ARCHIVED -  Decision CRTC 94-655

Decision

Ottawa, 18 August 1994

Decision CRTC 94-655

VISION TV: CANADA'S FAITH NETWORK/RÉSEAU RELIGIEUX CANADIEN

Across Canada - 931952600

Licence Renewal for Vision TV

Following a Public Hearing held in the National Capital Region beginning on 25 April 1994, the Commission renews, from 1 September 1994 to 31 August 2001, the licence issued to VISION TV: CANADA'S FAITH NETWORK/RÉSEAU RELIGIEUX CANADIEN (formerly Canadian Interfaith Network) to operate a national English-language specialty programming undertaking providing an interfaith, religious programming service known as Vision TV. The licence will be subject to the terms and conditions specified in the appendix to this decision and in the licence to be issued.

Vision TV is available to cable television affiliates across the country for distribution on a dual status basis.

Vision TV is a not-for-profit, specialty programming service devoted to the provision of balanced programming focused upon the varied religious practices and beliefs of Canadians. The Commission first licensed Vision TV in 1987 (Decision CRTC 87-900 dated 30 November 1987) in accordance with the provisions of the Commission's 1983 policy on religious broadcasting set out in Public Notice CRTC 1983-112 dated 2 June 1983. Subsequently, in Public Notice CRTC 1993-78 dated 3 June 1993, the Commission announced its new religious broadcasting policy, which makes provision for an expanded range of religious television services to be offered on a discretionary basis to cable subscribers. In that public notice, the Commission gave particular emphasis to Vision TV's positive contribution to the Canadian broadcasting system, noting particularly its "ability to promote tolerance and co-operation among different religious groups in Canada."

Notwithstanding the concerns discussed in this decision, the Commission is satisfied that, over its six years of operation, Vision TV has consistently provided a quality, balanced service. Accordingly, the Commission considers that a full-term licence renewal, as requested by the licensee, is justified.

Nature of Service

Currently, the licensee is required by condition of licence to provide programming that conforms with the definition of religious programming set out in Public Notice CRTC 1983-112.

During the current licence term, the Commission received some complaints that Vision TV was distributing programming other than religious programming. Having reviewed the licensee's programming, the Commission is satisfied that Vision TV's programming is consistent with its mandate as set out in its condition of licence. As discussed with the licensee at the April 1994 hearing, the Commission has decided to embody in the condition of licence pertaining to Vision TV's nature of service, a definition of "religious programming" similar to the one found in Public Notice CRTC 1983-112, rather than to merely incorporate the definition by reference to that public notice.

Accordingly, by condition of licence, the programming provided by the licensee shall consist exclusively of interfaith, religious programming which is related to, inspired by, or arises from a person's spirituality, including related moral or ethical issues. The Commission considers that the incorporation of this wording in the condition will clarify for viewers the nature of Vision TV's service, without altering its programming orientation.

Not less than 90% of the programming provided by the licensee shall be drawn from categories 4(a) (CORNERSTONE) and 4(b) (MOSAIC), as set out in Schedule I of the Specialty Services Regulations, 1990.

CORNERSTONE programs are general, interfaith programs produced or acquired by the licensee itself, and MOSAIC programs are paid-time denominational presentations produced or acquired at arm's length by various faith groups.

Should the licensee wish to broadcast religious programming that does not conform with the definitions of CORNERSTONE and MOSAIC programming set out above, such programming must be restricted to no more than 10% of the total schedule.

Programming Plans

As discussed in its application and at the hearing, during the new licence term, Vision TV will implement, with some modifications, the programming plans proposed at the July 1993 public hearing at which the Commission considered a previous application by the licensee requesting authorization to introduce a wholesale subscriber fee. Beginning in October 1994, the licensee will reduce the number of repeats in Vision TV's prime-time programming block from original distribution plus three repeats, to original distribution plus two repeats. Also beginning in the fall of 1994, the licensee will implement a live studio capability which will allow for phone-in/phone-out programs. Working in association with theology schools, the licensee will add a new distance learning programming block to its schedule. While Vision TV will not offer programming directed exclusively to children, the schedule will include a programming block targeted especially to families.

