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Public Notice
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Ottawa, 19 December 1989
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Public Notice CRTC 1989-135
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RECOMMENDATIONS OF THE CONSULTATIVE COMMITTEE ON ACQUIRED AUDIO PROGRAMMING: THE DEFINITION OF A CANADIAN AUDIO PROGRAM AND INCENTIVES TO ENCOURAGE THE USE OF CANADIAN ACQUIRED PROGRAMMING
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RELATED DOCUMENTS: Public Notices CRTC 1988-89, dated 1 June 1988, HS @AVI 89-3>1989-3, dated 10 January 1989, and 1989-30, dated 14 April 1989.
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I. INTRODUCTION
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On 10 January 1989, the Commission issued Public Notice CRTC 1989-3 entitled Radio Networks and Syndication Policy. The Public Notice announced that two aspects of the policy would be referred to a consultative committee: the definition of a Canadian audio program and approaches to promote the use of Canadian acquired audio programming.
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The Consultative Committee on Acquired Audio Programming met on 22 March 1989 in the National Capital Region. The Committee was composed of representatives of the radio broadcasting, audio program production and recording industries, as well as Commission staff. A list of the participants is appended.
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The mandate of the Committee was twofold: (1) to recommend to the Commission a definition for a Canadian audio program, and (2) to recommend to the Commission incentives to encourage the use of Canadian programming acquired by AM and FM licensees.
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This document sets out the Committee's recommendations to the Commission and the Commission's decisions regarding them.
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The Commission thanks all of the members of the Consultative Committee who generously contributed their time and expertise.
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II. DEFINITION OF A CANADIAN AUDIO PROGRAM
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A) Background
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The concept of a Canadian audio program is an integral part of the Radio Networks and Syndication Policy. The policy refers to Canadian audio programs with respect to the programming distributed by radio network licensees, the use of programming acquired by radio licensees, logging requirements for AM and FM licensees and the double credit for mosaic segments with substantial enrichment.
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In its proposed policy regarding radio networks and syndication, set out in Public Notice CRTC 1988-89, the Commission suggested a definition for a Canadian audio program. Because of the substantial number of comments and suggestions that were received regarding the proposed definition, the Commission decided to refer the matter to a consultative committee.
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The Consultative Committee on Acquired Audio Programming was charged with recommending to the Commission a definition for a Canadian audio program that would apply to acquired programs, and could be used for other regulatory purposes. The definition was to be based on a points system that would be self-administered by the licensees.
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B) The Committee's Recommendation
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The Consultative Committee on Acquired Audio Programming agreed to recommend to the Commission the following definition for a Canadian audio program.
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(a) Music Programs
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A music program is a program that deals primarily with music and contains one or more musical selections as part of the program presentation rather than as background music, musical themes, bridges, or stingers as described in Category 7, Production, in Public Notice CRTC 1983-43.
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To be considered Canadian, a music program must earn a minimum of five points based on the following criteria:
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Points
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Canadian Producer 2
Or
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Canadian Co-Producer 1
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Canadian Writer 2
Or
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Canadian Co-Writer 1
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Canadian Recording Facility 1
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Canadian Host or Hostess 1
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Canadian Musical Content 2
if the musical content satisfies
one of the applicable conditions below:
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- a minimum of 30% of the musical selections in Category 5 music programs (except Easy
Listening) are Canadian,
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- a minimum of 10% of the musical selections in Easy Listening music programs (in which at least
50% of musical selections are instrumentals) are Canadian,
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- a minimum of 7% of the musical selections in Category 6 music programs are Canadian, or
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- a minimum of 7% of the musical selections in Ethnic music programs (Category 5 or 6) are Canadian.
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(b) Spoken Word Program
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A spoken word program is a program that deals primarily with the spoken word and contains no music other than as background music, musical themes, bridges or stingers as described in Category 7, Production, in Public Notice CRTC 1983-43.
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To be considered Canadian, a spoken word program must earn a minimum of four points based on the following criteria:
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Points
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Canadian Producer 2
Or
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Canadian Co-Producer 1
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Canadian Writer 2
Or
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Canadian Co-Writer 1
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Canadian Recording Facility 1
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Canadian Host or Hostess 1
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Interpretative Notes
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The Committee recommended the following interpretative notes with respect to producer, co-producer, writer and Canadian music.
