ARCHIVED - Decision CRTC 2001-151

Decision CRTC 2001-151

Ottawa, 28 February 2001

Lifestyle Television (1994) Limited
Across Canada 1999-1835-6 

Application processed by Public Notices CRTC 2000-69 dated 26 May 2000 and 2000-137 dated 28 September 2000

WTN - "Women's Television Network"

The licence for the specialty television service WTN is renewed for a full term. A proposal to increase the proportion of U.S. programming broadcast on the service is denied.

The Commission renews the broadcasting licence issued to Lifestyle Television (1994) Limited (Lifestyle) for the national English-language specialty television service known as "WTN" from 1 March 2001 to 31 August 2007, subject to the conditions specified in this decision and in the licence to be issued.

The Commission notes that Lifestyle has complied with all conditions of its licence during the current licence term.

As part of this application, Lifestyle proposed to delete conditions of licence 1b) and 1c), which stipulate that at least 25% of the foreign programming broadcast on WTN over the broadcast day and from 6:00 p.m. until midnight will be from sources other than the United States (U.S.).

In support of the deletion of these conditions, the licensee stated that certain circumstances have changed since the licence for WTN was originally granted in 1994. Lifestyle argued that more North American programming directed specifically towards a female audience is now available, and that competition for the Canadian rights to non-U.S. programming has increased substantially. Lifestyle also noted that it has consistently exceeded the commitments to non-U.S. programming, showing that it is committed to providing the best available programming for its audience, and that it has no intention that all foreign programming would be drawn from the United States. It states further that lifting the current restrictions would allow WTN to maximize the value of its non-Canadian hours of programming, since the Canadian content on the service is very high (70%).

Interventions in opposition to the proposed amendment were submitted by the Directors Guild of Canada (Directors Guild), CHUM Television (CHUM) and Global Television Network (Global).

The Directors Guild argued that lifting restrictions on U.S. programming was not necessary for WTN, in view of the strong financial position of the service. Further, the intervener stated that, again in view of the financial strength of the applicant, the service's Canadian content commitment should be increased.

Both CHUM and Global stated that the limits on U.S. programming should remain in place because, at the time of licensing, the commitment was seen as a measure to provide diversity by showcasing non-U.S. programming, ensuring that WTN is distinct and complementary to other specialty services. CHUM also expressed concern that the main thrust of WTN's programming has shifted to Hollywood movies and U.S. situation comedies.

In response to the interventions, Lifestyle first stated that, since 70% of the programs broadcast on WTN are Canadian-produced, Hollywood movies and U.S. sitcoms cannot be considered as being the "main thrust" of the service's programming. Lifestyle reiterated that corporate consolidations have resulted in a number of vertically-integrated companies, resulting in financial pressure for Lifestyle, which purchases programming only for WTN and does not hold equity interest in a production company. Further, the licensee argues that more specialty services have been licensed, increasing the competition for untapped foreign programming. With respect to the provision of diversity, Lifestyle stated that the biggest factor setting WTN apart from other services is the focus on programming directed to women.

The Commission has carefully considered all of the arguments put forward by the applicant, and the concerns expressed by the interveners. It notes that, over the current term of licence, Lifestyle has consistently exceeded the requirements of conditions of licence 1b) and 1c), although there is a recent trend to broadcasting less material from foreign sources other than the U.S.

The Commission notes, however, that the provision of programming from non-U.S. sources was key to the licensing of WTN in 1994, and is of the opinion that Lifestyle has not presented a compelling argument for the deletion of the limits on programming from the United States imposed at that time. The retention of the current restriction will, in the Commission's opinion, sustain the existing equilibrium and diversity in the specialty sector of the Canadian broadcasting system.

With respect to the issue of flexibility, the Commission reminds the licensee that, even with the existing limits in place, 75% of all foreign programming broadcast on WTN may be acquired from U.S. sources.

For all of the reasons noted above, the proposal to delete conditions of licence 1b) and 1c) is denied.

Other matters

Independent production

In its intervention, the Directors Guild also encouraged the Commission to require Lifestyle to make a fixed contribution to independent production, over the new licence term.

In response to this suggestion, Lifestyle stated that the use of independent production on WTN has risen over the current licence term, from 52% to 76%.

The Commission is satisfied that the licensee's good record of the use of independent production for broadcast on WTN makes a formal requirement for the use of such programming unnecessary.

Cultural diversity

In Public Notice CRTC 1999-97 entitled Building on success - A policy framework for Canadian television, the Commission expressed its confidence that the Canadian broadcasting system could "better reflect the presence of minority groups in Canadian society, and.portray them accurately and fairly." The Commission encourages the licensee to recognize, respect and actively promote diversity.

