ARCHIVED -  Public Notice CRTC 1989-3

Public Notice

Ottawa, 10 January 1989

Public Notice CRTC 1989-3

RADIO NETWORKS AND SYNDICATION POLICY

Table of Contents

I. BACKGROUND

II. POLICY OBJECTIVES AND ISSUES

III. COMMENTS RECEIVED REGARDING PUBLIC NOTICE CRTC 1988-89

(i) Definition of a Network

(ii) Tape Delay of Live Programs

(iii) Definition of Canadian Program

(iv) Overnight Programming Services

(v) Canadian Acquired Program Guideline for AM and FM Licensees

IV. RADIO NETWORKS AND SYNDICATION POLICY

A. Definition of a Network

1. Delegation of Control

a) Formal Reserved Time

b)De Facto Reserved Time

c) Simultaneous Distribution of Live Programs

(i) Tape Delay

(ii) Rebroadcasting of Programs From Other Stations

(iii) Brokerage

(iv) News Services

2. Use of the Word "Includes"

3. Two or More Broadcasting Undertakings

B. Radio Network Operations

1. Network Licensing Policy

2. General Regulations on Network Broadcast Matters

C. AM and FM Licensees

1. Stations' Usage of Non-local Programming

2. Use of Canadian Acquired Programming

3. Canadian Mosaic Programs

4. Overnight Programming Services

5. Network Affiliation and Disaffiliation 27 et désaffiliation

RELATED DOCUMENTS: Public Notices CRTC 1986-248 dated 19 September 1986, 1986-355 dated 23 December 1986, 1988-89 and 1988-90 dated 1 June 1988, and 1989-4 dated 10 January 1989; Circular No. 330 dated 25 February 1987.

I. BACKGROUND

On 1 June 1988 the Commission issued Public Notice CRTC 1988-89, which called for public comment on a proposed policy for radio broadcasting networks and radio syndication. This document presents a summary and discussion of the comments received in response to that Public Notice, and the Commission's decision with respect to the adoption of the Radio Networks and Syndication Policy.

Over the years, the Commission has initiated and developed appropriate policies to promote and encourage Canadian networks and syndicated programming. In Public Notice CRTC 1986-248, the Commission issued its Radio Regulations, 1986. The Commission deleted all regulatory provisions for networking or "Chain Broadcasting", with the exception of the provision that prohibits radio stations from affiliating with a foreign network. At the same time, the Commission implemented a new incentive scheme involving the broadcast of certain foreground format programs on FM stations, and designed to encourage radio networking and syndication and the production of high quality Canadian programming. The Commission also announced at that time its intention to conduct a review of networking and syndication. This review was prompted by a changing communications environment characterized by increased satellite program delivery, a growing availability and use of Canadian and foreign acquired audio programming, and the establishment of network and syndicated overnight programming services.

This new environment was seen as bringing both opportunities and challenges to the broadcasting system. The use of acquired audio programming can enhance the viability of stations, and increase the diversity and quality of programs within the system, as well as provide for the expression and utilization of Canadian resources. This new programming and distribution environment, however, also presented challenges to the Commission in terms of its regulatory and policy approaches to network operations and broadcasters' use of acquired programming, as well as in terms of its concern for the maintenance of local programming to ensure the relevance of the service offered by broadcasters to the licensed area.

In Public Notice CRTC 1986-355, the Commission identified a number of issues concerning radio and television networks, as well as radio syndication and other new audio programming developments. The Commission invited public comment on these issues and announced its intention to hold separate discussions concerning radio and television at a public hearing commencing 13 April 1987 in the National Capital Region.

Taking into account the comments received and the discussion at the public hearing, the Commission issued for comment separate radio and television policy proposals on 1 June 1988.

In Public Notice CRTC 1988-89,"A Policy Proposal Respecting Radio Broadcasting Networks and Radio Syndication; and Proposed Amendments to the Radio Regulations, 1986", the Commission set out its proposed policy with respect to radio networks and syndication. Policy issues pertaining to new audio programming developments were not included in the document as there had been very little discussion of this matter in the comments received or presented at the public hearing.

The Commission has taken into consideration all of the comments received regarding its policy proposals in establishing the radio networks and syndication policy set out in this document.

