ARCHIVED -  Decision CRTC 96-602

Decision

Ottawa, 4 September 1996

Decision CRTC 96-602

The Partners of the "Report on Business Television"

Across Canada - 199600750

Report on Business Television - Approved

Following a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission, by majo-rity vote, approves the application by the partners of the Report on Business Tele-vision (the licensee) for a broadcasting licence to carry on a national English-language programming undertaking (Specialty Television Service). The new service will be known as Report on Business Television (ROBTV).

This service will be available via satellite to all broadcasting distribution undertakings across the country. In the case of those distribution undertakings that are subject to the Commission's distribution and linkage requirements, it will be available on a modified dual status basis, as explained in Public Notice CRTC 1996-120, which introduces this and other decisions released today, and in accordance with the provisions set out in the distribution and linkage public notice also issued today (Public Notice CRTC 1996-121). As proposed by the licensee, and by condition of licence, the authorized maximum monthly wholesale rate shall be $0.25 per subscriber, in cases where ROBTV is distributed as part of the basic service.

The Commission will issue a licence expiring 31 August 2003, subject to the conditions specified in the appendix to this decision and in the licence to be issued.

In Public Notice CRTC 1996-120, the Commission outlined a licensing approach that grouped English-language services into two categories. The Access Rules will apply to the second group of services, to which ROBTV belongs, at the earliest of the following: the deployment of digital technology by the distributor, or 1 September 1999. The service of this programming undertaking must, by condition of licence, be in operation within 36 months of the date of this decision unless the service provider, prior to the expiry of this period, applies for and receives an extension of time within which to commence operations.

Ownership

The licensee is a partnership consisting of three partners: G and M Business News Limited (G and M), which holds a 50% interest; Westcom TV Group Limited (Westcom), which holds a 26% interest; and Canadian Satellite Communications Inc. (Cancom), with 24%. G and M is controlled by Kenneth Thomson of Toronto, who also owns Thomson Canada Limited, the proprietor of the Globe and Mail newspaper which includes the "Report on Business" as part of its daily edition. Westcom is the licensee of several television programming undertakings, and is a wholly-owned subsidiary of WIC Western International Communications Ltd. (WIC). The ultimate control of WIC rests with Western Broadcasting Company Ltd., which is in turn controlled by the Griffiths family trust, represented by Emily G. Griffiths. Cancom is licensed by the Commission to carry on a multiple-channel television and radio broadcasting relay distribution undertaking to distribute to affiliated broadcasting undertakings, via satellite, the signals of various services to remote and underserved communities, and is controlled by Westcom.

Programming

Nature of Service

The licensee proposed to provide a 24-hour service consisting of business and financial news and information, drawn exclusively from categories 1 (News), 2 (Analysis and Interpretation), 3 (Reporting and Actualities) and 5b) (Education - Informal). Adherence to this description of programming content will be required by condition of licence.

In its written application, the licensee set out its plans to broadcast programs in a mix of formats, on all aspects of business, finance and economics, with a strong emphasis on how developments in these fields affect Canada and Canadians.

Weekday programming on ROBTV will provide live business news highlights every fifteen minutes, focusing on stories of relevance to Canadian investors as well as business and financial professionals. Between news segments, hosts will introduce reporters and commentators who will analyse news of regional or sectoral interest. Constant detailed market news and weather details for business travel will also be separately displayed at the bottom of the television screen during daytime hours.

On weekends, ROBTV will repeat an eight-hour block of programs, including highlights of weekday programs, a new open-line program, and both domestic and foreign acquired programs related to business and financial matters.

Canadian Content

In its written application, the licensee committed to broadcast a level of 75% Canadian content, both throughout the broadcast day, and throughout the evening broadcast period for the entire term of licence. The licensee shall adhere to these commitments, by condition of licence, as set out in the appendix to this decision.

Canadian Programming Expenditures

Consistent with the approach outlined by the Commission in Public Notice CRTC 1996-120 with respect to requirements for Canadian programming expenditures, and as discussed with the licensee at the hearing, it is a condition of licence that the licensee shall expend on Canadian programs, in the broadcast year following the first year of operation, and in each subsequent broadcast year, a minimum of 50% of the previous year's gross revenues derived from the operation of the service. Some flexibility in the accounting of these expenditures is provided for in the conditions of licence attached to this decision.

