Decision CRTC 2000-467
See also: 2000-467-1
Ottawa, 14 December 2000
Groupe TVA inc., Les Films Rozon inc. and BCE Média Inc., (OBCI)
Across Canada — 200008260
14 August 2000 Public Hearing
National Capital Region
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Télé Ha! Ha! — a new specialty channel
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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 "Télé Ha! Ha!". The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date.
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"Télé Ha! Ha!" will be focused entirely on humour and comedy. As noted in Public Notice CRTC 2000-171 of today's date, Télé Ha! Ha! 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.
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Télé Ha! Ha! will add to the diversity of the Canadian broadcasting system by providing a range of programs focusing on humour, of which there are relatively few offerings on French-language television. In issuing a licence to Télé Ha! Ha!, the Commission has taken into account the fact that this service will play a key role in ensuring the success of digital distribution in the French language, because of the great popularity of humour as a theme. In Public Notice 2000-171, the Commission discusses the criteria for the approval of this and the other applications for new specialty services.
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Groupe TVA inc. will be the majority owner of Télé Ha! Ha! inc., a company to be incorporated, and will hold a 60.2% interest. Groupe TVA inc. will be responsible for the day-to-day operation of the service. Les Films Rozon inc. and BCE Média Inc. will each hold a 19.9% interest.
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Terms and conditions of licence common to all of the specialty services approved today 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.
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Programming
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Nature of service
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Télé Ha! Ha! will offer a national French-language Category 1 specialty television service devoted to humour and comedy. The service intends to present humour in all of its diversity, including stand-up comedy, humour related to current affairs, game shows, sitcoms, variety, theatre, musical comedy, song, performance and dance. The program categories proposed for Télé Ha! Ha! are set out in a condition of licence found in the appendix to this decision.
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The program schedule for Télé Ha! Ha! will consist of a combination of original material (humerous skits and stories), Quebec comedy hits, American comedy, comedy from around the world, and films. The applicant proposes to personalize its programming through the use of in-house and star hosts. In-house hosts are intended to give a face and a personality to Télé Ha! Ha! by introducing programs, accompanying viewers and acting as an identifiable link with the audience. A number of original programs will feature well-known humorists and comedians, either as regular hosts or as special guests.
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Contributions to diversity
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Télé Ha! Ha! will make a major contribution to the diversity of the existing program offering since there is no French-language specialty service currently focusing on humour and comedy. Moreover, the Commission acknowledged comedy's contribution by licensing an equivalent English-language service in 1996 (The Comedy Network).
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Canadian content
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The licensee made a commitment to broadcast a minimum of 50% Canadian content from 6 a.m. to midnight, and a minimum of 50% from 6 p.m. to midnight throughout the licence term. The licensee also made a commitment to broadcast a yearly minimum of 438 hours of original Canadian productions throughout the licence term.
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Canadian programming expenditures
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In the broadcast year following the first year of operation, the licensee will devote a minimum of 50% of the previous broadcast year's gross advertising, infomercial and subscription revenues to investments in Canadian programming. The licensee calculates that it will spend more than $45 million on Canadian programs over the licence term. A formula for the calculation of the amounts required is set out in a condition of licence found in the appendix to this decision.
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Independent production
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The licensee also made a commitment to make significant use of independent producers to supply its service. It stated that a large proportion of Télé Ha! Ha!'s original production will be entrusted to independent producers and to creators. In particular, the licensee committed to paying at least $20 million to independent producers over the licence term.
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Groupe TVA owns the JPL Productions inc. production house, while Les Films Rozon is the primary comedy production company in Quebec. In this context, the licensee committed to establishing mechanisms to ensure that independent producers will have an
equitable opportunity to provide programs to Télé Ha! Ha!. Public Notice 2000-171 includes a condition of licence applicable to all licensees of Category 1 specialty services regarding use of the independent production sector.
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Interactivity
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The licensee plans to initially use a website to supplement the proposed service, until digital technology opens up other possibilities. It expects that interactivity will eventually be integrated into the development of programs. In particular, the Télé Ha! Ha! website will display the program schedule for the service, video excerpts from shows currently playing, reviews and accounts of those shows, videotaped interviews with comedy stars and live sessions with comedians.