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Producer - The producer is the individual who has financial and creative control of the original audio production from beginning to end.
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Co-Producer - The co-producer is an individual who has financial or creative control of the original audio production from beginning to end.
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Writer - The writer is the individual who creates the original story script or dialogue for the audio program.
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Canadian Music - Canadian musical selections are those that meet the criteria described in subsections 13(5), 13(6) and 13(7) of the Radio Regulations, 1986.
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(C) The Commission's Response
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The Commission has accepted the Consultative Committee's recommendation regarding the definition of a Canadian audio program, and has expanded upon the Interpretative Notes recommended by the Consultative Committee by adding notes for co-writer, host, recording facility and Canadian. It has also added clarification to the Committee's interpretation of the co-producer function.
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Co-Producer - In a program involving no producer but more than one co-producer, at least half of the individuals sharing the responsibility for the production must be Canadian for the program to obtain a co-producer credit. Moreover, at least one of the individuals qualifying for the co-producer credit must have financial or creative control of the original audio production from beginning to end. If all of the co-producers are Canadian, the program will qualify for two points.
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Co-Writer - In a program involving no writer but more than one co-writer, at least half of the individuals sharing the responsibility for the writing must be Canadian for the program to obtain a co-writer credit. If all of the co-writers are Canadian, the program will qualify for two points.
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Host or Hostess - To obtain this credit, all individuals sharing the duties of host or hostess must be Canadian
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Recording Facility - To obtain this credit, the program must be wholly produced in a recording facility situated in Canada.
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Canadian - A Canadian is defined as a person who meets at least one of the following criteria: is a Canadian citizen; is a permanent resident as defined in the Immigration Act; or is a person whose ordinary place of residence was Canada throughout the six months immediately preceding that person's contribution to the production.
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According to Public Notice CRTC 1989-3, the Commission intended to amend Schedule A (Code Indicating Origin) of the Radio Regulations, 1986 at the time that it published a definition for a Canadian audio program. The amendment is necessary to implement the requirement set out in the Radio Networks and Syndication Policy, that AM and FM licensees log acquired programs according to type (network or syndicated) and origin (Canadian or foreign).
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On 14 April 1989, however, the Commission issued Public Notice CRTC 1989-30, announcing a plan to conduct a comprehensive review of the FM policy. This review, which is currently in progress, will involve the issuance for public comment of a draft policy early in 1990. The Commission intends to publish the final policy, with proposed amendments to the radio regulations, if any, by the end of 1990.
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Amendments to Schedule A of the regulations, which will involve the definition of a Canadian audio program, will be introduced in the context of the FM policy review. Accordingly, radio licensees will not be required to log acquired programs according to type and origin until the amendments have been adopted.
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As described later in this document, the Commission has also decided to adopt an incentive scheme to promote the use of Canadian programming acquired by radio licensees.
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For purposes of implementing this incentive scheme, the Commission will adopt the definition of a Canadian audio program that was recommended by the Consultative Committee, with the modifications to the Interpretative Notes that are noted above. The definition will come into effect today for this limited purpose.
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III. INCENTIVES TO PROMOTE THE USE OF CANADIAN ACQUIRED
PROGRAMMING
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(A) Background
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In the proposed policy on radio networks and syndication (Public Notice CRTC 1988-89), the Commission had suggested that at least 66% of all acquired programs broadcast by AM and FM licensees (other than play-by-play sports) be Canadian. The Commission received a substantial number of comments regarding the proposed guideline, most of which expressed opposition to its adoption.
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In Public Notice CRTC 1989-3, the Commission announced that it would not implement the proposed guideline at this time, but would consult further with the industry regarding incentives or other approaches to promote the use of Canadian programming acquired by radio licensees.
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The Consultative Committee on Acquired Audio Programming was charged with recommending to the Commission incentives that would meet the following objectives: (1) to provide support for the use of Canadian talent and resources through acquired programming, and (2) to provide support for the development of a Canadian audio program production industry that will serve to improve the quality of programming available to Canadians.
