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ARCHIVED - Decision CRTC 2000-737

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Decision CRTC 2000-737

 

Ottawa, 14 December 2000

 

Bell ExpressVu Limited Partership

Across Canada – 200009102

 

14 August 2000 Public Hearing

National Capital Region

 

New national terrestrial pay-per-view service

 

On 24 November 2000, the Commission made a decision to issue a licence for a new national terrestrial English- and French-language general interest pay-per-view (PPV) service. The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date. The Commission's overall approach to licensing this service is set out in Public Notice CRTC 2000-172 Introductory statement to Decisions CRTC 2000-733 to 2000-738 – Licensing of new video-on-demand and pay-per-view services.

 

The new pay-per-view service will be owned by Bell ExpressVu Limited Partnership which is controlled by BCE Inc. This licence will allow ExpressVu to offer its existing direct-to-home (DTH) PPV service to terrestrial distributors.

 

ExpressVu will offer a national terrestrial PPV service that will largely be devoted to the presentation of feature films but will also include sports, children's and third-language programming. The target market for this service will be small cable systems that wish to offer a PPV service to their subscribers. The licensee also indicated that it would acquire closed captioned versions of programming from distributors wherever possible. An expectation regarding closed captioned programming is set out in the appendix to this decision.

 

The licence will be subject to the terms and conditions of licence set out in the appendix to this decision, as well as to those specified in the licence to be issued.

 

Interventions

 

The two existing providers of terrestrial PPV programming intervened against the ExpressVu application. Currently Astral offers an English-language PPV service known as Viewer's Choice Canada that is available throughout Eastern Canada. Astral also operates Canal Indigo, a French-language PPV service. Corus operates an English-language PPV service that serves Western Canada.

 

The interveners considered that ExpressVu's proposed PPV service would be directly competitive with the services that they operate. As such, they submitted that the proposed service would add nothing new to the broadcasting system, could change the way that revenue is split between PPV operators, distributors and rightsholders, and would generally weaken the existing PPV services.

 

The applicant considered that its service would have little effect on the existing PPV services since ExpressVu would not have access to the larger cable systems given the current structure of the PPV industry. The applicant reiterated that the purpose of its application was to provide an alternative for small cable systems and thus provide them with an increased opportunity to digitize their systems.

 

The Commission has carefully considered the interveners' concerns but considers that the provision of another option for smaller cable systems with respect to the reception of PPV services will contribute to the broadcasting system and is consistent with the broadcasting policy set out in the Broadcasting Act.

 

Related CRTC document

 

  • Public Notice CRTC 2000-172: Introductory statement to Decisions CRTC 2000-733 to 2000-738 – Licensing of new video-on-demand and pay-per-view services

 

 

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 2000-737

Terms, conditions and expectations for the general interest terrestrial pay-per-view service licensed to Bell ExpressVu Limited Partnership

 

Terms of licence

 

A licence will be issued and effective when the licensee confirms in writing that it is ready to begin operation. This must take place within 12 months of today's date. Any request for an extension to that deadline requires Commission approval and must be made in writing during that period.

 

The licence will expire on 31 August 2007.

 

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

 

Conditions of licence

 

1. The licensee is authorized to make available for distribution by licensed or exempt terrestrial distribution undertakings its service, which will consist of English- and French-language channels, as well as English- and French-language "barker" channels.

 

2. The licensee shall maintain the channels in a ratio 1:3 of French to English with a minimum of five French-language signals in addition to the French-language barker channel.

 

3. With respect to English-language programming, the licensee shall ensure that its agreements with the operators of licensed or exempt terrestrial distribution undertakings operating in non-francophone markets provide that, in each broadcast year, the following is made available by these licensees to their PPV subscribers:

 

  1. a minimum of 12 Canadian feature films (including all new Canadian feature films suitable for PPV exhibition that meet the Pay television standards and practices code);

 

  • a minimum of four English-language Canadian-based events; and

 

  • yearly minimum percentages of Canadian programming as follows: 5% of feature film titles, and 20% of all program titles other than feature films.

 

4. With respect to French-language programming, the licensee shall ensure that its agreements with the operators of licensed or exempt terrestrial distribution undertakings operating in francophone markets provide that, in each broadcast year, the following is made available by these licensees to their PPV subscribers:

 

  1. a minimum of 20 Canadian feature films in the original French-language version, or dubbed in French, which have been exhibited in theatres in French-language markets, including all new Canadian feature films suitable for PPV exhibition that meet the Pay television standards and practices code;

 

  • a minimum of six French-language events in each of years one and two of operation, eight in each of years three and four; ten in each of years five and six; and twelve in year seven of operation; and

 

  • yearly minimum percentages of Canadian programming as follows: 8% of feature film titles, and 20% of all program titles other than feature films.

 

5. During the period from the commencement of operations of the service to 31 August of that broadcast year, the licensee's performance with respect to its commitments regarding Canadian content in feature films and events will be assessed on a pro-rata basis.

 

6. The licensee shall ensure that both English-language and French-language Canadian feature films are scheduled, repeated and promoted in the same manner as non-Canadian feature films.

 

7. The licensee shall contribute at least 5% of its annual gross revenues derived from its PPV broadcasting activities to Canadian production funds administrated independently of the licensee to support the development of Canadian programming.

 

a) Of this amount, 80% must be directed to the Canadian Television Fund (CTF) (as defined in the Broadcasting Distribution Regulations, as amended from time to time) while up to 20% may be directed to one or more independently-administered production funds other than the CTF, provided that these other funds meet the criteria set out in Public Notice CRTC 1997-98, as may be amended from time to time.

 

b) The licensee is required to remit its first contribution to the CTF, and to such other independently-administered production fund(s) as it may elect to support in accordance with paragraph (a) above, no later than 45 days following the end of the month in which it commences operations. Contributions made thereafter shall take the form of monthly installments to be remitted within 45 days of month's end, and representing a minimum of 5% of that month's gross revenues.

 

8. The licensee shall remit to the rights holders of all English-language Canadian films and two Canadian-based events per year, 100% of the gross revenues earned by the licensee from the exhibition of these films and events. With respect to French-language Canadian feature films, the licensee shall remit 100% of the gross revenues earned by the licensee from the exhibition of these films to distributors and providers, with a minimum of 60% to the programming providers.

 

9. The licensee shall not enter into an affiliation agreement with the licensee of a terrestrial distribution undertaking unless the agreement incorporates a prohibition against the linkage of the licensee's PPV service with any non-Canadian discretionary service.

 

10. The licensee shall adhere to thePay Television Regulations, 1990.

 

11. The licensee shall adhere to the Pay television and pay-per-view programming code regarding violence as amended from time to time and approved by the Commission.

 

12. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' Sex-role portrayal code for television and radio programming as amended from time to time and approved by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee is a member in good standing of the Canadian Broadcast Standards Council.

 

For the purpose of the above conditions of licence, "broadcast year" means the period between 1 September in any year and the following 31 August.

 

Expectation

 

The Commission expects the licensee to adhere to its commitments with respect to closed captioning and encourages it to caption 90% of its programming by the end of the licence term.

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