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13 January 2014 28February2014 JohnTraversy SecretaryGeneral CRTC Ottawa,ONK1A0N2 DearMr.SecretaryGeneral, Re:ApplicationsfortherenewalofthebroadcastinglicencesforEnglishlanguage conventionalandmultilingualethnictelevisionstationsandforcertainspecialty televisionservices,BroadcastingNoticeofConsultation201426(Ottawa,29 January2014) 1. TheForumforResearchandPolicyinCommunications(FRPC)isanonprofitandnon partisanorganizationestablishedtoundertakeresearchandpolicyanalysisabout communications,includingbroadcasting.TheForumsupportsastrongCanadian broadcastingsystemandregulationthatservesthepublicinterest. 2. WearepleasedtoparticipateintheprocessinitiatedbyBroadcastingNoticeofConsultation 201426,tocommentontheapplicationsfiledbyRogersBroadcastingLimitedtorenewthe licencesofitstelevisionprogrammingundertakings.Ourinterventionisattached:wedo notsupportRogers’applicationforfiveyeartermsfortheOMNIlicences,andopposeits proposedconditionsoflicence,asapprovaloftheserequestseffectivelyplacesRogers’ interestsbeforethepublicinterest. 3. FRPCrespectfullysubmitsthatthepublicinterestwouldbeservedbyshort,twoyearterms fortheOMNIlicences,theimpositionofthecurrentconditionsoflicenceinplaceforthe OMNI,andtheintroductionofaconditionoflicencerequiringeachstationtobroadcasta minimumleveloforiginallocalnewsandprogramming,eachweek,inaspecifiednumberof languages. 4. Welookforwardtotheopportunityofreviewingothercommentssubmittedinthis proceeding,andrespectfullyrequesttheopportunitytoappearbeforetheCRTChearing panelduringits8April2014publichearing,torespondtoRogersandotherparties,andto addressthehearingpanel. Ifyouhaveanyquestions,pleasedonothesitatetocontacttheundersigned. Sincerelyyours, MonicaL.Auer,M.A.,LL.M. [email protected] ExecutiveDirector www.frpc.net Rogersrenewalapplications: doesmutilatingOMNIto‘save’it servethepublicinterest? ApplicationsfortherenewalofthebroadcastinglicencesforEnglishlanguage conventionalandmultilingualethnictelevisionstationsandforcertainspecialty televisionservices,BroadcastingNoticeofConsultation201426(Ottawa,29January 2014) CommentsoftheForumforResearchandPolicyinCommunications 28February2014 Contents ExecutiveSummary 1 I Theissuesinthisproceeding:termsandconditions 1 II Multiculturalism,ethnicbroadcastingandtheOMNIstations 1 A 1988CanadianMulticulturalismAct 1 B 1991BroadcastingAct 3 C EthnicbroadcastinginCanada 4 D TheOMNIservices 6 E Thelicensee 16 III SubmissionsonRogers’applications 17 A Termoflicences 19 1 Thelawregardinglicensingandrenewals 19 2 CRTCshouldissueshorttermlicencesfortheOMNIstations 22 3 CRTCshouldsuspendtheOMNIAlbertastations’saleof advertising 24 B Conditionsoflicence 25 1 Thelawregardingconditionsoflicence 25 2 CRTCcanapplynewconditionsoflicenceonitsownaccord 27 3 TheCRTCshoulddenyconditionsoflicencethatmakethe publicinterestsubservienttoprivateinterests 27 4 RequireeachOMNIstationtobroadcastmoreoriginallocal newsandinformationeachweek 30 IV Summaryofrecommendations 33 1 AdvancetheCRTC’spublicconsultationonitsethnic broadcastingpolicybyoneyear 34 2 GranttwoyearlicencestotheOMNIstations 34 3 SuspendtheOMNIAlbertastations’abilitytoselladvertising timefor6months 34 4 DenyRogers’proposedconditionsoflicence 35 5 