ARCHIVED - Decision CRTC 2000-747

Decision CRTC 2000-747

Ottawa, 7 December 2000

1406236 Ontario Inc. on behalf of CTV Inc.
Across Canada - 200015497

18 September 2000 Public Hearing
National Capital Region

Transfer of effective control of CTV Inc. to BCE Inc.

This application proposes the acquisition of one of Canada's largest television broadcasters by BCE Inc. The transaction is of considerable significance to the Canadian broadcasting system. The tangible benefits proposed by BCE include expenditures of a minimum of $230 million over seven years. As a condition of approval, the Commission has required the applicant to meet strict and detailed annual reporting requirements to demonstrate that the benefits, particularly those relating to the creation of new priority programming and to other such "on-screen" initiatives are incremental to all existing and outstanding requirements. On this basis, the Commission has accepted the benefits package offered by the applicant as being significant, unequivocal and commensurate with the size of the transaction. The transaction also raises important issues concerning cross-ownership and potential anti-competitive behaviour, and these issues are discussed below. The Commission emphasizes that a fundamental reason for its approval of the application is the purchaser's commitment and its financial capacity to provide long-term stability to the CTV television network and the popular, conventional, over-the-air general interest programming service it offers Canadians.

Parties

CTV Inc. is a leading Canadian broadcasting company. It owns 100% of CTV Television Inc., licensee of several conventional television stations across the country. Directly and indirectly, CTV Inc. also holds controlling and minority interests in a large number of licensed pay and specialty television undertakings including, among others, The Sports Network (TSN), Le Réseau des sports (RDS), The Discovery Channel, The Comedy Network, CTV NewsNet and Outdoor Life.

1406236 Ontario Inc. is a company wholly owned by BCE Inc., Canada's largest telecommunications company. BCE and its subsidiaries provide residential and business customers in Canada with local and long distance telephone services, as well as various other wireline and wireless communications products and applications. These include satellite communications, systems integration services, electronic commerce solutions, Internet access (Sympatico/Lycos), and high-speed data transfer services. BCE's current broadcasting interests include effective control of Bell ExpressVu and various other satellite and terrestrial broadcasting distribution undertakings (BDUs). It also holds an indirect, controlling interest in the French-language specialty television service Canal Évasion.

BCE, through its subsidiary, has applied for authority to acquire effective control of CTV Inc. and ownership of its various Canadian broadcasting interests. Earlier this year, the numbered company purchased share equity representing approximately 99% of the issued and outstanding common voting shares of CTV Inc. Under the terms of a voting trust arrangement approved by the Commission last March, these outstanding shares have remained in the hands of a trustee. This has enabled the continued operation of CTV Inc. and its broadcasting holdings, independent of any BCE involvement, pending completion of the Commission's deliberations on the application.

By this decision, the Commission approves, subject to the terms and conditions set out below, the application for authority to acquire effective control of CTV Inc.

Scope of the transaction

This transaction is one of the largest to come before the Commission for its consideration. It is of considerable significance to the Canadian broadcasting system. The tangible benefits proposed by BCE include incremental expenditures of a minimum of $230 million over seven years. The amount paid by BCE for the shares of CTV Inc. totals approximately $2.3 billion. Based on the evidence filed with the application, the Commission has no concerns about the availability or the adequacy of the required financing.

The leading roles played by BCE and CTV in their respective industry sectors and the proposed merger of their business activities have prompted wide interest in this application. On the one hand, the transaction brings to CTV Inc. the financial resources and stability it requires to move forward and prosper in an increasingly competitive broadcasting environment. In return, BCE and its Sympatico/Lycos Internet portal gain access to the considerable volume of high quality Canadian program content that CTV Inc. has to offer, particularly in news, sports and specialty programming. The consolidation of the business activities of these two major industry players under one corporate umbrella raises questions about how the transaction and its various outcomes may affect Canadian television viewers, consumers, broadcasters, program producers, other content providers and telecommunications companies.

Accordingly, and as in the case of all such proposed mergers, the Commission has focused on whether approval of this transaction is in the public interest. In its examination, the Commission has evaluated the application to determine whether it meets the benefits test. The Commission has also given consideration to matters raised in its notice of public hearing and in interventions, such as whether the transaction gives rise to unresolvable concerns about gate-keeping, undue preference, or other anti-competitive practices potentially associated with increases in vertical integration and with cross-ownership in general.