II. POLICY OBJECTIVES AND ISSUES

The Commission's main objectives in developing a policy regarding radio networks and syndication were as follows:

1. to support the use and exposure of Canadian resources through acquired programming;

2. to encourage the development of a Canadian syndicated and network audio programming sector;

3. to clarify and consolidate regulations, practices and policies with respect to radio networks and syndication;

4. to streamline and rationalize the Commission's regulatory framework with respect to radio networks and the use of acquired audio programming;

5. to alleviate the administrative burden for the industry and for the Commission.

The following issues were addressed in formulating the proposed policy:

1. the criteria to be used to determine the existence of a radio network, as per the definition of network in the Broadcasting Act;

2. the Commission's policies and regulations with respect to the operations of radio network licensees;

3. the Commission's policies regarding the use of acquired programming by radio licensees;

4. the establishment of a policy framework in support of Canadian acquired programming.

III. COMMENTS RECEIVED REGARDING PUBLIC NOTICE CRTC 1988-89

Eighty-two comments were received in response to Public Notice CRTC 1988-89. Of the comments received, 67 were from radio licensees and broadcast industry associations, four were from major producers/distributors, three were from independent producers/distributors and eight were from other interested organizations and individuals.

Overall, the industry welcomed the Commission's efforts to clarify and consolidate radio networking regulations, policies and practices. The submissions received also generally expressed acceptance of most of the provisions of the proposed policy for networking and syndication.

The major objection raised concerned the proposal that at least 66% of all acquired programs broadcast by local stations over a broadcast week, other than play-by-play sports, be Canadian. Opposition to this proposal was unanimous among AM and FM licensees and was also expressed by several program producers/distributors.

A summary of the issues raised in response to the proposed policy is presented below.

(i) Definition of a Network

The industry was generally satisfied with the proposed criteria to define a network (i.e. formal reserved time, de facto reserved time and editorial control). Several of those submitting comments, including the Radio-Television News Directors Association of Canada (RTNDA), Canadian Press (CP) and KEY Radio Ltd., however, expressed strong concern regarding the fact that, under the proposed criteria, live newscast services would be deemed to constitute network operations because of the means of distribution of the programming. These parties, therefore, requested that those distributing news programming services be exempted from any requirement to hold network licences.

To address the concerns regarding news services, the Commission has included in its radio networks and syndication policy a provision that news distribution arrangements that involve some degree of pre-screening and editing by the distributor and do not bind the station by a formal agreement to broadcast the program will not be considered to be network operations.

(ii) Tape Delay of Live Programs

In its proposed policy, the Commission proposed that programs received live by the local station but broadcast on a tape delay basis, would nevertheless be considered to be live programs unless the tape delay was at least equal to the duration of the actual program. The concern of the Commission was that a tape delay must be long enough to allow stations to exercise meaningful editorial control over live programs they broadcast. The Canadian Association of Broadcasters (CAB) wrote that, in their view, "any tape delay allows for the control by the local licensees". The CAB, therefore, felt that the Commission's proposal could be "unnecessarily demanding" and recommended that "any tape delay exceeding two or three minutes, or at the very extreme certainly no more than one hour, should be sufficient to be excluded from a live category". Westcom Radio Group Ltd. expressed the view that the required delay should be equal to the lesser of one hour or the actual length of the program.

In consideration of the comments by the CAB and Westcom, the Commission will consider programs that are received live by the local station and broadcast on a tape delay basis to be live programs unless the tape delay is at least equal to the duration of the actual program or one hour, whichever is less.

(iii) Definition of a Canadian Program

In Public Notice CRTC 1988-89, the Commission proposed a point system to be used to define a Canadian audio program. According to the point system, which would be self-administered by network operators, to be considered Canadian, a program must earn a minimum of two points if it is a musical presentation and one point if it is a non-musical presentation. While some interveners accepted the proposed definition of a Canadian audio program, a number of syndicators and network operators offered comments and suggestions regarding the proposed definition. For instance, the Canadian Association of Ethnic Broadcasters (CAEB) remarked that the proposed point system does not recognize the 7% Canadian content requirement during ethnic programming periods, as per the Radio Regulations, 1986. The Canadian Independent Record Production Association (CIRPA) expressed concern regarding Canadian musical content, in that "not one Canadian content musical work need be used to achieve ... certification [as a Canadian syndicated programme]". Both KEY Radio Ltd. and the CAB proposed that the definition should accommodate programs produced by landed immigrants. KEY Radio Ltd. also considered that the definition of the term "producer" should be modified to make reference to the production company rather than to an individual. The CAB suggested that the Commission set up a task force, which would include members of the CAB, to develop the most appropriate definition.

