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Decision
CRTC 96-614
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Ottawa, 4 September 1996
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MusiquePlus inc.
Across Canada - 199600974
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"Musimax" - Approved
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Following a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission approves the application by MusiquePlus inc. (the licensee) for a broadcasting licence to carry on a national French-language specialty programming undertaking (Specialty Television Service) to be known as "Musimax".
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This service will be delivered via satellite to 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 issued 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 $0.15 per subscriber in cases where Musimax is distributed as part of the basic service.
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The Commission will issue a licence expiring 31 August 2003. The licence will be subject to the conditions stipulated in the appendix to this decision and in the licence to be issued.
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Since the Access Rules have immediate application to Musimax, the service of the programming undertaking must, by condition of licence, be in operation within 12 months of this decision unless the service provider, prior to the expiry of this period, applies and receives an extension of time within which to commence operations.
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Ownership
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MusiquePlus inc., which is owned equally by Radiomutuel inc. (Radiomutuel) of Montréal and CHUM Limited (CHUM) of Toronto, operates the French-language music video specialty service, MusiquePlus. CHUM also operates MuchMusic, an English-language music specialty service.
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Programming
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Nature of Service
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Musimax is a service, designed for an adult audience (35-54 years), that will be devoted to music in all its forms and whose programming is composed mainly of music videos. Musimax will also broadcast concerts, documentaries, films and other music-based programs. To ensure that the proposed service remains focused on music videos and music in general, the licensee will be required, by condition of licence, to adhere to the description of the nature of the service set out in the appendix to this decision.
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The licensee is required to devote not less than 65% of its programs to the exhibition of music videos - Subcategory 8(b), as set out in item 6 of Schedule l of the Specialty Services Regulations, 1990. The Commission notes that the licensee proposes to run, as part of its programs, forerunners of modern music videos known as "soundies" and "scopitones", as well as recordings of stage or television concerts. The Commission considers that this proposal is consistent with the definition of Canadian music video set out in Public Notice CRTC 1987-83, which refers to "short film or videotape productions or concert excerpts (clips) not produced primarily for the particular program in which they are presented, which normally contain one musical selection with visual material...".
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Canadian Content
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The licensee made a commitment to devote to the distribution of Canadian programs not less than 60% of the broadcast week and not less than 60% of the evening broadcast period. Further, not less than 30% of the total number of music videos exhibited by the licensee during each broadcast week shall be Canadian music videos, and these shall be scheduled evenly throughout the broadcast week and in a reasonable manner throughout the broadcast day. These commitments form part of the conditions of licence set out in the appendix.
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Respecting French-language content, the licensee made a commitment that, during the first and second year of operation, not less than 20% of the total number of music videos distributed during each broadcast week shall be in the French language, increasing to 30% by the beginning of year three. The licensee is required to meet these commitments, by condition of licence.
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Consistent with the licensee's commitment, it is a condition of licence that it contribute, in the first year of operation, not less than $250,000 to VideoFACT for the development and production of Canadian music videos, and not less than 5% of the previous year's gross revenues derived from the operation of this service in each subsequent year of the licence term.
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Advertising
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Consistent with the licensee's plans, Musimax may distribute a maximum of twelve (12) minutes of advertising material, plus a maximum of 30 seconds of unpaid public service announcements, in each clock hour of the broadcast day, with some flexibility for the placement of advertising material in longer programs. Conditions of licence to this effect are set out in the appendix to this decision.
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Other Matters
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Closed Captioning
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In its application, the licensee proposed to devote the sum of $75,000 to closed- captioning of programming in the first year of operation, rising to $95,000 in the seventh year of the licence term. In accordance with the policy announced in Public Notice CRTC 1996-120, the Commission expects the licensee to meet these commitments and to ensure that all VideoFACT productions are closed-captioned. In this regard, the Commission notes that, at the public hearing, the licensee of the new English-language music specialty service, MuchMoreMusic, stated that, as of August 1996, VideoFACT will require all VideoFACT productions to be closed-captioned and will pay the costs for the closed captioning.
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Employment equity
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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 was in the process of developing a policy in this regard. The Commission expects the licensee to complete and implement a plan in this regard within six months from the date of this decision. 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 employment equity practices at the time of licence renewal.
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Conclusion
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The Commission is satisfied that Musimax will be an invaluable stimulant to the Canadian French-language music and recording industries, including both the artists and the production people who work in them. The Commission notes in this regard the strong support for the licensing of this service from the French-language music industry. In approving this application, the Commission considers that the expertise of Radiomutuel and CHUM in operating MusiquePlus and MuchMusic and the substantial resources available to these broadcasters will ensure success.
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The Commission has taken into account the concerns raised in the interventions filed in this proceeding and is satisfied with the licensee's replies to these interventions.
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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
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Conditions of Licence for "Musimax"
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1. (a) The licensee shall provide a national French-language specialty service designed for an adult audience that will be devoted to music in all its forms, and shall draw not less than 90% of its programs from category 7(d) (Feature films, theatrical releases), category 8 (Music and dance), and category 11 (Human interest), as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990. The licensee shall draw not less than 65% of its programs from category 8(b) (Music videos), as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990.
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(b) All programs broadcast by the licensee shall be subject to a music-to-spoken word ratio of no less than 60:40.
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(c) The licensee shall not broadcast more than 14 hours of programs drawn from category 11 (Human interest) each broadcast week.
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(d) The licensee may broadcast only 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.
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2. The licensee shall devote to the distribution of Canadian programs not less than 60% of the broadcast year, and not less than 60% of the evening broadcast period.
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3. Not less than 30% of the total number of music videos exhibited by the licensee during each broadcast week shall be Canadian music videos.
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4. The licensee shall schedule its Canadian music videos evenly throughout the broadcast week and in a reasonable manner throughout each broadcast day.
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5. During the first and second years of operation, not less than 20% of the total number of music videos distributed by the licensee during each broadcast week shall be in the French language.
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6. During the third and subsequent years of operation, not less than 30% of the total number of music videos distributed by the licensee during each broadcast week shall be in the French language.
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7. (a) In the first year of operation, the licensee shall allocate to VideoFACT, for the development and production of Canadian music videos, not less than $250,000.
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(b) In the second and subsequent years of operation, the licensee shall allocate to VideoFACT, for the development and production of Canadian music videos, not less than 5% of the previous broadcast year's gross revenues derived from the operation of the service.
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8. (a) Subject to subsections (b) and (d), the licensee shall not distribute more than twelve (12) minutes of advertising material during each clock hour.
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(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.
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(c) The licensee shall not distribute any paid advertising material other than national paid advertising.
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(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.
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9. From the date of commencement of service, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.15 per subscriber per month when distributed as part of the basic service.
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10. This undertaking shall be in operation within twelve (12) 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 approved in writing by the Commission.
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11. 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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12. 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.
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13. 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 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.
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