Cross-ownership issues

The joining of telecommunications companies with broadcasting companies was examined by the Commission in its May 1995 Information Highway Report. In that document, the Commission described such convergence as one possible and acceptable means of increasing diversity and the available pool of program funding. Moreover, the consolidation of ownership proposed in the application is consistent with the ongoing restructuring within the communications industry worldwide. The Commission has observed the positive consequences of this restructuring. These include increased efficiencies, new synergies, and the greater investment in Canadian program production that they generate, ".to the benefit of Canadian audiences, the Canadian broadcasting system and the public interest" (Public Notice CRTC 1999-97; Building on success - a policy framework for Canadian television). At the same time, the Commission is mindful of the potential negative consequences of cross-ownership and anti-competitive behaviour, and these are discussed below.

Media cross-ownership

The Commission notes that, prior to the hearing, reports appeared in the press about plans by BCE to purchase The Globe and Mail and certain other newspaper assets from Thomson Canada Limited. These reports have prompted questions about a potential reduction in diversity of editorial voices arising from media cross-ownership. Such questions are also raised by the recent sale of certain Canadian daily newspapers by Hollinger Inc. to CanWest Global Communications Corp., and the proposed purchase of the TVA television network by the newspaper publisher Quebecor inc.

The Commission will consider these questions in the context of the public hearings scheduled for the spring of next year on the renewal of the television licences held by CTV Television Inc. and CanWest Global. The Commission notes that these renewal hearings will occur within the same period as that scheduled for consideration of applications to renew the TVA network licence and to transfer effective control of TVA to Quebecor. These proceedings will allow the Commission to apply, in a consistent manner, any safeguard it may then consider appropriate to ensure that the diversity of voices is protected. The Commission notes in this regard the recent decision renewing the television network licence issued to TQS inc. (Decision CRTC 2000-418). TQS is controlled by Quebecor. To ensure diversity of voices, the Commission imposed various safeguards as conditions of licence, including, for example, a requirement that the licensee adhere to a code of professional conduct ensuring the independence and separation of the newsroom of TQS from those of Quebecor's newspapers.

Potential for anti-competitive practices - interveners' concerns

In the case of the present application, some interveners expressed concern about the corporate entity that will emerge from this transaction. They suggested that BCE's increased size and influence would create an imbalance in the marketplace and possibly give rise to anti-competitive practices. Interveners noted, for example, that the bundling of complementary services such as telephone, Internet access, programming and multi-media content might possibly be attractive to some consumers, but could provide BCE with an unfair advantage over its competitors. They argued that, in the interest of consumers and fair competition, effective mechanisms must be in place to safeguard against such potential abuses arising from BCE's position in the market.

CanWest Global suggested that the applicant's ownership of the CTV television network and its interests in a variety of specialty services might give BCE sufficient purchasing power to seriously destabilize the market for Canadian rights to non-Canadian programming. At the hearing, CanWest Global proposed a number of measures the Commission might take in this regard. Ultimately, however, it acknowledged the regulatory burden these measures would create, and suggested that the Commission include an expectation in its decision that BCE refrain from purchasing non-Canadian programming with the primary intention of denying access to it by other Canadian broadcasters.

CanWest Global raised a further concern regarding BCE's ownership of the Sympatico/Lycos Internet portal. The intervener requested that the Commission require BCE and its affiliates not to discriminate against unaffiliated Canadian content providers through the manner in which content is delivered or accessed on the Sympatico/Lycos or other new media platforms.

Interveners also expressed concern about the holdings BCE would have in both specialty programming undertakings and distribution undertakings following approval. The possibility that BCE might restrict access by competitors to the various distribution platforms it controls (gatekeeping), or extend access to such competitors on disadvantageous terms relative to those applied to its own services (undue preference), received considerable discussion at the hearing. The Commission's determinations on this and other concerns raised by interveners are set out below.

