ARCHIVED - Broadcasting Notice of Consultation CRTC 2011-379

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Additional reference: 2011-379-1, 2011-379-2, 2011-379-3, 2011-379-4, 2011-379-5 and 2011-379-6

Ottawa, 17 June 2011

Notice of hearing

12 September 2011
Gatineau, Quebec
Licence renewals for the Canadian Broadcasting Corporation’s French- and English-language services
Deadline for submission of interventions/answers: 18 July 2011
Deadline for postings to online consultation: 18 July 2011

[Submit an intervention/comment/answer or view related documents]

The Commission will hold a hearing commencing on 12 September 2011 at 9:00 a.m. at the Conference Centre, Portage IV, 140 Promenade du Portage, Gatineau, Quebec, to consider the applications by the Canadian Broadcasting Corporation/Société Radio-Canada (the Corporation) to renew the broadcasting licences for the following services:

Item	Service	Application
1	Télévision de Radio-Canada (network and stations)	2011-0276-4
2	ARTV	2011-0278-0
3	RDI	2011-0277-2
4	La Première Chaîne (network and stations)	2011-0285-5
5	Espace Musique (network and stations)	2011-0286-3
6	CBC Television (network and stations)	2011-0276-4
7	bold	2011-0282-1
8	documentary	2011-0283-9
9	CBC News Network	2011-0281-3
10	Radio One (network and stations)	2011-0287-1
11	Radio Two (network and stations)	2011-0288-9

The Commission intends to conduct the hearing in the following manner:

• The Corporation will make a presentation on corporate issues. The presentation will be followed by questions from the Commission.

• The Corporation will make a presentation on matters related to its French-language broadcasting services. The presentation will be followed by questions from the Commission.

• Interveners will make presentations on corporate issues as they relate to the French-language market as well as on the Corporation’s French-language services. The Corporation will then reply.

• The Corporation will make a presentation on matters related to its English-language broadcasting services. The presentation will be followed by questions from the Commission.

• Interveners will make presentations on corporate issues as they relate to the English-language market as well as on the Corporation’s English-language services. The Corporation will then reply.

• Interveners wishing to make presentations about both the French-language and English-language broadcasting services of the Corporation will have the opportunity to do so at this point in the process. The Corporation will then reply to these interveners and will also reply with respect to corporate issues.

Although the hearing will be held in the National Capital Region, parties may participate from the Commission’s regional offices via videoconferencing. Parties interested in doing so are asked to indicate the regional office where they wish to appear at the time they file their comments. A list of the Commission’s regional offices is included in this notice.

The notice also sets out the procedures for filing comments. The Commission encourages interested parties to monitor the public examination file and the Commission’s website for additional information that they may find useful when preparing their comments.

To facilitate further dialogue among Canadians, the Commission will also be conducting an online consultation on the issues discussed in this proceeding. Delvinia, on behalf of the Commission, will host an independent website that will allow the public to engage in discussion on issues and questions relating to this proceeding. The site is open for postings beginning the date of this notice and ending 18 July 2011. Participation details are available on the website at www.cbc-consultation-src.ca.

Following the online consultation period, transcripts will be available on the Commission’s website at www.crtc.gc.ca. The record of the online consultation will be made part of the record of this proceeding.

Context

In order to provide a focus for this discussion, this notice sets out a brief overview of the broadcasting environment in which the Corporation currently operates. It then identifies some of the broad issues that the Commission wishes to explore, followed by identification of issues pertaining to the Corporation’s services. In application 2011-0276-4, the Corporation has addressed broad issues, while those specific to its services are addressed in the other applications. The notice summarizes the applications, with an emphasis on key proposals.

The Commission may also review other issues at the hearing. Interested parties may, therefore, comment in their interventions on any other issues relevant to the applications and the Corporation’s role in the Canadian broadcasting system.

Broadcasting environment

Much has changed in Canada and globally since the Broadcasting Act (the Act) was last substantially amended in 1991, adding complexity to traditional issues around public broadcasting. The pace of change has only accelerated since the last substantive renewal of the Corporation’s licences in 1999-2000. Digital technology, particularly the roll-out of broadband networks and the proliferation of multimedia devices, has enabled the development and growth of alternative means by which Canadians can access content, creating economic, social and cultural impacts that are not yet fully understood. Audio and audio-visual programming is available through a range of business models and platforms, both regulated and exempt from regulation.

Canada’s private broadcasting sector has grown over the decades, with entities turning to consolidation and vertical integration to better compete as converged media companies in the digital environment. Competition has grown in areas of advertising revenues, audiences, subsidies, program rights and talent.

