ARCHIVED - Decision CRTC 2000-456

PrideVision - a new specialty channel

On 24 November 2000, the Commission made a decision to issue a licence for a new national English-language Category 1 specialty television service to be called "PrideVision". The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date.

PrideVision will provide national news and information, current affairs, lifestyle and entertainment programming designed to meet the needs of the gay and lesbian community. As noted in Public Notice CRTC 2000-171 issued today, PrideVision and 20 other new digital specialty services will be made available to subscribers by all distributors who offer programming to the public using digital technology and by some cable operators who serve smaller markets using analog technology. The licence, when issued, will expire 31 August 2007.

PrideVision will bring added diversity to the Canadian broadcasting system by providing a unique service with the potential to create understanding and reduce stereotyping of a significant portion of Canadian society. The programming will also be of interest and relevance to viewers who are not members of the gay and lesbian community, but who are interested in or connected to that community through family, friends or the workplace. PrideVision will offer programming from a wide variety of categories, but its perspective will be one not currently found on mainstream television in Canada, ensuring that PrideVision will be an innovative complement to existing services. In Public Notice 2000-171 the Commission discusses the general criteria for the approval of this and other applications for new specialty services.

The controlling interest in PrideVision (70.1%) will be held by Levfam Holdings Inc. (Levfam), which also has an ownership interest in Sportscope Television Network Ltd. The remaining 29.9% of the voting interest will be held by Alliance Atlantis Broadcasting Inc.

Terms and conditions of licence common to all of the new Category 1 specialty services are set out in an appendix to Public Notice 2000-171. Conditions specific to this application can be found in the appendix to this decision.

Programming

Nature of service

PrideVision will provide a national English-language specialty television service dedicated to programming of specific interest to the gay and lesbian community. At the hearing, PrideVision explained that programming targeting this community is primarily, but not necessarily exclusively, that which involves gay, lesbian, bisexual or trans-gendered characters. PrideVision also proposes to include other types of programming that would appeal to this community.

The broadcast schedule of PrideVision will generally be constructed as an eight-hour program "wheel" repeated throughout the day. News programming will be regional, national and international, focusing specifically on the gay and lesbian community, as well as on issues of interest to that community. Information programming will cover health issues, biography and travel information. Entertainment programs will include a number of popular Canadian and international dramas, as well as movies that will appeal to gay and lesbian audiences. Other programs will respond to the wide variety of interests and tastes found in the gay and lesbian community, including cooking, fitness, dating, music videos, fashion and decorating.

The program categories identified by PrideVision as forming the service’s content are set out in a condition of licence found in the appendix to this decision.

Contributions to diversity

PrideVision will contribute to increased diversity in the Canadian broadcasting system by providing programming that is of specific interest to the gay and lesbian community, which is currently an under-served and under-represented audience. A channel devoted to this audience will be unique to the broadcasting system in Canada, among the first of such services world-wide. It will have the potential to be a "bridging" service, creating understanding and thereby reducing stereotyping.

In its application, the licensee made a number of arguments supporting the added diversity that licensing PrideVision would bring to Canadian television audiences:

• There is currently a lack of programming targeted to the gay and lesbian community. This service will fill that void for the millions of Canadians who want informational and entertainment programming based on gay and lesbian issues and perspectives.

• This service will meet the needs of millions of friends and family members of gay, lesbian, bisexual and transgendered persons. These viewers will appreciate programming that accurately and fairly portrays the interests and lifestyles of their loved ones.

• Focus group participants were clear in their demand for high-quality programming that would appeal to a "mainstream" gay and lesbian audience, rather than sensational programs that would only appeal to small sectors within that audience.

Canadian content

The licensee made a commitment to broadcast a minimum of 65% Canadian content from 6 a.m. to midnight, and a minimum of 50% from 6 p.m. to midnight, throughout the licence term.

Following discussions at the hearing, the licensee further committed that a minimum of 65% of PrideVision’s Canadian programming, or roughly 481 hours per year, would be original production, and estimated the cost of this original programming to be approximately $17 million over the licence term.

Canadian programming expenditures

Beginning in the year following the first year of operation, the licensee will expend a yearly minimum of 49% of its gross advertising, infomercial and subscription revenues on Canadian programming. The licensee estimates that, in accordance with this formula, it will spend almost $32 million over the licence term, to acquire or produce Canadian programs. A formula for the calculation of the amounts required is set out in a condition of licence, found in the appendix to this decision.

