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Public Notice
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Ottawa, 24 February 1988
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Public Notice CRTC 1988-26
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Enquiries and Complaints about the Canadian Home Shopping Network (CHSN) Service Distributed by Some Cable Licensees
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In response to enquiries and a complaint concerning a home shopping service currently distributed by some cable licensees (CHSN), the Commission hereby expresses its views on the meaning of the terms "programming service" and "alphanumeric service", used in the Cable Television Regulations, 1986 (the regulations), particularly as those terms relate to CHSN.
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In a letter dated 28 August 1987, Mr. I. Switzer of Toronto requested the Commission to clarify its definition of "non-program" service as it applies to services available to cable television viewers, and asked if CHSN could be used as a model for the development of new non-programming services. In a letter dated 6 October 1987, the Commission replied that, pending a determination of the status of the CHSN service, it should not be used as a model.
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Meanwhile, in a letter dated 3 September 1987, Mr. J. Beauchamp of Ottawa complained that Ottawa Cablevision Limited was not in compliance with the regulations in that it was distributing CHSN, a service which he asserted does not qualify as a non-programming service. In accordance with its policy with respect to complaints of this nature, the Commission conducted an investigation into Mr. Beauchamp's allegations. As part of its investigation, the Commission secured tapes of the CHSN service as shown on Ottawa Cablevision Limited's system for selected periods of time on 9, 13 and 14 October and on 3 December 1987.
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Description of the CHSN Service
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From the tapes supplied to it, the Commission has observed that the video portion of the CHSN service consists, for part of the time, of still images of merchandise offered for sale. However, on occasion, viewers may observe a slow rotation of the items depicted for sale; at other times, program hosts are shown in jerky, unnatural motion not matching the audio component of the signal. Some merchandise is displayed with the same type of jerky, unnatural motion.
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The audio portion of the service contains virtually continuous talk. Part of the audio component consists of a somewhat repetitious description of the characteristics of the merchandise displayed for sale, accompanied by words from the host urging viewers to purchase the product on display as quickly as possible. Another part of the audio service consists of live telephone interviews between the host promoting such items and buyers who have become members of CHSN's home shopping club. Many of these telephone conversations, in addition to dealing with the merchandise displayed for sale, incidentally involve other topics, such as the weather in the place from which the purchaser is calling.
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Programming Services
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Section 3 of the regulations provides that a licensee shall not use its system to distribute "programming services" except as authorized by its licence or the regulations. When the Commission published the regulations, it explained at page 14 of the accompanying public notice, CRTC 1986-182 dated 1 August 1986, that
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... the terms of section 3 of the new regulations only address programming services ... Services not falling within the definition of programming services may therefore be created, developed and offered by a licensee without the need to seek authorization from the Commission.
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The definition of a "programming service" is as follows:
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Any combination of images, sounds or images and sounds including a commercial message other than an alphanumeric service, that is designed to inform or entertain the public and is
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a) transmitted to a cable-head end over the air, by microwave or satellite relay or by means of a hard wire-feed, or
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b) distributed by a licensee. (Underlining added)
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Further to a meeting held with Commission representatives, in a letter dated 17 November 1987 addressed to the Commission, CHSN submitted that its service does not fall within the definition of a "programming service".
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Noting that a programming service must be designed to inform or entertain the public, CHSN maintained that its service is designed only to sell products because its service consists of a series of commercial messages. It argued that a series of commercial messages could not, by definition, qualify as a programming service.
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Having carefully considered CHSN's representations, apparently supported by cable licensees who are distributing the service without seeking the approval of the Commission, the Commission does not agree that CHSN is not a "programming service". Noting that the definition of this term expressly includes a "commercial message", the Commission considers that the fact that a service consists of such messages does not exclude it, per se, from the above-mentioned definition, since "commercial message" is specifically included in such definition, and since the messages are usually designed, at least, to inform viewers of the items offered for sale. Therefore, CHSN's service cannot be excluded from a "programming service" on the grounds advanced by CHSN.
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Alphanumeric Services
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In Public Notice CRTC 1986-182, the Commission also explained that alphanumeric services are specifically excluded from the programming services definition; thus, alphanumeric services could be distributed without Commission authorization. The definition of "alphanumeric service" is as follows:
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any combination of letters, numbers, graphic designs, still images, background music or spoken words that simply and briefly explain or describe what is represented by the letters, numbers, graphic designs or still images.
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CHSN submitted that its service contains moving letters and numbers rolling across the screen and, on occasion, moving graphic designs, both of which are contemplated by the above-noted definition. In respect of images of products offered for sale or the depiction of program hosts, CHSN argued that the term "still images" means that an image must appear to the viewer to be fixed for some period of time. It submitted that a series of still or fixed frames meets the requirement of the definition, since the subject of the video does not appear to viewers to be moving in a natural, fluid manner.
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In respect of spoken words, CHSN maintained that there is a correlation between what is stated by program hosts or callers interviewed live on air and the visual material, and therefore the spoken words "simply and briefly explain or describe what is represented" in the video portion of the service.
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In respect of these submissions, the Commission considers that, in the form that it took on the tapes of October and December 1987, the service did not fall entirely within the definition of an "alphanumeric service".
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Although the statements which follow are not to be taken as exhaustive, they are intended to give further guidance as to what the Commission considers would or would not be acceptable in this area.
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The "still images" component of the alphanumeric services definition requires that the video portion of such a service (other than numbers, letters or other pictorial representation by way of graphic designs) must remain still at all times. It is not acceptable for an image to be projected in motion, even if such motion is not fluid or is unnatural or jerky. The viewer's eye should not detect movement of the image within the picture-frame, but the movement of still images through the use of technical devices such as zooming or tumbling is not prohibited.
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The Commission also considers that the spoken word portion of the definition of an alphanumeric service cannot extend to what the provider of the CHSN service called "the usual pleasantries which are to be expected in any telephone conversation", or to nearly continuous and repetitious banter on the merits of items offered for sale. The spoken words should not extend beyond a simple and brief description or explanation of what is represented by the video portion of the service.
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Further Developments
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In a letter dated 28 January 1988, CHSN requested a meeting with Commission representatives in order to discuss the issue of whether its service falls within the definition of alpha-numeric services. In a meeting held on 1 February 1988, the Commission's concerns as articulated above were communicated to CHSN. The latter wrote in a letter of 5 February 1988 that it intended to submit applications for non-exclusive home shopping service network licences and, in the interim period, CHSN would
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"... continue to operate as an alphanumeric service, while making certain adjustments to our formats to meet the Commission's principal concerns, as expressed to us at the meeting with staff."
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Conclusion
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The Commission expects that CHSN will honour its commitments noted above and made in its 5 February 1988 letter. The Commission considers that cable licensees may continue to distribute this service, provided that it is modified to take into account the foregoing comments. As for any other service which exhibits the characteristics referred to above and which take the service outside the definition of an alphanumeric service, the Commission expects cable licensees not to distribute such a service, unless the approval of the Commission is first obtained through licensing or other appropriate means.
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The Commission will monitor the situation closely to ensure that the regulations are respected.
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Fernand Bélisle Secretary General
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