Wholesale Fee

In Decision CRTC 87-900, which originally licensed Vision TV, the Commission authorized the licensee to offer the service free of charge to cable television affiliates on an optional basis for distribution on basic service. The licensee subsequently applied for an amendment to its licence that would allow it to introduce a wholesale rate of $0.10 per subscriber per month. After considering this application at the July 1993 public hearing, the Commission authorized the licensee to charge a maximum wholesale rate of $0.08 per subscriber per month, effective 1 January 1994, to each cable operator wishing to carry Vision TV as part of its basic service (Decision CRTC 93-580 dated 3 September 1993).

In its current renewal application, the licensee requested an amendment to the condition of its licence governing the wholesale rate it is authorized to charge cable television affiliates that distribute Vision TV as part of the basic service. Specifically, the licensee proposed that the monthly subscriber rate be increased from the present level of $0.08 to $0.10, beginning on 1 September 1997 and for the remainder of the licence term.

In Decision CRTC 93-580, the Commission advised the licensee that
"having authorized the introduction of a rate for the first time, the Commission would generally not foresee any subsequent increase as being warranted", and "would not be favourably disposed to granting any increase in this rate in the foreseeable future". The Commission noted that "services such as Vision TV normally have the ability to compensate for inflation ... by maximizing their advertising income." Further, the Commission stated that it was satisfied that the $0.08 rate authorized was "reasonable and sufficient to enable the licensee to increase its expenditures on Canadian programming and to continue to provide a viable and attractive service to subscribers."

In view of its clear statements in Decision CRTC 93-580, the Commission asked the licensee at the April 1994 hearing if it had any new facts or arguments to present that would support an increase in the wholesale subscriber rate at this time. In response, the licensee reiterated the arguments put forth in support of its previous application requesting authorization to introduce a wholesale rate of $0.10 per subscriber per month.

Specifically, the licensee claimed that it needs a wholesale rate of $0.10 to achieve the level of quality in the programming that it had proposed at the July 1993 hearing. The licensee also claimed that, because of the nature of its service, Vision TV's potential to increase advertising revenues is limited. Moreover, the licensee claimed that, potentially, it faces increased competition from the new Canadian specialty programming services as well as from possible single or limited point of view religious services that may be licensed as a result of the Commission's new policy on religious broadcasting announced in Public Notice CRTC 1993-78.

The Commission is not satisfied that the licensee has presented any new evidence to warrant an increase in the wholesale rate of $0.08 authorized on 3 September 1993. Accordingly, the Commission denies the licensee's request to increase the wholesale rate, and authorizes the licensee, by condition of licence, to charge exhibitors of this service a maximum wholesale rate of $0.08 per subscriber per month for distribution on the basic service.

Canadian Programming Expenditures

Currently, the licensee is required, by condition of licence, to devote not less than a prescribed percentage1 of its annual gross revenues to the acquisition of and/or investment in Canadian programs. The Commission notes that the licensee has not complied with the requirement of this condition of licence during four of the five years of the present licence term.

According to the licensee, high satellite costs combined with high service charges on its debt made it impossible to achieve the levels of expenditures on Canadian programming required by its condition of licence. The licensee also claimed that, in the past, its accounting procedures did not accurately reflect its expenditures on Canadian programming.

At the hearing, the licensee confirmed that it will be in compliance with this condition of licence by 31 August 1994. The licensee explained that it has retired its bank debt and that it expects to realize savings in satellite delivery costs as a result of the introduction in 1993-1994 of digital video compression and arrangements to share satellite transponder space with other licensees. In addition, the licensee stated that it has installed appropriate accounting controls to enable it to calculate Canadian programming expenditures properly.

As discussed at the hearing, and as required by the condition of licence set out in the appendix to this decision, the licensee shall, in each broadcast year of the licence term, spend a minimum of 45% of the previous year's gross revenues on the acquisition of and/or investment in Canadian programs. Consistent with the Commission's approach regarding conventional television broadcasters, the condition of licence gives the licensee some flexibility in the accounting of these expenditures.

