-
Decision
CRTC 96-613
|
-
Ottawa, 4 September 1996
|
-
Radiomutuel inc.
Across Canada - 199600966
|
-
"Le Canal Vie" - Approved
|
-
Following a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission approves the application by Radiomutuel inc. (the licensee) for a broadcasting licence to carry on a national French-language programming undertaking (Specialty Television Service) to be known as "Le Canal Vie".
|
-
This service will be delivered via satellite to all broadcasting distribution undertakings across the country. In the case of those distribution undertakings that are subject to the Commission's distribution and linkage requirements, it will be available on a modified dual status basis, as explained in Public Notice CRTC 1996-120, which introduces this and other decisions released today, and in accordance with the provisions set out in the distribution and linkage public notice also issued today (Public Notice CRTC 1996-121).
|
-
The Commission will issue a licence expiring 31 August 2003. The licence will be subject to the conditions stipulated in the appendix to this decision and in the licence to be issued.
|
-
Since the Access Rules have immediate application to Le Canal Vie, the service of the programming undertaking must, by condition of licence, be in operation within 12 months of this decision unless the service provider, prior to the expiry of this period, applies and receives an extension of time within which to commence operations.
|
-
Wholesale Rates
|
-
As proposed by the licensee, and by condition of licence, the maximum authorized monthly wholesale rate shall be $0.60 per subscriber when the service is distributed as part of the basic service in Francophone markets. Further, by condition of licence, the maximum authorized monthly wholesale rate shall be $0.15 per subscriber, when the service is distributed as part of the basic service in Anglophone markets.
|
-
In its written intervention, the Association des câblodistributeurs du Québec (ACQ) asked the Commission to urge suppliers to be reasonable with regard to the subscription costs for their service. The Commission encourages the licensee to negotiate with the distributors to ensure that subscription rates remain reasonable for all.
|
-
Ownership
|
-
Le Canal Vie will be wholly-owned by Radiomutuel inc., one of the largest broadcasting groups in Quebec.
|
-
Radiomutuel inc. serves most regions of the province through its networks and eleven radio stations. In addition, Radiomutuel inc. shares, with CHUM Limited, ownership of Musique Plus inc., which opersates the MusiquePlus specialty service, available on cable.
|
-
Programming
|
-
Nature of Service
|
-
The licensee's proposed service will offer information and entertainment programs which focus on three very specific subjects: lifestyle (human relations, social and interpersonal), physical and mental health and outdoor activities for families or individuals. The programs will be presented in a variety of forms, such as news, consultations, documentaries, magazines, roundtables, talk shows, open lines and films. The proposed programs will be aimed at the public, as a whole, but will seek, in particular, to reach an audience between 35 and 64 years of age.
|
-
Le Canal Vie will carry 42 hours of original productions each week spread among the three subjects noted above. The licensee will broadcast 8 hours of original programs a day from Monday to Friday between 3 p.m. and 11 p.m. and two hours on weekends for 39 weeks each year. The service will be on the air 24 hours each day, seven days a week.
|
-
Consistent with the application, the licensee shall, by condition of licence, offer a national French-language specialty service devoted exclusively to programs drawn from categories 2 (Analysis and interpretation), 3 (Reporting and actualities), 5(b) (Informal education), 6(c) (Sports, audience participation), 7(c) (Specials, mini-series or made-for-TV feature films), 7(d) (Feature films/Theatrical releases) and 11 (Human interest), as set out in Schedule I of the Specialty Services Regulations, 1990. It is, however, a condition of licence that the licensee exhibit not more than two feature films per broadcast week during the evening broadcast period.
|
-
Canadian Content
|
-
Radiomutuel inc. made a commitment to broadcast a minimum of 50% Canadian content from 6 a.m. to midnight, and a minimum of 60% from 6 p.m. to midnight. The licensee is required to adhere to this commitment by condition of licence.
|
-
Canadian Programming Expenditures
|
-
Consistent with the approach outlined by the Commission in Public Notice CRTC 1996-120 concerning requirements for Canadian programming expenditures, and as discussed at the hearing, Radiomutuel inc. is required to expend a minimum of $7.5 million on the acquisition of and/or investment in Canadian programs in the broadcast year following the first year of operation, as defined in the condition of licence set out in the attached appendix. Further, in each subsequent broadcast year the licensee shall expend on Canadian programs a minimum of 45% of the previous year's gross revenues derived from the operation of the service.