In order to arrive at a clear definition of a Canadian audio program that is generally acceptable and fair to the affected parties, the Commission has decided to establish a consultative committee to study the matter and recommend a suitable definition for a Canadian audio program.

(iv) Overnight Programming Services

Selkirk Communications objected to the Commission's proposal that the overnight period (midnight to 6:00 a.m.) remain unregulated, except for existing general prohibitions. Selkirk argued that the Commission should expect the same standards and requirements for the overnight period as for the broadcast day, with a view to providing support for program producers' efforts to produce overnight services for use by Canadian stations.

The Commission wishes to point out that the intention of its proposal is to maintain flexibility for both stations and distributors in order to encourage broadcasting during the overnight programming period. The Commission, therefore, intends to maintain a relatively unburdened regulatory environment for overnight programming.

(v) Canadian Acquired Program Guideline for AM and FM Licensees

In the proposed policy, the Commission proposed that at least 66% of all acquired programs broadcast by AM and FM licensees, other than play-by-play sports, be Canadian. This proposed guideline was intended to support the use of Canadian talent and resources through acquired programming, particularly in light of the increasing availability of foreign acquired audio programs. The policy guideline was also intended to support and encourage the development of a Canadian audio programming sector. The CAB, the CAEB and regional broadcasters' associations, private AM and FM licensees, the National Campus/Community Radio Association (NCRA), and the Alberta Educational Communications Authority did not agree with the proposal as presented. Opposition was also expressed by the Canadian Association of Radio Syndicators (C.A.R.S.), Sound Source and Télémédia Communications Inc., as well as the Quebec Minister of Communications and Mr. Robert K. Whyte of Toronto.

Three independent program producers, Creatively Produced Concerts Network Inc., Drew Marketing Ltd. and The Nation's Tracks, and The Writers Guild of Alberta expressed support for the proposed guideline.

The CAB felt that the proposed 66% content guideline is "unwarranted" and "excessive", considering that "except for music, the near totality of radio programs are Canadian in content".

Most private broadcasters considered that the guideline would bring about a decline in the diversity and overall use of acquired programs. CHUM-FM, for example, wrote: "If the search for suitable Canadian programs is unsuccessful, broadcasters may choose to discontinue or severely limit the amount of non-station produced radio programming". The following are among the reasons why certain parties opposed the proposed guideline:

- there is a shortage of Canadian acquired programming;

- Canadian programs need to be cross-subsidized by revenues derived from foreign programs;

- stations currently have commitments in their Promises of Performance involving the use of non-Canadian acquired programs;

- the policy does not provide any exemption or flexibility for stations that carry small amounts of acquired programs;

- there is little Canadian French-language acquired programming available;

- ethnic and non-commercial stations, and stations which air religious programming, rely greatly on foreign acquired programs as little Canadian product exists;

- Canadian border stations need to program certain U.S. programs to compete with U.S. signals available in their area;

- the guideline would make the occasional use of foreign acquired programs impractical.

A number of alternatives to the proposed guideline were suggested by industry to provide incentives for broadcasting Canadian acquired programming. These include the following:

- a credit system whereby Canadian acquired programs in the foreground format would receive extra foreground credit;

- a system whereby non-Canadian programs in the foreground format would not qualify as foreground programs;

- a policy whereby stations which broadcast less than seven hours per week of acquired programs would be exempt from any guidelines for Canadian programming;

- a system whereby extra credit would be given for long-form Canadian acquired programs in the foreground format;

- a reduction of the proposed guideline level to 30%, to correspond with existing regulatory levels for Canadian musical selections;

- the phasing-in over several years of a 30% level for Canadian acquired programs;

- an exemption from the proposed 66% guideline for full time ethnic broadcasters;

- an exemption from the 66% level for foreign acquired programs currently broadcast by stations;

- exemption from Canadian content music requirements for the duration of a Canadian network program;

- the implementation of incentives to assist local broadcasters who cannot afford satellite receive equipment, in order to facilitate mass distribution of programming and access to all markets;

- exclusion of news and public affairs programming from the proposed guideline, to accommodate the foreign programs acquired mostly from Europe and broadcast by non-commercial stations.

Based on the findings of a 1988 CAB survey and a survey conducted by the Commission in 1986, the Commission recognizes that, while levels of foreign acquired programming broadcast by licensees are generally rising, they still represent less than 50% of all acquired programming broadcast.

The Commission also realizes that the success of the proposed guideline would largely depend on the ability of the still young and developing Canadian program production industry to supply broadcasters with the necessary product.

For these reasons, the Commission considers that it would be inappropriate to implement the proposed guideline at this time.

Rather, the Commission will further consult with the radio broadcasting, program production and recording industries regarding incentives to support Canadian talent and resources through the use of Canadian acquired programming. This consultation will be part of the consultative process to develop a definition for a Canadian audio program, which is referred to earlier in this document.

IV. RADIO NETWORKS AND SYNDICATION POLICY

The following section presents the radio networks and syndication policy, as adopted by the Commission. The policy describes the criteria which will be used for the purposes of licensing radio network operations. The policy also sets out the Commission's regulatory approach to radio networks and the use of acquired programming by AM and FM licensees.

The Commission regards networks as a central component of the Canadian broadcasting system. Networks and other syndicated programming arrangements, by their nature, are uniquely capable of reaching, informing and entertaining Canadians with high quality, diverse programming. Consequently, the Commission regards networks as important vehicles to achieve the goals set for the system in the Act.

It is the Commission's view that the primary responsibility of AM and FM licensees is to provide locally oriented and original programming suited to the needs, interests and character of local communities. The Commission will, therefore, continue to seek assurances that most of the programming broadcast by AM and FM stations is of direct relevance to local communities, particularly during peak audience periods.

The Commission recognizes that future growth for certain radio stations may come from developing a complementary mixture of high quality local and acquired programs, particularly in light of the increased fragmentation of radio markets and the decreasing profitability of some segments of the radio industry. The policy, therefore, seeks to ensure that network and syndicated programs distributed and broadcast in Canada maximize the use and exposure of Canadian creative and other resources. At the same time, the Commission wishes to ensure that its regulation and supervision of networks and syndicated programming is efficient and imposes a minimal burden upon its radio licensees.

A. Definition of a Network

There are three essential elements to the definition of a network as set out in the current Broadcasting Act. These are: the concept of delegation of control; the use of the word "includes"; and the existence of two or more broadcasting undertakings. A discussion of these three elements and the criteria which the Commission will use to determine their existence respecting radio are set out below. 1. Delegation of Control

The specific reference in the Act to the concept of control over programs or program schedules requires the Commission to regulate as a network operation any program distribution arrangement wherein such delegation occurs.

To determine the existence of the delegation of control from a radio station to another party, the Commission will use three primary criteria. These involve: formal reserved time; de facto reserved time; and, simultaneous distribution of live programs. Accordingly, delegation of control, and hence a radio network operation, will be deemed to exist when one or more of the primary criteria are present.

a) Formal Reserved Time

Formal reserved time exists where a radio broadcaster, as a condition of the acquisition of all or parts of a program, is required by a formal agreement to broadcast the program at a specified time or within specified time frames. Where formal reserved time exists, the Commission will consider that a radio network operation exists. Accordingly, it will require that, prior to the broadcast of the program, a network application be filed and a network licence obtained by the person who provides the proposed programming. A formal reserved time agreement is generally evinced by the existence of an affiliation agreement or similar contractual arrangement. Under a formal reserved time agreement, a local station generally does not have the power to refuse to air a program which it has contracted to broadcast until the expiration of the agreement, except on a temporary basis and under special circumstances as provided for in the contract. The local station is required to air the program at, or within, specified clock hours or time frames.

In contrast, a purchase contract allows a radio station to determine the scheduling of a program, whether or not a time frame is suggested by the program distributor, and thus does not constitute a formal reserved time commitment.

Whether the programming is distributed live, by tape, or is tape-delayed has no bearing on whether formal reserved time exists.

b) De Facto Reserved Time

De facto reserved time exists where there is no formal contract or written reserved time commitment, but where there is evidence that a program, or programs, are being broadcast by more than one undertaking at a designated time and where, in the Commission's view, the program or programs affect the Canadian broadcasting system in a way similar to that where a formal, reserved time agreement exists.

