ARCHIVED - Broadcasting Decision CRTC 2004-170

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Broadcasting Decision CRTC 2004-170

  Ottawa, 10 May 2004
  Rogers Cable Communications Inc.
Moncton, New Brunswick and Ottawa, Ontario
  Applications 2003-0530-2 and 2003-0544-2
Broadcasting Public Notice CRTC 2003-53
26 September 2003
 

Contributions to French- and English-language community channels

  The Commission approves theapplications by Rogers Cable Communications Inc. to amend the broadcasting licences for its cable distribution undertakings serving Moncton and Ottawa in order to add conditions of licence related to its community channels.
 

The applications

1.

The Commission received applications by Rogers Cable Inc. and Rogers Ottawa Limited/Limitée, now regrouped under the name of Rogers Cable Communications Inc. (Rogers) to add conditions to the broadcasting licences of its cable distribution undertakings serving Moncton and Ottawa on which it distributes both French- and English-language community channels. Under Rogers' proposal, it would be permitted to allocate up to 4% of the annual gross revenues derived from broadcasting activities for each of these undertakings to its community channels. Of these revenues, 2% would be allocated to the French-language community channel, and 2% would be allocated to the English-language community channel.

2.

Rogers also proposed to allocate 75% of the incremental funding in the first and second years to capital equipment purchases for the French-language community channels in Moncton and Ottawa. This amount would fall to 50% in the third year and, by the fourth year, all of the incremental funding would be used for direct and indirect operating expenditures.

3.

The applicant contended that its applications reflected the approach set out in Policy framework for community-based media, Broadcasting Public Notice CRTC 2002-61, 10 October 2002 (Public Notice 2002-61). In Public Notice 2002-61, the Commission stated that providing separate French- and English-language community channels in a given market was clearly in the public interest. The Commission, therefore, stated that a licensee that elects to distribute two community channels in a given market, one in each official language, may apply under section 29 of the Broadcasting Distribution Regulations for a condition of licence that would permit it to allocate up to 2% of their required contribution to Canadian programming to each of the community channels.

4.

The applicant further indicated that it would accept conditions of licence requiring it to submit an audited annual report for each of the French- and English-language community channels in both Moncton and Ottawa.

5.

The applicant also requested that, should its applications be approved, the conditions of licence be made effective 6 January 2003, which was the date that the policy set out in Public Notice 2002-61, came into effect.
 

Interventions

6.

The Commission received five interventions, all of which supported the applications.
 

The Commission's determination

7.

The Commission considers that these applications fully reflect the policy set out in Public Notice 2002-61. The Commission therefore approves the applications by Rogers Cable Communications Inc. The undertakings in Moncton and Ottawa will be subject to the following conditions of licence:
 

Effective 6 January 2003, the licensee shall, as an exception to sections 29(3) and 29(4) of the Broadcasting Distribution Regulations, make a contribution to Canadian programming, in each broadcast year, of an amount not less than the greater of:

 

(i) 5% of its gross revenues derived from broadcasting activities in the year, less its contributions to its French- and English-language community channels, provided that the deduction for such contributions not exceed 2% of its gross revenues derived from broadcasting activities for each of these community channels;

 

(ii) 1% of its gross revenues derived from broadcasting activities in that year.

 

The licensee shall submit audited annual reports to the Commission in the format shown in the appendix to this decision listing the expenses associated with the operation of the French- and English-language community channels. The annual reports should be for the periods ending 31 August of each broadcast year, and should be filed concurrently with the licensee's annual returns.

  Secretary General
  This decision is to be appended to each 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 Broadcasting Decision CRTC 2004-170

FINANCIAL SUMMARY - COMMUNITY CHANNEL

For the year ended 31 August 200__

Distribution company:
Community Channel:
Location : Province:
If the information in this return is for a period other than 12 months ending 31 August, indicate from: _______ to: ________
(To be completed for each community channel)
A) Distributor's gross revenues derived from broadcasting activities  

B) Maximum financial contribution that could be retained for Canadian programming on both the English- and the French-language community channels (4% of the distributor's gross revenues)  

C) Financial contribution effectively retained for Canadian programming on both the English- and the French-language community channels  

D) Financial contribution to be allocated to each of the 2 community channels (50% to the English-language channel and 50% to the French-language channel)  

E) Portion of the financial contribution allocated to Canadian programming on the community channel  

1

REVENUES

$

1

Portion of the financial contribution allocated to Canadian programming on the English-language community channel (amount reported on item E above) 01

2

Contra advertising 02

3

Sponsorship 03

4

Other revenues (specify): 04

5

Total revenues 05

2

OPERATING EXPENSES

1 Community programming

1

Direct expenditures  06

2

Indirect expenditures 07

3

Total community programming 08

4

Total hours of original community programming produced 09

2 Other operating expenses

10

3 Total operating expenses

11

3

OPERATING RESULT (SURPLUS OR DEFICIT) - Before depreciation and interest expense 12

4

DEPRECIATION (recorded in accounts) 13

5

LANGUAGE OF BROADCAST (estimate percent of time devoted to serving your audience in each of the languages indicated below)

English _______ % French ________ % Native ________ % Other ________ %

6

SALARIES AND OTHER STAFF BENEFITS 14

7

NUMBER OF EMPLOYEES (weekly average) 15

8

FRINGE BENEFITS (included in line 6 above) 16

9

FIXED ASSET
(Total amount of acquisitions for the community channel during the year)
17

Date Modified: 2004-05-10

Date modified: