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Ottawa, 13 March 1986
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Decision CRTC 86-215
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CHUM Limited (MuchMusic Network)
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Toronto, Ontario - 853115400
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Pursuant to Public Notice CRTC 1985-262 dated 6 December 1985, the Commission approves the application to amend the broadcasting licence for a national English-language specialty network music service (MuchMusic) by authorizing the distribution by satellite of a video music service to be presented in French that can be substituted by all affiliated cable undertakings situated in the region which is served by the satellite beam that covers Eastern Canada.
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In Decision CRTC 86-214 issued today, the Commission has also approved an application by Vidéotron Ltée for a licence to operate, on an experimental basis and for a short term expiring 31 August 1987, a cable television network to distribute via satellite the special French-language programming service "Télé des Jeunes". The Commission has noted that both the proposal for a specialty video music service to be presented in French and "Télé des Jeunes" are part of the Telesat Canada experimental program that allows satellite services to be rented at a lower cost for a specific period, during which time the viability of such projects may be assessed.
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The applicant proposes to broadcast eight hours of music videos to be presented in French, consisting of four hours of original material and four hours of repeats, to be distributed daily between 8:00 p.m. and 4:00 a.m. Content and production will be determined in Montreal with the final assembling and satellite uplink activities being completed in Toronto. The licensee anticipates that the realization of this proposal will stimulate a significant amount of video production in Quebec, as has already happened elsewhere in Canada with the English-language MuchMusic service. Such a developement will benefit both Quebec musicians and the local record production industry.
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Decision CRTC 84-338 dated 2 April 1984, authorizing the applicant to operate the MuchMusic service stated in part:
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The Commission encourages the applicant to consult with cable television licensees serving predominantly francophone communities, to arrive at some reasonable arrangement for the provision of French-language programming in their markets.
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In the preamble to this decision (Public Notice CRTC 1984-81), the Commission also stated that it was "prepared to give early consideration to any suitable plans which may result from such negotiations".
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The Commission received a written intervention from the Réseau de musique télévisée du Québec (MTVQ) opposing this application and asking that it be examined at a public hearing at the same time as MTVQ's application to operate a music video service to be presented in French and distributed on the basic service of Quebec cable undertakings. A submission was received from the Association canadienne de la radio et de la télévision de langue française Inc. (ACRTF) in support of the MuchMusic application, while others from the Quebec Department of Communications, ADISQ, Inter-Tel Image Ltée and Showbizz International Inc. stated their concerns with regard to the intrinsic limitations of the applicant's proposal and the lack of a specific commitment in support of French-language music.
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As the applicant pointed out in its reply to the interventions, MTVQ's application is fundamentally different from its own. MTVQ proposes a music video service to be presented in French that would be broadcast throughout the province of Quebec 24 hours a day. It would be offered on a universal rather than a discretionary basis, and would thus be distributed on the basic service to all subscribers of any local cable system receiving the signal at its head-end. On the other hand, the specialty music service hereby authorized is a part-time service that will be offered on a discretionary user-pay basis, in accordance with the authority initially granted in Decision CRTC 84-338.
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The Commission considers that a proposal such as that submitted by MTVQ, involving the priority distribution of a service specializing in video music, offered on a universal basis on basic service, implies a fundamental change in the conditions presently in effect for the distribution of specialty programming. It also raises a number of general policy questions with serious consequences for the future evolution of the Canadian broadcasting system, which should be dealt with at greater length within the context of a public hearing. The Commisson would like to point out, however, that approval of the present application should not be construed as prejudicing any future public proceeding of this type or any future decisions on proposals for a full-time video music service to be presented in French.
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The Commission has taken note of the concerns expressed by the interveners with respect to the limitations of the applicant's proposal and has also noted the clarifications as well as the commitments the applicant has made in response to the concerns raised.
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This proposal has been made possible through an agreement in principle with Vidéotron Ltée. The latter will share with the applicant the same transponder channel on the Anik C satellite that it will use for the "Télé des Jeunes" specialty programming service. The applicant stated, however, that the agreement with Vidéotron Ltée is to be reviewed before 31 December 1986, and expressed its ultimate intention of submitting an application to operate a distinct, discretionary music video service to be presented in French and which would operate 24 hours a day.
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The applicant also described its efforts to encourage the production of French-language video music and made the commitment to invest $2 million immediately in the new service. The service will be implemented within 90 days of reaching an agreement with the parties concerned. It also promised that at least onethird of the directors and one-third of the activities in connection with the promotion of Canadian video music talent (VideoFACT) would reflect Quebec.
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The Commission shares the concerns raised in the intervention by the Quebec Department of Communications concerning the absence of a specific commitment with regard to the Frenchlanguage content of the proposed service. In its reply, the applicant acknowledged that the intervener had raised pertinent suggestions in this respect, and agreed to meet the minimum levels suggested, namely that 3% of its videoclips should be in French and 40% of its program budget should be allocated to French-language programming.
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After careful consideration of the applicant's statements and given the importance of promoting the production of French-language music, the Commission has approved the present application on the condition that the proposed service contain a minimum of 3% French-language videoclips on a daily basis and that at least 40% of its program budget be allocated to the purchase and production of French programs. The Commission expects the applicant to submit a progress report in this regard within six months of the implementation of this service.
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In Public Notice CRTC 1984-81, the Commission expressed its intention of holding a public hearing approximately two years after the introduction of discretionary speciality programming services, so as to examine their effectiveness. In the context of such a hearing the Commission also intends to review the measures the applicant has taken in response to the expectations and concerns expressed in this decision.
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Fernand Bélisle
Secretary General
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