Supervision of Mosaic Programming

Monitoring of Vision TV's programming by the Commission, and complaints received from viewers during the current licence term have revealed instances of inadequate supervision by the licensee of some of the programs broadcast as part of its MOSAIC presentations. At the hearing, the licensee acknowledged that it has had problems with some of its MOSAIC paid-time programming. These matters are addressed below.

(i) Advertising Material

The licensee is currently required by condition of licence to distribute no more than six minutes of advertising material, program promotion and solicitation of funds during each clock hour. In December 1993, the Commission monitored the programming distributed by Vision TV on 8 and 15 August 1993. The Commission's analysis of the two days' programming revealed that two episodes of one MOSAIC program, "Old Time Gospel Hour", contained 40 minutes 26 seconds, and 37 minutes 14 seconds of advertising, respectively. According to the definition contained in the Commission's Circular 350, these programs constituted what were, in effect, 40-minute-long infomercials.

At the hearing, the licensee explained that this problem is associated with a small number of American broadcast ministries whose programming is originally produced for distribution in the United States where the broadcasting of advertising material is subject to different rules. In order to resolve this problem, the licensee indicated that it has undertaken discussions with these program suppliers to apprise them of the Commission's regulatory requirements under which Vision TV operates and of the necessity of adhering to these requirements. Once the licensee finds that a particular program has exceeded the limit on advertising, the licensee will screen the supplier's programs before they are aired to ensure that the supplier is complying with Vision TV's conditions of licence. The licensee further stated:

 If we have warned them before they were over time, we simply run an old program, until they get their commercial time into a proper time frame.

The Commission expects the licensee to follow the monitoring procedures described above to ensure that Vision TV is in compliance at all times with its condition of licence regarding advertising.

Currently, Vision TV's condition of licence pertaining to advertising states, in part, that:

 Solicitation 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. (condition 10 (f))

According to the Commission's monitoring of the programming distributed by Vision TV on 27 October 1993, every MOSAIC program broadcast on that day contained more than 90 seconds per half-hour of solicitations of funds, merchandising and give-aways. In responding to the Commission on this issue, the licensee stated that it finds it impossible to distinguish between give-aways, merchandising and advertising. It explained that its practice has been to consider merchandising and give-aways as advertising and to distinguish all three from solicitation of funds. The licensee asked that the Commission amend its condition of licence to reflect this practice.

The Commission accepts the licensee's argument that it is frequently difficult to differentiate between merchandising, give-aways and advertising in general. Accordingly, in condition of licence 9(g) set out in the appendix to this decision, the Commission has deleted the reference to merchandising and give-aways. At the same time, the Commission has maintained the restriction on the solicitation of funds to 90 seconds per half-hour.

(ii) Subscriber Complaints

The Commission also found inadequate the licensee's supervision of some third-language programs broadcast as part of its MOSAIC presentations. In November 1993, the Commission received a complaint from the High Commission of India in Canada relating to programming in the Punjabi language provided by a Canadian Sikh faith group. The complainant claimed that portions of the programming supported the establishment of an independent state for adherents to the Sikh faith and condoned the purchase of bullets to defend the Sikh faithful from the Indian state.

Paragraph 3(1)(g) of the Broadcasting Act (the Act), the statute from which the Commission derives its mandate, states that "the programming originated by broadcasting undertakings should be of high standard". After reviewing the program at issue, the Commission found that the material referred to in the complaint by the Indian High Commission violated the high standard requirement of the Act. Moreover, correspondence between the Commission and Vision TV on this issue revealed that the licensee was unaware of the content of the program in question.

At the hearing, the licensee acknowledged that, although it has attempted to monitor third-language MOSAIC programs carefully during the current licence term, on occasion, the language "escapes" it. The licensee noted that it now has a staff person to supervise third-language programming and that this person has access to translators. The licensee confirmed:

 If we have any doubts or concerns about some programs, we in fact do screen them beforehand with a person who understands the
 language.

