ARCHIVED -  Decision CRTC 87-900

Decision

Ottawa, 1 December 1987

Decision CRTC 87-900

Canadian Interfaith Network (formerly David Nostbakken and Randoph Lyle Naylor, on behalf of a company to be incorporated) - 871212700

Related Document: Public Notice CRTC 1983-112 dated 2 June 1983 entitled Religious Broadcasting: Licensing Policy and Call for Applications for a Satellite-to-Cable, Interfaith Religious Programming Service.

The Commission approves the application by the Canadian Interfaith Network for a network licence to provide an English-language national multi-faith religious specialty programming service. This satellite-to-cable service, to be known as "VISION TV" (VISION), will be available to cable television affiliates free of charge on an optional basis for distribution on the basic service, in accordance with the provisions outlined in the Public Notices accompanying this decision (Public Notices CRTC 1987-260 and 1987-261). The licence, which will be issued and be effective on 1 September 1988, will expire 31 August 1993 and will be subject to the conditions of licence specified in the appendix to this decision and in the licence to be issued.

Background

In CRTC Notice of Public Hearing 1981-54 dated 17 August 1981, the Commission announced, in response to numerous requests by individuals and groups, that it would hold a public heating to examine the matter of the licensing of religious broadcasting undertakings in Canada. The hearing was held in the National Capital Region during the week of 26 January 1982 and elicited mor than 1,500 submissions reflecting a wide range of views.

In developing its policies with respect to the licensing of religious broadcasting undertakings, the Commission has kept in mind its responsibility to implement section 3 of the Broadcasting Act, particularly in light of the requirement that the programming provided by the Canadian broadcasting system be varied and comprehensive, predominantly Canadian, and provide reasonable, balanced opportunity for the expression of differing views on matters of public concern.

In view of the foregoing and taking into account technological advances, the Commission concluded that "a new broadly-based network programming service devoted to serving the varied religious practices and beliefs of Canadians, on a national interfaith basis "would be appropriate and, accordingly, called for applications to provide such a service.

To assist those interested in providing a national interfaith service, the Commission set out definitions of what it would consider as "religious" and "a religious program". It also established certain fundamental criteria for the ownership and management, programming, use of Canadian content and financial support of such a service.

In response to the call, a consortium of several faith groups, incorporated as the Canadian Interfaith Network (CIN), submitted an application which was scheduled to be heard on 26 November 1984. Just prior to that date, however, CIN asked the Commission to adjourn the hearing of its application because of difficulties related to the raising of adequate start-up funding. The Commission granted and adjournment in CRTC-Notice of Public Hearing 1984-105 dated 19 November 1984 but invited CIN to appear at the hearing to give a progress report. CIN did so and subsequently continued to develop its proposal.

Over the next year, CIN embarked on a nation-wide process of consultation and dialogue with industry specialists, researchers, religious leaders, clergy, lay people and faith groups at the local and regional levels. This process, known as "Project Acorn", led to the creation of twenty interfaith "local enterprise for animation and development" (LEAD) groups, for the purpose of providing the religious network with resources, awareness of community concerns and local support, and developing programming for eventual distribution on the network.

As a result of this intensive consultative effort, and pursuant to Public Notice CRTC 1986-199 dated 13 August 1986, entitled Call for Applications for Network Licences to offer Canadian Specialty Programming Services, a new application was filed.

Demand

In its application VISION included studies which indicated there was a need for improved religious programming. The Commission notes also that the May 1987 study by Angus Reid Associates Inc. confirmed that 23% of those surveyed responded positively to having a new religious channel.

VISION stressed at the heating that the most telling evidence of an untapped need consisted in the concerted effort by some twenty faith groups to develop this application, the positive responses of individuals and groups to Project Acorn, and the successful organization to the 20 LEAD groups across the country. In view of the considerable time and energy invested in this application, VISION expects participant faith groups to continue to generate demand for the service by promoting the service at the local and regional levels.

VISION also expressed the view that there is great public interest in spiritual matters but that such things "are not being properly or interestingly expressed in the current religious [broadcasting] context". In this regard, it added that existing religious broadcasting in Canada, and in North America generally, reflects a "very narrow spectrum" of faith, primarily that of evangelical Christianity, and that of evangelical "abysmal absence" of minority faith representation on conventional television.