Addressing the interveners' concerns

Certain interveners raised the possibility that BCE's purchasing power might lead to a destabilization of the market for Canadian rights to non-Canadian programming. The Commission considers that such an occurrence could be detrimental to the broadcasting system. It therefore places particular importance on BCE's firm commitment not to engage in such potentially anti-competitive behaviour. The Commission expects BCE to adhere to this commitment.

CanWest Global requested that BCE, as operator of the Sympatico/Lycos Internet portal, be prohibited from discriminating against unaffiliated Canadian content providers. The Commission considers that implementation or monitoring of such a prohibition would be difficult, if not impracticable. Given the ever-expanding number of Canadian web sites, it would be unreasonable to require a Canadian Internet service provider or content aggregator to provide links to all such sites. Moreover, in Public Notice CRTC 1999-84, the Commission announced its findings concerning new media. These include its determination that there was then no basis for concern regarding the visibility of Canadian content on the Internet, and thus no basis for regulatory measures to support access to content aggregators on the Internet. The Commission considers that this conclusion, and its related decision to exempt new media undertakings under the Broadcasting Act, remain valid. In the circumstances, the Commission considers that it would be inappropriate, in the context of this decision, to impose any specific requirement concerning BCE's operation of its Sympatico/Lycos Internet portal.

The Commission's rules require incumbent telephone companies to unbundle essential services to allow competitors access to facilities that they cannot economically replicate. Other rules require prior approval and application of an imputation test in the case of any bundle of services that includes a tariffed telecommunications service. The imputation test addresses anti-competitive behaviour with respect to pricing by obliging a telecommunications carrier to impute (identify) its incremental cost for each service carried within a bundle containing a tariffed service. Thus, if BCE were to bundle its Bell ExpressVu service with a tariffed telecommunications service, such a package would have to satisfy the imputation test and would require the Commission's prior approval.

Further, if BCE were to bundle broadcasting services with a forborne telecommunications service (e.g. basic long distance or retail end-user Internet services), any anti-competitive behaviour with respect to pricing, for example, could be addressed under sections 24 and 27(2) of the Telecommunications Act. Further, any anti-competitive practices associated with the bundling solely of broadcasting services could be addressed under the undue preference provision already established by the Commission in the Broadcasting Distribution Regulations, and similar provisions it has proposed for inclusion in the Pay Television Regulations, 1990 and Specialty Services Regulations, 1990.

A different set of issues, including the potential for gatekeeping and undue preference, presents itself in the context of BCE's ownership interests in both specialty programming undertakings and distribution undertakings. Concerns relating to BCE and undue preference were also raised in the context of the Commission's consideration, in 1999, of the licence application by Canal Évasion. In Decision CRTC 99-112, the Commission approved the application, despite the involvement by a BCE subsidiary as owner of 50.1% of the applicant. The Commission reasoned that, while BCE's other subsidiary, Bell ExpressVu, had access via its direct-to-home satellite BDU, to a very large potential subscribership across Canada, the actual number of its basic subscribers was then quite small (in the neighbourhood of 150,000), and that it therefore did not occupy a dominant position in the distribution market. In the intervening period, the number of Bell ExpressVu's basic subscribers has grown to approximately 570,000 (5% of all BDU subscribers).

The Commission has determined that concerns regarding gatekeeping and undue preference are sufficiently mitigated by a number of factors. These include Bell ExpressVu's continuing non-dominant position, and the undue preference regime noted above. Moreover, parties with concerns about anti-competitive behaviour on the part of Bell ExpressVu have recourse to the procedures for resolving competitive and access disputes found in section 12 of the distribution regulations.

In addition, BCE made a commitment at the hearing to develop and implement a code of conduct. This code would be applicable to the purchaser's various BDUs and would govern such matters as the distribution, packaging, and pricing of specialty services. Accordingly, as one further safeguard against undue preference, the Commission requires BCE to adhere to this commitment. The code must be submitted to the Commission for its approval by no later than 1 June 2001. BCE also made a commitment to ensure that all future affiliation contracts between its BDUs and program suppliers contain provisions (referred to at the hearing as the "most favoured nation" provisions) ensuring that all such suppliers are treated equally and equitably, and will grant reciprocal rights to third-party audits of such contracts. The Commission requires the applicant to adhere to this commitment, both with respect to new contracts and to the renewal of existing contracts.

