ARCHIVED - Decision CRTC 96-287
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Ottawa, 29 July 1996
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Decision CRTC 96-287
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3247244 Canada Inc. and 3247236 Canada Inc.
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Across Canada - 199606670
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Acquisition of assets and intra-corporate reorganization of New Country Network
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Following a Public hearing held in the National Capital Region beginning on 8 July 1996, the Commission approves the application by 3247244 Canada Inc. to acquire the assets of the national English-language programming undertaking (Specialty Television Service) "New Country Network" (NCN) from the partners of MH Radio/Rawlco Partnership (CFCN Productions Limited (CFCN)) and 566684 Alberta Ltd., licensee of NCN.
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The Commission further approves an application to "roll-down" the newly-acquired assets of NCN from 3247244 Canada Inc. to 3247236 Canada Inc., a wholly-owned subsidiary, and for a broadcasting licence to continue the operation of NCN, under the same terms and conditions as the current licence.
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The Commission notes that these transactions represent a corporate reorganization of NCN that does not alter the effective control of the licensee.
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Prior to closing, the partners of MH Radio/Rawlco Partnership will implement the corporate reorganization approved in Decision CRTC 95-831 dated 8 November 1995, thereby transferring the partnership interest in NCN held by CFCN to Rogers Programming Services Inc. (Rogers). As a result, the shareholders of the new corporate entity will be Rogers and 566684 Alberta Ltd.
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These approvals will give the partners of NCN the necessary authority to convert their partnership interests into an equity position in the newly-incorporated entities. 3247244 Canada Inc. will be a corporation owned 49% by Rogers and 51% by 566684 Alberta Ltd. and, as indicated earlier, 3247236 Canada Inc., the licensee, will be 100% owned by 3247244 Canada Inc.
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The Commission will issue a licence to 3247236 Canada Inc., expiring 31 August 2000, the current expiry date, upon surrender of the current licence. The licence will be subject to the same conditions as those in effect under the current licence, as well as to any other conditions specified in the appendix to this decision and in the licence to be issued.
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This decision is to be appended to the licence.
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Allan J. Darling
Secretary General |
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APPENDIX / ANNEXE
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Conditions of licence for New Country Network
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For the purpose of measuring compliance with conditions of licence 1 and 2 set out below, the first broadcast year of the licence term will be deemed to have commenced on 1 September 1994.
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1. (a) A minimum of 90% of all programming broadcast during the broadcast year by the New Country Network shall be from category 8(b) (music video clips) as defined in the Specialty Services Regulations, 1990.
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(b) A minimum of 70% of all video clips broadcast during the broadcast year by the New Country Network shall feature musical selections from music content subcategory 22 (country and country-oriented), as defined in Public Notice CRTC 1990-111 dated 17 December 1990.
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2. During the first year of the licence term, the licensee shall broadcast, on a weekly basis, a minimum of 30% Canadian music clips, and shall increase this level by 2% increments each year to a minimum of 40% in the sixth year of the licence term.
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3. In each of the broadcast years of the licence term, the licensee shall expend no less than the following amounts on payments to Canadian artists for the use of their videos:
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(a) from commencement of the service until 31 August 1995, $1,755,000;
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(b) from 1 September 1995 until 31 August 1996, $1,872,000;
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(c) from 1 September 1996 until 31 August 1997, $1,989,000;
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(d) from 1 September 1997 until 31 August 1998, $2,106,000;
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(e) from 1 September 1998 until 31 August 1999, $2,223,000; and
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(f) from 1 September 1999 until 31 August 2000, $2,340,000.
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4. From 6 June 1994 until 31 August 1995, the licensee shall spend no less than $300,000 on the production of Canadian country music videos.
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5. (a) Subject to subsection (b) the licensee shall not distribute more than eight minutes of advertising material during each clock hour.
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(b) In addition to the eight 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.
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(c) The licensee shall not distribute any paid advertising material other than paid national advertising material.
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(d) In addition to the eight minutes of advertising material referred to in subsection (a), the licensee may broadcast partisan political advertising material during an election period.
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6. 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.
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7. 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.
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8. 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.
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For the purposes of these conditions of licence, the terms "broadcast day", "broadcast month", "broadcast year" and "clock hour" shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987; and "paid national advertising material" shall mean advertising material that is purchased at a national rate and receives national distribution on the service.
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