The Present Application

This application is founded on ten basic principles which affirm that VISION should be designed to serve the spiritual needs and interests of all Canadians, balanced in its programming to reflect the diversity of religious practices and beliefs in Canada, and distributed free of charge to cable subscribers on the basic service. It should also be self-supporting, non-profit, predominantly Canadian in content and character, and distinctive from other services available in the Canadian broadcasting system. The service should provide direct access to national television by Canada's various faith communities who will participate through the purchase of low-cost air-time (MOSAIC programming blocks) on a proportional basis. It should also be operated at arm's length from the religious organizations which support, fund or have access to the service.

As described by the applicant and set out as a condition of licence in the appendix, VISION will provide an interfaith religious programming service which conforms with the following definition of religious programming as set out in Public Notice CRTC 1983-112:

 For the purposes of its licensing policy, the Commission will consider as religious anything related to, inspired by or arising from man's relationship to divinity, including related moral or ethical issues; and a religious program as one which deals with a religious theme, including programs that examine or expound religious practices and beliefs or present a religious ceremony, services or other similar event.

The service will operate initially between the hours of 6:00 p.m. and 9:00 p.m. from Monday to Friday, and will offer a balance of general interfaith (CORNERSTONE) programming to be produced or acquired by the network, and denominational (MOSAIC) presentations to be produced or acquired by participating faith groups.

The Commission notes that VISION's access provisions are such that virtually any faith group may participate in the MOSAIC service. As VISION itself stated, the opportunity for expression is "not only available for everyone but available on an equitable basis so that those that are smaller groups pay less than ... the large groups."

Ownership Structure

In Public Notice CRTC 1983-112, the Commission envisaged an ownership structure that would be broadly representative of religious groups in Canada. This ownership would be represented by a program management committee responsible for day-to-day operations and exercising full control over programming. The Commission stated, however, that it would consider alternative ownership arrangements provided the interfaith nature of the programming was ensured.

In this case, VISION submitted that

 Corporate ownership reflects more direct responsibilities ... for the corporation and for the multifiath CORNERSTONE programming than most faith groups were prepared to understand or accept.

Accordingly, after "a long and dynamic interaction", the applicant arrived at an arm's length ownership structure it regards as the most effective means of providing a variety of faith groups with the access they desire, while relieving them of corporate responsibilities.

VISION is a non-profit corporation without share capital, with a nine-member Board of Directors responsible for the operation and management of the network on advice from Programming, Personnel and Finance Committees. The Board is to be made up of men and women from the fields of broadcasting, business and the social services, who together represent at least three of the following world religions active in Canada: Buddhism, Christianity, Hinduism, Islam, Judaism, Baha'i, Native Spirituality, Sikhism, Unitarianism and Zoroastrianism.

In order to preclude the possible domination of the Board by one religious viewpoint, the applicant proposes to amend its general by-law to limit to two the number of new or replacement directors from any single faith group within a world religion. This commitment and the requirement that the nine members of the Board of Directors represent a minimum of three different world religions are set out in detail as conditions of licence in the appendix to this decision.

To further guarantee a representative service, the applicant has incorporated a MOSAIC Program Management Group (MPMG) into the network design. Membership in MPMG will be open to "representatives of the diversity of faith groups purchasing time on the service", including religious charitable organizations; national faith groups and their sub-units such as synods, dioceses, conferences; faith-related, accredited educational institutions; Canadian "broadcast ministries"; and Canadian religious societies and associations.

The mandate of MPMG is to ensure balance, to advise on policy and programming matters, and to nominate three Board members, two of whom must be non-Christian. It will also nominate three representatives to each of the Programming, Personnel and Finance Committees. Through the MPMG, therefore, faith groups will have a means of ensuring a fair and balanced representation of a diversity of faith views in the program schedule.

VISION has indicated that all purchasers of MOSAIC time must undertake in writing to comply with the provisions of the Code of Ethics and Program Practices (the Code) before their programming can be broadcast. This Code sets out an extensive set of criteria governing responsibility, balance, diversity, journalistic ethics, advocacy, program taste and public morality, controversial programming, solicitation of funds and advertising. The Commission expects VISION to ensure that the standards of the Code which was part of its application are fully respected at all times, and further, to advise the Commission in writing should there be any modification of the Code.

