Decision CRTC 2001-459

Ottawa, 2 August 2001

OKS Cable Corporation, Regional Cablesystems (Western) Inc. and Shaw Cablesystems Company
Various locations in British Columbia (see appendix for application numbers and locations) 

The programming of the CTV national system has been available to British Columbia residents for a number of years on both CHAN-TV Vancouver and CHEK-TV Victoria, and on their various rebroadcasting transmitters elsewhere in the province. Following approval of a recent change of ownership, these two stations are now owned by CanWest Global. The programming of the CTV national system will cease to be broadcast on CHAN-TV and CHEK-TV as of 1 September 2001.

On the same date, CIVT-TV Vancouver will commence full carriage of CTV programming. Cable distributors located outside of the range of CIVT-TV’s off-air signal who wish to make the station’s programming available to their subscribers, were required to apply to the Commission for authority pursuant to section 19 of the Broadcasting Distribution Regulations (the regulations) to carry it as a distant Canadian signal.

Opposition to the carriage of CIVT-TV was expressed in a joint intervention submitted by the licensees of local television stations in Kamloops (CFJC-TV), Prince George (CKPG-TV), Dawson Creek (CJDC-TV) and Terrace (CFTK-TV). The intervention set out a general concern that local or regional advertising included in the signal of CIVT-TV would cause financial harm to local television licensees.

At the hearing, the interveners sought an arrangement with CIVT-TV similar to a long-standing agreement with CHAN-TV. That agreement permits local broadcasters in specific interior B.C. markets to "cover over" certain advertising on the CHAN-TV signal with commercials sold by the local broadcaster. The terms "cover over" or "covering" are also used to refer to the replacement of designated commercials with other programming such as public service annoucements or program promotions.

Subsequent to the hearing, the Commission directed CTV and Global to negotiate with the interveners for a resolution to the interveners’ concerns, and to report to the Commission. On 29 June 2001, the Commission was advised that the negotiations had not been successful.

In a related decision of today’s date, regarding the licence renewal of CIVT-TV, that licence has been made subject to a condition requiring the "covering" of advertising other than national advertising in certain communities with program promotions or public service announcements for the duration of the new licence term, which begins 1 September 2001 (Decision CRTC 2001-457-13).

Additionally, the Commission has, in another related decision of today’s date, imposed a condition of licence requiring CanWest Global to permit the interveners to cover certain advertising material in the signal of CHAN-TV for the duration of the new licence term (Decision CRTC 2001-458-12).

The Commission’s objective is to ensure the continued viability of the local television stations that provide service to certain communities in the Central Interior of British Columbia, while allowing for the continued provision of CTV service to this region.

Consistent with these objectives, the Commission approves the applications by CTV, acting as an agent for OKS, Regional and Shaw, for authority to distribute CIVT-TV Vancouver as a distant signal, on their cable systems serving various communities in British Columbia.

In the case of the cable distribution undertakings operated by Shaw in Kamloops, Prince George, Dawson Creek and Kelowna, and of that operated by OKS at Terrace, the licensees must ensure that the CIVT-TV signal they distribute contains the covered advertising.

The Commission reminds the applicants in Kamloops, Terrace, Prince George and Dawson Creek that, should a local television programming undertaking wish to insert local advertising on the "covered" portions of the CIVT-TV signal, the Commission’s prior approval for the distributor to "alter or curtail" the signal would be required.

Secretary General

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