Decision
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Ottawa, 24 May 1984 |
Decision CRTC 84-444 |
Emilio Mascia and Jack Price, representing a company to be incorporated - 832426100 |
The Commission approves the application by Emilio Mascia and Jack Price, representing a company to be incorporated (Latinovision), for a licence to carry on a network for the distribution of a national specialty programming service consisting of predominantly Italian and Spanish-language programming, to be distributed to cable television affiliates on a discretionary, user-pay basis. The licence will expire 31 March 1989 and will be subject to the conditions of licence specified in this decision and in the licence to be issued. |
The licence will be issued upon receipt of documentation establishing that the company has been incorporated in accordance with the application in all material respects. |
The licensee company will be controlled 52% by Mascia Enterprises Ltd., a company owned by Emilio Mascia and members of his family. The remainder of the licensee's shares will be owned by eight other companies and individuals, including Jack Price, in blocks representing 10% or less of the total voting shares. |
The Commission acknowledges the extensive involvement of Mr. Mascia in multilingual broadcasting in Canada during the past 25 years, and the experience he has obtained in the acquisition and packaging of Italian and Spanish-language programming. It also notes Mr. Price's experience in media advertising and marketing, which should be particularly useful in the promotion of this discretionary network service. |
Further, the Commission is satisfied that the financial resources and the stability necessary to establish and maintain this service are adequately provided for under the proposed ownership structure and financial arrangements. It also notes Latinovision's assurance that additional funds would be forthcoming if required. In its application, Latinovision projected that the undertaking would be in a position to redeem all issued preferred shares and pay dividends in year 4 of operation. The Commission, however, notes the applicant's statement that "there is no obligation whatsoever in the corporation to redeem such shares during the first five years of operation". |
The applicant expects to be in operation in the fall of this year, and indicated that its service will be available to subscribers nationally, on a phased-in basis, over the term of its licence. Latinovision proposes to carry on a network to offer an Italian and Spanish-language specialty service of high programming value, which will provide "fresh, creative, world-class theatrical programming, variety, opera, first-run movies, children's programming, special events, drama, sports and regional programs from specified geographical segments of Italy, Spain, Cental and South America". |
In their supporting interventions and their responses to the applicant's survey of potential subscribers, Italian-speaking Canadians have indicated a clear demand for greater amounts of quality Italian-language programming. A strong demand for the proposed service was also expressed by representatives of the Spanish-speaking community who stressed the limited amount of Spanish-language programming available from conventional broadcasting sources. |
The applicant stressed the high language retention factor among Italian and Spanish-speaking Canadians, and estimated a combined potential audience in excess of 500,000, much of it located in souther Ontario and in the Montreal area. As further noted by the applicant, the similarities that exist between the Italian and Spanish languages ensure that individuals who speak on the these two languages normally have little difficulty understanding the other. The Commission considers that this compatibility will provide an excellent natural cross-over potential for the Italian and Spanish-language programming when packaged and marketed together. |
The network will offer programming 90 hours per week, of which approximately 52% will be in Italian (55% of which would be original hours) and 46% in Spanish (53% of which would be original hours). While some programming may be dubbed, the applicant stated that there will be no subtitling. The remainder of the schedule would be in English and French equally. The Commission expects the applicant to ensure that any proposed increase in hours of operation retain the percentage split between Italian and Spanish-language programs, and that English and French-language programs not exceed 2% of the overall programming. |
Approximately 17% of Latinovision's schedule will consist of feature films; 21% dramas (including mini-series, tele-novellas and play presentations); 16% sports; 19% musical-variety; 7% educational programming; 5.5% special events coverage; and 2% regional, "cultural exchange" programming. |
Latinovision will offer "an in-depth presentation of special events" in a magazine format. In addition, Latinovision will develop educational programs which "will portray to Italian Canadians and Canadians of Italian origin their cultural heritage through music, song, traditions, food and events". These programs will involve co-productions between different regions of Canada and Italy; the applicant indicated that it intends to develop similar programs for its Spanish-speaking audience. |
Latinovision proposes to establish a Program Advisory Council: |
to assist and advise in the selection of overseas programs; also in co-production and in the creation and production of truly great Canadian programs for dubbing into the romance languages. The council would be comprised of Italian, Hispanic and Canadian writers, producers, directors and talent. The Council would meet on a regular basis to review, discuss and advise on program inputs and assist in the development of new writers and concept development. |
