initiative will contribute to a strengthened independent ethnic production industry, given the lack of funding currently available to producers of ethnic programming.

27.

For all of these reasons, the Commission is confident that the licensing of Rogers to provide an over-the-air television service will contribute to further diversity of ethnic programming in the Toronto/Hamilton market.

Technical alternatives for the new station

28.

As noted above, Rogers' application proposed the use of channel 52 in Toronto, making it mutually exclusive with other applications proposing to use that channel. Approval of the application by Craig to use channel 52 in Toronto for a new English-language television station therefore necessitates a change to the proposed technical parameters for CFMT Too.

29.

Rogers currently uses channel 69 to rebroadcast CFMT-TV in London. At the hearing, Rogers stated that channel 69 would also meet all of the coverage objectives for CFMT Too in Toronto. As the operator of two transmitters on channel 69, Rogers stated that it would have the flexibility of "tailoring the (antenna) patterns and (radiated) powers of thetwo transmitters to make them work well together" and thereby minimize interference. Rogers offered to apply for approval to use that channel, if the Commission ultimately decided to grant the use of channel 52 to another applicant.

30.

Rogers acknowledged at the hearing that Industry Canada has neither examined nor approved the use of channel 69 in Toronto. The applicant also stated that "There are in fact some other channels that we believe could be used as well."

31.

As noted above, the Commission will only issue a licence to operate this undertaking when an application to amend the technical parameters contained in the original application has been approved by both Industry Canada and the Commission.

Programming plans for CFMT Too

32.

Diversity in the languages used by the new station will be ensured by a condition of licence requiring the use of at least 18 different languages, as well as by the requirement that no more than 15% of all broadcast time each month be dedicated to programs in any one foreign language, for the first two years of operation. That level may be increased by 1% in each of the following years, to a monthly maximum of 19%.

33.

Ethnic programs, as described in the Ethnic Policy, will make up at least 70% of the broadcast day on CFMT Too. At least 55% of the programming during the evening hours (6:00 p.m. until midnight) will be made up of ethnic programs, and 80% of all programming between 8:00 p.m. and 10:00 p.m. will consist of ethnic programs. No more than 45% of all broadcast time between 6:00 p.m. and midnight shall be devoted to non-ethnic programs from sources other than Canada.

34.

CFMT Too will be required, as mandated by the Television Broadcasting Regulations, 1987 (the Television Regulations), to devote a minimum of 60% of the broadcast year to Canadian programs, and to devote at least 50% of the time between 6:00 p.m. and midnight to Canadian programming.

35.

Rogers stated its intention that local news programming will be a priority for CFMT Too. As with CFMT-TV, a central news gathering and production team will act as a facilitator for news production on CFMT Too, although the individual staff teams responsible for third-language newscasts will have editorial autonomy. Rogers also stated that it would establish a number of regional news bureaus in Markham/Scarborough, Mississauga/Brampton, Woodbridge as well as Hamilton. The new station will also have access to CFMT-TV's existing bureaus in Ottawa and in Toronto at Queen's Park.

36.

The cross-cultural programming series "Multicultural Canada" will provide opportunities for members of ethnic communities to exchange views and share ideas. The program will feature community, national and international news, discussion groups and cross-cultural interactive segments. It will be produced in conjunction with CJNT-TV Montreal and aired on that station as well as on CFMT-TV and CFMT Too. Multicultural Canada is planned to consist of 44 original one-hour episodes for broadcast during the evenings.

37.

The Commission notes the licensee's commitment to close-caption approximately 37 hours of European-language programs to be broadcast on CFMT-TV.

38.

Many of the programming commitments and requirements described above, along with others, are set out as conditions of licence in the appendix to this decision.

Community participation

39.

In order to ensure active grass roots participation by the local ethnic community in defining and developing ethnic programming and the overall character of CFMT Too, Rogers has outlined plans for a Local Advisory Board.

40.

The board's members will represent a range of ethnocultural backgrounds, including the primary language groups to be served by CFMT Too as well as small ethnocultural groups. The board will meet periodically throughout the year, as well as whenever a need arises.

41.

