Decision
CRTC 97-289
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Ottawa, 3 July 1997
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Showcase Television Inc.
Across Canada – 199613477
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Licence amendments for Showcase
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In Public Notice CRTC 1997-8 dated 17 January 1997, the Commission announced an application by Showcase Television Inc. (Showcase), licensee of the national English-language specialty programming undertaking known as "Showcase", for amendments to its conditions of licence pertaining to advertising material, the nature of its service, scheduling requirements for Canadian programs and funding commitments to original Canadian drama programs.
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Advertising material
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The Commission approves the licensee’s application to amend condition of licence no. 5 pertaining to the distribution of advertising material in order to increase the amount of advertising from the current 8 minutes to a maximum of 12 minutes per hour. The amended condition of licence reads as follows:
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5. (a) Subject to subsections (b) and (d), the licensee shall not distribute more than twelve 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 paid national 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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(e) In addition to the twelve minutes of advertising material referred to in subsection (a), the licensee may broadcast partisan political advertising during an election period.
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The Commission acknowledges the opposing interventions submitted with respect to the proposed increase in advertising material. The Commission has carefully reviewed the interventions as well as the licensee’s reply thereto. It is satisfied that the approval granted to Showcase to increase the amount of advertising will not have a significant impact on existing services.
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Further, the Commission notes that the amended condition of licence is consistent with the condition of licence concerning advertising which has been imposed on several other specialty programming undertakings.
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Nature of service and scheduling requirements for Canadian programs
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The licensee also requested that condition of licence 1 (b) be amended by reducing from 95% to 90% the amount of programming broadcast by Showcase that has been produced outside the United States.
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The Commission is satisfied that even with an increase in U.S. programming from 5% to 10%, this programming will still remain a very small portion of Showcase’s overall schedule. Consequently, the Commission approves this request to amend condition of licence no. 1 (b).
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The amended condition of licence reads as follows:
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1. (b) 90% of the programming broadcast by Showcase shall have been produced outside the United States.
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In addition, the licensee requested that condition of licence 2 (b) be amended in order that the broadcast period during which it must broadcast Canadian programs be changed from "between 7:00 p.m. to 10:00 p.m." to "between 7:00 p.m. to 11:00 p.m."
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The Commission acknowledges the concerns expressed by opposing interveners, which included licensees of conventional television programming undertakings and specialty programming undertakings as well as producers, that the proposed amendments would be a substantial departure from the fundamental basis on which the Showcase service was licensed. While most interveners did not have a specific concern with the proposed increase in U.S. programming from 5% to 10%, they submitted that this amendment, coupled with the change in the definition of peak viewing hours, would allow Showcase to schedule one hour of U.S. dramatic programming during the peak viewing period, which would place this service in competition with conventional broadcasters and specialty services.
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In reply, Showcase stated that it would commit not to broadcast more than 2.8 hours of U.S. programming per week, on average, during the hours between 7:00 p.m. and 11:00 p.m., and contended that it would continue to consider the U.S. as a minor source of programming.
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Showcase noted that it would continue to deliver three hours of Canadian drama in the peak viewing hours and that the amended condition of licence would only give it more flexibility to schedule those programs "in a way that makes sense due to the nature of the program in terms of its target audience and to derive the most value that we can from our Canadian programs."
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The Commission has reviewed the concerns expressed by the interveners as well as the licensee’s reply thereto. It is of the view that the redefinition of peak viewing hours from 7:00 p.m. to 11:00 p.m. instead of from 7:00 p.m. to 10:00 p.m. would result in Showcase no longer broadcasting exclusively Canadian programming during the peak viewing period. The Commission shares the views expressed by the interveners that the availability of U.S. programs in the peak viewing period would have an impact on conventional broadcasters and specialty services. As this three-hour block of Canadian programs was the cornerstone of Showcase’s original licence application, the Commission considers it essential that this condition of licence remain intact to ensure greater availability of Canadian dramatic programs for viewers during that time period, and therefore denies Showcase’s request to amend condition of licence no. 2 (b).
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Funding commitments to original Canadian drama programs
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In addition, Showcase requested that condition of licence no. 4 be amended so that the amount spent on licence fees paid to independent producers may be spent on the production of 15 or more original Canadian drama programs instead of 15 half-hours. The Commission approves this request.
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The amended condition of licence reads as follows:
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4. The licensee shall expend, over the licence term, no less than $3.75 million on licence fees to independent producers who are not Showcase shareholders for the production of 15 or more original Canadian drama programs.
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The Commission acknowledges the opposing intervention submitted with respect to this request as well as the licensee’s reply thereto. It is satisfied that approval of this licence amendment will not dilute Showcase’s commitment to expend $3.75 million on licence fees over the licence term for original Canadian drama programs, as set out in the licensee’s original licence application.
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The Commission also acknowledges the interventions it received in support of the licensee’s application.
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This decision is to be appended to the licence.
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Laura M. Talbot-Allan
Secretary General
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This document is available in alternative format upon request.
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