It is conceivable that programming acquisition arrangements between distributors and local radio station licensees may involve an informal or unwritten requirement for a program or programs to be scheduled at a specified time, as determined by a person other than the licensee of the local station. A useful indicator of the existence of such de facto reserved time is the presence of commercial content that is broadcast at a pre-determined time by the local station as a condition of the acquisition of the program. Another indicator of the existence of de facto reserved time is the simultaneous broadcast of the program by a number of local stations.

Consequently the net effect of the distribution and broadcast of this programming on the broadcasting system may be similar to the effect of centralized programming by networks and may produce a significant impact on other licensed components of the broadcast system and on a sizeable segment of the population. In such situations, the Commission may consider that a de facto radio network operation exists.

As with formal reserved time, the fact that a program is delivered live, by tape or has been tape-delayed, has no direct bearing on whether de facto reserved time may be deemed to exist.

c) Simultaneous Distribution of Live Programs

In order to distinguish between network and syndicated operations, the Commission considers that the ability or opportunity on the part of the licensee to edit or alter the contents of a program is central to the determination of delegation of control referred to in the Act. This should not be confused with the power to decide whether or not to broadcast a program. This notion of editorial control is particularly significant in the case of live programs. Distribution arrangements involving pre-produced or pre-recorded programs that are made available to stations (e.g. via satellite), even in cases where stations retransmit such programs simultaneously over-the-air, will be treated as syndicated operations, except where formal reserved time or de facto reserved time exists.

In the case of a live program which is a program that involves the presentation of a live event, such as a sports event which is received and broadcast by a station simultaneously, the Commission considers that the station has abandoned its ability to edit or alter the contents of the program and therefore will consider that a network operation is in place. In situations where both live and pre-recorded elements co-exist within a single segment or continuous block of programming, the Commission will also consider this to be network programming.

With regard to live programs, several related issues are discussed below:

(i) Tape Delay

The Commission will accept the use of a tape delay as a means for a local licensee to maintain editorial control over live programming if the length of the delay is sufficient to allow reasonable screening of the program. For this purpose, the Commission will consider the program to be live unless the time delay is at least equal to the duration of the actual program or one hour, whichever is less.

(ii) Rebroadcasting of Programs From Other Stations

In certain situations, the Commission has authorized local radio broadcasters to pick up and rebroadcast the programming of other stations temporarily in situations where the local station is experiencing financial or other difficulty in filling its program schedule. Where the Commission has been satisfied in such cases that the terms of the arrangement between the originating and rebroadcasting stations are based on a form of co-operation that does not affect the ability of the rebroadcasting station to exercise control over its programs or program schedules, the Commission will continue its policy not to require a network licence application.

(iii) Brokerage

Brokerage refers to the purchase by program distributors of blocks of time from local station licensees for the broadcast of programming oriented to specific audiences. As stated in Public Notice CRTC 1985-139 entitled "A Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity", the Commission recognizes that brokerage provides an important source of programming, particularly for audiences not well served by mainstream broadcasting.

The Commission will not consider brokerage arrangements to be network operations provided the local station maintains control over the content and scheduling of the programs and brokered programs are not distributed as live programs to other stations.

(iv) News Services

With respect to news distribution arrangements, which generally involve some degree of pre-screening and editing by the distributor, in cases where the station is not bound by a formal or an apparant de facto agreement to broadcast the program, the Commission will not consider these to be network operations.

In all cases where the existence of a network operation is not clear, the Commission will be guided primarily by the presence of some aspects of one or more of the primary criteria, and the impact of that operation on the Canadian broadcasting system as a whole.

2. Use of the Word "Includes"

In Decision CRTC 80-704, which granted a licence for the satellite distribution of the proceedings of the House of Commons, the Commission stated its conclusion that the use of the word "includes" in the definition of a network found in the Act is enlarging. Consequently, the Commission is not restricted to treating as networks only those program distribution operations where a delegation of control and the criteria developed for determining it are present. In support of this interpretation, the Commission made reference to section 3(j) of the Act, that the system should be flexible and adaptable to new developments.