Continued technological developments and audience fragmentation are placing traditional mechanisms to support Canadian content, local reflection and diversity of voices into question with potential impacts on the entire broadcasting system.

Regulatory environment

The Act establishes a single broadcasting system, comprised of three elements: public, private and community. Policy objectives are assigned to the system as a whole. Within the public element of the system, the Corporation is defined as the national public broadcaster, and assigned additional policy objectives with respect to programming and distribution. Public broadcasting is also undertaken by provincial entities engaged primarily in educational broadcasting.

In recent years, the Canadian government has articulated support for greater reliance on market forces, to create greater competition and choice for consumers. With respect to public broadcasting, the Government has called for the Corporation to “play a leadership role in providing Canadians with access to leading edge digital content while not unfairly competing with the private sector.” The Government also indicated its expectation that the Corporation’s services “maximize their presence on all digital platforms” (Improving Canada’s Digital Advantage: Strategies for Sustainable Prosperity, Consultation Paper on a Digital Economy Strategy for Canada, May 2010).

Statutory mandate

Section 3(1) of the Act sets out the mandate for the Corporation as follows:

(l) the Canadian Broadcasting Corporation, as the national public broadcaster, should provide radio and television services incorporating a wide range of programming that informs, enlightens and entertains;

(m) the programming provided by the Corporation should

(i) be predominantly and distinctively Canadian,

(ii) reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions,

(iii) actively contribute to the flow and exchange of cultural expression,

(iv) be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities,

(v) strive to be of equivalent quality in English and in French,

(vi) contribute to shared national consciousness and identity,

(vii)  be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose, and

(viii)  reflect the multicultural and multiracial nature of Canada;

(n) where any conflict arises between the objectives of the Corporation set out in paragraphs (l) and (m) and the interest of any broadcasting undertaking of the Canadian broadcasting system, it shall be resolved in the public interest, and where the public interest would be equally served by resolving the conflict in favour of either, it shall be resolved in favour of the objectives set out in paragraphs (l) and (m).

Issues pertaining to the role of the national public broadcaster

Given the context described above, the Commission considers the following broad issues to be of importance:

• The contribution of the national public broadcaster to the Act’s overall policy objectives.

• The opportunities and challenges that the digital environment creates for the national public broadcaster.

• In light of these considerations, the regulatory approach that should be adopted for the national public broadcaster.

• Criteria that could be used to define, measure, set targets for, and evaluate the success of the national public broadcaster over time in fulfilling its objectives under the Act.

Corporate issues

The Commission considers the following issues to be of importance for the public hearing:

• Overall strategy: Plans for the next licence term for the radio and television services, including for informational purposes and to give a complete view of the Corporation’s plans, new media broadcasting initiatives (i.e., the delivery of both audio and audiovisual programming over the Internet or through a mobile device, and in French, English and /or third languages).

• Length of the next licence term: The appropriateness of a five year licence term.

• Group-based approach: Applicability to the Corporation’s services of a group-based approach, as well as other appropriate ways for the Corporation to use synergies between the various broadcasting services it controls to fulfill its mandate as set out in the Act.

• Digital transition: The Corporation’s plans with respect to its over-the-air television transmission infrastructure over the course of its next licence term.

• Balance in news reporting: Measures taken by the Corporation to ensure that news and current affairs programming is balanced and objective.

• Equivalent quality in French and English: Provision of programming of equivalent quality in both French and English.

• Shared national consciousness and identity: Contribution to a shared national consciousness and identity, through cooperation between its French- and English-language services.

• Reflection of Official Language Minority Communities: Provision of an appropriate reflection of Official Language Minority Communities.

• Regional reflection: Provision of an appropriate reflection of Canada’s regions to regional and national audiences, in programming categories such as news and current affairs, as well as other types of programming.

• Services to the Northern regions: Provision of services to Canadians living in the North, including programming for and/or by Aboriginal peoples of Canada and programming in Aboriginal languages.

• Access to services by people with disabilities: Provision of services in formats accessible to Canadians with disabilities (e.g., closed captioning and described video).

• Complaints from the public

• The Corporation’s steps to ensure ongoing adherence to programming standards.

• The Corporation’s views on membership within the Canadian Broadcast Standards Council (CBSC).

• The role of the Corporation’s ombudsmen.

• Reporting requirements: The continued appropriateness of various reporting requirements imposed on the Corporation to ensure transparency and responsiveness to the Canadian public, and accountability to the Commission.