At the hearing, the Canadian Film and Television Production Association (CFTPA) invited CTV Inc., under its new ownership, to work with the CFTPA to develop a "Terms of Trade" agreement, similar to that being established between the intervener and the CBC. Of particular concern to the CFTPA is the possible bundling of Internet rights with broadcast rights by broadcasters having multiple platforms. The Commission notes that the applicant expressed interest in the CFTPA's invitation and indicated its willingness to address this issue at the group renewal proceeding in 2001. The Commission expects CTV Inc. to enter discussions with the CFTPA, and requires it to report on progress in this area at the time of the upcoming group renewal proceeding.

The benefits package

As required by the Commission's policy, BCE has proposed a package of tangible benefits consisting of $230 million in expenditures over seven years. All of this spending will be incremental to existing requirements, including all outstanding spending obligations associated with previous ownership transactions. A minimum of $140 million (61% of the total) will be directed to the development, production and promotion of new priority programming, as defined in PN 1999-97. This will include drama development, new drama series, extensions of existing drama series, new documentaries and a major annual variety program. The applicant committed to ensure that all of this production, representing 175 hours of original programming, is incremental to the existing requirement of eight hours per week of priority programming that is broadcast on each of the CTV affiliated stations in accordance with the TV policy and with their conditions of licence. All of the programming will be consistent in nature with the role of the CTV television network as a conventional, general interest broadcaster. None of this incremental programming will draw upon existing independent production funds. Moreover, the applicant committed to ensure that any profits earned by its equity investments in or distribution of this priority programming will be allocated to the production of additional priority programming.

A further $72.6 million (31.5% of the benefits package) is to be allocated to non-priority programming, chiefly to incremental enhancements to news and current affairs programming. The remaining expenditures of $17.4 million (7.5%) will be channelled to Canadian talent development, the creation of new college programs and courses, funding for various not-for-profit, broadcasting-related community and interest groups, and other such initiatives not directly related to programming. A list of the various initiatives proposed as benefits, and a breakdown of the expenditures allocated to each, is provided in Appendix I to this decision.

The Commission is satisfied that the benefits package offered by BCE is significant, unequivocal, and commensurate with the size and nature of the transaction. Specifically, the Commission finds the size of the package to be in accordance with the requirements set out in PN 1999-97 concerning the amount of quantifiable benefits that should be tendered in applications of this type. In that notice, the Commission stated that it will generally expect applicants to make commitments to clear and unequivocal tangible benefits representing a financial contribution of 10% of the value of the transaction as accepted by the Commission. The Commission is satisfied that the amount of $230 million meets this test.

The Commission, in applying its benefits test, has been consistent and rigorous in requiring that expenditures proposed as benefits be truly incremental. For benefits to be accepted by the Commission, they must be directed to projects and initiatives that would not be undertaken or realized in the absence of the transaction. The Commission also generally requires applicants to demonstrate that expenditures proposed as benefits will flow predominantly to third parties, such as independent producers.

In many cases, applicants have chosen to satisfy these requirements by allocating sizeable portions of their proposed benefits packages to independent production funds. The approach chosen by BCE in this instance is a departure from that taken by others. BCE has proposed to direct more than 90% of its benefits package to new television program production, most of it to be funded by the applicant through a combination of licence fees, equity investments and distribution advances. The resulting programs will be broadcast on the CTV television network.

When asked to explain why it has chosen this approach, BCE replied that its objective is to alter the economic model traditionally followed in Canada with respect to English-language entertainment television programming. According to the applicant, English-language television broadcasters have cross-subsidized production of their Canadian entertainment programming with revenues earned from programming acquired in the U.S. BCE acknowledged the increasingly important role played by independent Canadian program production funds in bringing many hours of high quality Canadian programming to television screens. In its view:

.all of this has led to a wave that is about to crest, and we believe that this benefit money can push that wave to the point where maybe we can now make a breakthrough so that popular drama and popular documentaries and variety programming become good business ideas as well as good cultural ideas.

One element of the applicant's plan is the creation of a "one-stop shopping" opportunity that will enable independent producers to approach BCE for everything from a licence fee, to Internet rights, a distribution advance, and equity investment. According to the applicant, this would relieve independent producers of the sometimes-burdensome task of approaching several different agencies in order to put these elements in place, and would allow them to focus on the creative process.

