Appendix II to Decision CRTC 99-552
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Conditions of licence for the national direct-to-home pay-per-view undertaking
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1. The licensee must ensure that the service consists of programming to be drawn from the categories set out in Item 6 of Schedule 1 of the Pay Television Regulations, 1990, as amended, generally consisting of feature films, but also including concerts, sports events and other special events, and sold on both an individual and series basis.
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2. The licensee is authorized to make available for distribution by licensed DTH distribution undertakings its service, which will consist of as many as 30 channels of programming with no less than 8 French channels as well as both English- and French-language "barker" channels.
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3. If the total number of channels moves above or below 30, the licensee shall maintain the channels in a ratio of French to English of 1:3, with a minimum of 5 French-language signals in addition to the French-language barker channel.
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4. With respect to English-language programming, the licensee shall, through its agreements with the licensees of DTH distribution undertakings, ensure that in each broadcast year, the following is made available by these licensees to their PPV subscribers:
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a) a minimum amount of 12 Canadian feature films (including all new Canadian feature films suitable for PPV exhibition and meeting the Pay Television Standards and Practices Code);
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b) a minimum amount of 4 English-language Canadian-based events; and
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c) a minimum yearly ratio of Canadian to non-Canadian first-run feature film titles of at least 1:20, and a yearly ratio of Canadian to non-Canadian events of at least 1:7.
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5. With respect to French-language programming, the licensee shall, through its agreements with the licensees of DTH distribution undertakings, ensure that, in each broadcast year, the following is made available by these licensees to their PPV subscribers:
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a) a minimum amount of 20 Canadian feature films in the original French-language version, or dubbed in French, which have been exhibited in theatres in French-language markets, including all new Canadian feature films suitable for PPV exhibition and meeting the Pay Television Standards and Practices Code;
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b) a minimum amount of 6 French-language events in each of years one and two of operation, eight in each of years three and four; ten in each of years five and six; and twelve in year seven of operation; and
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c) a minimum yearly ratio of Canadian to non-Canadian first-run feature films of 1:12, and a minimum ratio of Canadian to non-Canadian events, on each channel used for their broadcast, of at least 6:20 in years one and two of operation, 8:20 in years three and four, 10:20 in years five and six and 12:20 in the seventh year of operation.
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6. During the period from the commencement of operations of the service to 31 August of that broadcast year, the licensee’s performance with respect to its commitments regarding Canadian content in feature films and events will be assessed on a pro-rata basis.
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7. The licensee shall ensure that both English-language and French-language Canadian feature films are scheduled, repeated and promoted in the same manner as non-Canadian feature films.
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8. The licensee shall contribute at least 5% of its gross annual revenues derived from its PPV broadcasting activities to independently-administered Canadian production funds, to support the development of Canadian programming.
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a) Of this amount, 80% must be directed to the Canadian Television Fund (CTF) (as defined in the Broadcasting Distribution Regulations, as amended from time to time) while up to 20% may be directed to one or more independently-administered production funds other than the CTF, provided that these other funds meet the criteria set out in Public Notice CRTC 1997-98, as may be amended from time to time.
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b) The licensee is required to remit its first contribution to the CTF, and to such other independently-administered production fund(s) as it may elect to support in accordance with paragraph (a) above, no later than 45 days following the end of the month in which it commences operations. Contributions made thereafter shall take the form of monthly instalments to be remitted within 45 days of month's end, and representing a minimum of 5% of that month's gross revenues.
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9. The licensee shall remit to the rights holders of all English-language Canadian films and two Canadian-based events per year, 100% of the gross revenues earned by the licensee from the exhibition of these films and events. With respect to French-language Canadian feature films, the licensee shall remit 100% of the gross revenues earned by the licensee from the exhibition of these films to distributors and providers, with a minimum of 60% to the programming providers.
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10. The licensee shall not acquire exclusive or other preferential rights to PPV programming exhibited as part of its service.
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11. The licensee shall not enter into an affiliation agreement with the licensee of a DTH distribution undertaking unless the agreement incorporates a prohibition against the linkage of the licensee's PPV service with any non-Canadian discretionary service.
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12. The licensee shall adhere to the Pay Television Regulations, 1990.
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13. The licensee shall adhere to the Pay Television and Pay-Per-View Programming Code Regarding Violence as amended from time to time and approved by the Commission.
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14. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' Sex-Role Portrayal Code for Television and Radio Programming as amended from time to time and approved by the Commission.
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For the purpose of the above conditions of licence, "broadcast year" means that period between 1 September in any year and the following 31 August.
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