Furthermore, section 15 of the Act confers upon the Commission the authority and responsibility to:  regulate and supervise all aspects of the Canadian broadcasting system with a view to implementing the broadcasting policy enunciated in section 3 of the Act.

The Commission will continue to apply this interpretation of the Act's use of the word "includes" in cases where programming arrangements may have a significant impact on the system. Nevertheless, the Commission is of the view that the vast majority of program distribution arrangements that fit the definition of a radio network will do so through the criteria established for determining delegation of control as discussed earlier in this document.

3. Two or More Broadcasting Undertakings

The network definition set out in the Act applies to arrangements which involve two or more broadcasting undertakings.

The Commission considers that a network operation may exist in the case of a program arrangement involving a network operator and only one station where the network operator also transmits the programming as a broadcaster. For private broadcasters where all the undertakings are owned by the same licensee, no network licence is required, since no delegation of control to another licensee occurs.

B. Radio Network Operations

1. Network Licensing Policy

In the interest of providing increased efficiency to the industry and the Commission and enhanced flexibility to network operators, the Commission will authorize a network operator, where appropriate, to distribute a variety of network programs over the term of a single licence, based on the network applicant's programming proposals.

Applicants for network licences will be required to provide programming information regarding content and scheduling, as well as ownership and financial information. The Commission intends to issue new, separate application forms for network operations in the near future.

The Commission considers it fundamental to the system that network operators help achieve the objectives of the Act. To this end, the Commission expects network operators to support and distribute programs that utilize Canadian creative and other resources.

The Commission is of the view that network operators who distribute a substantial amount of network programs exercise considerable influence within the broadcasting system. Consequently, they have a special responsibility to assist in achieving the goals of the Act. Accordingly, the Commission will expect network licensees who distribute a weekly average of seven or more hours of network programming per year to distribute predominantly Canadian network programming. The definition of a Canadian audio program will be determined through a consultative process involving the Commission and representatives of the radio broadcasting and audio program production and distribution industries. The definition of a Canadian audio program will be based on a self-administered point system, similar to the Commission's regulatory approach for television.

2. General Regulations on Network Broadcast Matters

In the Radio Regulations, 1986, there are no references to networks in sections setting out general prohibitions and requirements for AM and FM licensees on matter broadcast. Consequently, network operators have not in the past been held accountable for certain aspects of their programming. While any Commission concerns regarding the programming broadcast by an affiliate station during network periods can be pursued with the affiliate, the Commission considers this to be administratively inefficient. The Commission considers it more reasonable to address network programming concerns to the network operators who have, by definition, assumed control of the network programming broadcast by an affiliate station.

The Commission has, therefore, amended the Radio Regulations, 1986 so that sections generally applicable to AM and FM licensees, excluding logging requirements, are also applicable to network operators. Specifically, the definition of a licensee in Section 2 of the regulations has been amended to include network operators. This change also includes an amendment to Section 10 of the regulations, entitled "Affiliation" (SOR/88-549 dated 25 October 1988).

C. AM AND FM LICENSEES

1. Stations' Usage of Non-local Programming

The Commission recognizes the numerous benefits that can accrue to local licensees and their audiences from access to unique and high quality acquired programming. The Commission also recognizes that the needs of local broadcasters for acquired programming vary in accordance with a number of factors, such as individual station strategies and resources, and intra-market competition. The Commission emphasizes, however, that the fundamental responsibility of a local licensee is to provide original programming of direct relevance to its immediate local audience, particularly during peak audience periods.

The Commission does not intend to introduce policy or regulations limiting the level of non-local programming at this time. Instead, the Commission will require individual local licensees, at licence renewal time, to indicate and justify the levels and scheduling of acquired programming they intend to broadcast over their new licence term. The Commission considers that the intrinsic nature and role of radio as the provider of a local service effectively limit the level of network and syndicated programming broadcast by local licensees in the vast majority of cases. The Commission has revised the AM licence application forms to call for greater clarity and detail by licensees in outlining their plans for network and syndicated programs. It is in the process of making similar revisions to the FM licence application forms.