The one outcome BCE stated that it seeks most to achieve through its injection of $140 million is the development of prime time Canadian programs of consistently high quality and in sufficient quantity to attract significantly larger audiences and revenues. It is the applicant's hope that, through this approach, it will be able to demonstrate to other broadcasters that Canadian entertainment programming can be successful and self-sustaining. BCE noted that it would have been far simpler for it to place the monies in an independent production fund. It also acknowledged that the success it seeks may not be sustainable, but argued that the risk is one worth taking, given the potential return.

The Commission agrees that the applicant's proposed approach is daring and not without risk. Nevertheless, the worthwhile nature of CTV Inc.'s objectives, the commitment and experience of its management team, and the broad acceptance of the plan expressed in interventions filed by representatives of Canada's independent production community, have served to convince the Commission that the approach should be supported.

At the same time, the Commission will insist that its requirements be met regarding the benefits package. Specifically, it will require that all expenditures proposed as benefits be truly incremental, and that they flow predominantly to third parties, such as independent producers. Accordingly, the Commission will require the applicant to adhere to a strict annual reporting regime to demonstrate the incremental nature of its benefits expenditures. It will also require the applicant to increase the proportion of incremental priority program expenditures that are to be directed to independent Canadian production companies. The Commission notes in this regard that, under the applicant's commitments, 80% of the proposed incremental expenditures on priority programming was to have been made through independent producers. The Commission, however, requires the applicant to direct a minimum of 95% of its incremental priority programming expenditures to such producers. For the purpose of this requirement, an independent Canadian production company shall be defined as one in which BCE and any company related to BCE own, in aggregate, less than 30% of the equity. This definition is consistent with that applied by the Commission in other cases, most recently in its decision licensing Food Network Canada (Decision CRTC 2000-217).

In order that these expenditures can be verified as truly incremental to the expenditures made by the CTV television network in fulfilling its existing obligation to broadcast eight hours per week of priority programming, an appropriate baseline or reference point must be established. According to information filed by the applicant, CTV Television Inc. will spend $24.9 million on its minimum required level of priority programming in the broadcast year 2000/2001. This amount anticipates a 60:40 ratio of original to repeat telecasts.

Accordingly, as a condition of approval, the Commission requires the filing of a detailed audited report, concurrently with the filing of the annual return for CTV Television Inc., setting out the actual expenditures on the base level amount of eight hours per week of priority programming in each of the next seven years. Such spending may exceed, but shall not be less than $24.9 million in any given year. As part of this report, BCE shall also file a detailed breakdown of its expenditures each year on the priority programming and related initiatives accepted as benefits of this transaction. This reporting must demonstrate, over the seven-year period, the allocation of a minimum of $140 million to on-screen initiatives relating to new priority programming, incremental to expenditures on the eight hours per week of such programming referred to above, and irrespective of any spending in excess of the base level of $24.9 million per year on such programming. The Commission may wish to discuss with CTV Television Inc., at its upcoming licence renewal hearing, the possibility of imposing reporting requirements with respect to priority programming as a condition of licence.

The Commission notes that certain of the applicant's proposals for specific priority and non-priority program initiatives entail a significant investment in the development of interactive television (iTV) components. The Commission is generally supportive of the applicant's plans to incorporate iTV elements in its programming. However, iTV elements that are essentially Internet-based, and thus of predominant benefit to the Sympatico/Lycos service, would not qualify as acceptable benefits. Accordingly, the Commission will wish to be assured that these elements are truly integrated with the program content, and thus of clear, significant benefit to the broadcasting system.

The Commission thus expects all expenditures on iTV programming and claimed as benefits of this transaction to be spent on the development of interactive elements that are integrated with the content of a program during the production process. It requires CTV to include, as part of its annual reporting on benefits, a description of the nature of its iTV activities and a record of its spending on these activities as they relate to the incremental priority program benefits.

