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ARCHIVED - Decision CRTC 2000-85

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Decision CRTC 2000-85
Ottawa, 24 March 2000
Sportscope Television Network Ltd.
Across Canada – 199910584
6 December 1999 Public Hearing
National Capital Region
Summary
The Commission approves the application by Sportscope Television Network Ltd. (Sportscope) to amend its licence. The amendments will allow the applicant’s Headline Sports service to:
· broadcast a limited amount of live sports event coverage up to a maximum of 15% of its quarterly programming schedule; and
· devote up to a maximum of 10% of its quarterly programming schedule to regional programming.
The Commission considers that, subject to the conditions of licence imposed, the addition of limited coverage of live sports events and regional programming to the schedule of Headline Sports will not compromise its overall role as a service that presents video sports highlights as well as sports results and information.
The first part of the condition relating to live coverage of sports events requires that sports results and information be displayed on part of the screen at the same time as a sports event is being shown. This could, for example, be accomplished by running an alphanumeric display of sports results and information at the bottom or side of the screen during the game.
The second part of the condition requires Headline Sports to break away from live sports events coverage at least once every fifteen minutes to present video highlights of sports events, as well as sports results and information, in a format that includes both audio and video components.
The Commission also approves amendments to the condition of licence relating to the exhibition of Canadian programming by Headline Sports. Under the amended condition, the licensee must ensure that the following proportions of its schedule are devoted to Canadian programming:
· at least 80% over the broadcast year;
· at least 60% between 6 p.m. and midnight; and
· at least 50% of all live coverage of sports events broadcast during the total hours from 6 p.m. to midnight Monday to Friday and from noon to midnight on Saturday and Sunday.
The application

1.

The Commission licensed Sportscope in Decision CRTC 96-610 to provide a service that would broadcast video highlights of sports events as well as text and graphic displays that provide sports scores and schedules. This service is now known as Headline Sports.

2.

Sportscope applied to amend two of the conditions of licence that were imposed in Decision 96-610. The first of these conditions relates to the nature of the service that Headline Sports provides; the second sets out the levels of Canadian programming that must be broadcast. In addition, Sportscope applied for a new condition of licence that would allow it to split its national feed so that it could offer some regional programming.
Nature of service

3.

Decision 96-610 included the following condition of licence defining the nature of service that Headline Sports could provide:
The licensee shall provide a national English-language specialty service that is dedicated solely to the broadcast of sports results and information in a video and textual form and shall draw its programs exclusively from category 1 (News) and category 6 (Sports), as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990. The licensee shall not broadcast any live sports event coverage.

4.

Sportscope requested that the Commission amend this condition thereby permitting Headline Sports to offer coverage of live sports events, up to a maximum of 15% of its quarterly programming schedule. Under this revised condition, Headline Sports would be able to broadcast about 25 hours of live sports events per week.

5.

The applicant considered that introducing limited amounts of live coverage of sports events would allow Headline Sports to improve its competitive position by building audience awareness and increasing the duration of viewing to the service. As a result, the applicant considered that this change would improve Headline Sports' financial health.

6.

At the hearing, Sportscope indicated that it would maintain its orientation to the presentation of sports highlights and results even during the presentation of live sports events. It stated:

On Headline Sports, a game won’t be a continuous three hour full screen start to finish production dedicated strictly to the game. Instead, we intend to deliver both real time sports news and highlights while the game goes on.
First, we will provide breaking news and scores on our ticker. The ticker will never leave the screen, emphasising our commitment to our original core mandate.
Second, we will break into the games every 15minutes and provide viewers with simultaneous real time updates of all the news and highlights from the world of sport.
Third, our on-air hosts will not only deliver sports news as it happens, they will also provide their commentary and insights on game coverage as it unfolds.
Fourth, we will offer a seamless transition from the games to the news, stories and highlights that flow from it.

7.

The applicant also confirmed that it was its intention to introduce limited live sports event coverage without increasing its wholesale rate, stating:

At ten cents on basic, we are one of the best bargains available and we are not proposing to change that very low wholesale rate.
Canadian content

8.

In Decision 96-610, the Commission imposed the following condition of licence for Headline Sports:
The licensee shall devote to the distribution of Canadian programs not less than 100% of the broadcast year.

