ARCHIVED - Decision CRTC 2000-466

Perfecto, La Chaîne — a new specialty channel

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

Perfecto, La Chaîne will be devoted to fashion and design. As noted in Public Notice 2000-171 of today's date, Perfecto 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.

Perfecto, La Chaîne will increase the diversity of the Canadian broadcasting system by offering a range of fashion and design programming, which is in relatively short supply on French-language television. In licensing Perfecto, La Chaîne, the Commission took into account the interest expressed by consumers in programming on fashion, design, architecture, photography and aesthetics offered by existing services. In Public Notice 2000-171, the Commission discusses the criteria for the approval of this and the other applications for new specialty services.

Groupe Radio Astral inc./Astral Radio Group Inc. and CHUM Limited will each hold an equal interest (50%) in the undertaking and will be jointly responsible for day-to-day operations.

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

Perfecto, La Chaîne will offer a national French-language Category 1 specialty television service devoted to fashion and design. The major themes will be fashion, design, photography, portraits, beauty, art and architecture. The program categories proposed for Perfecto, La Chaîne are set out in a condition of licence found in the appendix to this decision.

Perfecto, La Chaîne's programming will include:

• various magazine programs covering the world of fashion, design, architecture, beauty and lifestyle;

• fashion shows from all over the world;

• television series and feature films based on the themes of the service;

• exclusive interviews with major figures in fashion, design and architecture;

• programs of analysis and criticism where guests exchange ideas and opinions;

• classic programs and series that marked the evolution and the major trends of their time;

• the most popular international events in the world; and

• entertainment documentaries that explore lifestyles, the greatest treasures and the worlds of dreams.

Regarding the proposed broadcast of feature films, the Commission notes that when it previously licensed other French-language specialty services, it restricted the broadcast of feature films by these services because of the already strong presence of this category of programming on French-language conventional television stations. A condition of licence, found in the appendix to this decision, therefore limits the broadcast of feature films by Perfecto, La Chaîne to one per broadcast week during prime time (7 p.m. until 11 p.m.), with the possibility of three rebroadcasts outside prime time, for a total of four broadcasts per broadcast week.

Contributions to diversity

Perfecto, La Chaîne will contribute to the diversity of current programming since there is currently no French-language specialty channel devoted solely to fashion and design. Perfecto, La Chaîne will create a fashion clip concept called "Portfolio". Broadcasting these Canadian clips will contribute to the establishment and increased visibility of brands and labels.

Canadian content

The licensee made a commitment to broadcast, during the broadcast day (6 a.m. to midnight), a minimum of 40% Canadian content in the first and second years, increasing to 45% in the third and fourth years, and to 50%, 55% and 60% in the fifth, sixth and seventh years, respectively, and 50% during the evening hours (6 p.m. to midnight), throughout the licence term. A condition of licence to this effect is set out in the appendix to this decision.

The licensee also made a commitment to broadcast a minimum of 715 hours of original Canadian productions in the first broadcast year, rising to 830 hours of original Canadian programming in the last year of the licence term.

Canadian programming expenditures

Beginning in the year following the first year of operation, the licensee will expend a yearly minimum of 48% of its gross advertising, infomercial and subscription revenues for the previous broadcast year on Canadian programming. The licensee calculates that, in accordance with this formula, it will spend almost $16 million over the licence term to produce original Canadian programs. This amount will be divided between internal production and independent producers. 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 also stated that it will devote 5% of its gross revenues for the previous year to assist creators of Canadian fashion, design and architecture. These funds will permit stylists and designers to obtain financing to produce clips. This commitment represents $1.9 million over seven years provided to independent producers to design projects aimed at enhancing the national and international influence of Quebec fashion and design. A condition of licence applying to all Category 1 specialty services that relates to the use of independent production is set out in Public Notice 2000-171.

Interactivity

The licensee plans to create a website when the service is launched. Initially, it intends to use the website to complement the proposed service by offering interviews, information on collections or addresses, until digital technology provides additional avenues. It plans eventually to incorporate interactivity into the development of its programs.

Ownership and synergies

The licensee, MusiquePlus inc., is owned in equal shares by Groupe Radio Astral inc./Astral Radio Group Inc. (Astral) of Montreal and CHUM Limited (CHUM) of Toronto. MusiquePlus inc. currently operates the French-language music videoclips specialty service "MusiquePlus". As noted above, Astral and CHUM will each hold a 50% interest in Perfecto, La Chaîne. The two partners were the first to broadcast programs on fashion and design: Radiomutuel (now Astral) with the program Perfecto and CHUM Limited with the program Fashion Television, the first fashion and design program in Canada, which is now distributed to 120 countries. Furthermore, CHUM is the licensee of the new specialty service Fashion Television which was licensed in Decision CRTC 2000-452, issued today.

Other matters

Rate

In its business plan, Perfecto, La Chaîne proposed a maximum monthly wholesale rate of $1.25 for the first five years and $1.11 for the sixth and seventh years of the licence term, as well as a three-month free trial period.

Service to the hearing-impaired

Over the licence term, the licensee plans to spend $592,000 on captioning. It made a commitment to caption, during the broadcast day, at least 35% of the programming of Perfecto, La Chaîne during its first year of operation. This percentage will gradually increase in the following years to reach at least 75% in the seventh year of operation. The Commission expects the licensee to fulfil this commitment, and encourages it to caption 90% of the programming aired during the broadcast day by the end of its licence term.

Also, from the start of operation of the service the licensee will have a teletypewriter (TTY) for the deaf and will ensure that the telephone number is well advertized.

Service to the visually impaired

The licensee also indicated that it will have the equipment necessary to broadcast descriptive video service (DVS). 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 is subject to the Employment Equity Act that came into effect on 24 October 1996 and therefore must file reports concerning employment equity with Human Resources Development Canada.

Conclusion

The Commission is satisfied that Perfecto, La Chaîne will provide a unique and attractive range of programming that will contribute to the diversity of the Canadian broadcasting system. The Commission also considers that the expertise and resources available to each partner will ensure the success of Perfecto, La Chaîne.

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 2000-466

The licence for the national French-language programming undertaking (specialty television service) known as Perfecto, La Chaîne 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

Analysis and interpretation

Long-form documentary

Informal education/Recreation and leisure

General entertainment and human interest

Ongoing comedy series (sitcoms)

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

Theatrical feature films aired on Television

Infomercials, promotional and corporate videos

Other drama

Exhibition of Canadian programs

Broadcast day

Evening broadcast period

40%

50%

40%

50%

45%

50%

45%

50%

50%

50%

55%

50%

60%

50%

Expenditures on Canadian programs

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