As mentioned above, the applicant made a commitment to ensure that all profits earned by its equity investments in, or through the distribution of, the 175 hours of priority programming produced as a consequence of its benefit expenditures will be reinvested in the production of additional priority programming. Consistent with the proposal made at the hearing by the Directors Guild of Canada, and as agreed to by BCE, the Commission requires the applicant to ensure that any and all consideration that is received by CTV Inc. or any related company from the sale or distribution of the 175 hours of new Canadian priority programming to entities other than the CTV television network's conventional stations, net of reasonable sales expenses actually incurred in respect of the distribution of such programs to unaffiliated companies, shall be added to the $140 million fund and shall be used to fund additional Canadian priority programs on the same basis. Similarly, the Commission requires the applicant to ensure that all profits earned by CTV Inc. or any related company from equity investments in this incremental Canadian priority programming, shall also be added to the $140 million fund and shall be used to fund additional Canadian priority programs on the same basis.

In Appendix II to this decision, the Commission has set out a list of its various reporting requirements. The Commission is convinced that the tangible benefits of $230 million over seven years represent a substantial financial contribution to viewers, to the independent production industry, and to the system as a whole. With these reporting requirements in place, the Commission is also satisfied that it will be able to verify that this contribution is clearly incremental to the expenditures that would have otherwise been made by CTV during that period. The Commission notes the applicant's willingness, expressed at the hearing, to meet with Commission staff to ensure that the format and the accounting methodology to be used in preparation of the annual report is acceptable, appropriate and clearly understood.

As noted, the total cash value of the quantifiable benefits package is considerable. The Commission emphasizes, however, that a fundamental component of the rationale for approval of this application is BCE's commitment and its financial capacity to provide long-term stability to the CTV television network and to ensure that its service continues to be delivered over the air to viewers across Canada, including those residing in remote areas. The Commission is satisfied that, under BCE's ownership, CTV Inc. will continue to operate in accordance with the same principles and objectives that have guided its operations in the past. Specifically, BCE has offered its commitment, as an intangible benefit, to preserve the popular and balanced mix of conventional, general interest programming that the network service has offered Canadians over the course of the last four decades. The Commission is convinced that approval will ensure the ongoing growth and improvement of the services offered by the national television network, the local television stations operated by CTV Inc., as well as by the various pay and specialty services in which CTV Inc. has an ownership interest.

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 I to Decision CRTC 2000-747

Tangible benefits

The following is a brief description of the various initiatives proposed by the applicant and accepted by the Commission as the tangible benefits of the transaction, and the expenditures associated with each. These represent incremental expenditures totalling $230 million over seven years.

Priority programming benefits

Initiative

Expenditure

Description

New movie series: Heroes, Champions & Villains

$45,500,000

28 hours of Category 7(c), specials, mini-series and made-for-TV feature films.

Drama series extensions

$25,000,000

35 hours of Category 7(a), on-going dramatic series (extensions of existing series).

Documentaries

$18,000,000

35 hours of Category 2(b), Long form documentaries.

The Great Big Canadian Show

$10,500,000

21 hours of Categories 8(a) and 9, Music & Variety.

Other priority programming

$23,000,000

56 hours, including Groundbreaker, an interactive entertainment series produced in the regions and designed to allow experimentation and innovation.

Cross-cultural development initiatives

$2,000,000

To support the development of challenging cross-cultural programming initiatives.

Drama development

$5,000,000

Series and long-form drama development funding for writers.

Third-party promotion

$7,000,000

To support the promotion of priority programming.

National Broadcast Reading Service (NBRS)

$2,000,000

Plan to provide described video for some 400 hours of programming, including all new priority programming. A further commitment to sponsor an industry event to investigate means of lowering the cost of producing described video programming.

The Toronto Documentary Forum: Taking Canadian Documentaries to the World

$1,000,000

Commissioning editors around the world to assess the marketability and editorial quality of documentary projects; provide feedback and advice on marketing, financing.

Documentaries at Banff

$1,000,000

Presentation of events designed to stimulate and enhance the ability of documentary film makers to reach large audiences.

Total

$140,000,000

Non-priority programming benefits

Initiative

Expenditure

Description

News and information programming

Regional specialists: Journalism of the Future

$14,000,000

Journalism training for graduates in science, engineering and other disciplines.

Diversity in news

$3,500,000

Reporter training and coverage of events of significance in different cultural communities.

