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Public Notice
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Ottawa, 12 December 1986
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Public Notice CRTC 1986-347
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Canadian Specialty Programming Services
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Related documents: Public Notice CRTC l986-l99 "Call for Applications for Network Licenses to Offer Canadian Specialty Programming Services" dated l3 August l986; CRTC News Release "Specialty Service Applications" dated 27 October l986; CRTC News Release "CRTC Supports Initiative to Review Telefilm's Funding Criteria" dated 3 November l986.
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In Public Notice CRTC l986-l99 the Commission announced that it was inviting applications for network licences to offer certain Canadian specialty programming services to be distributed by cable television systems either on the basic service or on a discretionary basis. The Commission cited "the need for prompt action with regard to the development of a broader range of viable new Canadian programming services" and the need to "discuss matters concerning the potential cable distribution of certain specialty services on the basic service" as sufficiently important matters to warrant an early public hearing. It also noted the imminent release of the Report of the Task Force on Broadcasting Policy (Caplan/Sauvageau, published on 22 September l986) and the lengthy regulatory requirements for the preparation of submissions and applications and for the overall public hearing proceedings. Accordingly, the Commission established 24 October l986 as the filing date for new applications.
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The Commission received 23 specialty service applications in response to this call. Many of these, including four applications from existing specialty network licensees, proposed basic service carriage as an integral component of their overall business plans. The range of diversity of the proposed services was outlined in the Commission's News Release of 27 October l986. These applications were planned to be heard in early 1987 to allow possible commencement of operation in the fall of 1987.
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On 3 November l986 the Honourable Flora MacDonald, Minister of Communications, following the release of the Caplan/Sauvageau Report, announced her intention to review the funding criteria of the Canadian Broadcast Program Development Fund (Telefilm fund). This announcement followed an exchange of letters between the Minister and the Chairman of the CRTC, in which the Minister explained:
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... after consultations with the industry and with Telefilm Canada I believe that I should seek approval to enable pay and/or specialty licensees to access the Canadian Broadcast Development Fund under certain circumstances, and further encourage high quality Canadian production. I am also investigating extending these measures to permit future omnibus services to participate as well.
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In his response on 29 October 1986 the Chairman of the CRTC stated:
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As soon as such new measures are adopted, the Commission will assess their potential impact on the applications for new services already filed. It will also determine the appropriate process to follow to permit these applicants and other interested parties to respond to these initiatives and possibly file for new services.
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On 9 December l986 the Minister announced that the Treasury Board and the Board of Directors of Telefilm Canada had agreed to changes to the criteria of the Canadian Broadcast Development Fund: "The new provisions, which take effect April 1 1987, will allow access to the Fund for programs produced for satellite-to-cable broadcast services carried on the basic cable service. In addition, the changes in the Fund will affect discretionary service broadcasters: once they have reached an exhibition agreement with a program producer, the production will be eligible for Program funding provided that an undertaking to show the program has also been obtained from an over-the-air or a basic cable service broadcaster".
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In light of the foregoing, the Commission has decided that those who filed applications in response to Public Notice CRTC l986-l99 should be given sufficient time to amend or update their proposals. Applications filed in response to Public Notice CRTC 1986-199 will therefore be returned in order for the applicants to assess the impact that these amendments may have on the programming and business plans already developed, including their potential investment in the categories of programs eligible for Telefilm funding.
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In addition, in light of the changed circumstances which could affect the question of financial viability and the overall contribution which these or new applications could make to the Canadian broadcasting system, the Commission will consider new applications for the specialty programming networks in the service categories described in Public Notice CRTC 1986-199. New or amended applications should be filed with the Secretary General of the Commission on or before l2 March l987. Following receipt of these applications, the Commission will announce details of a public hearing to be held at the earliest possible date.
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Fernand Bélisle Secretary General
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