As specifically set out in the appendix to this decision, the Commission requires VISION, by condition of licence, to establish and maintain the MOSAIC Program Management Group as described in the application. Consistent with Public Notice CRTC 1983-112, the Commission has also attached a condition of licence requiring VISION to submit annual reports providing details of the representativeness of the service, the backgrounds of the members of the Board of Directors, the membership and activities of the MPMG and the programming schedule.

Programming

To meet the challenge set out in the Commission's call, VISION has devised a unique network model offering two distinct program categories:CORNERSTONE and MOSAIC.

CORNERSTONE is general interfaith programming designed to reflect the interests, actions and concerns of a broad diversity of Canada's faith communities in the program categories described below. It will be produced or acquired by the network using revenues from the sale of MOSAIC programming blocks. As proposed, it will include a nightly news and public affairs program which will apply a human, moral and faith perspective to the news. It will also feature children's programs, music, drama, documentaries, interviews and entertainment form Canadian and foreign producers, including major European networks. As confirmed by the applicant at the hearing, all such programming will have a religious orientation.

In terms of non-Canadian CORNERSTONE acquisitions, VISION stated at the hearing that it has taken pains to develop relationships with a number of British and European broadcasters so as to provide exposure for "world-class product ... which has never had a window in the Canadian market." In this regard, it cited Holland as originating some of " the best religious broadcasting in the world".

MOSAIC programming, as proposed, is denominational in nature and aims to communicate a diversity of specific religious viewpoints. It will be produced or acquired by participating faith groups who will pay, according to ability, for the network distribution of their programs. The applicant estimates that MOSAIC programming will account for an estimated 78% of the network's revenues.

The Commission asked VISION what mechanisms were in place to ensure fair exposure for CORNERSTONE programs. Replying that "it would not be in the network's best interest to underplay its CORNERSTONE service", the applicant affirmed its intention to maintain a balance between the two programming types. Consistent with this undertaking, and as discussed at the hearing, it is a condition of licence that CORNERSTONE programming represent 50% of all programming broadcast over the five-year licence term, with not less than 45% in any given year.

The Commission notes that, initially, VISION poroses to broadcast 3 hours of programming between 6:00 p.m. and 9:00 p.m., Monday to Friday, and aims to double this amount by the fifth year of operation. In terms of local and regional input, VISION indicated at the hearing that it would rely on LEAD groups for "the support and engendering of local and regional production of [CORNERSTONE] programming".

The applicant made a Canadian content commitment of 60% of total broadcast time and indicated at the hearing that it would accept a condition of licence setting out minimum requirements in this regard. It also indicated its firm desire to achieve a Canadian content level of 75% in the future. As noted in the appendix to this decision, the applicant is required by condition of licence, to maintain an overall Canadian content level of at least 60%.

At the hearing, VISION also confirmed that it would spend 30% of its gross revenues in the first year of operation on the acquisition or production of Canadian CORNERSTONE programming, increasing this amount gradually to 44% of its gross revenues in the fifth year. As set out in the appendix, the year of operation have been imposed as conditions of licence.

Though the new national network service is to b offered in English, VISION's application acknowledged that " the service should make a commitment to the reflection of Canada's bilingual reality". Speaking to this point at the hearing, VISION stated that "francophone programming on the network may be imminent in the sense that some of the MOSAIC programming may well be in French for national viewership". It also referred to ongoing discussions with the Montreal LEAD group with respect to program exchange and co-productions. The Commission encourages these efforts and expects the applicant to file a report on or before 30 November 1989 outlining its progress in reflecting Canada's bilingual reality.

The applicant discussed the ethnic aspect of its proposed programming at the hearing, indicating that it fully expected some of the lesser-known faith groups purchasing time on the MOSAIC service to make use of program elements in languages other than English and French. VISION noted further that it had "no policies and will not develop any to prohibit faith groups using their own languages".

Viability

VISION indicated in its application that it has secured start-up funding commitments from a number of participant faith groups prepared to under-write costs on proportional basis. At the heating, it added that these faith groups constituted "a kind of continuous or cyclical support system":

 That is, when faith groups put major money into the purchase of time and the development of their own programming, they have a vested interest that it be well-received and well viewed among their own members across the country. So they will be promoting it among their regional and local congregations, ... and they, in turn, publicize it in their villages and in their towns and in their cities. That, in itself, will be part of the generation of viewership both within religious communities and beyond.

