ARCHIVED - Decision CRTC 98-229
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Ottawa, 29 July 1998
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Decision CRTC 98-229
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Viewer's Choice Canada Inc.
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Eastern Canada - 199707601
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Approval of request to contribute a percentage of net revenues to investment in Canadian films, rather than a fixed maximum amount
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1. Following Public Notice CRTC 1998-16 dated 20 February 1998, the Commission approves the application by Viewer's Choice Canada Inc. (VCC) to amend a condition of licence which addresses the minimum contribution to equity investment in Canadian films.
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2. VCC is a general partnership consisting of NetStar Enterprises Inc., Rogers Pay-Per-View Inc. and TMN Networks Inc. It is the licensee of an English-language pay television programming undertaking which provides a general interest pay-per-view service via satellite to cable affiliates in Eastern Canada (Ontario, Quebec and the Atlantic provinces.)
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3. VCC is currently subject to a condition of licence (number 4) which reads:
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The licensee shall contribute to the Fund to Underwrite New Drama (FUND), for FUND's equity investment in Canadian films, the sum of $6,500,000 or 5% of the licensee's net revenues, whichever amount is greater, over the licence term.
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4. In its application, VCC requested that condition of licence number 4 be amended to read as follows:
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The licensee shall contribute to The Harold Greenberg Fund/Le Fonds Harold Greenberg for equity investment in Canadian films, a minimum of 5% of the licensee's net revenues, over the licence term.
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5. The licensee stated that the proposed amendment would enable it to be consistent with the conditions of licence governing its video-on-demand (VOD) and its direct-to-home pay-per-view (DTH PPV) programming undertakings. It also stated that, while the proposed amendment would reduce VCC's total Canadian programming contribution over the licence term, those original investments are eventually recouped from the recipient of the equity investment, thus representing an incremental increase in the original investments. The licensee concludes therefore that no real reduction in the support for Canadian programming will occur.
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6. Interventions in opposition to the application were submitted by the Canadian Film and Television Production Association (CFTPA) and the Canadian Association of Film Distributors and Exporters (CAFDE). Both CFTPA and CAFDE believe that the Commission should not allow the alteration of a condition of licence during a licence term, especially when the existing condition of licence was intended to generate reliable resources for the production of Canadian feature films.
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7. In response to the interveners' concerns, the applicant stated that the original purpose of the condition of licence was to minimize any impact of the introduction of pay-per-view on the Canadian broadcasting system, in particular on existing pay television services. The applicant stated that in the six years since the introduction of VCC, such a negative impact has not materialized.
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8. The Commission has considered the views of the applicant and of the interveners, and is of the opinion that approval of this application is consistent with the treatment accorded VOD and DTH PPV programming undertakings, and will serve to place VCC on a level playing field with other similar broadcasting undertakings.
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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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