The role of the board will be to:

· ensure constructive feedback from the ethnocultural groups served,

· advise in the development and implementation of ethnic programming strategies,

· review programming proposals,

· assist staff in the administration of the "Ontario Independent Producers' Initiative",

· provide input regarding programming containing explicit violence, adult scenes, coarse language and negative portrayals, and

· maintain contact with ethnocultural communities and associations.

42.

In addition to the Local Advisory Board, the applicant indicated that CFMT Too would directly involve local community members in the program production process. It intends to hold consultations and workshops with ethnic and non-ethnic community groups as well as local ethnic media. In addition to such consultations, opportunities for viewer feedback will be provided through multilingual telephone service, e-mail messaging, contests, polling and focus groups.

Serving Ottawa and London

43.

As stated earlier, approximately 28 hours of programming in 11 different languages will be moved to CFMT Too from CFMT-TV. Rogers acknowledges that the audiences for those programs in London and Ottawa would be left without service, as Rogers has not proposed transmitters for CFMT Too in those two cities.

44.

In discussions at the hearing, Rogers indicated its intention to apply for rebroadcasters of CFMT Too in London and Ottawa, should its application for Toronto be approved. In the event that rebroadcasters were not approved, Rogers suggested that the cable systems in London and Ottawa (both also owned by Rogers) could add the signal of CFMT Too to those services as a distant Canadian signal.

45.

The Commission expects Rogers to take all necessary steps to maintain its service to Asian and African groups living in London and Ottawa.

Financial commitments related to programming

46.

In addition to normal projected programming expenses, the licensee made a commitment to spend $50 million over a seven-year licence term on a variety of initiatives. The expenditures will include:

· Ontario Independent Producers Initiative ($35 million),

· Cross-cultural dramatic programming series ($7 million),

· Pilot development grants for underserved groups ($3 million),

· Community grants ($2 million),

· Public service announcement production fund ($2 million), and

· A national mechanism to support positive portrayal ($1 million).

47.

Under the Ontario Independent Producers Initiative, Rogers will fund at least 225 third-language half-hour dramas or documentaries over the licence term. Of the total $35 million allocated to the initiative, $2.5 million will be devoted to underwrite the development of projects. Licence fees that will cover the entire budget of the projects will absorb the remainder of the fund.

48.

The cross-cultural dramatic programming series, in English, will address cross-cultural themes. Ontario-based independent producers will produce the programs funded under this initiative. Funding will be provided in the form of a licence fee for a first window broadcast on both CFMT-TV and CFMT Too.

49.

The pilot development grants will range in value from $1,000 to $6,000 and, by condition of licence, Rogers will fund a minimum of 250 separate projects over the licence term.

50.

Grants will be made available to groups and organizations serving ethnic communities. Rogers will publicize the availability of the grants on-air, in third-language community newspapers and through other ethnic media. The members of the community advisory board will also publicize the fund, through person-to-person contact.

51.

The public service announcement production fund will finance third-language PSAs made by independent producers on behalf of local community groups. Those groups will retain ownership of the PSAs, which may then be broadcast on any other station or service.

52.

The licensee's plan for the enhancement of positive portrayal of ethnocultural groups consists of donations to the Canadian Broadcast Standards Council (CBSC) totalling $1 million. The funding will underwrite the provision of information brochures in third languages that will explain portrayal issues and the codes administered by the CBSC, as well as provide additional resources for the CBSC to handle complaints regarding the portrayal of ethnocultural groups in radio and television programming.

Cultural diversity

53.

The Commission recognizes the special role of ethnic services in contributing to a culturally diverse broadcasting system. CFMT-TV and CFMT Too are no exception. Nevertheless, and consistent with the expectations the Commission has placed on other licensees, the Commission expects Rogers to contribute to a broadcasting system that accurately reflects the presence in Canada of cultural and racial minorities and Aboriginal peoples. The Commission further expects licensees to ensure that their on-screen portrayal of all such groups is accurate, fair and free of stereotypes. These expectations are fully in keeping with section 3(1)(d)(iii) of the Act, which states that the Canadian broadcasting system should, "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society".

54.