The WTN Foundation

The purpose of the WTN Foundation is to encourage the participation of women in the technical positions required for broadcasting, film, video, and multi-media production. The Commission notes the licensee's statements that, through this foundation, WTN has provided $1.6 million in funding for training and development.

A second satellite feed

The Commission also notes the licensee's plan to introduce a second satellite feed in the 2001-2002 broadcast year. The new feed to Western Canada will be time-delayed by three hours, thereby broadcasting programs to WTN viewers in that part of the country at more appropriate times of the day.

Service to the hearing-impaired

WTN stated that it has established a "state-of-the-art" in-house captioning facility, and has made a commitment to increase the amount of captioning it airs with its independently produced Canadian programs. The Commission notes WTN's commitments and encourages the licensee to fulfil them. It also requires the licensee to caption 90% of all programming aired during the broadcast day, by the end of the licence term. The Commission expects that the increase to the 90% level will be achieved in an incremental manner over the entire licence term.

Revised program categories

Following additions and alterations to program category definitions set out in Public Notice CRTC 1999-205, the Commission has approved the minor changes to WTN's condition of licence 1a) as set out in Public Notice CRTC 2000-137. These changes bring the condition of licence into conformity with the revised category definitions and do not reflect any significant alteration to WTN's existing nature of service.

Employment equity

The Commission notes that, as part of the WTN Foundation program, a weekend conference is held each year, focusing on employment equity and cross-cultural diversity. The Commission notes the licensee's statement that it has a responsibility to "extended support through education and networking". The Commission commends the licensee for its achievements in this area and encourages it to continue its efforts (PN 1992-59).

Interventions

In addition to the interventions discussed above, the Commission acknowledges and has considered the more than 60 interventions submitted in support of this application.

Related CRTC documents:

• Decision 2000-163 - Six-month administrative renewal for WTN

• Decision 99-506 - Flexibility to broadcast infomercials for specialty services

• Decision 98-15 - Suspensive conditions of licence for WTN

• Decision 97-603 - Licence amendment for WTN

• Decision 94-282 - "Lifestyle Television" - approved

• Public Notice 1999-205 - Definitions for new types of priority programs; revisions for the definitions of television content categories; definitions of Canadian dramatic programs that will qualify for time credits towards priority programming requirements.

• Public Notice 1992-59 - Implementation of an employment equity policy

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 2001-151

Conditions of licence for WTN

1. (a) At least 90% of the programming provided by the licensee shall be drawn from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990:

Category 2(a) - Analysis and interpretation,

Category 2(b) - Long-form documentary,

Category 5(b) - Informal education/recreation and leisure,

Category 7 - Drama and comedy,

Category 8(a) - Music and dance other than music video programs or clips,

Category 9 - Variety,

Category 11 - General entertainment and human interest,

Category 12 - Interstitials,

Category 13 - Public service announcements, and

Category 14 - Infomercials, promotional and corporate videos.

(b) At least 25% of the foreign programming over the broadcast day will be from sources other than the U.S.

(c) At least 25% of the foreign programming from 6:00 p.m until midnight will be from sources other than the U.S.

2. The licensee shall devote not less than 70% of the broadcast year and not less than 60% of the evening broadcast period to the distribution of 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, the licensee shall expend on Canadian programs not less than 41% of the previous broadcast year's gross revenues;

(b) In each broadcast year excluding the final year, the licensee may expend an amount on Canadian programs that is up to five percent (5%) 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 underexpenditure;

(c) In each broadcast year of the licence term, 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 overexpenditure; and

(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpenditure 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.

4. (a) Subject to subsection (c) the licensee shall not distribute more than twelve minutes of advertising material during each clock hour.

(b) The licensee shall not distribute any paid advertising material other than paid national advertising.

(c) 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.

(d) In addition to the twelve minutes of advertising material referred to in subsection (a), the licensee may broadcast partisan political advertising during an election period.

5. (a) The licensee shall charge each exhibitor of this service outside of the province of Quebec a maximum wholesale rate of $0.35 per subscriber per month, where the service is carried as part of the basic service.

(b) The licensee shall charge each exhibitor of this service in the province of Quebec a maximum wholesale rate of $0.10 per subscriber per month, where the service is carried as part of the basic service.

6. The licensee shall 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).

7. The licensee shall adhere to the provisions of the Broadcast Code for Advertising to Children, published by the CAB, as amended from time to time and approved by the Commission.

8. The licensee shall 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.

For the purpose of these conditions, the terms "broadcast day", "broadcast month", "broadcast year," "clock hour" and "evening broadcast period" shall have the same meanings as those set out in the Television Broadcasting Regulations, 1987; and "paid national advertising" shall mean advertising that is purchased at a national rate and receives national distribution on the service.