Dissents in Toronto licensing decision reveal fractious opinions at the CRTC

Commissioner Joan Pennefather dissented, along with CRTC vice-chair of broadcasting Andrée Wylie, on the decision to grant an over-the-air licence to Craig Broadcast Systems Inc. for the Toronto market. Both Pennefather and Wylie felt the licence should have gone to Toronto-based Torstar, publisher of the Toronto Star. An edited version of Pennefather’s dissent, published April 8 when the CRTC licensing decision was released, appears below. ...In my view, in not granting the licence resulting from this hearing to TDNG (Torstar), the commission has missed an important and timely opportunity, that is, to bring innovative local and regional Canadian programming to Canadian viewers on over-the-air television. The Broadcasting Act, among other things, calls for the programming provided by the Canadian broadcasting system to be predominately Canadian, to be varied and comprehensive, and to be drawn from local, regional, national and international sources. This hearing followed a call for applications for television services to serve all or any of Toronto, Hamilton and Kitchener, Ontario. Among other points, the commission stated that it would examine the contributions the proposed services would make to the objectives of the Broadcasting Act, and in particular to the production of local and regional programming (Public Notice 2001-51). In my view, TDNG’s proposal met this objective most effectively, offering a substantial amount of local and regional programming and an innovative approach to its production and scheduling...It is important to remember that this hearing was about over-the-air commercial television. What set the TDNG proposal ahead of the others, in my view, was its programming schedule: 85 per cent Canadian content all day, every day, all week and all year. Their premise: an 85 per cent Canadian schedule is not only viable, but can also be accomplished by presenting to viewers a high concentration of local and regional programming. And this on three separate stations, in Toronto, Hamilton and Kitchener respectively. The increased benefit to viewers in these communities was evident. In looking at this schedule, there is another factor to consider. What was proposed here was a new paradigm. That is, a schedule which did not assume that a large quantity of American shows is the only way to support a Canadian over-the-air television station. This has considerable merit and deserved to be given the chance to reach Canadian viewers. As well, the commission heard several serious concerns about a new player chasing a limited supply of popular American shows for a typically Americanized schedule, and the inflationary impact this would have on costs and hence, in the standard paradigm, on the money available to invest in Canadian programming. TDNG ’s schedule, albeit new and daring, was backed, in my view, by a solid and viable financial plan, built on thorough demand studies, and appropriate projections for revenues and market share. In terms of the financing of the programming, I do not share the doubts expressed by the majority and submit that a thorough review of the record bears this out. In support of its 85 per cent Canadian content schedule, TDNG’s production budget covered both internal production and commissions from independent producers for one-offs and/or program series. ...The application offered different programming (which I believe is a point in its favor). The program budgets will vary. Several examples of feasible production budgets for programs, including documentaries, were presented by the applicant and intervening producers. As a result, I consider the financing assumptions viable. ...Again, as one of Canada’s leading media companies, in discussing the benefits this would offer, and the challenges, the applicant was forthright in offering the means to assure that programming decisions would be editorially independent of newpaper interests, in a manner which is in line with the commission’s position in similar situations. TDNG’s program schedule and financial model are indeed new approaches, and not without some risk. However, in my view, this was a risk well worth taking, for viewers, producers, and in the interests of balance and diversity in Canadian television...

Dissents in Toronto licensing decision reveal fractious opinions at the CRTC

Broadcast | April 12, 2002

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