Taking into account the linguistic nature of the service, and the availability of programs, the applicant indicated that Canadian programming will occupy approximately 15% of the total hours of operation and 19% between the hours of 19:30 p.m. and 22:30 p.m. The Commission notes Latinovision's commitment to spend more than $2.8 million on Canadian production over five years. Of this amount, more than $1.1 million will be devoted to the production of Canadian drama, and over $850,000 for the production of educational programming. The remainder will be allocated to musical and regional programming, and to sports presentations such as bicycle racing, bocce and soccer. |
Latinovision's commitments to Canadian content over five years represent approximately 43% of the total program budget, including an expenditure of $483,000 for script and concept development. |
It is a condition of licence, as specified in the appendix to this decision, that Latinovision meet its commitments with regard to the exhibition of, and expenditures on, Canadian programming. |
The Commission encourages the applicant to ensure that Italian and Spanish Canadians in the different regions of Canada are provided with programming which adequately reflects their particular cultural and social milieu. The Commission expects Latinovision to assume full responsibility for the content of all programming distributed on its network service. In view of the linguistic nature of this service and the diverse viewpoints inherent in the communities it will serve, Latinovision should also ensure that reasonable balanced opportunity is provided on its service for the expression of differing views on matters of public concern. |
The Commission notes that the applicant has acquired extensive rights to Italian and Spanish-language programming, some of which is currently exhibited on conventional television stations. Latinovision stated that it is "willing to roll over the programs for which we own the rights, to Canadian broadcasters". Latinovision also stated that it would cooperate with conventional broadcasters and would seek to avoid, wherever possible, any head-to-head programming in the same language. The Commission expects the applicant to meet these commitments and to ensure that there be no siphoning of programming currently available on conventional television stations. |
With respect to the funds allocated to the acquisition of foreign programming, the Commission notes that the amounts specified by the applicant appear to be low in comparison with projections contained in other specialty applications. Based on the evidence before it, the Commission is satisfied that Latinovision has access to such programming at the costs it has indicated. |
Latinovision stated that no commercial messages would be distributed on its network service, in order to make the service more attractive to subscribers and to avoid any negative financial impact on existing conventional television stations. Accordingly, the licence will be subject to the condition that the licensee not distribute any commercial messages on its undertaking, other than those promoting its own specialty programming. |
After two years, the Commission will review the applicant's progress in developing its network service and in fulfilling the commitments noted above. This review will take place in the context of the Commission's public hearing, announced in Public Notice CRTC 1984-81 dated 2 April 1984, to assess the general development of discretionary specialty programming services in Canada and their impact on the Canadian broadcasting system. |
Fernand Bélisle Secretary General |
APPENDIX |
Latinovision Conditions of Licence |
1. From the date of commencement of service until 31 December 1984, and in each semester thereafter, the distribution of Canadian programs by the licensee on its undertaking shall comprise not less than |
a) 15% of the total hours devoted to all programming, and |
b) 19% of the hours between 19:30 and 22:30 |
2. Not less than 43% of the licensee's total expenditures for programming in each year shall be dovoted to the acquisition of, or investment in, Canadian programs. |
3. The licensee shall not distribute any commercial messages on its undertaking. For the purpose of this condition, messages promoting the licensee's programs and distributed by the licensee on its undertaking shall not constitute commercial messages. |
4. The licensee shall maintain and enter in a program log, on a daily basis, the title and a brief description of each program distributed, the time at which each such program began and ended, together with an indication of whether each such program is a Canadian program, as set out in these conditions. |
5. The licensee shall file with the Commission, within seven days after the end of each month, its program log for that month carrying an attestation by or on behalf of the licensee certifying the accuracy of its content. |
6. The licensee shall keep separate accounts which set out for each financial year ended 31 August |
a) the amounts expended by it on the production or acquisition of Canadian programs intended for distribution on its undertaking; |
b) the amount expended by it for the production or acquisition of non-Canadian programs intended for distribution on its undertaking; and |
c) the gross revenues in respect of its operations under its licence. |
7. The licensee shall file with the Commission a statement of the accounts referred to in section 6 on or before 30 November in each year. |
8. For purposes of these conditions, |
a) "Canadian program" means a program that qualifies as a Canadian program in accordance with the criteria established by the Commission, in the appendix to a notice entitled "Recognition for Canadian Programs", dated 15 April 1984 and published in the Canada Gazette Part I on April 28, 1984; (émission canadienne); |
b) "semester" means a period of six consecutive months ending on the last day of June and December in each year; |
c) all time periods shall be reckoned according to the Eastern time zone. |
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