ARCHIVED -  Decision CRTC 96-605

Decision

Ottawa, 4 September 1996

Decision CRTC 96-605

CHUM Limited

Across Canada - 199600925

Space: The Imagination Station - Approved

Following a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission, by majority vote, approves the application by CHUM Limited (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 Space: The Imagination Station (Space).

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 charged shall be $0.29 per subscriber, in cases where Space 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 Space 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 publicly-traded company, indirectly controlled by Allan Waters of Toronto. It is the licensee of several radio and television undertakings across Canada, and also owns the Atlantic Satellite Network, a satellite-to-cable programming undertaking serving communities in the Atlantic region and the eastern Arctic. CHUM Limited is also the licensee of MuchMusic and Bravo!, English-language specialty services focusing on music and the performing arts, respectively. In addition, the licensee is a co-owner of MusiquePlus, a French-language specialty service.

Programming

Nature of Service

Space will provide specialty programming related to science fiction, science fact, speculative science, technology and fantasy. Programs will include news, information, feature films, dramatic series, mini-series, education, animation and human interest programs. A condition of licence related to the categories and description of programs is included in the appendix attached to this decision.

Programming will take the form of a six-hour wheel, beginning each day at 6:00 a.m. Eastern time, and repeated at 12:00 noon, 6:00 p.m. and midnight. The licensee stated that it would be sensitive to the need to broadcast programs appropriate for all day parts in all time zones.

Canadian Content

The licensee's plans for the exhibition of Canadian programs call for at least 25% of the programs broadcast on Space in the first broadcast year to be Canadian. That level will increase to at least 50% of the broadcast year and at least 40% of the evening broadcast period, during the seventh year of operation. The licensee shall adhere to these commitments, by condition of licence, as set out in the appendix to this decision.

The Commission notes the licensee's commitment to broadcast every appropriate Canadian science fiction movie and series available, and to develop new Canadian science fiction long-form programs and series.

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 40% 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 also notes the licensee's commitment to spend a total of $50,000 annually on program development, including the encouragement of script development from Canadian writers in the science fiction, science fact and speculation genres.

The licensee also anticipates the expenditure of over $8 million over seven years, for the acquisition of Canadian science fiction programs.

Advertising

Consistent with the licensee's commitments, it is a condition of licence that all paid advertising material distributed on Space shall be national advertising, and shall be restricted to 12 minutes per hour, with some flexibility for the placement of advertising material in longer programs.

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 its own policy in this regard. The Commission notes the licensee's statement at the hearing that Space's staff "will be conscientiously recruited in the CITY-TV tradition; all regions, all races, all genders, all ethnicities, all religions -- in front of and behind the camera." The Commission encourages the licensee to implement these plans and will review the licensee's performance in implementing these 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

The Commission is satisfied that CHUM Limited's extensive experience as a specialty licensee will ensure that Space will provide an attractive Canadian presence in a creative and increasingly popular programming genre.

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 Space: The Imagination Station

1. The licensee shall provide a national, English-language specialty service consisting of science fiction, science and fantasy and shall draw programs exclusively from Category 1 (News), Category 2 (Analysis and interpretation), Category 3 (Reporting and actualities), Category 5(b) (Informal Education), Category 7 (Drama), and Category 11 (Human interest) 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:

(a) In each of its first and second years of operation, not less than 25% of the broadcast year, and not less than 25% of the evening broadcast period.

(b) In each of its third and fourth years of operation, not less than 30% of the broadcast year, and not less than 30% of the evening broadcast period.

(c) In its fifth year of operation, not less than 35% of the broadcast year, and not less than 30% of the evening broadcast period.

(d) In its sixth year of operation, not less than 40% of the broadcast year, and not less than 35% of the evening broadcast period.

(e) In its seventh year of operation, not less than 50% of the broadcast year, and not less than 40% 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 40% 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) and (d), 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.

(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 the clock hours occupied by the program does not exceed the maximum number of minutes that would otherwise be allowed per clock hour.

5. From the date of commencement of service, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.29 per subscriber per month, where the service is carried 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 "Broadcast Code for Advertising to Children", published by the CAB, 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.