• Terms of trade agreements: The status of negotiations to develop the appropriate frameworks from which to base individual negotiations respecting the ownership and exploitation of digital rights with the television production sectors in the French- and English-language markets and, as well, any terms of trade agreements that have been finalized.

In the event that a terms of trade agreement is not reached for each of the Corporation’s television services prior to the licence renewal hearing, the Commission will require the Corporation to file its substantive proposals as part of the record of the hearing and then will establish appropriate provisions for terms of trade as part of its determinations set out in the renewal decisions.

The applications

French-language services

Television

Item	Network and stations	Key proposals
1	Télévision de Radio-Canada 2011-0276-4	Adopt a condition of licence (COL) to devote 75% of the broadcast day and 80% of prime time (7 p.m. to 11 p.m.) to the distribution of Canadian programs in each broadcast year. This COL would replace the existing expectation. Adopt a COL to broadcast a minimum of 5 hours of local programming per week on each of its 13 stations. These COLs would replace individual expectations for each station. Adopt a COL to broadcast six hours per week, on average, in prime time (7 p.m. to 11 p.m.) of Programs of National Interest, which consist of programs from program categories 7 Drama and comedy and 2(b) Long-form documentary, as well as certain Canadian award shows that celebrate Canadian creative talent. At least 75% of those hours must be allocated to independently produced programs. This COL would replace various expectations to broadcast long-form documentaries, music, dance and variety programs, performing arts programs, and programs produced by independent producers. Delete a COL to broadcast 4 hours per week of original Canadian programs directed to children and an expectation for the broadcast of 20 hours per week of programming directed to children and youth. Delete an expectation to invest in regional independent production. Delete an expectation for regional production (in categories other than news).

Specialty services

Item	Service	Key proposals
2	ARTV 2011-0278-0 Category A	Increase the obligation to broadcast Canadian content from 55% to 60% of the broadcast day and from 55% to 60% of the evening broadcast period, on average over the broadcast year. Increase the Canadian Programming Expenditures (CPE) obligation from 46% to 50% of the previous year’s gross broadcasting revenue. Adopt a COL to the effect that 50% of Canadian programming be from independent producers. This would replace a COL that all profits generated by the service be allocated to independent production. Adopt a COL to spend a minimum of $600,000 on the production of original independent Canadian programs outside Quebec. This would replace a COL to spend a percentage of annual budgets for original Canadian production on programs produced outside Quebec. Issue a distribution order to ensure access rights for ARTV to the digital non-basic service of terrestrial broadcasting distribution undertakings (BDUs) in English-language markets. Impose a requirement that BDUs wishing to amend the current terms of distribution for ARTV in French-language markets must obtain ARTV’s prior consent or demonstrate to the Commission that its proposed amendments will not have a negative impact on ARTV’s ability to fulfill its mission while still maintaining its financial viability. Adopt standard COLs consistent with Category A specialty services.
3	RDI 2011-0277-2 Category C	Adopt standard COLs consistent with Category C services operating in the genre of mainstream national news services. Maintain a COL to broadcast at least a third of its programming from the Atlantic region, Ontario, Western Canada and regions of Quebec outside of Montréal. Maintain the mandatory distribution order on the digital basic service of BDUs in English-language markets. Delete a COL requiring the maintenance of separate accounts. Impose a requirement that BDUs wishing to amend the current terms of distribution for RDI in French-language markets must obtain RDI’s prior consent or demonstrate to the Commission that its proposed amendments will not have a negative impact on RDI’s ability to fulfill its mission while still maintaining its financial viability.

Radio

Item	Network and stations	Key proposals
4	Première Chaîne 2011-0285-5	Replace a COL requiring the broadcast of at least 50% Canadian music in category 2 measured over the broadcast month with a COL requiring the same percentage measured over the broadcast week. Replace a COL requiring the broadcast of at least 20% Canadian music in category 3 over the broadcast month with a COL requiring the same percentage measured over the broadcast week. Both amendments set out above would be contingent on maintaining the commitment to at least 85% French-language vocal music in category 2, but commitments limiting English-language vocals to no more than 5%, all of which must be Canadian would be deleted.
5.	Espace Musique 2011-0286-3	Same amendments as above.