RequireeachOMNIstationtobroadcastmorethan15hours oforiginallocalnewsandinformationeachweek 36 Figures Figure1:RCIdividendspershare,20092013 32 Tables Table1:Rogers'2009/10revenueandexpenditureforecastsforitsCityTVandOMNI stations 11 Table2:Rogers'2009/10forecastandactualrevenueandexpendituresforitsCityTV andOMNIstations 12 Table3:HoursofnewsbroadcastbyCFMTDTin2012/2013 13 Table4:OriginalandrepeatprogrammingbroadcastbyCFMTDTfromSeptember2012 toAugust2013,bytypeofprogram 14 Table5:OriginalandrepeatprogrammingbroadcastbyCFMTDTfromSeptember2012 toAugust2013,bylanguageofprogram 15 Table6:ComparisonofRogers'forecastandactualrevenuesandexpenditures 16 Table7:OMNIstations'conditionsoflicencecurrentandproposed 28 Table8:RevenueandcostsofOMNI's10lowestrevenuecontrbutinggroupsand languages,20112013 29 Table9:HoursofnewsbroadcastbyCFMTDTin2000/2001 31 Appendices Appendix1:TitlesanddurationofprogramsproducedbyCFMTDTfromSeptember 2000toAugust2001 Appendix2:TitlesanddurationofprogramsproducedbyCFMTDTfromSeptember 2012toAugust2014 BroadcastingNoticeofConsultation201426 ExecutiveSummary 28February2014 Page1of4 ExecutiveSummary Introduction 1 TheForumforResearchandPolicyinCommunications(FRPC)isanonprofitand nonpartisanorganizationestablishedtoundertakeresearchandpolicyanalysis aboutcommunications,includingbroadcasting. 2 TheForumsupportsastrongCanadianbroadcastingsystemthatservesthe publicinterest,andisachievingParliament’sobjectives. Importanceofthisproceeding 3 FRPC’sinterventionaddressesthetermandconditionsoftheOMNIlicences. TheCRTC’sdecisionsontheseissueswilldeterminethelevelandqualityoffree, localethnictelevisionservicethatismadeavailabletomulticulturalcommunities inToronto,Edmonton,CalgaryandVancouvergoingforward. Applicablelaw 4 Rogers’televisionundertakingsaresubjecttotheBroadcastingActandtothe CanadianMulticulturalismAct. 5 The1991BroadcastingActrequiresbroadcastingtostrengthenCanada’s cultural,political,socialandeconomicfabric,andtoprovideprogrammingthat reflectsthemulticulturalnatureofCanadiansociety.Unliketheextensionof programminginbothofficiallanguages,theCBC’sprogramming,programming forindigenouspeoplesandaccessibleprogramming,thedeliveryofmulticultural programmingisnotcontingentonresourceavailability. 6 The1988CanadianMulticulturalismActalsomakesitgovernmentpolicyto eliminatebarrierstothefullandequitableparticipationofmulticultural communitiesinCanada,toenhancetheuseofthirdlanguagesinCanada,andto advancemulticulturalism‘inharmony’withCanada’scommitmenttoofficial languages.AsafederalinstitutiontheCRTCissubjecttothislegislation. 7 TheOMNIstationsarealsogovernedbytheCRTC’s1999ethnicbroadcasting policy.ItrequirestheCRTCtodecidethenumberofdistinctgroupsthatan ethnicstationwillserve,andrequiresthatethnicprogramsmakeup60%or moreofanethnicstation’sbroadcastmonth.Weestimatethatin2012the policyappliedto78ethnicbroadcastingservices:49payorspecialtyservices,24 radiostationsandthefiveOMNIstations.(Canada’s6thconventionalethnicTV stationlaunchedinDecember2013.) BroadcastingNoticeofConsultation201426 ExecutiveSummary 28February2014 Page2of4 8 TheCRTChassaidthatit“mayundertake”apublicconsultationontheethnic broadcastingpolicytwoyearsfromnow,in201516.Rogershassaidthatthe CRTCshouldreviewthepolicybeforethen. HistoricalcontextoftheOMNIstations 9 RogersboughtCFMTDTTorontoin1986,andCHNMDTin2008.Itappliedand receivedlicencesforCJMTDTTorontoin2002,andforCJCODTCalgaryand CJEODTEdmontonin2008. 10 Inapplyingforpermissiontoacquire,orforlicencesfor,theOMNIstations, RogershasconsistentlytoldtheCRTCthatitsfinancialvigourwouldstrengthen theOMNIstationsandexpandtheirprogramming. 11 AsRogersdoesnotdisclosetheOMNIstations’finances,Rogers’claimscannot beverified.However,theactualrevenuesreportedbyRogersforallofits conventionaltelevisionstationsin2009/10were1%thanRogersforecastwhen itrenewedtheOMNIandCityTVstationsin2009–meanwhile,Rogers’stations spent24%morethanforecastonnonCanadian,and12%and15%lessthan forecastonnewsandCanadianprogramming. 12 In2012RogerscancelledprogramproductionattheOMNIAlbertastations,as wellas13ethnicprograms.In2013itcancelledanother12programs,including dailynewscastsinEnglish,MandarinandCantonese.FromSeptember2012to August2013,CFMTDT’snewsprogramswerebroadcastsolelyinEnglish (0.01%),Italian(86.07%)andPortuguese(13.92%).Inthesameperiod56%of thestation’sprogrammingconsistedofrepeatbroadcasts,andprograms broadcastinDutch,Estonian,Greek,HebrewandLatvianconsistedentirelyof repeats.Infact,theonlyprogrammingforwhichatleasthalfthehourswerenot repeatbroadcastswasbroadcastinItalian(44%repeat),Portuguese(39% repeat)andFrench(7%repeat). Licenceterm 13 RogershasaskedtheCRTCtorenew(orissue)theOMNIlicencestoAugust 2019. 14 In2012inCanada(CommissionerofOfficialLanguages)v.CBC/RadioCanada, theFederalCourtheldthattheCRTCshouldissuelicencestakingintoaccountits policies,thepublicinterestandgovernmentguidelines–indeed,thepublic interestmustcomefirst.ItalsoheldthattheCRTCmustgiveparticular attentiontocriticismsoflicenseessuchasRogers,asthisispartofthe Commission’smandateasthebroadcastsystem’sregulator. BroadcastingNoticeofConsultation201426 ExecutiveSummary 28February2014 Page3of4 15 FRPCopposesRogers’requestforfiveyearlicences. 16 Rogershasnotmetitscommitmentstothemulticulturalcommunitiesitwas licensedtoserve:havingeliminatedtheOMNIadvisoryboards,italsochoseto cancelnewsandotherprogramswithoutconsultingthecommunitiesaffected. IthastransformeditsoriginatingtelevisionstationsinEdmontonandCalgary intorebroadcastingservices,whilecontinuingtoextractlocaladvertising revenues–placingitscompetitorsataseriousdisadvantage.Rogers’actionsdo notmerittherewardofafiveyearlicence,andgrantingthistermwouldbring theintegrityoftheCRTC’slicensingsystemintodisrepute. 17 TheCRTCshouldinsteadissuetheOMNIlicencesfortwoyears–untilAugust 2016–andshouldadvanceitsconsultationonanewethnicbroadcastingpolicy byoneyear,to20142015.CompletingtheethnicbroadcastingreviewbyApril 2015wouldenabletheCRTCtoestablishcleargoalsforconventionalethnic televisionstations,andtoapplythesegoalswhentheCRTChearsRogers’OMNI renewalapplicationsintimefortheirAugust2016expiry. 18 TheCRTCshouldalsosuspendtheOMNIAlberta’ssaleofcommercialadvertising timeforsixmonths,asanincentivetoreinstatelocalprogramproduction. Rogerscouldtheneitherofferfreeairtimetoadvertiserstoenablethemto evaluatethebestmethodsofmarketingtomulticulturalcommunities,orcould offerprogrammingcommercialfree,toattractmoreviewers.IfRogersfailsto
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