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Decision CRTC 2001-460
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Ottawa, 2 August 2001
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CTV Television Inc.
Winnipeg, Fisher Branch, Brandon, McCreary, Dauphin/Baldy Mountain,
Flin Flon, The Pas, Snow Lake and Thompson, Manitoba
2001-0564-4
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24 July 2001 Public Hearing
National Capital Region
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Acquisition of the assets of CKY-TV Winnipeg and its transmitters
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1. |
The Commission approves the application for authority to
acquire the assets of the television programming undertaking CKY-TV
Winnipeg and its transmitters, and for a broadcasting licence to
continue the operation of this undertaking. The undertaking includes
the following transmitters: CKYA-TV Fisher Branch, CKYB-TV Brandon,
CKYB-TV-1 McCreary, CKYD-TV Dauphin/Baldy Mountain, CKYF-TV Flin
Flon, CKYP-TV The Pas, CKYS-TV Snow Lake and CKYT-TV Thompson.
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2. |
The Commission will issue a licence to CTV Television Inc. (CTV)
expiring 31 August 2007. The licence will be issued upon
surrender of the licence currently issued to Moffat Communications
Limited. |
3. |
Through information contained in the application, the Commission
has been made aware of corporate reorganizations undertaken by the
current licensee, Moffat Communications Limited, in advance of the
present transaction. Moffat Communications Limited is now known as
Videon CableSystems Inc. The Commission emphasizes that its approval
of CTV’s application to acquire the assets of CKY-TV should not be
taken as encompassing approval of any of the reorganizations that
preceded the current transaction, nor should this approval be viewed
as a precedent. |
4. |
In Decision CRTC 2001-457 and other related decisions issued
today, following a group licence renewal process, the Commission
approved the licence renewal of a number of other television
undertakings owned and operated by CTV. The Commission reminds CTV
of its obligations, as set out in those decisions. Specifically, and
consistent with the Commission’s group licensing approach, the
licence to be issued to CTV in respect of CKY-TV will be subject to
the terms, conditions of licence and commitments set out elsewhere
in this decision, as well as to those contained in Decision 2000-457
and Appendix 2 to that document. |
5. |
The amount to be paid by CTV to purchase the assets of CKY-TV is
$33 million. Based on the evidence filed with the application, the
Commission has no concerns with respect to the availability or the
adequacy of the required financing. |
6. |
The applicant made commitments to clear and unequivocal tangible
benefits representing incremental expenditures over five years of
$3.3 million, or 10% of the purchase price. This is consistent with
the requirements of the benefits policy outlined in Public Notice
CRTC 1999-97; Building on success – a policy framework for
Canadian television. These benefits include a contribution of $1
million over the five years to a script and concept development
fund. The fund will be allocated among independent producers in
Manitoba and other western provinces. The benefits include a further
expenditure of $1.6 million over five years on television
programming offering local and regional reflection. According to the
applicant, this initiative will result in the production of 52
original half-hour segments per year of special reports, features
and mini-documentaries on Winnipeg and Manitoba. The expenditures
will be divided equally between in-house and independent production. |
7. |
The Commission accepts the benefits package, as proposed by CTV.
It expects the applicant to adhere to its commitments and the
timetable for their implementation, as set out in its application. |
8. |
In its application, CTV undertook to continue to broadcast a
minimum of 8 hours 55 minutes each week of original local news
throughout the new licence term. This is the same amount that the
previous licensee had committed to provide at the time of last
licence renewal, and was the minimum level that the Commission
subsequently expected of the licensee in Decision CRTC 95-635. In
CTV’s group renewal applications, however, and as noted in the
above-mentioned decisions issued today, CTV proposed a model in
which each of its major stations would broadcast at least 15 hours
30 minutes per week of local programming. |
9. |
In the circumstances, and in light of the licensing approach set
out in Decision 2001-457, the Commission considers that the level of
such programming broadcast on CKY-TV should be brought into line
with that broadcast on CTV's other major stations. It expects the
licensee to achieve this minimum level of 15 hours 30 minutes per
week of local programming by 1 September 2002. |
10. |
By condition of licence, the licensee shall caption 90% of
all programming during the broadcast day in each broadcast year,
including 100% of all category 1 – News programming. |
11. |
The Commission notes that this licensee is subject to the Employment
Equity Act, and therefore files reports concerning employment
equity with Human Resources Development Canada. |
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Secretary General
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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: http://www.crtc.gc.ca |