9.

As part of the current application, Sportscope proposed that this condition of licence be amended so that Headline Sports would provide at least 80% Canadian content over the broadcast year as a whole, and at least 60% Canadian content for the evening broadcast period (6 p.m. to midnight). The applicant noted that, even with the proposed reduction, the Canadian content levels would remain among the highest of the specialty services.

10.

In its reply to interventions, the applicant further indicated that it would accept a condition of licence requiring that at least 50% of all live sports event coverage broadcast during prime time be Canadian. The licensee defined "prime time" for the purposes of this condition as the total hours between 6 p.m. and midnight Monday to Friday, and noon to midnight Saturday and Sunday.

11.

The applicant considered that these reductions in the levels of Canadian programming would provide Headline Sports a measure of flexibility that would permit it to broadcast limited amounts of live sports events received from non-Canadian sources.
Regional programming

12.

Headline Sports is currently licensed as a national service. In this proceeding, Sportscope applied for a condition of licence that would allow it to distribute separate regional programming in place of its national service to affiliated distribution undertakings. This regional programming would not exceed 10% of the licensee’s quarterly programming schedule.

13.

Sportscope argued that this flexibility is necessary to allow Headline Sports to purchase regional rights to long-form sports programming.

14.

As well, the applicant considered that the ability to offer a regional feed would enable Headline Sports to cover sports news and information, such as information related to regional amateur sports events, that may only be relevant to one area of the country.
Interventions

15.

The Commission received interventions supporting Sportscope’s application from a variety of interests. These included associations and teams involved in amateur and professional sports, broadcasting distribution undertakings and their associations, and companies with an interest in sports advertising. These parties generally considered that approving the application would provide viewers with another source of live sports programming. Some expressed the view that approval would make Headline Sports more attractive both to viewers and advertisers.

16.

The Canadian Interuniversity Athletic Union (CIAU) noted that Headline Sports is strongly committed to Canadian university sports and broadcasts the results of all CIAU games. It considered that the applicant's proposal to broadcast The CIAU Week in Review, if the application were approved, would be a positive step forward for amateur sports. CTV supported the application but only on condition that the Commission approved CTV’s own application to acquire a 68.48% interest in NetStar Communications (operators of the sports specialty services TSN and RDS), while still retaining its 40% holding in CTV SportsNet.

17.

The application was, however, opposed by NetStar and CTV SportsNet as well as by the Friends of Canadian Broadcasting. All three parties considered that approval of the proposed amendments would fundamentally change the nature of the service that Headline Sports provides. NetStar considered that the amendments, taken together, would allow Headline Sports to abandon its format based on sports results and highlights during the evening viewing period. This programming would then be replaced with sports events, many of which would originate from outside of Canada.

18.

NetStar also noted that the Commission’s policy is not to license a specialty service within a specific program genre that would be directly competitive with the service offered by another specialty undertaking. It considered that, if the Commission were to approve Sportscope’s application, Headline Sports would be able to broadcast live event sports programming in direct competition with TSN. Friends of Canadian Broadcasting shared this concern, and considered that approval of this application would serve as a precedent for competitive applications in other program genres covered by existing specialty services.

19.

CTV SportsNet considered that Sportscope's proposal represented a fundamental change to the nature of service provided by Headline Sports. It was of the view that the Commission should not approve such a change, especially since the service had launched only about two years ago.
The Commission’s decision

20.

As indicated by NetStar, the Commission’s policy has been not to license a specialty service that would be directly competitive with another specialty service in the type of programming it provides. This policy was extended to category 1 digital services in the Licensing framework policy for new digital pay and specialty services set out in Public Notice CRTC 2000-6.

21.

There are considerable differences in the programming offered by the three English-language sports services that the Commission has licensed. TSN is primarily a national service, SportsNet is primarily a regional sports service, while Headline Sports specializes in the presentation of sports news, results and highlights. Clearly, the Commission’s policy is to avoid any action that would make Headline Sports directly competitive with the other two services.

22.