|
-
The Commission's practice, in calculating Canadian program expenditures is to take into account, among other things, the aggregate amounts allocated to acquisition, production, closed captioning, and scripts and concepts. In correspondence exchanged with the Commission, however, the licensee asked that a portion of the expenditures committed to salaries and benefits as well as other miscellaneous expenses also be considered as Canadian program expenditures, without any change in the 45% that it committed to.
|
-
At the hearing, the licensee stressed that 45% amounted to a significant investment, and that it wished to have (TRANSLATION) "a certain amount of flexibility. The other commitments that we are making are considerable, and we want a little flexibility." Because the licensee has failed to provide sufficient rationale for a departure from the Commission's practice, the Commission has decided not to take account of the categories of expenditure that the licensee proposed to include in this calculation. It will, therefore, be a condition of licence that the licensee adhere to the Commission's requirements respecting Canadian programs expenditures. The Commission reminds the licensee that some flexibility in the accounting of these expenditures is generally provided for in the applicable condition of licence.
|
-
The Commission also notes the licensee's commitment to the independent production sector. In its application, the licensee stated that (TRANSLATION) "Canadian programming expenditures will account for 80% of total programming, and of this 86% will be new productions and 14% acquisitions."
|
-
The licensee also made a commitment to devote 80% of its Canadian programming hours to projects produced by the independent sector. The remaining 20% will be produced by third parties under contract, with Radiomutuel inc. retaining control of these programs.
|
-
Advertising
|
-
Consistent with the licensee's plans, Le Canal Vie may distribute a maximum of 12 minutes of advertising material, plus a maximum of 30 seconds of unpaid public service announcements, in each clock hour of the broadcast day, with some flexibility for the placement of advertising material in longer programs. Conditions of licence to this effect are set out in the appendix to this decision.
|
-
Other Matters
|
-
Closed Captioning
|
-
The Commission notes the licensee's commitment to distribute 780 hours of closed captioned programming for the deaf and hearing impaired during the first year of operation, which represents 51% of its original programming, and to increase this gradually to a level of 1,225 hours in the seventh year, which represents 81% of its original programming. The licensee will spend a total of $987,000 for closed captioning during the licence term.
|
-
In accordance with the policy announced in Public Notice CRTC 1996-120, the Commission expects the licensee to adhere to its commitments. The Commission also encourages the licensee to exceed these commitments over the licence term and to monitor the quality of captions during exhibition.
|
-
Employment equity
|
-
In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. In its application, the licensee indicated that it was in the process of developing a policy in this regard. The Commission expects the licensee to complete and implement a plan in this regard within six months from the date of licence. The Commission encourages the licensee to consider equity issues in its hiring practices and in all other aspects of its management of human resources. In particular, the Commission encourages the licensee to promote equitable representation in on-air staff positions and in voice-overs of station-produced commercial messages. The Commission will review the licensee's performance in implementing employment equity practices at the time of licence renewal.
|
-
Conclusion
|
-
The Commission is satisfied that Le Canal Vie will offer attractive, high-quality French-language programs that will contribute to the enrichment and diversity of the Canadian broadcasting system. In approving this application, the Commission is satisfied that there is a clear demand for a service such as that proposed, and that the expertise of and resources available to the licensee will ensure its success. The Commission notes in this regard, Radiomutuel inc.'s performance in establishing and operating the specialty programming service, MusiquePlus.
|
-
The Commission acknowledges and has considered the interventions submitted with respect to this application.
|
-
This decision is to be appended to the licence.
|
-
Allan J. Darling
Secretary General
|
-
APPENDIX
|
-
Conditions of Licence for "Le Canal Vie"
|
-
1. (a) The licensee shall provide a national French-language specialty service that is dedicated to information and entertainment programs focussed on three very specific subjects: lifestyle (human relations, social and interpersonal), health (physical and mental), and outdoor activities for families or individuals.