In terms of ongoing financial support, the applicant does not propose to charge subscribers or cable operators for its service, providing the following rationale for this approach:

 ... you shouldn't have to pay to walk though a church, temple or a mosque door. Neither should you have to pay to receive a full and balanced representation of faith views.

Accordingly, the network's projected revenues are based primarily on the sales of MOSAIC programming time, with the balance to be derived from the sale of advertising and promotional spots in and corporate sponsorship of CORNERSTONE segments.

The applicant estimates that MOSAIC sales will being in some $2.7 million in the first year of operation and indicated at the hearing that 70% of the time available during year one had already been reserved. Altogether VISION estimates total revenues of $3.5 million in year one, increasing to $5.6 million in year five.

In terms of the advertising sought for the CORNERSTONE service, VISION proposes to target the following very specific sources:

 ... faith communities first and those organizations which are in one way or another religiously affiliated or representative or interactive in some way, indigenous to religious communities ...

In this way, it expects to attract new advertising dollars for goods and services which have a religious orientation or affiliation and are not currently being promoted or advertised on conventional television. According to the applicant, potential advertisers would include specialized financing and fun-raising groups, consulting firms, religious book and record clubs, relief agencies, denominational seniors' homes and summer camps, as well as religious music publishers and organ companies.

In view of the specialized nature of the advertising to be sought, VISION stated ant the hearing that it would be complementary to rather than competitive with conventional broadcasters in terms of revenue sources.

Similarly, it was confident that audience fragmentation and siphoning, or competition of program rights, would not be concerns since the programming to be offered would be "something not being offered now by conventional broadcasters". In this regard, it added that those religious groups currently using conventional broadcasting had indicated that they would continue to broadcast on the conventional services, using VISION as a supplementary outlet.

At the hearing, the applicant indicated that it had "no problem with [a] condition of licence that deals with the aggregate of advertising, promotions and solicitations and would restrict that to six minutes [per hour]". accordingly, the applicant, by condition of licence, shall distribute no more than 6 minutes of such material per hour, and be restricted to national advertising and to the promotion of goods and services with a clearly religious connection.

In Public Notice CRTC 1983-112, the Commission addressed the issue of fund-raising, stating that any such funds must be used solely for the support of the network service and that fund-raising activities should have the prior approval of the licensee's program management committee.

VISION's Code of Ethics and Program Practices requires the Board of Director's prior approval for any fund-raising activities. Owing to the unique structure of this service, any fund-raising is more likely to be conducted by and for the benefit of individual participant faith groups using the MOSAIC service. To prevent abuses in this regard, the applicant has incorporated into the Code clearly-delineated standards for the time devoted to on-air solicitations, and the wording and tone of fund-raising messages and solicitations by mail.

As set out in the attached appendix, VISION is required, by condition of licence, to ensure that all solicitation of funds conform to its Code. It is also required, by condition of licence, to limit such activities to no mor than 90 seconds of every half-hour and to ensure that there be no banking of fund-raising time. As noted previously, the total time devoted to solicitations of funds advertising and promotion shall not exceed 6 minutes per hour.

Conclusion

In arriving at a favourable decision, the Commission has taken into account a variety of factors, not the least of which was the tremendous dedication, initiative and sustained effort which brought the proposal before the Commission. It notes in this regard that more than twenty different faith groups have been involved in the development of the proposal over the past few years and that no opposing interventions were received from organized religions.

Based on all the information presented, the Commission is satisfied that the applicant's proposal meets the Broadcasting Act's requirements for balance and diversity and the use of predominately Canadian resources, which formed the basis of the Commission's call for a Canadian interfaith service. The Commission considers the CORNERSTONE component of the proposal will add to the limited range of interfaith programming available on conventional services while the MOSAIC component will give a voice to a large number of faith groups currently without representation on the Canadian broadcasting system. In addition, the Commission has been particularly impressed by the broad access provisions which will permit direct participation by faith groups wishing to purchase time on the MOSAIC service and expects them to be maintained.

In terms of ownership, the Commission is satisfied that the measures taken to provide for balanced representation on the Board of Directors will serve to ensure that the network will not develop a sectarian outlook.

