ARCHIVED - Decision CRTC 2000-420

Decision CRTC 2000-420

Ottawa, 27 October 2000

CanWest Global Communications Corp, on behalf of CW Shareholdings Inc.
Across Canada - 200015398

18 September 2000 Public Hearing
National Capital Region

Ownership change for ROBTv

As a result of this approval, the partnership interest of CanWest Global in ROBTv will increase to 50%. The remaining 50% will continue to be held by G and M Business News Limited.

The Commission approves the application by CanWest Global Communications Corp. (CanWest), on behalf of its wholly-owned subsidiary, CW Shareholdings Inc. (CW Shareholdings), to acquire the 24% partnership interest held by Canadian Satellite Communications Inc. (Cancom) in the specialty service Report on Business Television (ROBTv), a general partnership.

ROBTv is a Canadian specialty service whose programming focuses on business, financial and economic news. The service is designed to appeal to business professionals, as well as to viewers with a general interest in such topics as investment management, personal finance and retirement planning.

Cancom's partnership interest in ROBTv formed part of a 1999 transaction in which Cancom and Star Choice Communications Inc. were authorized to merge under one corporate structure. In its decision on that matter, the Commission noted Cancom's intention to divest its partnership interest in ROBTv, within one year (see Decision CRTC 99-169). Approval of this application will permit Cancom to meet this commitment.

Earlier this year, CW Shareholdings was given authority to acquire a 26% partnership interest in ROBTv that had been held by WIC (see Decision CRTC 2000-221). The approval announced today will result in CW Shareholdings holding a 50% partnership interest in ROBTv. The remaining 50% is held by G and M Business News Limited (G and M Business), which also owns The Globe and Mail newspaper.

Intervention and response

G and M Business submitted an intervention in opposition to this application. The intervener initially supported this application, but it stated that it was concerned by the announcement in July 2000 of the acquisition by CanWest of an ownership interest in the Hollinger newspaper chain. This interest includes a 50% interest in the National Post newspaper, which is directly competitive with The Globe and Mail. G and M Business expressed concerns whether, following their print media acquisitions, CanWest, through its subsidiary CW Shareholdings Inc., would act in the best interests of ROBTv. The intervention also stated that the joint control of ROBTv would result in conflicts and disputes with the potential to undermine ROBTv's viability and integrity.

In response to the concerns raised, CanWest first argued that the issues related to competition in the print media raised in the G and M Business intervention do not fall within the Commission's jurisdiction. In addition, CanWest contends that the concerns expressed by G and M Business are without merit, "given the significant programming, promotional, sales, regulatory and other resources we have already provided to ROBTv as a result of our 26% interest in the service". CanWest added that it would not be making "significant investments in this undertaking with the intention to then undermine its success or viability- that simply would not be good business."

The Commission notes the concerns expressed by the intervener, and the licensee's response to the issues raised, and considers that approval of the application is appropriate. The Commisssion, of course, expects all licensees to fulfill their obligations under their licences and the Broadcasting Act.

Related CRTC documents

. Decision 2000-221 - Acquisition by CanWest Global Communications Corp., through its wholly-owned subsidiary CW Shareholdings Inc., of the ownership interests held previously by WIC Western International Communications Ltd. in various conventional television stations and in certain other broadcasting undertakings

. Decision 99-169 - Amalgamation of Cancom and Star Choice

Secretary General

This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca 

Terms of the licence for the national English-language programming undertaking (specialty television service) known as Report on Business Television (ROBTv)

Upon surrender of the current licence, the Commission will issue a new licence to the partners of ROBTv, expiring 31 August 2003 (the current expiry date).

Conditions of licence

The licence will be subject to the conditions set out below and to any other condition specified in the licence to be issued.

1. The licensee shall provide a national English-language specialty service consisting of business and financial news and information, and shall draw programs exclusively from Category 1 (News), Category 2 (Analysis and Interpretation), Category 3 (Reporting and Actualities) and Category 5(b) (Education, Informal) as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990.

2. The licensee shall devote to the distribution of Canadian programs not less than 75% of each broadcast day and not less than 75% of the evening broadcast period.

3. In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1992-28, 1993-93 and 1993-174:

a) In the broadcast year following the first year of operation, and in each subsequent broadcast year, the licensee shall expend on Canadian programs not less than 50% of the previous broadcast year's gross revenues derived from the operation of this service.

b) In the broadcast year following the first year of operation, and in each subsequent broadcast year, excluding the final year, the licensee may expend an amount on Canadian programs that is up to five percent (5%) less than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee shall expend in the next broadcast year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure.

c) In the broadcast year following the first year of operation, and in each subsequent broadcast year where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year calculated in accordance with this condition, the licensee may deduct:

(i) from the minimum required expenditure for the next broadcast year of the licence term, an amount not exceeding the amount of the previous broadcast year's overexpenditure; and

(ii) from the minimum required expenditure for any subsequent broadcast year of the licence term, an amount not exceeding the difference between the overexpenditure and any amount deducted under (i) above.

d) Notwithstanding the above, during the licence term, the licensee shall expend on Canadian programs, at a minimum, the total of the minimum required expenditures calculated in accordance with the licensee's condition of licence.

4. a) Subject to subsection (b), the licensee shall not distribute more than twelve (12) minutes of advertising material during each clock hour.

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.

c) The licensee shall not distribute any paid advertising material other than national paid advertising.

5. From the commencement of service, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.25 per subscriber per month, where the service is distributed as part of the basic service.

6. The licensee is authorized to broadcast infomercials. The definition of infomercials and the criteria for broadcasting them are set out, respectively, in Public Notices CRTC 1994-139 and CRTC 1995-93, as they may be amended from time to time.

7. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB's) Sex role portrayal code for television and radio programming, as amended from time to time and approved by the Commission.

8. The licensee shall adhere to the provisions of the CAB's Broadcast code for advertising to children, as amended from time to time and approved by the Commission.

9. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary code regarding violence in television programming, as amended from time to time and approved by the Commission.

For the purpose of these conditions of licence, the terms broadcast day, broadcast year, evening broadcast period and clock hour shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987; first year of operation shall mean the first broadcast year in which the licensee is in operation for a period exceeding 90 days, excluding any free trial period; and paid national advertising shall mean advertising material as defined in the Specialty Services Regulations, 1990 and that is purchased at a national rate and receives national distribution on the service.