ARCHIVED -  Decision CRTC 96-611

Decision

Ottawa, 4 September 1996

Decision CRTC 96-611

CHUM Limited

Across Canada - 199600917

MuchMoreMusic - Approved

Following a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission approves, by majority vote, the application by CHUM Limited (CHUM/the licensee) for a broadcasting licence to carry on a national English-language programming undertaking (Specialty Television Service) to be known as MuchMoreMusic.

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 $0.03 per subscriber, in cases where MuchMoreMusic 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 MuchMoreMusic 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

CHUM is ultimately controlled by Allan Waters of Toronto. CHUM is the licensee of MuchMusic, an English-language music specialty television service, and the co-owner, with Radiomutuel Inc., of Musique Plus Inc., licensee of the French-language music specialty service. In addition, CHUM is the licensee of various radio and television stations across Canada as well as of Bravo!, an English-language specialty television service focusing on the performing arts. CHUM also owns the Atlantic Satellite Network, a satellite-to-cable programming undertaking serving communities in the Atlantic region and the eastern Arctic.

Programming

Nature of Service

The licensee will offer a contemporary music video service designed for an adult audience, consisting primarily of video clips featuring adult contemporary, light rock, classic hits and some soul, jazz, rhythm and blues, reggae and new age music.

As described by the licensee and as set out as a condition of licence in the appendix to this decision, the licensee shall provide a specialty service with programming consisting primarily of music or music-related programs with related music and pop news or commentaries, interviews, concerts, profiles, specials as well as music feature films and music-related/themed series or programs. At least 65% of MuchMoreMusic's broadcast week will be devoted to the exhibition of programs featuring music videos, but no more than 30% of the video clips will be country music videos. The licensee will not devote more than 15% of the broadcast week to music-related programs from the following program categories as defined in the Specialty Services Regulations, 1990: 7(a) (Dramatic series); 7(d) (Feature films, theatrical releases) and 7 (e) (Animated television programs and films). The licensee may broadcast only one music-related feature film in each broadcast week. This film may be broadcast only once between 6:00 p.m. and midnight, but it may be repeated up to three times in other time periods during the same week.

According to the proposed schedule, MuchMoreMusic's programs will consist primarily of a continuous 24-hour video flow. The licensee indicated, however, that "long form programming would likely increase as the service matures".

Canadian Content

Throughout the licence term, by condition of licence, the licensee will devote at least 60% of the broadcast year, and at least 50% of the evening broadcast period during each broadcast week to the distribution of Canadian programs. Also by condition of licence, not less than 30%, of the total number of music videos distributed on MuchMoreMusic during each broadcast week will be Canadian. The licensee is also required, by condition of licence, to schedule its Canadian music videos evenly throughout each broadcast week and in a reasonable manner throughout each broadcast day.

Program Development

During the first year of operation, the licensee will allocate $150,000 to VideoFACT for the production of Canadian music videos. In each subsequent broadcast year of the licence term, the licensee will contribute to VideoFACT not less than $150,000 or 5% of the previous year's gross revenues derived from the operation of this service, whichever is greater. The licensee is required to adhere to these commitments, by condition of licence.

In addition to its annual contributions to VideoFACT, the licensee also made a commitment to create PromoFACT, a new program within VideoFACT, to help artists produce electronic promotion and press kits.

Advertising

Consistent with the licensee's commitments, it is a condition of licence that all paid advertising material distributed on MuchMoreMusic shall be national paid 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 "Imple-mentation of an Employment Equity Policy", the Commission announced that the employment equity practices of broad-casters would be subject to examination by the Commission. In its application, the licensee indicated that it has developed its own policy in this regard. The Commis-sion notes the licensee's statement at the hearing that its staff "will be conscien-tiously recruited to reflect the full human rainbow of Canadian society: all religions, all races, all genders, all ethnicities, in front of, and behind the camera." The Commis-sion encourages the licensee to implement these plans and will review its performance in implementing employment equity practices at the time of licence renewal.

Closed Captioning

When questioned at the hearing regarding its plans to provide closed captioning of its programming, the licensee stated that captioning 90% of the programming offered by MuchMoreMusic would not be feasible, given the scarcity of captioned videos. As noted in Public Notice CRTC 1996-120, the Commission agrees that it would not be appropriate to apply its general approach for English-language services to MuchMoreMusic. Nonetheless, the licensee did make a commitment to spend $525,000 on closed captioning over the licence term. The Commission expects the licensee to adhere to this commitment. Furthermore, the Commission encourages the licensee to close caption, by the end of the licence term, at least 90% of all non-music programming broadcast by MuchMoreMusic, including presentations by program hosts.

The Commission notes that VideoFACT will require that all its productions be closed-captioned and will pay the costs for closed captioning.

Conclusion

In approving this application, the Commis-sion is satisfied that MuchMoreMusic will contribute to the diversity of programming available in the Canadian broadcasting system by offering an adult contemporary music video service that will complement existing music video services. The Commission notes the strong support for the licensing of MuchMoreMusic from many sectors of the English-language music industry.

This decision is to be appended to the licence.

Allan J. Darling
Secretary General

APPENDIX/ANNEXE

Conditions of licence for MuchMoreMusic

1. (a) The licensee shall provide a national English-language specialty service.

(b) The licensee shall provide programs consisting primarily of music or music-related programs with related i) music and pop news or commen-taries, ii) interviews, iii) concerts, iv) profiles, and v) specials plus music feature films and music related/themed series or programs.

(c) The licensee shall draw not less than 65% of programs from category 8(b) (Music videos), as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990.

(d) No more than 30% of video clips broadcast on MuchMoreMusic shall be country music videos. The definition of country music is music falling into subcategory 22 (Country and country-oriented) as set out in Public Notice CRTC 1991-19 dated 14 February 1991.

(e) The licensee shall devote not more than 15% of the broadcast week to music-related programs from category 7(a) (Dramatic series); category 7(d) (Feature films/ Theatrical releases); and category 7(e) (Animated television programs and films).

(f) The licensee shall not broadcast more than one music-related feature film in each broadcast week. This film may be broadcast only once during the evening broadcast period, but it may be repeated up to three times in other time periods during the same week.

2. The licensee shall devote to the distribution of Canadian programs not less than 60% of the broadcast year, and not less than 50% of the evening broadcast period.

3. Not less than 30% of the total number of music videos distributed by the licensee during each broadcast week shall be Canadian music videos.

4. The licensee shall schedule its Canadian music videos evenly throughout each broadcast week and in a reasonable manner throughout each broadcast day.

5. The licensee shall contribute $150,000 in the first year of operation to Video-FACT; and, in each subsequent broadcast year of the licence term, the licensee shall contribute the greater of $150,000 or 5% of the previous broadcast year's gross revenues derived from the operation of this service to VideoFACT.

6. (a) Subject to subsections 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.

7. From the date of commencement of service, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.03 per subscriber per month, where the service is carried as part of the basic service.

8. 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) the distribution undertaking makes use of digital technology for the delivery of programming to subscribers; or

(b) 1 September 1999.

9. 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.

10. 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.

11. 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.

12. 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; "broadcast week" shall have the same meaning as that set out in the Radio Regulations, 1986; "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 "national paid 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.