With respect to the proposed broker-age of the MOSAIC portion of VISION's program schedule, the Commission considers that a strict implementation of the fund-raising provisions imposed as conditions of licence will prevent the abuses in this area that have sometimes occurred in the paid religious programming broadcast on conventional television and radio stations.

As to the impact that the licensing of this service would have in terms of audience fragmentation and on advertising revenues of existing broadcasters, the Commission has examined the evidence and information presented by the applicant, particularly VISION's intention to seek specific forms of advertising from advertisers with some religious connection and its projected advertising form advertisers with some religious connection and its projected advertising revenues, which range from $0.8 million in year 1 to $1.2 million in year 5.

The Commission has also assessed all of the comments and studies available in the context of this hearing. After careful consideration, it has concluded that, although this service could obtain up to 0.2% of the audience share from conventional broadcasters, the overall impact on existing broadcasters will be negligible, if any.

In view of the proposed limited hours of broadcast time, VISION may wish to explore with cable operators the possibility of sharing a channel on the basic service with another programming service.

The Commission reminds VISION that it must adhere fully to the conditions of its licence at all times. It will follow the implementation of this service with interest and, further, expects that VISION will not deviate from the network model as proposed.

With regard to issues of public concern, the Commission requires VISION, by condition of licence, to adhere to the CAB's self-regulatory guidelines on sex-role stereotyping.

The Commission also expect VISION to ensure that multilingual minorities are represented in the programming exhibited on this service in a manner that reflects realistically their participation in Canadian society.

With respect to closed captioning, the Commission has noted VISION's statement at the hearing that, at this time, the costs were prohibitive; however, it encourages VISION to provide service for the hearing-impaired as it becomes economically feasible.

Interventions

The Commission has taken into account the views expressed in some thirty-five interventions supporting this application from representatives of a variety of religious groups, including the Anglican Church of Canada, the United Church of Canada, the Council of Christian Reformed Churches in Canada, the Roman Catholic Archdiocese of Winnipeg, the Seventh-Day Adventist Church in Canada and the Khalsa Diwan Society, as well as other interested groups and individuals. These interveners highlighted such things as the need for an alternative to existing broadcasting fare; the positive contribution of this service to religious tolerance, understanding and the enrichment of different ethnic communities; the opportunity for fair and balanced expression of a wide spectrum of viewpoints and of values that are respected and held by most Canadians; the unique nature of this service from a global perspective; the applicant's commitment to "the highest and most creative use of an ethical approach to religious television"; and the contribution to be made to the religious and cultural fabric of Canada.

In addition to the general comments of such interveners as the Canadian Association of Broadcasters, the Government of Ontario and the Société de radio-télévision du Québec, the Commission has also considered the concerns raised by representatives of the cable industry, among others, with respect to balance, the efficient use of channel capacity, the distribution of the proposed VISION service on the basic service, its viability, its impact on conventional broadcasters and its unilingual nature. The Commission notes that these concerns have been addressed in this decision or in the introductory statement to the decisions released today.

Fernand Bélisle
Secretary General

APPENDIX

Conditions of Licence

Canadian Interfaith Network (VISION TV)

1. The programming provided by the licensee shall consist of interfaith religious p
rogramming which conforms with the definition of religious programming set out in Public Notice CRTC 1983-112 dated 2 June 1983.

2. The licensee shall devote not less than 60% of the broadcast year and not less than 60% of the evening broadcast period to the distribution of Canadian programs.

3. The licensee shall devote not less than 50% of the total hours distributed on VISION TV over the 5-year term of the licence to the distribution of CORNERSTONE programming, as defined below, and not less than 45% of any one broadcast year to the distribution of CORNERSTONE programming.

4. The programming service provided by the licensee shall consist of two distinct categories of programs- CORNERSTONE programs and MOSAIC programs. CORNERSTONE programs are interfaith programs produced or acquired by the licensee itself. MOSAIC programs are denominational programs produced or acquired by arm's length faith gourps and organizations.

5. The Board of Directors of VISION TV shall be comprised of nine members and shall include representatives of at least three of the following world religions: Buddhism, Christianity, Hinduism, Islam, Judaism, Baha'i, Native Spirituality, Sikhism, Unitarianism and Zoroastrianism.