In Representation of cultural diversity on television - Creation of an industry/community task force, Public Notice CRTC 2001-88, 2 August 2001, the Commission called upon the Canadian Association of Broadcasters to develop an action plan for a joint industry/community task force. The role of this task force is to sponsor research, identify "best practices", and help define the issues and present practical solutions to ensure that the Canadian broadcasting system reflects all Canadians. In its notice, the Commission emphasized the importance of having the participation of all sectors of the broadcasting industry, including ethnic services. Given Rogers' considerable experience in this area, the Commission expects Rogers to contribute to the work of the task force.

55.

The Commission further expects the licensee to develop and implement a comprehensive corporate plan that explains how Rogers intends to continue to improve its representation of Canada's cultural diversity, and to file its plan with the Commission within three months of the date of this decision. The plan should include specific commitments to corporate accountability and to the reflection of diversity in both ethnic and non-ethnic programming, and should make provision for the gathering of feedback on the effectiveness of these commitments. The plan should also set goals for achieving the full, fair and consistent reflection of diversity in Canada. The Commission expects the plan to apply to all of the broadcasting undertakings controlled by Rogers, including ethnic and specialty television services.

56.

With respect to corporate accountability, the plan should address how Rogers will create an environment that supports the cultural diversity objectives outlined above, by:

· creating a corporate culture that recognizes and supports Canada's cultural diversity,

· assigning accountability to a senior executive for corporate practices related to cultural diversity, and for ensuring that management becomes more reflective of Canada's multicultural reality,

· ensuring that managers receive proper training,

· ensuring that regular opportunities are provided for assessing progress towards attaining these objectives and for identifying future opportunities and challenges, and

· setting out plans for the hiring, retention and ongoing training of visible minorities and Aboriginal peoples.

57.

With respect to the reflection of diversity in programming, the plan should focus on how the licensee will ensure the presence and the fair, accurate and non-stereotypical portrayal of cultural minorities and Aboriginal peoples in the programming it produces or acquires. Specifically, the plan should include provisions for ensuring that on-air personalities reflect Canada's diversity, and that programming obtained from independent producers reflects the presence of visible minorities and Aboriginal peoples in Canadian society and provides for their accurate portrayal.

58.

The corporate plan should also describe the specific mechanisms the licensee will put in place to ensure that it receives effective input from community groups concerning its performance in reflecting cultural diversity in programming.

59.

Finally, the Commission reminds the licensee that the expectations set out above with respect to cultural diversity are over and above the longstanding and more general expectations concerning employment equity. Specifically, the Commission expects the licensee to continue to ensure that the on-air presence of members of the four designated groups (women, Aboriginal persons, disabled persons and members of visible minorities) is reflective of Canadian society, and that members of these groups are presented fairly, accurately and in a manner free of stereotypes.

Other matters

60.

In addition to the interventions discussed earlier in this decision, the Commission acknowledges and has considered the numerous interventions submitted in support of this application.

Secretary General

Appendix to Broadcasting Decision CRTC 2002-82

Terms

When the terms set out below have been met, the Commission will issue a broadcasting licence to Rogers Broadcasting Limited, for an ethnic television undertaking to serve Toronto. The licence, when issued, will expire 31 August 2008.

The Commission will only issue the licence, and it will only be effective at such time as:

· the applicant submits, within six months of the date of this decision, an application proposing the use in Toronto of a television channel and technical parameters that are acceptable to both Industry Canada and the Commission. Any request for an extension to this deadline requires Commission approval and must be made in writing within the six-month period; and

· the licensee confirms in writing that it is ready to begin operation. This must take place within 12 months of today's date. Any request for an extension to that deadline requires Commission approval and must be made in writing within that period.

Conditions

· expend, over the course of the licence term, a minimum of $35 million, with no less than $4 million spent in each full broadcast year;

· expend, over the course of the licence term, a minimum of $2.5 million for the development of at least 175 drama or documentary projects. A minimum of 25 productions shall be funded during each full broadcast year; and

· broadcast, between the hours 7:00 p.m. and 11:00 p.m. on either CFMT-TV or the new station, 225 original, half-hour, third-language drama or documentary programs produced through the Initiative. At least 30 such productions shall be broadcast in each full broadcast year.

Definitions:

"Expend" and "expenditure" mean actual cash outlay.