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Groupe TVA holds an indirect 27% interest in Netgraphe, a company active in the Internet publications sector and in Internet site design. As such, the licensee will be in a position to stay at the forefront of technological change that enables convergence between television and the Internet.
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Ownership and synergies
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As noted above, Groupe TVA inc. will have majority ownership (60.2%) of Télé Ha! Ha! inc., a company to be incorporated. Les Films Rozon inc. and BCE Média Inc. will each have a 19.9% interest. The licensee will be controlled by its board of directors.
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Groupe TVA will operate the undertaking. According to the applicant, the activities for which it will be responsible include:
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- launch and operation of the service;
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- sale of advertising time;
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- accounting activities and financial services;
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- relations with distribution undertakings.
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Télé Ha! Ha! is founded on a strong partnership with promising synergies. In particular, the service will benefit from the contribution of Les Films Rozon, a company closely associated with success in humour and comedy in Canada, primarily with the Just for Laughs festival. In addition to this festival, ties will be established with the Just for Laughs Cabaret and Museum, the new Club Soda, the Gala des Oliviers and the activities of the École nationale de l'humour.
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Filing requirements
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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.), as well as a complete list of shareholders (including the number of shares that each holds), members of the board of directors, and executives.
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Other matters
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Rate
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The business plan for Télé Ha! Ha! provides for a monthly wholesale rate of $2 and a three-month free trial period.
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Service to the hearing-impaired
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The licensee made a commitment to close caption at least 50% of the programming of Télé Ha! Ha! during the first year of operation. This percentage will increase gradually over subsequent years to reach at least 90% of the programming broadcast over the broadcast day in the seventh year of operation. The Commission expects the licensee to fulfil these commitments.
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From the start of operations, the licensee will have a teletypewriter (TTY), and will ensure that the TTY number is well publicized.
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Service to the visually-impaired
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The licensee also indicated that it will be technically equipped to deliver described video programming. 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.
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Employment equity
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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.
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Conclusion
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The Commission is satisfied that Télé Ha! Ha! will provide a range of unique, attractive programming that will contribute to the diversity of the Canadian broadcasting system. Licensing a specialty television service focusing on humour will help to stimulate the industry's interest in producing French-language programs of this type. The Commission also considers that the expertise and resources available to each of the partners will ensure Télé Ha! Ha!'s success.
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Secretary General
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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
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Appendix to Decision CRTC 2000-467
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The licence for the national French-language programming undertaking (specialty television service) known as Télé Ha! Ha! 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.
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Nature of service
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1. (a) The licensee shall provide a national French-language Category 1 specialty television service devoted to humour and comedy.
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(b) The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990:
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2a
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Analysis and interpretation
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7f
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Programs of comedy sketches, improvisations, unscripted works, stand-up comedy
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3
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Reporting and actualities
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9
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7b
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Ongoing comedy series (sitcoms)
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10
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7c
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Specials, mini-series or made-for-TV feature films
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11
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General entertainment and human interest
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Exhibition of Canadian programs
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2. In each broadcast year or portion thereof, the licensee shall devote to the distribution of Canadian programs a minimum of 50% of the broadcast day and a minimum of 50% of the evening broadcast period.
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Expenditures on Canadian programs
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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, except as amended below:
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(a) In each broadcast year following the first year of operation, the licensee shall expend on Canadian programs not less than 50% of the previous broadcast year's gross advertising, infomercial and subscription revenues;
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(b) In each broadcast year following the first year of operation, excluding the final year, the licensee may expend an amount on Canadian programs that is up to ten percent (10%) less than the minimum required expenditure for that year set out in or calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underexpenditure;
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(c) In each broadcast year following the first year of operation, where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year set out in or calculated in accordance with this condition, the licensee may deduct:
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(i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's overexpenditure; and
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(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpenditure and any amount deducted under paragraph (i) above.
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(d) Notwithstanding paragraphs (b) and (c) above, during the licence term, the licensee shall expend on Canadian programs, at a minimum, the total of the minimum required expenditures set out in or calculated in accordance with the licensee's condition of licence.
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Definition
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For the purpose of these conditions of licence, the term "broadcast day" shall have the same meaning as that set out in the Television Broadcasting Regulations, 1987.
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Français
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