|
-
(b) The licensee shall draw its programs exclusively from the following categories: 2 (Analysis and interpretation), 3 (Reporting and actualities), 5(b) (Informal education), 6(c) (Sports, audience participation), 7(c) (Specials, mini-series and made-for-TV Feature Films), 7(d) (Feature films/Theatrical releases), and 11 (Human interest), as set out in Schedule I of the Specialty Services Regulations, 1990.
|
-
(c) In each broadcast week, the licensee shall not broadcast more than two (2) feature films during the evening broadcast period.
|
-
2. The licensee shall devote to the distribution of Canadian programs not less than 50% of the broadcast year, and not less than 60% of the evening broadcast period.
|
-
3. In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1992-28, 1993-93 and 1993-174:
|
-
(a) In the broadcast year following the first year of operation, the licensee shall expend on Canadian programs not less than $7,500,000.
|
-
(b) In each subsequent broadcast year, the licensee shall expend on Canadian programs not less than 45% of the previous broadcast year's gross revenues derived from the operation of the service.
|
-
(c) In the broadcast year following its first year of operation, and in each subsequent broadcast year, excluding the final year, the licensee may expend an amount on Canadian programs that is up to five percent (5%) less than the minimum required expenditure for that year set out in or calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure.
|
-
(d) In the broadcast year following the first year of operation, and in each subsequent broadcast year, where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year set out in or calculated in accordance with this condition, the licensee may deduct:
|
-
(i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's overexpenditure; and
|
-
(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpenditure and any amount deducted under paragraph (i) above.
|
-
(e) Notwithstanding paragraphs (c) and (d) above, during the licence term, the licensee shall expend on Canadian programs, at a minimum, the total of the minimum required expenditures set out in or calculated in accordance with the licensee's condition of licence.
|
-
4. (a) Subject to subsections (b) and (d), the licensee shall not distribute more than twelve (12) minutes of advertising material during each clock hour.
|
-
(b) In addition to the twelve minutes of advertising material referred to in subsection (a), the licensee may distribute, during each clock hour, a maximum of 30 seconds of additional advertising material that consists of unpaid public service announcements.
|
-
(c) The licensee shall not distribute any paid advertising material other than national paid advertising.
|
-
(d) Where a program occupies time in two or more consecutive clock hours, the licensee may exceed the maximum number of minutes of advertising material allowed in those clock hours if the average number of minutes of advertising material in the clock hours occupied by the program does not exceed the maximum number of minutes that would otherwise be allowed per clock hour.
|
-
5. (a) From the date of commencement of service, the licensee shall charge each exhibitor of this service in Francophone markets a maximum wholesale rate of $0.60 per subscriber per month, when the service is distributed as part of the basic service;
|
-
(b) From the date of commencement of service, the licensee shall charge each exhibitor of this service in Anglophone markets a maximum wholesale rate of $0.15 per subscriber per month, when the service is distributed as part of the basic service;
|
-
(c) For the purpose of this condition, an exhibitor will be considered to be operating in a Francophone market where the population having French as its mother tongue represents more than 50% of the total population of all cities, towns and municipalities, encompassed in whole or in part within the licensed area of the exhibitor, according to the most recent population figures published by Statistics Canada.
|
-
6. This undertaking shall be in operation within twelve (12) months of the date of this decision, or, where the licensee applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.
|
-
7. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.
|
-
8. The licensee shall adhere to the provisions of the "Broadcast Code for Advertising to Children", published by the CAB, as amended from time to time and approved by the Commission.
|
-
9. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and approved by the Commission.
|
-
For the purpose of these conditions of licence, the terms "broadcast day", "broadcast year", "evening broadcast period" and "clock hour" shall have the same meanings as those set out in the Television Broadcasting Regulations, 1987; "broadcast week" shall have the same meaning as that set out in the Radio Regulations, 1986; "first year of operation" shall mean the first broadcast year in which Le Canal Vie is in operation for a period exceeding 90 days, excluding any free trial period; and "paid national advertising" shall mean advertising material as defined under the Specialty Services Regulations, 1990 and that is purchased at a national rate and receives national distribution on the service.
|