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Ottawa, 23 March 1994
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Public Notice CRTC 1994-34
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Call for Comments - Proposed Exemption Order Respecting Video Games Programming Service Undertakings
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The Commission notes that interest has been expressed in providing video game services to cable television subscribers through the facilities of cable distribution undertakings licensed by the Commission. In particular, Sega of Canada, Inc. (Sega Canada) has requested that the Commission establish a regulatory framework that would permit the provision of video game services by such means.
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The Commission considers that any undertaking involved in such activities, in particular those described in the attachment to this notice, may fall within the definition of a broadcasting undertaking set out in the Broadcasting Act (the Act), and hence, would fall within the Commission's jurisdiction.
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Proposed Exemption Order
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Subsection 9(4) of the Act states that:
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The Commission shall, by order, on such terms as it deems appropriate, exempt persons who carry on broadcasting undertakings of any class specified in the order from any or all requirements of this Part or of a regulation made under this Part where the Commission is satisfied that compliance with those requirements will not contribute in a material manner to the implementation of the [broadcasting policy for Canada].The Commission considers that to require the operators of certain video game programming service undertakings to comply with Part II of the Act or with all regulations made thereunder will not contribute in a material manner to the implementation of the broadcasting policy for Canada. Instead, the Commission considers that establishing exemption criteria can provide an appropriate degree of regulation for such programming undertakings at this time. The Commission also recognizes its responsibility, as set out in subsection 5(2) of the Act, to ensure that the Canadian broadcasting system is regulated and supervised in a flexible manner that:
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(c) is readily adaptable to scientific and technological change;
(f) does not inhibit the development of information technologies and their application or the delivery of resultant services to Canadians.
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Accordingly, the Commission calls for public comment on the criteria set out in the proposed exemption order for Canadian video game programming service undertakings contained in the attachment to this notice. Video game programming service undertakings that do not meet these criteria would require a licence from the Commission to operate in Canada.
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Correspondence between Sega Canada and the Commission relating to Sega Canada's proposed video game service is available on the public examination file.
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Persons wishing to comment on the proposed exemption order as set out in the attachment, or on other related policy issues, must submit their comments to the Secretary General, CRTC, Ottawa, K1A 0N2 by Friday, 22 April 1994. While receipt of submissions will not be acknowledged, they will be considered by the Commission and will form part of the public record of the proceeding.
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Allan J. Darling
Secretary General
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ATTACHMENT
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PROPOSED EXEMPTION ORDER RESPECTING VIDEO GAME PROGRAMMING SERVICE UNDERTAKINGS
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The Commission, pursuant to subsection 9(4) of the Broadcasting Act (the Act), by this order, exempts from the requirements of Part II of the Act and any regulations made thereunder, those persons carrying on broadcasting undertakings of the class defined by the following criteria:
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I. Purpose
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The purpose of these programming undertakings is to provide the subscribers of cable distribution undertakings with programming consisting of software and related information distributed through the facilities of those distribution undertakings, to enable the subscribers to select and play video games using facilities located at their premises.
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II. Description
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1. The undertaking meets all technical requirements of the Department of Communications and has acquired all authorizations or certificates prescribed by that Department.
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2. The undertaking does not broadcast programming that is religious or political in nature.
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3. The undertaking provides its programming to subscribers using the facilities of a distribution undertaking licensed by the Commission.
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4. The undertaking provides a programming service consisting only of:
a) software and related information which will enable a person to select and play video games using broadcasting receiving apparatus located at the subscriber's premises and b) ancillary programming consisting of promotional information concerning the programming service, video games and related services or products, provided such programming is broadcast in conjunction with programming set out in a) above.
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5. The video games offered via the undertaking's programming service are categorized and information is provided to subscribers indicating, at a minimum, the suitability of individual games for use by children and adolescents.
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6. The undertaking's programming complies with the Canadian Association of Broadcasters' Sex-Role Portrayal Code for Television and Radio Programming, Voluntary Code Regarding Violence in Television Programming and Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission.
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