The Commission notes the licensee's statement at the hearing that it will spend over $4 million on independent production over the licence term and that 80% of all programming expenditures will be devoted to Canadian programs.

Advertising

Consistent with the licensee's commitments, it is a condition of licence that all paid advertising material distributed on ROBTV shall be national advertising, and shall be restricted to 12 minutes per hour.

Other Matters

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. In its application, the licensee indicated that it had developed a plan in this regard. The Commission encourages the licensee to consider equity issues in its hiring practices and in all other aspects of its management of human resources. In particular, the Commission encourages the licensee to promote equitable representation in on-air staff positions and in voice-overs of station-produced commercial messages. The Commission will review the licensee's performance in implementing its Employment Equity practices at the time of licence renewal.

Closed Captioning

Consistent with its policy approach for closed captioning announced in Public Notice CRTC 1996-120, the Commission requires the licensee to close caption not less than 90% of all programming during the broadcast day, by the end of the licence term.

Conclusion

In licensing ROBTV, the Commission notes that the licensee proposes to provide a unique service that will have no undue effect on existing services. Further, the Commission is satisfied that the high level of Canadian content and the expertise of the licensee will combine to create highly valuable programming with a Canadian perspective, for a currently underserved audience.

The Commission acknowledges and has considered the interventions submitted with respect to this application.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General

APPENDIX/ANNEXE

Conditions of licence for ROBTV

1. The licensee shall provide a national English-language specialty service consisting of business and financial news and information, and shall draw programs exclusively from Category 1 (News), Category 2 (Analysis and Interpretation), Category 3 (Reporting and Actualities) and Category 5(b) (Education, Informal) as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990.

2. The licensee shall devote to the distribution of Canadian programs not less than 75% of each broadcast day and not less than 75% of the evening broadcast period.

3. In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1992-28, 1993-93 and 1993-174:

(a) In the broadcast year following the first year of operation, and in each subsequent broadcast year, the licensee shall expend on Canadian programs not less than 50% of the previous broadcast year's gross revenues derived from the operation of this service.

(b) In the broadcast year following the first year of operation, and in each subsequent broadcast year, excluding the final year, the licensee may expend an amount on Canadian programs 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 broadcast year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure.

(c) In the broadcast year following the first year of operation, and in each subsequent broadcast year where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year calculated in accordance with this condition, the licensee may deduct:

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

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

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

4. (a)Subject to subsection (b), the licensee shall not distribute more than twelve (12) minutes of advertising material during each clock hour.

(b) In addition to the twelve 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 national paid advertising.

5. From the commencement of service, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.25 per subscriber per month, where the service is distributed as part of the basic service.

6. The licensee may require access to distribution undertakings in accordance with the Access Rules contained in Public Notice CRTC 1996-60 at the earliest of the following:

a) at such time as the distribution undertaking makes use of digital technology for the delivery of programming to subscribers; or

b) 1 September 1999.

7. This undertaking shall be in operation within thirty-six (36) months of the date of this decision, or, where the licensee applies to the Commission within this period and satisfies the Commission that it cannot complete implementation before the expiry of this period and that an extension is in the public interest, within such further period of time as is approved in writing by the Commission.

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

9. 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.

10. 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.

For the purpose of these conditions of licence, the terms "broadcast day", "broadcast year", "evening broadcast period" and "clock hour" shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987; "first year of operation" shall mean the first broadcast year in which the licensee is in operation for a period exceeding 90 days, excluding any free trial period; and "paid national advertising" shall mean advertising material as defined in the Specialty Services Regulations, 1990 and that is purchased at a national rate and receives national distribution on the service.

Dissent of Commissioner Andrée Wylie

Commissioner Andrée Wylie dissents from this and from all of the other decisions issued today in respect of applications for licences to carry on new English-language specialty television programming undertakings whose services fall within the second category, namely those to whom the Access Rules will apply at the earliest of the following: the deployment of digital technology by the distributor, or 1 September 1999. The rationale underlying the Commissioner's dissent is presented at the conclusion of Public Notice CRTC 1996-120.