ARCHIVED - Decision CRTC 2001-730

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Decision CRTC 2001-730

Ottawa, 29 November 2001

Astral Broadcasting Group Inc.
(formerly Astral Television Networks Inc.)
Across Canada 2001-0207-0

19 June 2001 Public Hearing
National Capital Region

Licence renewal for Super Écran

The licence for "Super Écran" is renewed for a full term. The licensee's condition of licence on Canadian programming expenditures will continue to link its requirements to subscriber levels, which will now also take into account direct-to-home (DTH) satellite subscribers. For the purpose of this condition, the definition of revenues will include monies derived from DTH satellite subscribers to the service and any return on investment in programming.

1.

The Commission renews the broadcasting licence of the general interest French-language pay television service Super Écran, from 1 December 2001 to 31 August 2008. The licence will be subject to the conditions set out in the appendix to this decision and in the licence to be issued.

2.

The Commission notes that, over the current licence term, Super Écran has complied with all conditions of its licencee.

3.

The Commission also notes that on 1 September 2001, Astral Television Networks Inc. merged with Astral Broadcasting Group Inc., now the licensee of Super Écran.

Expenditures on Canadian programs

4.

Under its current condition, the licensee's requirements for expenditures on Canadian programming are based on the average number of subscribers in the previous broadcast year, excluding direct-to-home (DTH) satellite subscribers. In its licence renewal application, the licensee originally proposed to establish a fixed requirement to allocate 20% of its revenues to Canadian programming expenditures. This level is lower than what the licensee currently must spend. The licensee also asked the Commission to revise the definition of revenues to include monies derived from the distribution of its service by DTH satellite services and any return on investment in programming.

5.

In interventions to this application, a number of parties, including the Directors Guild of Canada, the Alberta Motion Picture Industries Association, the Canadian Film and Television Production Association and The Writers Guild of Canada argued that the licensee's required expenditures on Canadian programming should continue to be linked to subscriber levels.

6.

In response, the licensee stated that, during the new licence term, it wished to maintain the current subscriber-based formula for Canadian programming expenditures, but take DTH subscribers and revenues and any return on investment in programming into consideration when calculating its requirements.

7.

In accordance with the licensee's request, the Commission has amended the licensee's condition of licence to include DTH subscribers and revenues and any return on investment in programming. The condition is set out in the appendix. The Commission is satisfied that the amended condition will significantly increase the level of the licensee's expenditures on Canadian programming.

Script and concept development

8.

The licensee also proposed to increase the annual expenditures that it devotes to script and concept development to a maximum of $700,000 in the broadcast year beginning 1 September 2007. A condition of licence to that effect is set out in the appendix.

Rebranding of services

9.

The Commission notes that Astral Broadcasting Group Inc. and certain other pay television licensees have adopted a thematic approach in programming the multiplexed channel feeds they make available to distributors. The Commission has no concerns about this approach provided the programming offered on each channel meets the Canadian content requirements for the service. Further, individual channels must not be offered on a stand-alone basis (i.e. the licensee and its distribution affiliates must ensure that all of the multiplexed channel feeds that make up the service are distributed to subscribers within a package).

10.

As discussed with the licensee, these two requirements are stipulated in the conditions of licence pertaining to Canadian content set out in the appendix to this decision.

Cultural diversity

11.

The Commission expects the licensee of Super Écran and all other specialty and pay television licensees to contribute to a broadcasting system that accurately reflects the presence in Canada of cultural and racial minorities and Aboriginal peoples. The Commission further expects licensees to ensure that their on-screen portrayal of all such groups is accurate, fair and free of stereotypes. These expectations fully reflect the provisions set out in Section 3(1)(d)(iii) of the Broadcasting Act in which the Canadian broadcasting system should "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of Aboriginal peoples within that society."

12.

In Public Notice CRTC 2001-88, Representation of cultural diversity on television - Creation of an industry/community task force, the Commission called upon the Canadian Association of Broadcasters to develop an action plan for a joint industry/community task force. The role of this task force is to sponsor research, identify "best practices", and help define the issues and present practical solutions to ensure that the Canadian broadcasting system reflects all Canadians. In its notice, the Commission emphasized the importance of having the participation of all sectors of the broadcasting industry, including pay services. The Commission therefore expects Astral to contribute to the work of the task force.

13.

The Commission further expects the licensee to develop and implement a comprehensive corporate plan that explains how Astral intends to improve its representation of Canada's cultural diversity. The plan should include specific commitments to corporate accountability and to the reflection of diversity in programming, and should make provision for the gathering of feedback on the effectiveness of these commitments. The plan should also set goals for achieving the full, fair and consistent reflection of diversity in Canada. The Commission requires the licensee to file its corporate plan within three months of the date of this decision.