The Commission notes, however, that the amount of live sports event coverage that would be distributed by Headline Sports under this proposal would not exceed about 25 hours per week. Under the applicant's proposal, 85% of the programming broadcast would be unaffected. The Commission considers that the introduction of this limited amount of live sports programming will not make Headline Sports directly competitive with TSN or SportsNet, particularly if it is done in a way that preserves Headline Sports' current orientation.

23.

The Commission therefore approves Sportscope’s application to broadcast live coverage of sports events on Headline Sports as outlined in its application, subject to a condition of licence based on commitments made by the applicant at the hearing. The first part of the condition specifies that Headline Sports must continue to present sports results and information while it covers live sports events. This could be done using an alphanumeric display that would run at the bottom or side of the screen during the game. The applicant referred to this display as "the ticker".

24.

The second part stipulates that Headline Sports must break into its coverage of live sports events at least once every fifteen minutes to present video sports highlights as well as sports results and information in a format that includes both audio and video components. The text of this condition is set out in the appendix to this decision.

25.

The Commission considers that this condition of licence, as well as the limited amount of live sports event coverage being approved, will ensure that the basic nature of the service provided by Headline Sports does not change. It will remain a service that is primarily oriented to the presentation of sports highlights, results and information.

26.

The Commission agrees with the applicant that Headline Sports should have the flexibility to present some sports events that originate outside of Canada. However, it is concerned that Headline Sports not implement a schedule that is predicated on the consistent presentation of non-Canadian sports events in prime time. Therefore, in addition to approving the revised Canadian content commitments set out in the application, the Commission is imposing a condition of licence requiring that at least 50% of live sports event coverage broadcast in prime time for sports viewing be Canadian. The applicant defined prime time for sports coverage as the total number of hours included in the period between 6 p.m. and midnight Monday to Friday and from noon to midnight Saturday and Sunday. The text of this condition is also set out in the appendix to this decision.

27.

The Commission also approves the applicant’s proposal to offer regional programming during a maximum of 10% of its quarterly programming schedule. The Commission notes that this 10% level is consistent with the permissible level of regional programming on TSN, which is licensed as a sports service that is primarily national in its orientation.

28.

The Commission considers that the introduction of limited coverage of live sports events and regional programming to the schedule of Headline Sports, subject to the conditions set out in this decision, will allow this innovative service to continue to develop without compromising its overall role as a service that presents sports results and highlights.

29.

The Commission further notes the commitments made by Sportscope to implement new programming designed to promote amateur sports and expects the licensee to fulfill these commitments.
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

 

Appendix to Decision CRTC 2000-85

 

Revised conditions of licence for Headline Sports
Condition of licence no. 1 is replaced with the following:
1. a) The licensee shall provide a national English-language specialty service that is dedicated to the broadcast of sports results and information in a video and textual form and shall draw its programs exclusively from category 1 (News) and category 6 (Sports), as set out in item 6 of Schedule I of the Specialty Services Regulations, 1990. The licensee may broadcast live sports events coverage, provided:

i) the hours devoted to such broadcasting do not exceed 15% of the licensee’s quarterly broadcast schedule;

ii) live sports events coverage is presented in such a manner that sports results and information are continually displayed on some portion of the screen; and

iii) the licensee breaks into its coverage of live sports events at least once every fifteen minutes to present video highlights as well as sports results and information in a format that includes both audio and video components.

Condition of licence No. 2 is replaced with the following:

2 a) The licensee shall devote to the distribution of Canadian programs not less than 80% of the broadcast year and not less than 60% of the evening broadcast period.

b)(i) The licensee shall devote to the distribution of Canadian programs, not less than 50% of the hours devoted to live sports event coverage during the prime time period throughout a twelve-month period, beginning 1 September in any year. Partial years shall be measured on a pro rata basis.

(ii) For the purposes of this section, the term ‘prime time period’ shall mean the total number of hours included in the period from 6:00 p.m. to 12:00 midnight, Monday to Friday, and 12:00 noon to 12:00 midnight, Saturday and Sunday.

In addition, the following condition is added to the licence:

11. The licensee may distribute separate regional programming in place of its national service to affiliated distribution undertakings, provided that the hours devoted to such regional programming do not exceed 10% of the licensee's quarterly program schedule.

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