ARCHIVED -  Public Notice CRTC 1996-151

Public Notice

Ottawa, 29 November 1996

Public Notice CRTC 1996-151

AMENDMENT TO THE EXEMPTION ORDER RESPECTING CLOSED CIRCUIT VIDEO PROGRAMMING UNDERTAKINGS

On 4 April 1996, the Commission issued Public Notice CRTC 1996-52, in which it sought comments on a proposed amendment to the Exemption Order Respecting Closed Circuit Video Programming Undertakings. This exemption order, issued in Public Notice CRTC 1993-50 dated 30 April 1993, was subsequently corrected by Public Notice CRTC 1993-50-1 dated 14 January 1994, and amended in Public Notice CRTC 1995-166 dated 5 October 1995. The amendment proposed in the April 1996 public notice would allow the operators of exempt closed circuit video programming undertakings to provide video games services in addition to the services already permitted, namely, movies and information.

Seven comments were filed by the deadline date of 7 May 1996. Two of the parties who filed comments, Hospitality Network Canada Inc. (Hospitality) and the Government of Yukon, supported the proposed amendment. In three other submissions, Sega of Canada, Inc. (Sega), the Government of Saskatchewan and TELUS Corporation (TELUS) supported the proposed amendment, but with certain reservations or with suggestions that it be modified. In two other comments, Regina Cablevision Co-operative (Cable Regina) and the Canadian Cable Television Association (CCTA) opposed the proposed amendment.

The Commission has considered the jursidictional issues raised in the comments by the Government of Saskatchewan and TELUS, and is satisfied that no change to the proposed amendment is warranted with respect to these matters. Specifically, as stated by the Commission in Public Notice CRTC 1996-52, any closed circuit video programming undertaking involved in providing video games services, as contemplated by this amendment, "...falls within the definition of a broadcasting undertaking set out in the Broadcasting Act, and hence falls within the Commission's jurisdiction."

In their comments, Sega and the CCTA suggested that closed circuit video programming undertakings distributing video games should implement safeguards for children that would be similar to those required by the Commission in its policy governing the distribution of video games programming services by the operators of cable distribution undertakings (see Public Notice CRTC 1995-5 dated 13 January 1995). On balance, however, the Commission considers that a requirement for such safeguards would be unnecessary in the case of closed circuit video programming undertakings, since such undertakings provide their services to hospital patients, prison inmates and to temporary residents of hotels and motels, where children - if present - are largely under adult supervision.

In its comments, the CCTA also suggested, among other things, that adding a video games programming service to the services currently provided by an exempt closed circuit video programming undertaking would change its nature from that of a programming undertaking to that of a distribution undertaking. In the opinion of the CCTA, if a closed circuit video programming undertaking wished to operate in such a manner, it should be required to apply for a distribution undertaking licence.

The Commission considers it unneccessary for a person to hold a broadcasting distribution licence merely because the person provides more than one programming service. The Commission also notes that, by making the proposed amendment, it would simply expand the scope of the programming that may be offered by the exempt undertaking, whose licensing would not contribute in a material manner to the implementation of the broadcasting policy set out in subsection 3(1) of the Broadcasting Act.

In its comments opposing the proposed amendment, Cable Regina expressed the opinion that the amendment was designed to accommodate Hospitality. Cable Regina argued that Hospitality was controlled by SaskTel and that, by making the amendment to the exemption order, the Commission would be ignoring the key principles that the cable industry outlined as the basis for its acceptance of the competitive entry by telephone companies to the broadcasting field, namely, reciprocal entry, no head starts, common ownership rules and structural separation.

The Commission notes that the proposed amendment would apply to the operators of all closed circuit video programming undertakings who meet this and the other terms and conditions set out in of the exemption order. Furthermore, given the nature of the proposed amendment, the Commission considers that the matter of permitting competitive entry by telephone companies to the broadcasting field is not at issue in this proceeding.

Accordingly, the Commission has amended the Exemption Order Respecting Closed Circuit Video Programming Undertakings by revising the Purpose Section as follows (new text in italics):

The  purpose of these television programming undertakings is to provide a programming service, whether for a separate fee or not, to temporary residents of hotels, motels and hospitals or to the inmates of prisons only, and not to residents of permanent dwelling places. The programming consists only of feature motion pictures intended for theatrical release, video games programming services, or information about the city or about the premises served by the undertakings, and does not contain any commercial messages.

The Commission notes that the amendment necessitates the addition of similar text to paragraph 4 of the Description Section of the exemption order. The amended Exemption Order Respecting Closed Circuit Video Programming Undertakings is appended to this notice.

Allan J. Darling
Secretary General

APPENDIX TO PUBLIC NOTICE CRTC 1996-151

EXEMPTION ORDER RESPECTING CLOSED CIRCUIT VIDEO PROGRAMMING UNDERTAKINGS

The Commission, pursuant to subsection 9(4) of the Broadcasting Act, by this order, exempts from the requirements of Part II of the Act and any regulations, those persons carrying on broadcasting undertakings of the class defined by the following terms and conditions:

Purpose

The purpose of these television programming undertakings is to provide a programming service, whether for a separate fee or not, to temporary residents of hotels, motels and hospitals or to the inmates of prisons only, and not to residents of permanent dwelling places. The programming consists only of feature motion pictures intended for theatrical release, video games programming services, or information about the city or about the premises served by the undertakings, and does not contain any commercial messages.

Description

1.  The Commission would not be prohibited from licensing the undertaking by virtue of any direction to the Commission by the Governor in Council.

2.  The undertaking meets all technical requirements of the Department of Industry and has acquired all authorizations or certificates prescribed by the Department.

3.  The undertaking does not broadcast programming that is religious or political in nature, excepting feature motion picture films intended for theatrical release.

4.  The undertaking provides a programming service consisting only of feature motion picture films intended for theatrical release or promotions for such films, video games programming services, and information about the city and the facilities for the guests of hotels or motels, the patients of hospitals and the inmates of prisons.

5.  The undertaking does not operate in a manner that prevents a hotel or motel guest, hospital patient or prison inmate from receiving any programming service listed in section 9 or section 22 (as applicable) of the Cable Television Regulations, 1986 when that service is provided to the owner or operator of a hotel, motel, hospital or prison as part of the basic service of a licensed cable distribution undertaking, or from receiving any signal of a local television station when that signal is provided by a master antenna television system operating in accordance with the Exemption Order Respecting Master Antenna Television Systems.