ARCHIVED -  Decision CRTC 96-618

Decision

Ottawa, 4 September 1996

Decision CRTC 96-618

Denial of applications for licences to carry on new Canadian specialty television programming undertakings (see appendix to this decision)

At a Public Hearing held in the National Capital Region beginning on 6 May 1996, the Commission considered 39 applications for licences to carry on Canadian specialty television programming undertakings and one application to carry on a pay television undertaking providing a pay-per-view television service. The applications were submitted pursuant to Public Notice CRTC 1994-59 dated 6 June 1994, as amended by Public Notice CRTC 1995-29 dated 22 February 1995, in which the Commission announced that it was prepared to consider licence applications for new services of this kind.

The Commission hereby denies the applications listed in the appendix to this decision.

Having carefully evaluated, on its own merits, each application listed on the agenda of the 6 May 1996 hearing, the Commission approved 23 and denied 17. As explained in greater detail in Public Notice CRTC 1996-120, which introduces the approval decisions also issued today, the applications were considered in accordance with the licensing criteria that the Commission set out in Public Notice CRTC 1995-29 dated 22 February 1995 and further defined in Public Notice CRTC 1995-205 dated 30 November 1995. The Commission considered, in particular, the demand for the service, the diversity of programming proposed by the applicants and the contribution to the exhibition and investment in Canadian programs.

Many of the applications that are being denied today were considered to be competitive with other applications proposing similar programming formats. Following a thorough analysis of each of these applications, the Commission approved the applications that best met the licensing criteria.

Four of the applications denied herein were the only applications in their proposed format. These are addessed in more detail below.

The Commission denies the application by Learning and Skills Television of Alberta Limited to establish a service to be known as "Computer ACCESS - the Computer Channel". The Commission is not convinced that the proposed service would sufficiently increase the diversity of high quality programming available to Canadians to warrant the issuance of a licence. In particular, the Commission notes the very low level of original programming proposed by the applicant, as well as the high reliance on repeat programming and programming shared with other broadcasters.

The Commission denies the application by the Partners of Opportunity TV to establish a service to be known as "Opportunity TV". The applicant stated that the service would only be viable if it were made available on a high penetration tier. The Commission notes that the applicant proposed to devote 2 hours 30 minutes each week to the exhibition of Canadian programs, and that the remaining time would be devoted to infomercial programs. The Commission is not convinced that these commitments meet the criteria set out in the Commission's call for new services to add to the diversity and variety of Canadian programs available to Canadians.

Notwithstanding the denial of this application, the Commission nevertheless reminds the applicant that in Public Notice CRTC 1995-14 dated 26 January 1995, it has exempted teleshopping services from the necessity of holding a licence, provided they meet the criteria set out therein.

The Commission denies the application by Global Communications Limited and Canvideo Television Sales (1983) Limited to establish a service to be known as "The Mystery Channel". The Commission is not convinced that the applicant's proposals for the exhibition of and investment in Canadian programs meet the criteria announced in its call for applications. In particular, the Commission notes that the applicant proposed a level of only 20% for the exhibition of Canadian programs for the full licence term and a low level of expenditures for the acquisition of Canadian programs. Further, the applicant did not include any plans for the production of original Canadian programming in the mystery genre.

The Commission denies the application by Helmut Biemann (OBCI) to establish a service to be known as "The Horse Network." The Commission is concerned that a number of necessary agreements that would allow the applicant to launch the proposed service have yet to be concluded. In this regard, the Commission notes the intervention submitted by the Horsemen's Benevolent and Protective Association (HBPA) and The Ontario Harness Horsemen's Association (OHHA) opposing this application. Individual members of these organizations, which also represent various other horsemen's associations, appeared with these intervenors at the hearing. While these organizations, which variously represent owners, trainers, breeders and drivers of race horses, did not oppose the concept of The Horse Network, they did not agree with several aspects of the application, most notably the proposed ownership structure and the proposed split of revenues from Telephone Account Betting. These intervenors also indicated that they would not participate in races to be broadcast on the proposed service. The applicant agreed that the service could not be established, as proposed, without the support of the horsemen's associations.

The Commission further notes that it denied all three applications filed by Westcom TV Group Ltd. (Westcom) owing to the following particular circumstances. The three applications were for regional news specialty programming services in Calgary and Edmonton, Alberta, and Vancouver, British Columbia. The Commission notes, in this regard, that applications to operate new conventional television programming undertakings at Calgary and Edmonton were on the agenda of the Public Hearing held in Calgary beginning on 15 July 1996. At the Public Hearing scheduled to begin
on 23 September 1996 in Vancouver, the Commission will also consider applications for new conventional television programming undertakings in Vancouver and Victoria.

The Commission considers that a conventional television service, which offers varied programming including not only news programming but also a range of high quality entertainment programs directed to a diverse audience, is better able to complement the services available in a market and make a greater contribution to the Canadian broadcasting system. Under the circumstances, the Commission considers that approving any of the Westcom applications at this time would unduly limit its licensing options regarding the Calgary and Vancouver hearings. While it has denied the three Westcom applications for the present, the Commission does not rule out the possibility of approving applications for such services in the future.

The Commission also notes that it denied one of the five applications to serve the French-language market. In reviewing these applications, the Commission took into consideration, aside from the licensing criteria referred to above, the particular characteristics of the French-language market. In the present instance, the Commission was therefore concerned that a balanced and appealing mix of new French-language services should be offered, so that Francophones would have access to a package of services of high quality that would be comparable to that offered to Anglophones.

Following a careful evaluation of the application, the Commission denied the application for the lifestyle service proposed by Télé-Mag 24 inc. The Commission concluded that the applicant did not demonstrate that it would be able to fulfil the obligations required of a licensee of a national broadcasting service.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

The Partners of Kids TV International, Service to be called "Kids TV International"
- 199600438

Janis Nostbakken, on behalf of a company to be incorporated, service to be called "Children's Television Network"
- 199600792

Télé-Mag 24 inc.
- 199600982

Learning and Skills Television of Alberta Limited, service to be called "Computer ACCESS - the Computer Channel"
- 199600677

The Partners of Opportunity TV, service to be called "Opportunity TV"
- 199600719

Southam Headlines News Inc., service to be called "Southam Headlines News"
- 199600826

The Financial Network Inc., service to be called "Money, Newstylebusinesschannel"
- 199600933

Westcom TV Group Ltd., service to be called "News TV (Edmonton)"
- 199600743

Westcom TV Group Ltd., service to be called "News TV (BC)"
- 199601141

Westcom TV Group Ltd., service to be called "News TV (Calgary)"
- 199600693

Allarcom Pay Television Limited, on behalf of a company to be incorporated, service to be called "SFtv"
- 199600834

Global Communications Limited and Canvideo Television Sales (1983) Limited, service to be called "Mystery Channel"
- 199600537

The Comedy Channel Limited Partnership, service to be called "The Second City Comedy Channel"
- 199600768

Catherine Tait, on behalf of a company to be incorporated, service to be called "All-Comedy Network"
- 199601159

The Sports Network Inc. ("TSN") and 3156303 Canada Limited, in a partnership, service to be called "TSN Plus"
- 199600628

Helmut Biemann, on behalf of a company to be incorporated, service to be called "The Horse Network"
- 199600867

A. Gordon Craig, service to be called "The History Channel (Canada)"
- 199600636