14.

With respect to corporate accountability, the plan should address how the licensee will create an environment that supports the cultural diversity objectives outlined above, by:

· creating a corporate culture that recognizes and supports Canada's cultural diversity;
· assigning accountability to a senior executive for corporate practices related to cultural diversity, and for ensuring that management becomes more reflective of Canada's multicultural reality;
· ensuring that managers receive proper training;
· ensuring that regular opportunities are provided for assessing progress towards attaining these objectives and for identifying future opportunities and challenges; and
· setting out plans for the hiring, retention and ongoing training of visible minorities and Aboriginal peoples.

15.

With respect to the reflection of diversity in programming, the plan should focus on how the licensee will ensure the presence and the fair, accurate and non-stereotypical portrayal of cultural minorities and Aboriginal peoples in the programming it produces or acquires. Specifically, the plan should include provisions for making certain that, wherever possible:

· on-air personalities reflect Canada's diversity; and
· programming obtained from independent producers reflects the presence of visible minorities and Aboriginal peoples in Canadian society and provides for their accurate portrayal.

16.

As for feedback, the corporate plan should describe the specific mechanisms the licensee will put in place to ensure that it receives effective input from community groups concerning its performance in reflecting cultural diversity in programming.

On-air presence

17.

The Commission reminds the licensee that the expectations set out above with respect to cultural diversity are over and above the longstanding and more general expectations concerning employment equity in on-air presence. Specifically, the Commission expects the licensee to ensure that the on-air presence of members of the four designated groups (women, Aboriginal persons, disabled persons and members of visible minorities) is reflective of Canadian society, and that members of these groups are presented fairly and accurately.

Closed captioning

18.

The Commission is committed to improving service to television viewers who are deaf or hearing impaired. Over the period since the Commission announced its policy on closed captioning in Public Notice CRTC 1995-48, it has consistently encouraged broadcasters to increase the amount of captioned programming they provide. The Commission now requires the licensees of television, specialty and pay television undertakings to achieve a minimum level of captioned programming appropriate to the nature of the service that each provides. Generally, the specified minimum requirement for English-language services is 90% of all programming.

19.

The captioning requirement imposed on this and on other French-language services is less than the 90% level required of English-language services. This is in recognition of the significantly greater challenges involved in captioning French-language programming.

20.

In the case of Super Écran, the Commission notes the licensee's commitment to close caption 100% of all programming broadcast during the broadcast day by the end of the licence term. Consistent with this commitment and with the Commission's general approach to French-language services, the Commission expects the licensee to gradually increase the level of captioning it provides and requires the licensee to close caption 50% of the programming broadcast during the broadcast year, beginning no later than 1 September 2006. A condition of licence to that effect is set out in the appendix to this decision.

21.

The Commission further advises the licensee that, in the next licence term, it intends to require this service to provide captioning for a minimum of 90% of all programming. Accordingly, the Commission encourages the licensee, by the time of next licence renewal, to caption 90% of all programming during the broadcast day.

22.

In the meantime, the Commission expects the licensee to focus on improving the quality, reliability and accuracy of closed captioning, and to work with representatives of the deaf and hard of hearing community to ensure that captioning continues to meet their needs. The Commission further expects the licensee to support and participate in any industry/community initiatives designed to improve the quality and quantity of captioning in French, particularly of real-time captioning.

Service to the visually impaired

23.

In decisions issued last December, the Commission encouraged the licensees of new Category 1 specialty services, over their licence terms, to provide increasing amounts of programming accompanied by audio or video description. More recently, in decisions issued this year renewing the licences for the television stations owned by CanWest Global, CTV and TVA, the Commission imposed requirements regarding the provision of increasing amounts of such programming.

24.

"Audio description" and "video description" or "described video" are methods of improving the service that television broadcasters provide to people who are visually impaired. Audio description involves the provision of basic voice-overs of textual or graphic information displayed on the screen. A broadcaster providing audio description will, for example, not simply display sports scores on the screen, but also read them aloud so that people who are visually impaired can receive the information.

25.

Video description, or described video as it is also known, consists of narrative descriptions of a program's key visual elements so that people who are visually impaired are able to form a mental picture of what is occurring on the screen. These descriptions can be provided on the Secondary Audio Programming (SAP) channel. Not all broadcasters are currently equipped to deliver a SAP signal. Thus, the introduction of described video via the SAP channel could require significant capital expenditures to upgrade a licensee's transmission facilities.

26.