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(B) The Committee's Recommendations
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The Consultative Committee on Acquired Audio Programming agreed to recommend to the Commission the following incentives to promote the use of Canadian programming acquired by radio licensees:
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1. Commercials broadcast during a Canadian acquired program, whether foreground or mosaic,
and commercials aired outside of the program that are part of a barter agreement, will not be
included for purposes of calculating an FM station's commercial minutes.
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2. Category 5 musical selections broadcast during a Canadian acquired program will not be
included in the calculation of an FM station's format commitment. This dispensation would apply
to a maximum of 10 hours per week of Canadian acquired programming.
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3. Canadian acquired programs in the foreground format will receive 150% foreground credit.
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(C) The Commission's Response
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As noted earlier in this document, the Commission is in the process of reviewing the FM policy. As the incentives that were recommended by the Committee would be available exclusively to FM broadcasters, the Commission is of the view that their implementation should be considered in the context of this review. Accordingly, the Commission's response to the Committee's recommendations will be incorporated into the FM policy proposal.
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As an interim measure, until the FM policy review has been completed, the Commission will adopt the Committee's second recommendation regarding formats. Unlike the other two incentives that were recommended, the implementation of this incentive does not involve amendments to the radio regulations.
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Accordingly, effective today, an FM station may choose to exclude from the calculation of its format commitment, musical selections from Category 5 broadcast during a Canadian acquired program when compliance with its licensed format is assessed.
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The Commission is concerned about the impact that a dispensation of 10 hours per week of music programming from format commitments may have on FM stations' formats in competitive situations. The Commission, therefore, will limit the use of the incentive to seven hours of Canadian acquired programs per broadcast week instead of the 10 hours per week recommended by the Committee.
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The incentive will apply to all acquired programs that qualify as Canadian according to the definition presented in this Public Notice, with the exception of the following: (1) programs that are produced by the licensee, and (2) programs that are produced by a production company or a station that is an associate of the licensee. For this purpose, "associate" has the meaning set out in the public announcement issued by the Commission on 7 January 1980, entitled Transfers of Ownerships of Licensed Broadcasting Undertakings.
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Stations wishing to take advantage of the incentive must ensure that Canadian acquired programs are clearly identified on their program logs as "CAP". As well, stations should be prepared to provide documentation showing that programs identified as Canadian acquired programs qualify as such, upon request by the Commission.
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All of the Category 5 musical selections aired during such programs will be excluded from the calculation of formats when compliance is assessed. Applicants should note that these programs should not be taken into account when they make format commitments in their Promises of Performance.
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It is important to note that although Category 5 musical selections in programs identified as "CAP" will not be used for the purposes of calculating musical formats, these selections will be used in calculations of all other music requirements, such as hits and Canadian content.
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Fernand Bélisle
Secretary General
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APPENDIX
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Participants in the Consultative Committee on Acquired Audio Programming
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CRTC Staff
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Peter Fleming
Martine Vallée
Donald Rhéaume
Sheila Cussons
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CAB
Yvon Chouinard (Power Broadcasting Inc.)
Ted Farr (Selkirk Broadcasting Ltd.)
Paul Larche (Télémédia Communications Inc.)
Duff Roman (CHUM Ltd.)
Eric Rothschild (KEY Radio Ltd.)
Tony Scapillati (CAB/ACR)
Gary Slaight (Standard Radio Inc.)
Claude Thibodeau (Cogeco Inc.)
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CKO Radio
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Peter Jackman
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C.A.R.S.
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Don Bradley (Different Drummer Productions)
Doug Breithaup (Tower Corp.)
Dick Drew (Drew Marketing)
John Kares (NEOS Creative Productions)
Randy Timmins (Westwood One Canada)
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Sound Source
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Jean-Marie Heimrath
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Telemedia Broadcasting Systems
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Dani Eisler
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FACTOR/MUSICACTION
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Michel Gélinas (MusicAction)
Malcolm Scott (MusicAction)
Heather Sym (FACTOR)
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L'ADISQ
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Robert Pilon
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CIRPA
Brian Chater
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