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Public Notice
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Ottawa, 6 February 1998 |
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Public Notice CRTC 1998-8 |
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ADDITIONAL NATIONAL TELEVISION NETWORKS - A REPORT TO THE GOVERNMENT OF
CANADA PURSUANT TO ORDER IN COUNCIL P.C. 1997-592
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INTRODUCTION
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1. This report is submitted to the Government
of Canada pursuant to a request to the CRTC from His Excellency the Governor
General in Council (Order in Council P.C. 1997-592 dated 15 April 1997; the
Order). The Order requested the Commission to seek comments from the public
and report on the views and concerns expressed on whether the establishment
of one or more additional Canadian national English-language, French-language
or bilingual television networks would serve the objectives of the
broadcasting policy for Canada set out in the Broadcasting Act and the
priorities identified in the Order. |
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2. The priorities identified in the Order are
to: |
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- increase the quality and quantity of Canadian programming available to
Canadians on television;
- contribute to a regional and national programming presence in the
Canadian broadcasting system;
- ensure that all programming undertakings, whether as parts of networks
or as parts of station ownership groups, provide equitable support for
Canadian programming;
- enhance Canada's capacity to produce and distribute domestic television
programs;
- maintain and increase the broadcast presence of distinct Canadian
programs; and
- encourage the availability of Canadian creative production in the
international marketplace.
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3. In response to the Government's request, the
Commission conducted a public process to provide the opportunity for
interested parties to file written comments and to make oral presentations
(see Public Notice CRTC 1997-48 dated 25
April 1997, as amended by Public Notice CRTC
1997-48-1 dated 12 June 1997). This included a two-stage written process,
which permitted interested parties to comment on the submissions filed during
the first round. The Commission received written comments from 21 parties.
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4. From 5 to 7 November 1997, the Commission
held an oral public hearing in the National Capital Region during which
interested parties were invited to elaborate on their written comments. A
total of 19 parties participated in this oral phase of the public hearing. At
the conclusion of the oral phase, parties were invited to submit brief, final
written comments addressing any of the issues raised during the public
hearing; submissions were received from 10 parties. |
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5. The participants in this public process
included representatives of several major broadcasting and production
companies and their industry associations. Most of the comments addressed the
issues relating to the potential for, and definition of, additional English-
or French-language networks, and the role of Canada's large, multi-station
ownership groups in meeting the objectives of the Broadcasting Act and
the priorities set out in the Order. Large multi-station groups are generally
considered as those whose stations fall under common ownership or control,
and have a collective potential reach that includes a majority of the
nation's viewers in the relevant language. In contrast, the definition of
network contained in the Broadcasting Act contains reference to
neither ownership nor reach. A network is defined as including "...any
operation where control over all or any part of the programs or program
schedules of one or more broadcasting undertakings is delegated to another
undertaking or person". The CBC and CTV are currently the only national
conventional television networks. |
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6. Finally, comments were received with respect
to the concept of a national multilingual television network, the
distribution of the programming of the existing aboriginal network,
Television Northern Canada (TVNC), and the use of descriptive video services
(DVS) to assist people who are blind or have low vision. |
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SUMMARY OF COMMENTS
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English-language Networks |
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7. None of the comments received from
broadcasters favoured the licensing of a new, national, English-language
network. As CHUM Limited noted, "...there is little or no evidence to support
the suggestion that our system could accommodate the introduction of one or
two generalist television networks. Furthermore, we believe that the public
interest is not well served by continuing to license additional conventional
networks...". CanWest Global Communications Corp. (Global) stated that there
is "...probably no room currently for a new national network as we understand
them." Speaking on behalf of most private television broadcasters, the
Canadian Association of Broadcasters (CAB) stated that the existing model of
traditional networks has been superseded by specialty services and the
development of large broadcaster groups who now purchase national rights.
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8. Parties representing program producers and
creators favoured increasing the Canadian content requirements for large
ownership groups, and stated that the designation of such groups as
"networks" would be one method of achieving this objective. Under
questioning, these parties indicated that their objectives could be met if
the large ownership groups that now exist were required to contribute to
national drama and entertainment programming. |
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9. At the public hearing, the concept of a new
licensing regime for large multi-station ownership groups was discussed.
There was considerable support among broadcasters for the concept of a single
licence for those groups whose potential reach, through the ownership of
local stations in different regions of the country, is virtually national in
scope. This would include Global, Baton Broadcasting Incorporated and WIC
Western International Communications Ltd. |
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French-language Networks |
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10. The Commission received written submissions
from three Francophone parties, all of whom made oral presentations at the
public hearing. |
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11. There was a consensus among the parties
that the licensing of a new, French-language, national network would not be a
viable option as there is currently insufficient potential advertising
revenue in the Francophone market for an additional conventional television
service. It was noted that the licensing of a new network could fragment
existing audiences and advertising revenues and could seriously damage the
incumbent private and public networks. |
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12. There was support from all parties for the
distribution of existing French-language networks throughout Canada. A number
of parties stated that, should this occur, the needs and interests of
Francophone communities outside Quebec must receive greater reflection in the
network programming. |
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13. At the public hearing, Télé-Métropole inc.
indicated that it intended to file an application for national distribution.
Télé-Métropole inc. maintained, however, that any additional obligations
required in relation to national distribution should take into account the
particular characteristics of the French-language broadcasting environment. |
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A Bilingual Network |
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14. None of the comments received by the
Commission supported the concept of a national, bilingual network. There was
consensus that such a service would neither be financially viable nor address
the needs of either language group. The Fédération des communautés
francophones et acadiennes expressed concern that such a network could
encourage the assimilation of French-language communities outside Quebec.
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A National Multilingual Network |
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15. Rogers Broadcasting Limited (Rogers),
licensee of the multilingual television station CFMT-TV Toronto, proposed
that the Commission call for applications for a national multilingual network
with programming that would be primarily ethnic and would be delivered
through a system of locally-based affiliates. |
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Television Northern Canada |
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16. TVNC noted that it is currently a licensed,
not-for-profit, television network serving Aboriginal peoples in the North.
TVNC proposed that the Commission ensure that its service is carried by cable
and other distribution undertakings in southern Canada, thereby becoming a
national service reflecting the needs and interests of all Aboriginal
Canadians, regardless of where they reside. |
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Descriptive Video Services |
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17. The National Broadcast Reading Service
Incorporated (NBRS) noted that DVS provides additional audio information for
blind people and those with low vision, and asked the Commission to encourage
broadcasters to make commitments for the gradual introduction of descriptive
video programming, particularly in prime time. |
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THE COMMISSION'S CONCLUSIONS
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English-language Networks |
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18. The private television system in Canada
began with the licensing of independently-owned stations based in local
markets. Networks developed as an important means for these stations to gain
access to national news, sports and entertainment programs that would
otherwise be too costly for individual stations to produce or acquire. The
network model was based upon individual station affiliates delegating control
over parts of their schedules to a network licensee. This model reflects the
definition of network contained in the Broadcasting Act. |
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19. Over the past two decades, ownership
consolidations and the licensing of new local stations have resulted in the
development of strong, multi-station ownership groups with a presence in most
Canadian provinces and major markets. These groups have come to possess the
resources required to produce high-quality programming or to acquire national
rights for the distribution of such programming on a national scale. As a
result, their importance and effectiveness as tools for achieving the
programming objectives of the Broadcasting Act have increased relative
to the national networks. |
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20. The Commission notes that, for any new
network to be truly national, new local stations affiliated to the network
would have to be licensed. This would be the case whether the new network was
created from an existing station group or was licensed to a new entity. The
Commission agrees with the comments of broadcasters and others at the public
hearing that there are few, if any, markets in Canada that could sustain the
licensing of new local stations without seriously impinging on the ability of
existing licensees to fulfil their obligations under the Broadcasting Act.
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21. Moreover, the Commission notes the number
of large multi-station groups already present in Canada, and the fact that
other such groups may emerge. The Commission is satisfied that these groups
have the capacity to provide support for Canadian programming at a level
comparable to the level that could be attained through the establishment of
an additional network. |
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22. The Commission concludes that, at this
time, it would not serve the objectives of the broadcasting policy for
Canada, or the priorities set out in the Order, to call for applications for
additional, English-language, national networks. |
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23. The Commission considers that the
objectives of the Broadcasting Act and the priorities set out in the
Order will be best served by a broadcasting system characterized by: |
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- strong conventional television licensees having the capacity to deliver
increasing amounts of attractive Canadian programs to viewers throughout
the country;
- a high level of cooperation between broadcasters and the independent
production sector, with a view to producing attractive Canadian programs
that reflect Canadian values and stories and that have potential for
international sales; and
- federal and provincial government policies that support the production,
promotion and distribution of Canadian television programs in a diversity
of formats.
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24. At the 5 November 1997 public hearing, the
Commission explored with broadcasters and other parties the concept of a
licensing regime that would allow large multi-station ownership groups to
apply for a group licence. Such a licence, while not necessarily a network
licence, could allow for administrative efficiencies through the regulation
of a group of stations under a single licence authority, including the
regulation of each station's programming commitments at the local level, as
well as the commitments to national programming that the licensee would make
on behalf of all of the group's stations. There was support from all parties
for further exploration of this licensing approach. |
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25. The Commission acknowledges that a new
licensing approach will not, in itself, lead to the creation of additional
resources that can be directed to new Canadian programming. Nevertheless, the
Commission is encouraged by the statements made by broadcasters that it is
only through providing attractive Canadian programming that they will succeed
in the future broadcasting environment. |
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26. The Commission recognizes that broadcasters
provide a successful and important local service to Canadians. While
regulatory policy should continue to support local programming, certain
categories of Canadian programming, particularly drama, remain
underrepresented in the prime time schedules of private, English-language
broadcasters. |
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27. The creation and promotion of successful
Canadian drama programming is a complex process involving a variety of
players, including independent producers, broadcasters, governments, public
and private funding agencies and the regulator. The increase in the quality
and quantity of this type of programming over the past decade is a testament
to the success of this process. Nevertheless, more must be done to ensure
that distinctively-Canadian programming is broadcast, and is of a quality
that enables it to compete effectively with foreign programming. |
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28. With this in mind, the Commission announced
in its Vision Strategy that it will hold a public process in the late summer
of 1998 to review a wide range of issues relating to its policies and
regulations that concern the production, promotion and exhibition of Canadian
programs. As part of this process, the Commission expects to be presented
with concrete proposals from broadcasters, producers and other interested
parties regarding the most effective regulatory framework for ensuring that
all participants make the maximum contribution to the objectives of the
Broadcasting Act, and that investment in Canadian programs becomes an
increasingly attractive business opportunity for broadcasters and producers
alike. The determinations that emerge from this process will carry through to
the Commission's subsequent decisions concerning applications for the licence
renewal of the CBC and CTV networks and of the television programming
undertakings owned by the multi-station groups. |
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29. Finally, in the Commission's view, future
growth in the exhibition of distinctively Canadian entertainment programming
will depend upon there being an increasing co-operative relationship between
broadcasters and independent producers. While the business strategies of
these two sectors are not always the same, they share the common objective of
attracting the maximum number of viewers, both at home and abroad, to
Canadian television programs. At the 5 November 1997 public hearing,
representatives of both sectors made commitments to begin a dialogue in order
to develop partnerships in areas of mutual concern. These may include
scheduling and promotion of Canadian programs and joint investment and
distribution agreements. The Commission encourages and supports this
dialogue. |
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French-language Networks |
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30. The Commission notes that none of the
comments received during the public process supported the creation of a new,
French-language, national network. The Commission agrees with the comments
made at the public hearing that the licensing of an additional, conventional,
French-language network would have a serious negative impact on the ability
of existing licensees in French-language markets to fulfil their obligations
under the Broadcasting Act. |
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31. The Commission concludes that, at this
time, it would not serve the objectives of the broadcasting policy for
Canada, or the priorities set out in the Order, to call for applications for
additional, French-language, national networks. |
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32. With respect to the national distribution
of existing French-language networks, the Commission agrees, in principle,
that increased access to existing French-language services throughout Canada
will contribute to the promotion of Canada's linguistic duality and cultural
diversity, as well as to fulfilment of the objectives of the Broadcasting
Act and of the priorities set out in the Order. |
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33. In this regard, the Commission notes the
plans announced by Télé-Métropole inc. to apply for the national distribution
of its existing network service. The Commission recognizes the importance of
Télé-Métropole inc.'s contribution to the Canadian broadcasting system and,
in particular, to the exhibition and promotion of high-quality Canadian
programs. |
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34. In reviewing any such application by
Télé-Métropole inc., the Commission will consider, among other factors, the
applicant's plans for reflecting the needs and interests of Francophone
communities outside Quebec and its proposed carriage arrangements. In
conducting its evaluation, the Commission will also take into account the
particular characteristics of the French-language market. |
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Bilingual Networks |
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35. Considering the lack of support for the
concept of a bilingual, national network, the Commission concludes that it
would not serve the objectives of the broadcasting policy for Canada, or the
priorities set out in the Order, to call for applications for a bilingual,
national network. |
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A National Multilingual Network |
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36. The Commission notes the proposal made by
Rogers that the Commission call for applications for a national multilingual
television network. In its Vision Strategy, the Commission has indicated
that, in 1998, it intends to begin a review of the policy set out in Public
Notice CRTC 1985-139 entitled A
Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity.
While this review will include matters relevant to licensees of ethnic radio
stations, the Commission considers that it would also be appropriate to
review its policies with respect to ethnic television at the same time. The
Commission concludes that any consideration of applications proposing a
national multilingual television network should await the results of this
policy review. |
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Television Northern Canada |
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37. The Commission recognizes that TVNC is a
unique and significant undertaking serving the public interest and the
objectives of the Broadcasting Act, especially those objectives that
relate to the special place of Aboriginal peoples within Canadian society.
Such a service should be widely available throughout Canada in order to serve
the diverse needs of the various Aboriginal communities, as well as other
Canadians. The Commission will consider any application by TVNC designed to
achieve these objectives. |
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38. The Commission expects any application by
TVNC to demonstrate how it will adapt its programming service to reflect the
diversity of the needs and interests of Aboriginal peoples throughout Canada. |
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Descriptive Video Services |
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39. The Commission notes the proposals made by
NBRS that the Commission encourage broadcasters to introduce descriptive
video services as a means to make the broadcasting system more accessible to
Canadians who are blind or who have low vision. While recognizing that there
may be significant technological and financial implications for broadcasters,
the Commission supports, in principle, the development and gradual
implementation of DVS. In this regard, the Commission notes and supports the
cooperative efforts by the NBRS and the CAB to explore the issues and to find
solutions to any problems that may be identified. |
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Laura M. Talbot-Allan
Secretary General |
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This document is available in alternative
format upon request. |