2. Use of Canadian Acquired Programming

A major policy objective of the Commission is to promote the maximum use of Canadian resources within the Canadian broadcasting system. In keeping with this objective, the Commission supports the use and exposure of Canadian talent and resources through acquired programming, particularly in light of the increasing use of acquired programming by broadcasters, including the growing influx of audio programs available from foreign sources. Moreover, the Commission wishes to encourage the development of a Canadian syndicated and network audio programming sector that will supply the needs of broadcasters and enhance the quality and diversity of programs offered to Canadians.

The existing regulatory requirements for local AM and FM licensees regarding Canadian musical selections, and the commitments made by broadcasters to support Canadian talent and production, provide an indirect incentive for stations to broadcast Canadian network and syndicated programs.

In addition, the Commission will generally expect AM and FM licensees who carry acquired programs to support Canadian acquired programs. The Commission does not intend at this time to implement a guideline or requirement regarding the proportion of Canadian acquired programming expected of licensees. The Commission will, however, review a station's use of acquired programs at the time of licence renewal. In this respect, the Commission will consider a station's use of Canadian acquired programs as part of its contribution in support of Canadian programming. The Commission also intends to discuss with the industry alternative approaches to promote the use of Canadian acquired programming. This discussion will take place in the context of the consultative committee which is referred to above.

In order that the Commission may monitor the uses of acquired programming by individual stations and by the radio industry as a whole, AM and FM licensees will be required to maintain a log of acquired programs broadcast according to type (network or syndicated program) and origin (Canadian or foreign program). Accordingly, the Commission will amend Schedule A (Code Indicating Origin) of the Radio Regulations, 1986. This amendment will be issued at the same time as the Commission publishes a definition of a Canadian audio program.

Stations submitting self-assessment reports should also describe their use of acquired programs.

3. Canadian Mosaic Programs

In order to provide an incentive for stations to acquire Canadian mosaic programs with substantial enrichment rather than similar foreign programs, and thereby to enhance their support for Canadian producers and distributors of mosaic format programs, the Commission will revise its policy regarding mosaic programming with substantial enrichment.

The existing double credit for mosaic segments with substantial enrichment, as set out in Public Notice CRTC 1984-285, will be available only for programming that is Canadian. To be eligible, mosaic segments must contain either 90 seconds of uninterrupted enrichment or at least a total of 3 minutes of enrichment and spoken word actuality.

The implementation of this policy will coincide with issuance of the Commission's definition of a Canadian audio program.

4. Overnight Programming Services

Network and syndicated overnight programming services provided between midnight and 6:00 a.m. allow stations, particularly those operating in small markets, to provide programming that they otherwise could not afford to make available during these hours. Overnight programming services can also enhance the financial viability of broadcasters by providing new revenue sources. In light of these benefits, the Commission intends to maintain a relatively unburdened regulatory environment for overnight programming.

The Commission does not intend at this time to apply to the overnight programming period the existing regulatory requirements for AM and FM stations that currently pertain to the broadcast day or broadcast week, such as the regulatory requirements and conditions of licence for Canadian content. This issue will, however, be reviewed within the context of the upcoming Review of Radio Policies.

The Commission will expect overnight programming services to provide support for and exposure of Canadian artistic talent.

Moreover, the Commission will expect network licensees to make commitments regarding the use of Canadian resources within the overnight programming they provide.

5. Network Affiliation and Disaffiliation

Pursuant to the provisions of the Broadcasting Act, a licensee wishing to operate its broadcasting undertaking as part of a network may do so only in accordance with conditions of its licence.

The following condition is attached to most licences:

 The licensee shall not affiliate or disaffiliate with any network operator without first having obtained the written approval of the Commission. The Commission has in the past approved affiliation and disaffiliation with a network operator on a case-by-case basis upon application.

In the interest of reducing administrative burden for the Commission and for radio licensees, the Commission, in Public Notice CRTC 1989-4 issued today, grants blanket authority for radio licensees whose licences are subject to the above condition to affiliate with and disaffiliate from any licensed radio network. Network licensees will be required to submit lists of affiliated stations to the Commission every three months.

In this regard, the Commission reminds all radio licensees whose licences are not currently subject to the above-noted condition of licence and who may wish to avail themselves of the blanket authorization, that they must first apply to add the appropriate condition.

This approach does not apply to the CBC radio networks and their affiliates. Radio licensees wishing to affiliate with or disaffiliate from the CBC are required to do so through application to the Commission.

Fernand Bélisle
Secretary General