Another area of concern regarding Vision TV's MOSAIC programming was raised in interventions by members of the gay, lesbian and bi-sexual community, including those presented at the hearing by Supermarketing and the Association of Lesbians and Gays of Ottawa. These interveners opposed Vision TV's licence renewal because it broadcasts programs such as the "Old Time Gospel Hour", which, in their view, promote hatred of homosexuals.

In response to these concerns, the licensee stated:

 Where there is lack of balance in the MOSAIC streams of programming on VISION, we make a real extra effort to balance those issues in our own CORNERSTONE programming ... We are very sympathetic and concerned about the homosexual, gay and lesbian groups in our community, and in fact involve those groups in an ongoing basis in the production of those
programs.

The Commission reminds the licensee that it is responsible for all of the programming it broadcasts. The Commission expects the licensee to carry out the commitments that it made at the hearing to strengthen its supervision of certain aspects of its MOSAIC programming and to take all appropriate steps to ensure that it is in compliance at all times with its conditions of licence, code of ethics and regulatory requirements.

Removal of Restriction on Type of Advertising

As requested by the licensee, the Commission hereby deletes from Vision TV's condition of licence pertaining to advertising the section that limits advertising broadcast by Vision TV to goods or services that sponsor, support or are affiliated with Canada's faith communities; are related to the religious, ethical or moral lives of Canadians; or are used by Canadians in relation to their membership or participation in faith communities.

In support of this request, the licensee advised the Commission in a letter dated 17 December 1993, that 86% of Vision TV's 1992-1993 advertising revenues was generated by mainstream goods and services and the remaining 14% by specifically religious orientated advertising.

The Commission considers that the elimination of this restriction will enable Vision TV to expand its advertising clientele. At the same time, the Commission is satisfied that, because of the nature of Vision TV's programming, the elimination of the restriction on advertising should not have a significant impact on conventional television broadcasters or other specialty services.

Closed-captioned Programs

The Specialty Services Regulations, 1990 require licensees to log all of their closed-captioned programs. The Commission's monitoring of Vision TV's logs for September, October and November 1993 revealed that the licensee had not distributed any closed-captioned programming during these months. In response to a letter from the Commission requesting clarification of this issue, the licensee indicated that, in fact, Vision TV did not distribute any closed-captioned programming in October 1993.

The Commission notes that the licensee's response appears to be inconsistent with the data it filed in its renewal application for each of the two years prior to 31 August 1993. According to these data, Vision TV had distributed 420 hours of closed-captioned programming in each of these two years.

At the hearing, the licensee admitted that its figures on closed-captioning of programs for the current licence term were based on estimates made by producers, and not on logs. The licensee made a commitment to begin logging of closed-captioned programs by 31 August 1995.

The Commission reminds the licensee that it must take the necessary measures to ensure that it is in compliance at all times with the regulations and, therefore, requires the licensee to begin logging its closed-captioned programming forthwith.

The Commission notes that the licensee proposes to distribute 1,300 hours of closed-captioned programs in each year of the new licence term.

Code on Violence

In 1993, the Commission accepted the Canadian Association of Broadcasters's (CAB) "Voluntary Code Regarding Violence in TelevisionProgramming". This code set out a series of guidelines on the depiction of violence in television programming to be used by conventional private television broadcasters and administered by the Canadian Broadcast Standards Council (CBSC).

During the same year, the Commission requested the other members of the Canadian broadcasting industry to submit their own proposed codes on programming violence. Given that Vision TV's code on violence has not yet been approved by the Commission, the licensee shall adhere, by condition of licence to the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and approved by the Commission, until such time as the Commission approves the licensee's own guidelines on the depiction of violence in programming.

Once the Commission has approved Vision TV's own guidelines on the depiction of violence in programming, the licensee will be required to adhere, by condition of licence, to this code, as amended from time to time and accepted by the
Commission.

Since the licensee like the licensees of all specialty services, is not a member of the CBSC, the
Commission will oversee the application of any violence code governing Vision TV.

Employment Equity

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. It encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Interventions

The Commission acknowledges the numerous interventions and petitions, including many submitted in support of Vision TV's licence renewal.

