ARCHIVED - Decision CRTC 2000-457

Women’s Sports Network — a new specialty channel

On 24 November 2000, the Commission made a decision to issue a licence for a new national English-language Category 1 specialty television service to be called "Women’s Sports Network" (WSN). The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date.

WSN will be devoted entirely to sports programming featuring female athletes and participants. As noted in Public Notice CRTC 2000-171 issued today, WSN and 20 other new digital specialty services will be made available to subscribers by all distributors who offer programming to the public using digital technology and by some cable operators who serve smaller markets using analog technology. The licence, when issued, will expire 31 August 2007.

WSN will add diversity to the Canadian broadcasting system by providing a showcase for women’s sports, an area of sports coverage that is underrepresented in the programming of conventional television stations and existing sports specialty services. WSN will be the first service of its kind in the world. In Public Notice 2000-171, the Commission discusses the general criteria for the approval of this and other applications for new specialty services.

The applicant is a wholly owned subsidiary of NetStar Communications Inc. (NetStar), a Canadian corporation. CTV Inc. has effective control of Netstar via its wholly-owned subsidiary 3578704 Canada Inc. (80% voting interest). Netstar’s remaining shareholder is 3167488 Canada Inc. (ESPN Sub), a wholly-owned subsidiary of ESPN Inc., an American company (20% voting interest).

Terms and conditions of licence common to all of the new Category 1 specialty services are set out in an appendix to Public Notice 2000-171. Conditions specific to this application can be found in the appendix to this decision.

Programming

Nature of service

WSN will provide a national English-language specialty television service consisting exclusively of sports programming featuring female athletes and participants. It will showcase sports where women are the principal competitors, or where women and men compete together or against each other. WSN will also broadcast magazine shows,
documentaries and instruction programs related to women’s sports. The program categories identified by WSN as forming the service’s content are set out in a condition of licence found in the appendix to this decision.

Contributions to diversity

WSN will contribute to increased diversity in the Canadian broadcasting system since programming related to women’s sports is underrepresented in the sports coverage currently provided by conventional television stations and existing specialty services. The service will bring new sports programming to the screen that will be of special interest to Canadian women and fans of women’s sports. Sports at all levels and in a variety of disciplines will be featured in formats that include coverage of live events, magazine shows, instructional programs and drama. WSN also responds directly to several important policy objectives expressed on numerous occasions by the Commission, namely, the positive portrayal of women in programming, and the need for more on-air representation of women, especially as experts and commentators.

Canadian content

The licensee made a commitment to broadcast a minimum of 30% Canadian content from 6 a.m. to midnight, and from 6 p.m. to midnight, in the first year of the licence term. WSN’s commitment will be increased gradually over the licence term. By the seventh year of the term, a minimum of 50% Canadian content will be broadcast, both during the period from 6 a.m. to midnight and between 6 p.m. and midnight. A condition of licence setting out the levels of Canadian programming required annually can be found in the appendix to this decision.

Following discussions at the hearing, the licensee further committed to broadcast a minimum of 700 hours of original Canadian programs in each year of the licence term.

Canadian programming expenditures

Beginning in the year following the first year of operation, the licensee will expend a yearly minimum of 53% of the previous year’s gross advertising, infomercial and subscription revenues on Canadian programming. The licensee estimates that, in accordance with this formula, it will spend approximately $36 million over the licence term to acquire or produce Canadian programs. A formula for the calculation of the required amounts is set out in a condition of licence found in the appendix to this decision.

Independent production

The licensee indicated that, over the licence term, it would spend $14 million on program acquisitions from independent producers. WSN will broadcast an average of 525 hours per year of programming from independent and freelance producers. The Commission notes the licensee’s commitments, and as set out in Public Notice 2000-171, all Category 1 services will be subject to a standard condition of licence in this regard.

Interactivity

At the outset of its operations, WSN will offer a website that focuses on information, statistics and news that relates to women’s sports. This site will evolve into a complementary "web-zine" (a web-based magazine and portal). As the technology evolves, WSN will offer expanded television interactivity, including personalized viewing guides as well as virtual coaching and personal training.

Ownership and synergies

CTV Inc. has effective control of NetStar via its wholly-owned subsidiary 3578704 Canada Inc. (80% of the voting interest). NetStar is the parent company of TSN. The applicant indicated that WSN would use the studios, control rooms and related equipment in the CTV facilities in Toronto. Synergies will also result from the fact that CTV owns other sport-related programming services such as Outdoor Life, RDS and pay-per-view sports. WSN will benefit significantly from NetStar’s experience in sports programming and cross promotional opportunities.

Other matters

Rate

In its business plan, the licensee proposed a monthly wholesale rate of $0.16 per subscriber in the first year two years of operation, rising to $0.18 for years three, four and five, and to $0.19 for years six and seven.

Service to the hearing-impaired

The licensee has committed to install a TTY (teletypewriter) and to close caption at least 30% of the programming on WSN in the first year of operation. That level will increase by 10% each year, resulting in a minimum of 90% of programming to be closed captioned in the seventh year. The Commission expects the licensee to fulfil these commitments.

Service to the visually-impaired

WSN noted that most of its programming will be readily accessible to the visually-impaired upon launch since all sports events broadcast will include commentary and analysis. The licensee also stated that it would make every effort to acquire the rights for descriptive video when it acquires programming. WSN further made a commitment to broadcast 100 hours a year of described video programming by the end of the licence term.

The Commission requires WSN to be technically equipped to deliver described video programming and to fulfil the commitments included in the application. In addition, the Commission encourages the licensee to provide audio description of visual information wherever possible, and to provide described video programming as outlined in Public Notice 2000-171.

Employment equity

The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 and therefore files reports concerning employment equity with Human Resources Development Canada.

Conclusion

The Commission is satisfied that WSN will offer attractive and unique programming in an underserved niche that will increase the diversity of sports programming available in the Canadian broadcasting system. The Commission is confident that the expertise and experience of all of the parties involved in the new service, and the resources that will therefore be available to it, will ensure the success of WSN.

Secretary General

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

Appendix to Decision CRTC 2000-457

The licence for the national English-language programming undertaking (specialty television service) known as the Women’s Sports Network will be subject to the following conditions, as well as those set out both in Public Notice CRTC 2000-171, and in the licence to be issued.

Nature of service

2. The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990:

News

Specials, mini-series, made-for-TV feature films

Long-form documentary

Informal education/recreation and leisure

Professional sports

Amateur sports

Exhibition of Canadian programs

Broadcast day

Evening broadcast period

30%

30%

30%

30%

35%

35%

40%

40%

45%

45%

50%

50%

50%

50%

Expenditures on Canadian programs

The term "broadcast day" shall be defined as a 24 hour period beginning at 6 a.m. each day.