The Commission notes the increasing amount of described programming available for acquisition, particularly from U.S. sources. It notes as well the encouragement given to the operators of the new Category 1 specialty services and the requirements it has placed on the television stations operated by Global, CTV and TVA concerning the provision of such programming. In correspondance with the licensee, the Commission requested the licensee's views on implementing audio description, video description or described video. The Commission considers it reasonable to expect the operators of the pay and specialty services whose licences are being renewed at this time to take steps to respond to the needs of viewers who are visually impaired.

27.

Accordingly, the Commission expects the licensee to:

· provide audio description (defined as the provision of basic voice-overs of textual or graphic information displayed on screen) wherever appropriate:
· undertake the necessary upgrades to permit the broadcast of described programming (for example, via the SAP channel);
· acquire and broadcast the described versions of a program wherever possible; and
· take the necessary steps to ensure that its customer service responds to the needs of visually impaired viewers.

28.

In addition, and consistent with the approach adopted for the new Category 1 services, the Commission encourages the licensee to provide, at a minimum, one hour per month of described programming in the period between 1 December 2001 and 31 August 2002, and to increase this monthly minimum by at least one hour in each subsequent broadcast year.

Compliance with industry codes

29.

In accordance with its usual practice, the Commission is imposing on the licensee conditions of licence requiring that it adhere to industry codes related to violence and sex role portrayal. Application of the sex role portrayal code will be suspended so long as the licensee remains a member in good standing of the Canadian broadcasting standards council. In addition, by condition of licence, the licensee is required to adhere to the Pay television standards and practices code.

Interventions

30.

The Commission has considered all the interventions submitted with regard to this application.

Related CRTC documents

  • Decision 2001-166 - Three-month administrative renewal for Super Écran
  • Decision 2000-328 - Acquisition of the assets of Super Écran
  • Decision 97-18 - Licence amendment for Super Écran
  • Decision 95-67 - Licence renewal for Super Écran
  • Public Notice 2001-88 - Representation of cultural diversity on television - Creation of an industry/community task force

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 2001-730

 

Conditions of licence for Super Écran

 

Nature of service

  1. (a) The licensee shall provide a national general interest pay television service in the French language with programming intended for all audiences.
  (b) The licensee can broadcast programming in all categories listed in Item 6 of Schedule I of the Pay Television Regulations, 1990, excluding programming from categories 1 (news), 4 (religion), 5(a) (formal education and pre-school), 5(b) informal education/recreation and leisure), and 14 (infomercials, promotional and corporate videos).
  (c) The licensee shall not devote more than 5% of its programming schedule during each semester to programming from category 6 (sports) of Item 6, with a maximum of 20 hours in any week.
  (d) The licensee shall devote at least 50% of its programming schedule during each semester to dramatic programs.
 

Exhibition of Canadian programs

  2. During each semester of this licence term, the licensee shall devote to the distribution of Canadian programs not less than:
 

(a) 30% of the time from 6:00 p.m. to 11:00 p.m. (Eastern time) and

 

(b) 25% of the remainder of the time during which the service is in operation.

  For the purpose of this condition, a 150% credit will be given for time during which the licensee distributes a new Canadian production that commences between 6:00 p.m. and 11:00 p.m. (Eastern time) or, in the case of a new Canadian production intended for children, at an appropriate viewing time between 6:00 a.m. and 9:00 p.m., and the licensee will receive such a credit for each subsequent showing of such a production in the specified time periods within a two-year period from the date of first showing by this licensee.
  3. In each broadcast year of this licence term, the licensee shall devote to the distribution of Canadian dramatic programs not less than 50% of the time that it is required to devote to the distribution of Canadian programs.
 

Expenditures on Canadian programs

  4. (a) During the period 1 December 2001 to 31 August 2002, the licensee shall expend, on the acquisition of or investment in Canadian programming, a percentage of 75 %*of its revenues for the broadcast year ending 31 August 2001 that is not less than the percentage shown in the table below. For the broadcast year beginning 1 September 2002 and in each subsequent broadcast year during the term of this licence, the licensee shall expend on the acquisition of or investment in Canadian programs, a percentage of its revenues for the previous broadcast year that is not less than the percentage shown in the table below:
 

Average number of subscribers in the previous broadcast year: residential and bulk cable, satellite master antenna television (SMATV) and direct-to-home (DTH) satellite

Percentage of revenues

  199,999 or less

20%

  200,000 - 249,999

22%

  250,000 or more

24%

  (b) In any broadcast year of this licence term, including the partial broadcast year ending 31 August 2002 but excluding the final broadcast year, the licensee may expend on Canadian programming up to 5% less than the minimum required expenditure for that broadcast year as set out and calculated in accordance with this condition of licence.
  (c) Should the licensee avail itself of this flexibility in any broadcast year of the licence term, including the partial broadcast year ending 31 August 2002, it shall expend in the next broadcast year of the licence term, in addition to the minimum expenditure required for that broadcast year, the full amount of the previous year's underspending.
  (d) In any broadcast year of this licence term, including the partial broadcast year ending 31 August 2002, the licensee may expend on Canadian programming an amount exceeding the minimum expenditure required for that year, set out and calculated in accordance with this condition of licence; in such case, the licensee may deduct:
 

(i) from the minimum required expenditure for the next broadcast year of the licence term, an amount not exceeding the amount of the previous broadcast year's overspending; and

 

(ii) from the minimum required expenditure for any subsequent broadcast year of this licence term an amount not exceeding the difference between the overspending and any amount deducted under paragraph (i) above.