6. The licensee shall amend its by-law relating to the transaction of the business and affairs of the corporation os as to ensure that, with respect to members of the Board of Directors, no more than two new or replacement directors shall have backgrounds which reflect a subdivision or denomination of any one world religion, or shall share a single faith perspective.

7. The licensee shall establish and maintain over the licence term a MOSAIC Program Management Group with the terms of reference, membership and mandate set out on p. 15 of the application for a licence dated 30 April 1987.

8. The licensee shall file a report with the Commission on or before 30 November of each year

  a) enumerating the world religions as well as the subdivisions, denominations or faith perspective thereof, represented on the Board of Directors as of the preceding 31 August;

  b) describing how VISION TV has reflected, over the 12 month period ending the preceding 31 August, the range of Canadian religious beliefs, including a list of the groups which have purchases MOSAIC time and the amount of time each has purchases;

  c) providing a breakdown of the programming distributed on VISION TV over the 12-month period ending the preceding 31 August between CORNERSTONE and MOSAIC programming; and

  d) providing a description of the membership and activities of the MOSAIC Program Management Group over the 12-month period ending the preceding 31 August.

9. For each broadcast year, as set out below, the licensee shall expend not less than the percentage set out below of annual gross revenues derived from its operations under this licence on the acquisition of and/or investment in Canadian programs:

 From 1 September 1988 to 31 August 1989: 36%

 From 1 September 1989 to 31 August 1990: 38%

 From 1 September 1990 to 31 August 1991: 41%

 From 1 September 1991 to 31 August 1992: 45%

 From 1 September 1992 to 31 August 1993: 44%

10. a) The licensee shall distribute no more than 6 minutes of advertising material, program promotion and solicitation of funds, during each clock hour.

 b) The licensee shall not distribute any advertising material other than national advertising.

 c) All advertising material distributed by the licensee shall be limited to promoting the following:

  ° goods and services offered by organizations which sponsor, support or are affiliated with Canada's faith communities;

  ° goods and services related to the religious, ethical or moral lives of Canadians; or

  ° goods and services used by Canadians in relation to their membership or participation in faith communities.

  d) All solicitations of funds on VISION TV must conform with the provisions of the licensee's Code of Ethics and Program Practices, subject to the limitations as to time set out in this condition.

   e) The solicitation of funds in CORNERSTONE programming shall together comprise no more than 90 seconds per half-hour and no accumulation shall be permitted.

  f) Solicitations of funds, give-aways and merchandising in MOSAIC programming shall together comprise no more than 90 seconds per half-hour, and no accumulation shall be permitted.

11. The licensee shall adhere to the provisions of the Broadcast Code for Advertising to Children published by the CAB, as amended from time to time and accepted by the Commission.

12. The licensee shall adhere to the CAB's self-regulatory guidelines on sex-role stereotyping, as amended form time to time and accepted by the Commission.

13. The licensee shall keep separate accounts which set out for each financial year ending 31 August

  a) the gross revenues in respect of its operations under its licence;

  b) the amounts expended by it on the acquisition of and/or investment in Canadian programs intended for distribution on its undertaking; and

  c) the amount expended by it on the acquisition of non-Canadian programs for distribution on its undertaking.

14. The licensee shall file a statement of the accounts referred to in section 13 with the Commission on or before 30 November of each year.

15. For proposes of these conditions, all time periods shall be reckoned according to the eastern time zone.

16. The definitions of advertising material, broadcast day, broadcast month, broadcast year, Canadian program, clock hour and commercial message set out in Section 2 of the Television Broadcasting Regulations, 1987 (SOR/87-49), as amended by SOR/87-425, the definition of evening broadcast period in section 4, and the provisions of sections 5, 6, 7, 8, 10(1) and (3) to (6), 12, 13 and 14 of the said Regulations, shall apply to these conditions and to the licensee with the necessary changes.

17.  Together with the record required to be filed with the Commission pursuant to subsection 10(3) of the Television Broadcasting Regulations, 1987, the licensee is required to provide in its program log or machine readable record the following information:

   a) for each program a designation as to whether it is CORNERSTONE or MOSAIC; and

  b) for each solicitation of funds, giveaway or merchandising segment, the time of commencement and duration.