Independent production

The licensee stated that, over the licence term, it will spend approximately $14 million on material from independent producers. While it currently has no plans to acquire programs from Alliance Atlantis, it stated that it expected that no more than 25% of the broadcast year would be devoted to programs acquired from Alliance Atlantis. The Commission notes the licensee’s commitments, and as set out in Public Notice 2000-171, all Category 1 services will be subject to a standard condition of licence in this regard.

Interactivity

PrideVision has a working relationship with Rainbow Connections, a Canadian Internet company serving the gay and lesbian community and its supporters, to provide a dedicated web portal offering a fully integrated gateway to e-commerce, e-business, communications and community building, through content that supports PrideVision’s programming. The website will provide a variety of in-depth information on the channel’s programs, and opportunity for feedback during programs via e-mail. Rainbow Connections will also assist in the development of enhanced interactive television content, to be introduced as technology permits.

Ownership and synergies

As noted above, a majority (70.1%) of the voting interest in PrideVision will be held by Levfam, which also owns an indirect voting interest in Sportscope Television Network Ltd., a specialty television service.

Alliance Atlantis, which holds the remaining 29.9% of the voting interest in PrideVision, is a leading Canadian and international producer, distributor and broadcaster of filmed entertainment. It holds ownership interests in four Canadian English-language specialty television services (Life Network, HGTV Canada, History Television and Showcase), and, in partnership with Astral Communications Inc., two recently-approved French-language specialty services (Canal Fiction and Canal Histoire). PrideVision’s partnership with Alliance Atlantis will add stability to the new service, in the form of financial support and experience.

Filing requirements

This authority will only be effective and the Commission will only issue the licence when the applicant has clearly demonstrated that it is a "qualified corporation" as defined in the Direction to the CRTC (Ineligibility of non-Canadians) and is eligible to hold a licence. Consequently, the applicant is required to file all relative incorporation documents (certificate and articles, by-laws, etc.), copies of the programming supply agreement; unanimous Shareholders’ Agreement, management agreement or any other pertinent agreement, for review and approval by the Commission.

Other matters

As part of its application, PrideVision committed to the implementation of an internship program at the service, as well as the formation of a Programming Advisory Board/Committee, to include representatives of the gay, lesbian, bisexual and trans-gendered communities. The representatives will be asked to provide input on the types of programming to be shown on PrideVision. In order to foster the development of gay and lesbian talent in television and video production, PrideVision will make its studio and facilities available to amateur producers, and will broadcast their productions. The licensee also made a commitment to donate a minimum of $250,000 per year to AIDS research.

Rate

In its business plan, the licensee proposed a wholesale rate of $0.35 per subscriber per month, and a six-month free trial period.

Service to the hearing-impaired

As part of its application, the licensee committed to install a TTY (teletypewriter), and to ensure that a minimum of 90% of its programming will be closed captioned. The Commission expects the licensee to fulfil this commitment.

Service to the visually-impaired

The Commission requires PrideVision to be technically equipped to deliver described video programming. In addition, the Commission encourages the licensee to provide audio description of visual information wherever possible, and to provide described video programming as outlined in Public Notice 2000-171.

Employment equity

The Commission notes that this licensee will be subject to the Employment Equity Act that came into effect on 24 October 1996 and therefore will file reports concerning employment equity with Human Resources Development Canada.

Conclusion

In licensing PrideVision, the Commission notes that this service is among the first television services in the world dedicated to the needs and interests of the gay and lesbian community. The Commission is satisfied that the plans for PrideVision will provide an important service for a significant segment of the population that is not currently well served, and that it will represent the gay and lesbian community appropriately and accurately.

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

Appendix to Decision CRTC 2000-456

The licence for the national English-language programming undertaking (specialty television service) known as PrideVision will be subject to the following conditions, as well as those set out both in Public Notice CRTC 2000-171, and in the licence to be issued.

Nature of service

2. The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990:

News

Animated television programs and films

Analysis and interpretation

Comedy sketches, improvisation, unscripted works, stand-up comedy

Long-form documentary

Reporting and actualities

Informal education/recreation and leisure

Amateur sports

Ongoing dramatic series

Ongoing comedy series (sitcoms)

Specials, mini-series, made-for-TV feature films

Theatrical feature films aired on TV

Exhibition of Canadian programs

Expenditures on Canadian programs

Definition

The term "broadcast day" shall have the same meaning as that set out in the Television Broadcasting Regulations, 1987.