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ARCHIVED - Decision CRTC 2000-465

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Decision CRTC 2000-465

Ottawa, 14 December 2000

Le Réseau des sports (RDS) inc.

Across Canada — 200007379

14 August 2000 Public Hearing
National Capital Region

 

 

Réseau Info Sports — a new specialty service

 

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 "Réseau Info Sports". The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date.

 

Réseau Info Sports will be devoted to sports news. As noted in Public Notice CRTC 2000-171 of today's date, this service 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 on 31 August 2007.

 

Réseau Info Sports will add to the diversity of the Canadian broadcasting system by offering a range of programming focussed on local, regional, national and international amateur and professional sports news and information. It will cover sporting events that are not available on other French-language channels. In issuing a licence to Réseau Info Sports, the Commission took into account the interest generated by news and reporting on local and regional sporting activities. In Public Notice 2000-171, the Commission discusses the general criteria for the approval of this and other applications for new specialty services approved today.

 

Le Réseau des sports (RDS) inc. will be the sole owner of Réseau Info Sports and will be responsible for its daily operation.

 

Terms and conditions of licence common to all 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

 

Réseau Info Sports will offer a national French-language Category 1 specialty television service devoted to sports news. The broadcasts will be focussed on local, regional, national and international amateur and professional sports news and information, updated every 15 minutes. The service will also cover sporting events that are not available on other French-language channels. A specific portion of the Réseau Info Sports program schedule will be devoted to regional and amateur sport. The program categories identified for Réseau Info Sports are set out in a condition of licence found in the appendix to this decision.

 

The Commission wants to ensure that the service provided by Réseau Info Sports will remain distinct in character from that of existing services. To this end it has imposed certain conditions of licence found in the appendix to this decision.
 

The licensee indicated that it would give pride of place to amateur sports. The Commission expects the licensee to give priority not just to amateur sports but also to local and regional sports.
 

Contributions to diversity

 

The only service specializing in French-language sports is Le Réseau des Sports (RDS), while English-language specialty television services include The Sports Network and two other services specializing in sports news and sports broadcasting. Réseau Info Sports will add to the diversity of French-language programming currently available by offering continuous sports information and, on weekends, broadcasting professional and amateur sports events which are not covered by other French-language conventional or specialty television networks.

 

Canadian content

 

The licensee made a commitment to broadcast a minimum of 80% Canadian content during the broadcast day (6 a.m. to midnight), and a minimum of 80% during the evening broadcast period (6 p.m. to midnight), throughout the licence term. A condition of licence to this effect can be found in the appendix to this decision.

 

In its application, the licensee undertook to broadcast 3,998 hours of original Canadian programming annually, for a total of 27,986 hours during the licence term.
 

Canadian programming expenditures

 

Beginning in the year following the first year of operation, the licensee will expend a minimum of 51% of its gross advertising, infomercial and subscription revenues for the preceding year on Canadian programming. The licensee estimates that, in accordance with its calculations, it will spend more than $10 million to produce original Canadian programs over the licence term. A formula for calculating the amounts required is set out in a condition of licence found in the appendix to this decision.

 

 

 

Independent production

 

The licensee indicated that $3,717 million would go to independent producers during the licence term. This amount, which represents 28% of the service's programming budget, will be paid to Canadian video journalists to cover regional news and amateur sport. Public Notice 2000-171 contains a condition of licence which applies to all Category 1 specialty service licence holders with regard to the use of the independent production sector.
 

Interactivity

 

The licensee will offer a practical on-line information and exchange site with hosts. It intends to make maximum use of all the technical means available from the interactive digital world to present innovative television content. Among other things, it proposes to offer multi-channel transmission on demand. It has given assurances that it will update its interactive expertise to keep pace with technological developments.

 

Ownership and synergies

 

The licensee is ultimately controlled by NetStar Communications Inc., which in turn is controlled by 3578704 Canada Inc. (80% of voting shares), a wholly owned subsidiary of CTV Inc. Le Réseau des sports (RDS) inc., the sole owner of Réseau Info Sport, already has extensive experience in broadcasting French-language sports programs. The synergies between RDS and Réseau Info Sports will be at the technical level, in the use of sets and infrastructure, as well as in the gathering of sports information.

 

Other matters

 

Rate

 

In its business plan, Réseau Info Sports proposed a maximum monthly wholesale rate of $0.45 for the first two years, $0.47 for the third and fourth years, and $0.50 for the fifth, sixth and seventh years of the licence term.

 

Services to the hearing-impaired

 

The licensee has made a commitment to close caption at least 60% of Réseau Info Sports' programming during the broadcast day for the first year of operation. That amount will increase gradually during subsequent 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 reach 90% of all programming broadcast during the broadcast day by the end of the licence term.

 

 

 

Furthermore, from the outset of the service's operation, the licensee will be equipped with a teletypewriter (TTY) and will ensure that the telephone number is well advertised.
 

Service to visually impaired

 

The licensee indicated that it would have the necessary equipment to provide the descriptive video service (DVS). During the licence term, the licensee has undertaken to broadcast 100 hours of audio descriptions each year. The Commission expects the licensee to fulfil this commitment. In addition, the Commission encourages the licensee to provide an 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

 

The Commission is satisfied that Réseau Info Sports will be able to provide attractive programming that complements existing programming in Francophone markets. The Commission also considers that the expertise and resources available to the licensee will enable it to ensure the success of Réseau Info Sports.

 

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 2000-465

 

The licence for the national French-language programming undertaking (specialty television service) known as Réseau Info Sports 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

 

1. (a) The licensee shall provide a national French-language Category 1 specialty television service consisting essentially of professional, amateur, local, regional, national and international sports news, updated every 15 minutes.

 

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

1

News

6b

Amateur sports programs

2a

Analysis and interpretation

12

Interstitials

5b

Informal education/recreation and leisure programs

13

Public service announcements (PSAs)

6a

Professional sports programs

14

Infomercials, promotional/corporate video
 

(c) No more than 15% of all programming broadcast during each broadcast week shall be drawn from category 5b.
 

(d) No more than 15% of all programming broadcast during each broadcast week shall be devoted to the live broadcast of sporting events.
 

(e) The broadcast of live sporting events shall be limited to events that are not covered live by other conventional or specialty French-language television services.
 

(f) The licensee shall limit the broadcast of sporting events to week-ends (Saturdays and Sundays).
 

(g) The licensee shall interrupt its live coverage of sporting events every 15 minutes to present sports highlights and results, as well as sports news, through the insertion of audio and video components.
 

(h) Except when broadcasting live sporting events, the licensee shall at all times display sports results and news on a part of the screen.
 

Exhibition of Canadian programs

 

2. In each broadcast year or portion thereof, the licensee shall devote 80% of the broadcast day and 80% of the evening broadcast period to the distribution of Canadian programs.

 

 

 

Expenditures on Canadian programs

 

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:

 

(a) In each broadcast year following the first year of operation, the licensee shall expend on Canadian programs not less than 51% of the previous broadcast year's gross advertising, infomercial and subscription revenues;

 

(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 under-expenditure;

 

(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:

 

(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 over-expenditure; and

 

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

 

(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.

 

Definition

 

For the purposes of these conditions, the term "broadcast day" shall refer to the 24-hour period beginning at 6:00 a.m. each day.

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