English-language services (CBC)

Television

Item	Network and stations	Key proposals
6	CBC Television 2011-0276-4	Adopt a COL to devote 75% of the broadcast day and 80% of prime time (7 p.m. to 11 p.m.) to the distribution of Canadian programs in each broadcast year. This COL would replace the existing expectation. Adopt a COL to broadcast a minimum of 14 hours of local programming per week in a metropolitan market and a minimum of 7 hours of local programming per week in a non-metropolitan market, as defined in Broadcasting Public Notice 2008-100. These COLs would replace individual expectations for each station. Adopt a COL to broadcast 7 hours per week, on average, in prime time (7 p.m. to 11 p.m.) of Programs of National Interest, which consist of programs from program categories 7 Drama and comedy and 2(b) Long-form documentary, as well as certain Canadian award shows that celebrate Canadian creative talent. At least 75% of those hours must be allocated to independently-produced programs. Delete an expectation for regional production (in categories other than news). Delete an expectation for the broadcast of 15 hours per week of programming directed to children (2 to 11 years) and 5 hours per week to youth (12 to 17 years).

Specialty services

Item	Service	Key proposals
7	bold 2011-0282-1 Category A	Adopt standard COLs consistent with Category A specialty services. Maintain existing Canadian content and CPE obligations. Remove the limitation that no more than 10% of all programming broadcast during each broadcast month may be broadcast on CBC Television during the same broadcast month. Delete a COL requiring the maintenance of separate accounts.
8	documentary 2011-0283-9 Category A	Amend the nature of service definition. Adopt a COL for an adjusted minimum CPE of 43% of the previous broadcast year’s gross advertising, infomercial and subscription revenues, based on the exclusion of Canada Media Fund (CMF) money. Adopt standard COLs consistent with Category A specialty services. Maintain a commitment to spend at least 50% of its acquisition budget on Canadian independent productions.
9	CBC News Network 2011-0281-3 Category C	Adopt standard COLs consistent with category C services operating in the genre of mainstream national news services. Maintain the mandatory distribution order on the digital basic service of BDUs in French-language markets. Delete a COL requiring the maintenance of separate accounts.

Radio

Item	Networks and stations	Key proposals
10	Radio One 2011-0287-1	No amendments requested.
11	Radio Two 2011-0288-9	No amendments requested.

Licensee's address:

181 Queen Street
P.O. Box 3220
Station C
Ottawa, Ontario
K1Y 1E4
Fax: 613-288-6257
E-mail: RegulatoryAffairs@cbc.ca
Website to view application: http://www.cbc.radio-canada.ca/submissions/index.shtml
E-mail to request electronic version of application: RegulatoryAffairs@cbc.ca

In accordance with subsection 35(1)(b) of the Canadian Radio-television and Telecommunications Rules of Procedure (Rules of Procedure), the Commission directs the Corporation to give notice of the notice of consultation through broadcast over the Corporation’s facilities.  This notice must set out

(i) the nature of the matters to be considered,

(ii) the deadline for intervening in the proceeding, and

(iii) the date and time of the commencement of the hearing.

Procedure

Deadline for interventions or answers

18 July 2011

The new Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure, SOR/2010-277 (the Rules of Procedure), set out, among other things, the rules for filing, content, format and service of interventions and answers of respondents, the procedure for filing confidential information and requesting its disclosure, and the conduct of the public hearing. Accordingly, the procedure set out below must be read in conjunction with the Rules of Procedure and its accompanying documents, which can be found on the Commission’s website under “CRTC Rules of Practice and Procedure.”

An intervention or an answer from a respondent must be filed with the Commission and served on the applicant on or before the above-mentioned date. An answer from a respondent must also be served on any other respondent. In accordance with the Rules of Procedure, the applicant may file a reply within 10 days after the deadline for the filing of the answer or the deadline for intervening in the proceeding. The Commission cannot be held responsible for postal delays and will not notify a party whose submission is received after the deadline date. The submission will not be considered by the Commission and will not be part of the public file.

The intervention or answer must include one of the following statements in either the first or the last paragraph:

1. I request to appear at the public hearing.
2. I do not want to appear at the public hearing.

The applicant, respondents and interveners are permitted to coordinate, organize and file, in a single submission, interventions of other interested persons who share their position but do not wish to appear at the hearing as a “Joint Supporting Intervention.” More information on how to do so and a template for the covering letter to be filed by the parties can be found in Changes to certain practices for filing interventions – Expansion of filing practices to include the filing of joint supporting comments for broadcasting policy proceedings, Broadcasting Information Bulletin CRTC 2010-28-1, 10 December 2010.

Interventions and answers will be considered by the Commission and will form part of the public record of the proceeding without further notification to parties, provided the procedures set out in the Rules of Procedure and this notice have been followed. Parties will be contacted only if their submissions raise procedural questions.