  (e) Notwithstanding the above, during this licence term, the licensee shall expend on Canadian programming, at a minimum, the total of the minimum required expenditures as set out and calculated in accordance with this condition.
  5. In each broadcast year of this licence term, the licensee shall devote to the acquisition of Canadian programs not less than 60% of the minimum required expenditure on the acquisition of or investment in Canadian programming, as calculated in condition 4.
  6. In each broadcast year of this licence term, the licensee shall expend on script and concept development, excluding overhead costs, the amounts indicated in the table below:
 

01-09-2001 to 31-08-2002 - $350,000

 

01-09-2002 to 31-08-2003 - $375,000

 

01-09-2003 to 31-08-2004 - $400,000

 

01-09-2004 to 31-08-2005 - $500,000

 

01-09-2005 to 31-08-2006 - $550,000

 

01-09-2006 to 31-08-2007 - $600,000

 

01-09-2007 to 31-08-2008 - $700,000

  7. In each broadcast year of this licence term, the licensee shall devote to Canadian dramatic programs not less than 60% of its expenditures n the acquisition of or investment in Canadian programming for that year.
  8. For the purposes of conditions 4 to 7, only actual cash outlays shall be taken into account.
 

Distribution of film and video productions involving Astral Group (Astral)

  9. (a) The licensee shall not distribute any film or video production with respect to which Astral has carried on activities other than financing or distribution.
 

(b) Where Astral has carried on financing or distribution activities with respect to a film or video production, the licensee shall not distribute that film or video production unless all actual production and creative control, apart from financial approvals which the pay television licensees normally require, remain the full responsibility of an independent Canadian production company.

 

Multiplex channels

  10.The licensee shall offer its multiplexed channels only together in a package.
  11. With respect to each multiplexed channel, the licensee shall adhere to the Canadian programming requirements set out in conditions of licence 2 and 3.
 

Closed captioning

  12. The licensee shall achieve a minimum captioning level of 50% for all programming broadcast during the broadcast year, beginning no later than 1 September 2006 and continuing throughout the remainder of the licence term.
 

Industry codes

  13. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' Sex-role portrayal code for television and radio programming, as amended from time to time and approved by the Commission. Application of the sex role portrayal code will be suspended so long as the licensee remains a member in good standing of the Canadian broadcasting standards council.
  14. The licensee shall adhere to the Pay television and pay-per-view programming code regarding violence, as amended from time to time and approved by the Commission.
  15. The licensee shall adhere to the Pay television standards and practices code, as amended from time to time and approved by the Commission.
 

Definitions

 

In these conditions:

 

"acquisition" means to acquire exhibition rights for the licensed territory, excluding overhead costs.

 

"broadcast year" means a twelve-month period beginning on 1 September in any year.

 

"script and concept development expenditures", mean those expenditures, excluding overhead costs, that are incurred prior to the commencement of pre-production and before the financing of the project is in place. Spending on programs that are assured of going to air at the time of the expenditure is not considered as script and development expenditures.

 

"expend" and "expenditure" mean actual cash outlay.

 

"expend on acquisition" includes expenditures on program captioning for the hearing impaired.

 

"investment" means an equity investment or an advance on account of an equity investment, but does not include overhead costs or interim financing by way of a loan.

 

"new Canadian production" means:

 

(a) a Canadian dramatic program

 

(i) which exceeds 75 minutes in duration and in relation to which all financial expenditures made by the licensee were made prior to the commencement of principal photography or taping and in which principal photography or taping was completed after 1 January 1985, or

 

(ii) which is intended for children and exceeds 22:30 minutes in duration and in relation to which all financial expenditures made by the licensee were made prior to the completion of principal photography or taping

  (b) and which is a program that has never been broadcast in French in the licensed territory.
 

"revenue" means revenue from residential and bulk cable, SMATV and DTH satellite subscribers as well as any return on an investment in programming.

 

"semester" means each six month period beginning on 1 September and on 1 March.

 

_____________________________________
* 75% represents the nine month period from 1 December 2001 to 31 August 2002.

Date Modified: 2001-11-29

Date modified: