CHPC Committee Report

2.1 The place of local television in the system

Local television is a key component of the Canadian television system. It is defined as “a commercial television station licensed to operate in a market where the licensee is expected to provide local news and information.”[8] Conventional television — also referred to as over-the-air (OTA) television or general-interest television — means:

Television stations that, historically, have broadcast their signals using over-the-air transmitters. This allows their signals to be received directly by viewers with a television set and an antenna. As a result viewers can receive the signals without subscribing to a broadcasting distribution undertaking [BDU], such as cable system.[9]

Local broadcasting is mentioned three times in the Broadcasting Act. First, the Act states that “the programming provided by the Canadian broadcasting system should ... be drawn from local, regional, national and international sources.”[10] Second, it says that BDUs “should give priority to the carriage of Canadian programming services and, in particular, to the carriage of local Canadian stations.”[11] Third, it provides that BDUs “may, where the Commission considers it appropriate, originate programming, including local programming ... and in particular provide access for underserved linguistic and cultural minority communities.”[12]

In its 1999 television policy, the CRTC set out a framework that requires, among other things, “local and regional reflection whether through news or non-news programming.” The policy establishes incentives to provide non-news programming that reflects legitimate community interests during peak viewing periods. For news programming, the policy says when conventional, local television stations apply for licence renewals, they do not have to make quantitative commitments with respect to local news programs, but have to demonstrate “… how they will meet the demands and reflect the particular concerns of their local audiences, whether through local news or other local programming.” If the CRTC feels these demands are not met, it has the right to impose specific conditions of licence on a case-by-case basis.[13] At the time, the CRTC said:

[T]here are sufficient market incentives to ensure that audiences will continue to receive a variety of local news without regulatory requirements. News programming is a key element in establishing a station’s identity and loyalty with viewers and is generally profitable. Further, licensees may not solicit local advertising in a market unless they provide local news or other local programming.[14]

2.2 Importance of local television

Witnesses generally agreed that local television is an essential part of the Canadian broadcasting system. Konrad von Finckenstein, Chairman of the CRTC, said that during CRTC public hearings, “Canadians told us in no uncertain terms how much they valued their local television news.”[15] This was reinforced by Charlotte Bell of Canwest Media Inc., who said: “In two separate consumer surveys conducted on our behalf since 2006, subscribers overwhelmingly said they valued local television above all other programming services.”[16] The importance of local television was stressed by Ivan Fecan, president and chief executive officer of CTVglobemedia Inc., who said:

Our country is so broad that a collection of voices from one central place cannot speak for all of Canada. Local is the best chance our citizens get to see themselves on the screen and to contribute to the national debate. Local television also gives a place for local debate on issues that can’t hold national attention. Local television gives local businesses a chance to speak to their customers and compete with national and multinational businesses. Local is also what Canadian audiences have overwhelmingly told us they value very highly.[17]

Similar thoughts were expressed by Hubert T. Lacroix, president and chief executive officer of CBC/Radio-Canada, who described the Corporation’s role in Canada’s regions:

We play a key role in the social, cultural and democratic life of this country, and we cannot do that unless we are in Canadian communities. This is how we ensure that the issues and challenges people face in one community are heard and shared by people living across the country. That identification with the lives of people in other communities is the very essence of a national identity, the very essence of our mandate.[18]

A number of witnesses noted the importance of local television to rural communities across the country. Sylvain Lacroix of the Alliance de la francophonie de Timmins drew attention to the importance of local television for rural communities and noted there are very few local media remaining.[19] Rick Arnish, president of the Jim Pattison Broadcast Group, said that for places such as Kamloops and Prince George, British Columbia and Medicine Hat , Alberta, “... the loss of local broadcasting and local reflection built around diversity of voices in our country would be catastrophic. Canadians want, need, and desire to see themselves and their local communities reflected on their television stations.”[20]