2-Way Hot

$11,000,000

A weekly 30-minute current affairs show produced by and for youth using Web tools and technologies.

Eyes on the World

$12,000,000

Five new bureaus will be established in areas where Canadian interests and ties are strong, namely New York, Hong Kong, New Delhi, Johannesburg and Berlin. Facilities will be made available to other news organizations at cost.

Newslinks

$10,000,000

A system to deliver coverage, for local broadcast, of international issues of particular interest to individual communities or regions in Canada.

Aboriginal Peoples' Television Network (APTN)

$3,000,000

Funding for the creation of six Aboriginal Television Service news bureaus across Canada.

Pipeline to the screen

Content Innovation Network

$5,000,000

Creation of a network linking various Canadian film, new media and other organizations for the purposes of training and collaboration.

National Screen Institute

$1,000,000

Edmonton/Winnipeg-based organization trains regional television talent to develop, package and market television, and to learn global competitive skills. Program is delivered from Newfoundland to British Columbia.

Women in the Directors Chair workshops

$100,000

Workshops focusing on developing the skills, talents and stories of Canadian women directors.

iTV specialists in the development offices

$3,000,000

iTV specialists will be added to the staff of CTV's existing development offices in Halifax, Toronto and Vancouver to assist in the development of interactive programming.

Bell Broadcast and New Media Fund

$10,000,000

A one time contribution. The fund supports new media projects for up to 50% of their budgets to a maximum of $250,000. It also supports the associated television programs, matching 50% of the broadcaster licence fees, to a maximum of $75,000.

Total

$72,600,000

Non-programming benefits

Initiative

Expenditure

Description

Canadian Media Research Consortium

$3,500,000

A consortium led by media scholars and institutions to conduct media research and public discussion related to Canadian media issues.

BCE Chair in convergence and creative use of advanced technology at Ryerson

$2,500,000

The endowment of a senior professorship for the conduct of applied research in conjunction with Ryerson's Schools of Radio and Television Arts, Journalism, and Image Arts.

BCE New Media Centre of Excellence - BC Institute of Technology

$$1,500,000

Funding to assist in training students in interactive television and new media.

Community journalism initiatives

$2,000,000

Grants and scholarships at institutions in communities served by local CTV stations

Aboriginal production training - Capilano College

$250,000

Training in basic production with aboriginal producers.

CFTPA/APFTQ mentorship program

$800,000

This 30-week, national customized program will include 50 participants.

St. John's Women's Film and Video Festival

$100,000

An annual event supported by the community at large and showcasing new works by Newfoundland film and video artists.

Canadian Women in Communications

$750,000

Funding to facilitate a multi-faceted professional development and training program and enhance support to local chapters across Canada.

History of Canadian Broadcasting

$250,000

Funding of efforts to preserve the history of Canadian broadcasting.

Museum of Canadian Broadcasting

$250,000

Seed money to advance the project of creating a physical museum, in addition to a web presence, to display Francophone memorabilia in Montréal, Anglophone in Toronto, with a bilingual national display based in Ottawa, but touring as well across Canada and abroad.

Canadian Television Image Bank

$$3,500,000

Digitization of CTV news and other archives. The copyright-cleared digitized footage would be made available without charge to educational facilities and non-profit institutions.

Academy of Canadian Cinema and Television

$1,000,000

Funding to expand the Gemini Awards to include recognition of achievement in interactive television and new media; and to upgrade archival resources on Canadian film and television.

Mnet: Media Awareness Network

$500,000

Additional funding for the enhancement of Mnet's race relations and media literacy initiatives.

Leave Out Violence (L.O.V.E.)

$500,000

This national organization trains street youth at risk for violence in valuable media skills. Bursaries to expand program for university studies in broadcast journalism for 10 students annually.

Total

$17,400,000

Appendix II to Decision CRTC 2000-747

Reporting requirements

The following outlines the various items upon which BCE Inc. shall file an audited annual report. This report is for the purpose of verifying the incremental nature of proposed benefits expenditures totalling $230 million over seven years. This reporting requirement shall thus remain in effect for a seven-year period.

BCE shall, as a condition of approval, provide an audited report, concurrently with the filing of the annual return for CTV Television Inc., identifying the following: