ARCHIVED - Public Notice CRTC 2000-171-1

Public Notice CRTC 2000-171-1

See also: 2000-171

Ottawa, 6 March 2001

Introductory statement - Licensing of new digital pay and specialty services

Corrected Appendix 2

On 14 December 2000, the Commission issued Public Notice CRTC 2000-171 which served as an introductory statement to the licensing of new digital pay and specialty services. Issued as part of the notice were appendices setting out the terms and conditions of licence applicable to all Category 1 services (Appendix 1), all Category 2 services (Appendix 2) and, as Appendix 3, the programming categories from which the newly-licensed services are authorized to draw their programming.

A reference to broadcast day (rather than broadcast year) and errors in numbering have since been noticed, all in Appendix 2:

• condition number 7 should have referred to broadcast year rather than broadcast day.

• the condition applicable to ethnic services should also have referred to broadcast year and should have appeared as condition 8.

• the condition applicable to music video services should have appeared as condition 9 and the condition itself should have referred to both paragraphs 7 and 8 rather than to paragraph 7 only.

At page 1 of the appendix, in the fourth bullet under terms of licence, the French text should have referred to 24 November 2003 rather than 2001.

A corrected Appendix 2 is attached to this notice.

Secretary General

This document is available in alternate format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca 

Corrected Appendix 2 to Public Notice CRTC 2000-171

The following terms and conditions of licence are applicable to all Category 2 services, except where an authorization which represents a change from or addition to these terms and conditions is included in the decision granting a particular licence.

Terms of licence

A licence will be issued and effective at such time as:

• the Commission receives documentation confirming that the licensee has entered into a distribution agreement with at least one licensed distributor.

• the Commission receives documentation establishing that an eligible Canadian corporation has been incorporated in accordance with the application in all material respects acceptable to the Commission and that this corporation may be issued a licence.

• the licensee files, and the Commission reviews and finds satisfactory, all relative documents and agreements pertaining to the control and management of the licensee (i.e. shareholder agreement, program supply agreement, licence trademark agreement). The licensee must file all such documents prior to beginning operation.

• the licensee confirms in writing that it is ready to begin operation. This must take place no later than 24 November 2003. Any request for an extension to that deadline requires Commission approval and must be made in writing before that date.

The conditions for distribution of Category 2 specialty services are explained in Public Notice 2000-6 Licensing framework policy for new digital pay and specialty services and in the text of the present public notice. These conditions [have been] incorporated into the Broadcasting Distribution Regulations, as contemplated in Public Notice 2000-150.

Category 2 services are expected to caption 90% of all English-language programming and 50% of all French-language programming by the end of the licence term. Category 2 services providing programming in third-languages are encouraged to caption as much of this programming as possible.

Licensees with fewer than 100 employees are encouraged to consider employment equity issues in their hiring practices and in all other aspects of their management of human resources.

Conditions of licence for specialty television services

1. The licensee must adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) 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 remains a member in good standing of the Canadian Broadcast Standards Council (CBSC).

2. The licensee must adhere to the provisions of the CAB's Broadcast code for advertising to children, as amended from time to time and approved by the Commission.

3. The licensee must adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary code regarding violence in television 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 remains a member in good standing of the CBSC.

4. Subject to paragraph 5:

a) except as otherwise provided in subparagraphs b) and c), the licensee shall not broadcast more than twelve (12) minutes of advertising material during each clock hour.

b) where a program occupies time in two or more consecutive clock hours, the licensee may exceed the maximum number of minutes of advertising material allowed in those clock hours if the average number of minutes of advertising material in the clock hours occupied by the program does not exceed the maximum number of minutes that would otherwise be allowed per clock hour.

c) in addition to the twelve minutes of advertising material referred to in subparagraph a), the licensee may broadcast partisan political advertising during an election period.

d) the licensee shall not broadcast any paid advertising material other than national paid advertising.

5. This licence is also subject to any other conditions of licence specified in the initial licensing decision, and in any subsequent written authorizations granted during the term of the licence.

6. Note: Condition of licence number 6 as set out in Appendix 1 applies only to Category 1 services.

For English- or French-language (or both) services only

7. Subject to paragraph 5:

• In the first year of operation, the licensee shall devote not less than 15% of the broadcast year and of the evening broadcast period to the broadcast of Canadian programs.
  

• In the second year of operation, the licensee shall devote not less than 25% of the broadcast year and of the evening broadcast period to the broadcast of Canadian programs.
  

• In the third year of operation, and in each year thereafter, the licensee shall devote not less than 35% of the broadcast year and of the evening broadcast period to the broadcast of Canadian programs.

For ethnic services only

8. Subject to paragraph 5, in each broadcast year or portion thereof, the licensee shall devote not less than 15% of the broadcast year and of the evening broadcast period to the broadcast of Canadian programs.

For music video services only

9. Subject to paragraph 5, in addition to the minimum levels of Canadian content set out in paragraphs 7 and 8 above, the licensee shall devote not less than:

• 20% of the total number of music videos broadcast during each broadcast week to Canadian music videos in the first year of operation;

• 25% of the total number of music videos broadcast during each broadcast week to Canadian music videos in the second year of operation;

• 30% of the total number of music videos broadcast during each broadcast week to Canadian music videos in the third year of operation and each broadcast year thereafter.

Conditions of licence for pay television services

1. The licensee must adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' (CAB) 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.

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

3. This licence is also subject to any other conditions of licence which are specified in the initial licensing decision, and in any subsequent written authorizations granted during the term of this licence.

Definitions

The programming shall be drawn exclusively from the categories specified in the nature of service condition of licence. These categories are set out in their entirety in Schedule I to the Specialty Services Regulations, 1990, or Schedule I to the Pay Television Regulations, 1990 (see appendix 3).

For the purposes of these conditions of licence, all time periods shall be calculated according to Eastern standard time.

• "broadcast month", "broadcast year", "evening broadcast period" and "clock hour" shall have the same meanings as those set out in the Television Broadcasting Regulations, 1987.

• "broadcast week" shall have the same meaning as that set out in the Radio Regulations, 1986.

• "first year of operation" and "Year 1" shall mean the period in which the licensee is first in operation for a period exceeding 90 days, excluding any free trial period, and ending on 31 August of that calendar year.

• "second year of operation" and "Year 2" and corresponding terms referring to subsequent years of operation, shall mean the broadcast year or years following the first year of operation.

• "paid national advertising" shall mean advertising material as defined under the Specialty Services Regulations, 1990 and that is purchased at a national rate and receives national distribution on the service.

• "paid regional advertising" shall mean advertising material as defined under the Specialty Services Regulations, 1990, and that represents retail chains that have locations in various central market areas.