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ARCHIVED - Decision CRTC 2000-39

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Decision
CRTC 2000-39
Ottawa, 11 February 2000
Star Choice Television Network Inc.
Across Canada – 199912077
Application processed by
Public Notice CRTC 1999-185
dated 10 November 1999
Application for temporary relief from the requirements of conditions of licence pertaining to identical programming deletion and for authorization to offer a second set of « 4+1 » U.S. signals as part of a discretionary package - approved
The Commission approves the application for a licence amendment by Star Choice Television Network Inc. (Star Choice), licensee of a national direct-to-home (DTH) satellite distribution undertaking. The amendment grants Star Choice:

– temporary relief from conditions of licence that would otherwise require it, upon receipt of a request from a licensed Canadian television station, to carry out the simultaneous and non-simultaneous deletion of programming distributed to a subscriber. These requirements would apply where the subscriber is located within the station’s Grade B contour (regional, over-the-air service contour), and where the deleted programming is identical to that broadcast by the station; and

– authorization to make available to subscribers a second set of 4 U.S. commercial signals, one from each of the major television networks, and one non-commercial U.S. signal (U.S. "4+1" signals) from either the Eastern or the Pacific time zones. The Pacific signal set will originate from Spokane, Washington, while the Eastern set will be received from Buffalo, New York. As with the first set of such signals, Star Choice will offer the second set as part of a discretionary package.

The text of the relevant licence conditions, as amended, follows later in this decision.
Discussion and reasons for the decision

1.

Star Choice is currently required to delete programming received by subscribers located within the Grade B contour of a licensed Canadian television station where the programming distributed as part of the DTH service is identical to that broadcast by the station in question, and where there is a request by the station’s licensee that it perform the deletion.

2.

In Public Notice CRTC 1995-217, which accompanied the original licensing decisions pertaining to other DTH distribution applicants, the Commission noted the discussions between some of these applicants and the Canadian Association of Broadcasters (CAB). The discussions concerned alternative measures that could be taken to compensate or protect local and regional television program rights and advertising revenues. The Commission stated that it would accept alternatives to program deletion requirements that were mutually agreed upon by the parties.

3.

A comprehensive agreement, signed 30 September 1999, for the compensation of television licensees has been reached between the CAB and Star Choice, and forms part of the present application. The application itself is the subject of a supporting intervention by the CAB. The Commission is satisfied the agreement constitutes a reasonable and acceptable alternative to the program deletion requirements imposed on Star Choice.

4.

Based on the existence of this agreement and its acceptability, the Commission approves the present application and suspends application of the conditions pertaining to program deletion described above. As requested by the applicant, and in accordance with the terms of the compensation agreement, the suspensions will remain in effect from the date of this decision until the earlier of 31 August 2000 and the date upon which the DTH satellite distribution undertaking operated by Star Choice obtains 500,000 subscribers.

5.

On balance, the Commission is satisfied that the terms of the agreement reached between the applicant and the CAB provide for appropriate compensation to affected broadcasters.
Licence amendment relative to simultaneous and non-simultaneous deletion

6.

Star Choice’s conditions of licence 4b)ii) and 5b) specify that:

4.b) Where the licensee receives, at least seven days before the date on which the programming service is broadcast, a written request for substitution or deletion from the operator of a licensed Canadian television programming undertaking, the licensee shall:

ii) delete a programming service that is identical to that of the Canadian television programming undertaking and that is receivable by subscribers located within the grade B contour of the Canadian television programming undertaking.

5.b) Where the licensee receives, at least seven days before the date on which the programming service is broadcast, a written request for deletion from the operator of a licensed Canadian television programming undertaking, the licensee shall delete a programming service that is identical to that of the Canadian television programming undertaking and that is receivable by subscribers located within the grade B contour of the Canadian television programming undertaking.

7.

The Commission hereby amends the licence by adding the following condition of licence:

5.d) The application of the conditions of licence specified in 4b)ii) and 5b) will be suspended from the date of this decision until the earlier of 31 August 2000 and the date upon which the DTH satellite distribution undertaking obtains 500,000 subscribers.

8.

This amendment does not alter Star Choice's commitment to honour program substitution requests made by programming undertakings that are carried by Star Choice. As per Star Choice's agreement with the CAB, programming undertakings that are not carried by Star Choice will receive compensation in lieu of substitution or deletion.
Second set of U.S. 4+1 signals

9.

The Commission’s current policy generally limits the number of conventional non-Canadian television services delivered by a broadcasting distribution undertaking to one set of the U.S "4+1"network signals.

10.

In its intervention to the present application, the CAB stated that the potential impact on local broadcasters of the carriage of a duplicate set of U.S. "4+1" signals would be mitigated by the following three factors set out in the terms of the agreement:
  • Star Choice will, through the CAB, pay to affected broadcasters $0.25 per month for each DTH subscriber that takes a second set of U.S. "4+1"signals;
  • Star Choice will be able to maximize simultaneous substitution between the Canadian and U.S. network signals because the duplicate U.S. network signals will be sourced from the same time zones (Pacific and Eastern) as the Canadian conventional television signals it is carrying; and
  • Star Choice will compensate broadcasters for any missed simulcast opportunity.

11.

Star Choice notes that Decisions CRTC 98-500 and CRTC 98-501 dated 23 November 1998 granted approval to substantially identical applications submitted by Bell Satellite Services Inc. (Bell Satellite), and considers that approval of this application is necessary to maintain competitive equity between Canada's two DTH providers.

12.

The Commission agrees that, while certain elements of the text of the agreement negotiated with the CAB are different from those set out in the Bell Satellite agreement with the CAB, the Star Choice agreement is materially identical to the Bell Satellite agreement.

13.

The Commission acknowledges the interventions received with respect to this component of the application, including a supporting intervention from the CAB. In its reply to the concerns raised in the interventions filed by the Canadian Cable Television  Association, Bell ExpressVu and the Specialty and Premium Television Association, the licensee pointed out that it would be offering a second set of U.S. 4+1 signals for a different time zone.

14.

The Commission is satisfied with the licensee’s reply and notes that the agreement between Star Choice and the CAB provides an appropriate degree of protection to local broadcasters to offset any potential harm resulting from the provision of a second set of U.S. "4+1" signals to subscribers. Furthermore, the Commission considers that approval of this application is warranted in light of the additional benefits that would result, including maximum opportunities for simultaneous substitution and additional choice to subscribers in relation to time zone sensitive signals.
Secretary General
This decision is to be appended to the licence.  It is available in alternative format upon request, and may also be viewed at the following Internet site: www.crtc.gc.ca

 

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