Allan J. Darling
Secretary General

1 36% in 1988/89, 38% in 1989/90; 41% in 1990/91; 45% in 1991/92; and 44% in 1992/93

APPENDIX / ANNEXE

Conditions of Licence for Vision TV

1. (a) The programming provided by the licensee shall consist exclusively of interfaith, religious programming which is related to, inspired by, or arises from persons' spirituality, including related moral or ethical issues.

 (b) Subject to (a), not less than 90% of the programming provided by the licensee shall be drawn from categories 4(a) (CORNERSTONE) and 4(b) (MOSAIC), as set out in Schedule I of the Specialty Services Regulations, 1990.

2. The licensee shall devote not less than 45% of the total hours distributed in any one broadcast year to the distribution of CORNERSTONE programming.

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

4. The Board of Directors of Vision TV shall consist of nine members and shall include representatives of at least three of the following world religions: Buddhism, Christianity, Hinduism, Islam, Judaism, Bahai, Native Spirituality, Sikhism, Unitarianism and Zoroastrianism.

5. The licensee shall ensure that, with respect to members of the Board of Directors, no more than two new or replacement directors shall have backgrounds that reflect a subdivision or denomination of any one world religion, or shall share a single faith perspective.

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

7. 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 that have purchased MOSAIC time and the amount of time each has purchased;

 (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.

8. (a) In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1993-93 and 1993-174, the licensee shall, in each broadcast year, expend not less than 45% of its gross revenues for the previous year on the acquisition of and/or investment in, Canadian programs.

 (b) In any broadcast year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underspending.

 (c) In any broadcast year of the licence term, including the final year, the licensee may expend an amount on Canadian programming that is greater than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee may deduct:

  (i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's overspending; and

  (ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overspending and any amount deducted under paragraph (i) above.

 (d) Notwithstanding the above, during the licence term, the licensee shall expend on Canadian programming, at a minimum, the total of the minimum required expenditures calculated in accordance with the licensee's condition of licence.

9. (a) Subject to subsections (b) and (d), the licensee shall not distribute more than six minutes of advertising material during each clock hour. Advertising material shall include all commercial activities, such as solicitations, merchandising and give-aways, etc.

 (b) In addition to the six minutes of advertising material referred to in subsection (a), the licensee may distribute, during each clock hour, a maximum of 30 seconds of additional advertising material that consists of unpaid public service announcements.

 (c) The licensee shall not distribute any paid advertising material other than paid national advertising.

 (d) Where a program occupies time in two or more consecutive clock hours, the licensee may exceed the maximum number of minutes of advertising material allowed in those clock hours if the average number of minutes of advertising material in those clock hours occupied by the program does not exceed the maximum number of minutes that would otherwise be allowed per clock hour.

 (e) All solicitation 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.

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

 (g) Solicitation of funds in MOSAIC programming shall together comprise no more than 90 seconds per half-hour, and no accumulation shall be permitted.

10.  The licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.08 per subscriber per month for exhibition on the basic service.

11. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) "Sex-Role Portrayal Code for Television and Radio Programming", as amended from time to time and approved by the Commission.

12. The licensee shall adhere to the provisions of the CAB's "Broadcast Code for Advertising to Children", as amended from time to time and approved by the Commission.

13. (a) The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's "Voluntary Code Regarding Violence in Television Programming", as amended from time to time and approved by the Commission, until such time as the Commission approves the licensee's own guidelines on the depiction of violence in programming.

  (b) Once they are submitted by the licensee and approved by the Commission, the licensee shall adhere to its own guidelines on the depiction of violence in programming, as amended from time to time and approved by the Commission.

14. Together with the record required to be filed with the Commission pursuant to subsection 7(2) of the Specialty Services Regulations, 1990, the licensee is required to provide in its program log or machine readable record for each solicitation of funds, the time of commencement and duration.

For the purpose of these conditions of licence:

(a) all time zone periods shall be reckoned according to the eastern time zone;

(b) the terms "broadcast day", "broadcast year","clock hour" and "evening broadcast period" shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987;

(c) "paid national advertising" shall mean advertising that is purchased at a national rate and which receives national distribution on the service; and

(d) 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 groups and organizations.