Interventions or answers must be submitted to the Secretary General of the Commission in only one of the following formats:

by using the
[Submit an intervention/comment/answer or view related documents]

or

by mail to
CRTC, Ottawa, Ontario K1A 0N2

or

by fax at
819-994-0218

A true copy of each intervention or answer from a respondent must be sent to the applicant and, in the case of a respondent to an application, to any other respondent.

The Commission advises those who file and serve by electronic mode to exercise caution when using e-mail for service of documents, as it may be difficult to establish that service has occurred.

Parties must ensure that, before initiating service through electronic mode, they will be able to satisfy the Commission, upon request, that service was completed. The sender must keep proof of the sending and the receipt of the document for 180 days after the day on which it is filed.

Submissions longer than five pages should include a summary.

Each paragraph of the submission should be numbered. In addition, where the intervention is filed by electronic means, the line ***End of document*** should be entered following the last paragraph of the document, as an indication that the document has not been altered during electronic transmission.

Interventions and answers must clearly identify the application referred to and indicate whether parties support or oppose the application, or, if they propose changes to it, include the facts and grounds for their proposal.

If parties wish to appear at the oral phase of the hearing, they must provide reasons why their written interventions or answers are not sufficient and why an appearance is necessary. Parties requiring communication support must state their request on the first page of their intervention. Only those parties whose requests to appear have been granted will be contacted by the Commission and invited to appear at the public hearing.

Persons requiring communications support such as assistance listening devices and sign language interpretation are requested to inform the Commission at least twenty (20) days before the commencement of the public hearing so that the necessary arrangements can be made.

Important notice

All information that parties provide as part of this public process, except information designated confidential, whether sent by postal mail, facsimile, e-mail or through the Commission’s website at www.crtc.gc.ca, becomes part of a publicly accessible file and will be posted on the Commission’s website. This information includes personal information, such as full names, e-mail addresses, postal/street addresses, telephone and facsimile numbers, and any other personal information parties provide.

The personal information that parties provide will be used and may be disclosed for the purpose for which the information was obtained or compiled by the Commission, or for a use consistent with that purpose.

Documents received electronically or otherwise will be put on the Commission’s website in their entirety exactly as received, including any personal information contained therein, in the official language and format in which they are received. Documents not received electronically will be available in PDF format.

The information that parties provide to the Commission as part of this public process is entered into an unsearchable database dedicated to this specific public process. This database is accessible only from the web page of this particular public process. As a result, a general search of the Commission’s website with the help of either its own search engine or a third-party search engine will not provide access to the information that was provided as part of this public process.

The Commission encourages parties and interested persons to monitor the record of the proceeding, available on the Commission’s website, for additional information that they may find useful when preparing their submissions.

Examination of documents

An electronic version of the applications is available on the Commission’s website by selecting the application number within this notice. It is also available from the applicant either on its website or upon request by contacting the applicant its mail address, provided above. The applicant has also offered to make its applications available for viewing at the locations listed in Appendix 1 of this notice.

A list of all interventions and answers will also be available on the Commission’s website. The list is accessible by selecting “View all proceedings open for comment” from the “Public Proceedings” section of the Commission’s website and clicking on the “Interventions/Answers” link associated with this notice.

Documents are also available during normal office hours at the Commission offices and documentation centres directly involved with this application or, upon request, within two (2) working days, at any other Commission offices and documentation centres.

Location of Commission offices

Toll-free telephone: 1-877-249-2782
Toll-free TDD: 1-877-909-2782

Les Terrasses de la Chaudière
Central Building
1 Promenade du Portage
Room 206
Gatineau, Quebec
J8X 4B1
Tel.: 819-997-2429
Fax: 819-994-0218

Regional offices

Metropolitan Place
99 Wyse Road
Suite 1410
Dartmouth, Nova Scotia
B3A 4S5
Tel.: 902-426-7997
Fax: 902-426-2721

205 Viger Avenue West
Suite 504
Montréal, Quebec
H2Z 1G2
Tel.: 514-283-6607

55 St. Clair Avenue East
Suite 624
Toronto, Ontario
M4T 1M2
Tel.: 416-952-9096

Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba
R3B 2B3
Tel.: 204-983-6306
Fax: 204-983-6317

2220 – 12^th Avenue
Suite 620
Regina, Saskatchewan
S4P 0M8
Tel.: 306-780-3422

10405 Jasper Avenue
Suite 520
Edmonton, Alberta
T5J 3N4
Tel.: 780-495-3224

858 Beatty Street
Suite 290
Vancouver, British Columbia
V6B 1C1
Tel.: 604-666-2111
Fax: 604-666-8322

Secretary General