ARCHIVED - Decision CRTC 2001-231

Decision CRTC 2001-231

Ottawa, 25 April 2001

CHUM Limited
Across Canada 1999-1840-6

Application processed by Public Notice
CRTC 2000-69 dated 26 May 2000

Bravo!

The licence for the specialty television service "Bravo!" is renewed for a full term. A proposal to alter the required level of Canadian content and the definition of the broadcast day is denied. A shortfall in required payments to a production fund must be repaid.

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

The Commission notes that, during the current licence term, Bravo! has complied with all conditions of its licence relating to programming. However, the contribution obligation of the service to the production fund Bravo!FACT was not fully met. As discussed below, the licensee is required to remedy the shortfall by 31 August 2003.

Proposed change to definition of broadcast day

As part of its renewal application for Bravo!, CHUM proposed changes to its Canadian content condition of licence, and the definition of "broadcast day". Currently, while Bravo! broadcasts 24 hours a day, its Canadian content requirement of 60% of the broadcast year is calculated over the period of 6:00 a.m. to 12 midnight each day (the "broadcast day"). No requirement for Canadian content in the overnight period is applied. A separate 50% requirement applies to the evening broadcast period (6:00 p.m. to midnight).

While the licensee stated that it would be content to continue under the present requirements, CHUM proposed an alternative scenario, in which it would decrease its Canadian content requirement to 50% of the broadcast year, while expanding the meaning of "broadcast day" to encompass 24 hours each day.

In support of this alternative, Bravo! stated that the change would acknowledge that Bravo!'s signal crosses five time zones, making it difficult to broadcast Canadian drama programming with mature content. Bravo! also suggested that the change would provide a better opportunity to program Canadian content during periods of relatively heavy viewing to the service.

Interventions to the proposal were submitted by the Canadian Film & Television Production Association (CFTPA), the Directors' Guild of Canada (DGC) and Don Cameron. The CFTPA intervention raised a general concern, while the other two opposed the change. The DGC suggested that, in view of the licensee's projected profitability, a more appropriate level of Canadian content would be 60%, both over the broadcast day and during the evening broadcast period.

In response to the interventions, CHUM noted that, under its proposal, there would be no change in Canadian content during the evening broadcast period, and the proposed change would make more Canadian programs available, a total of 12 hours per 24-hour day, instead of the current 10.8 hours.

Audience measurements show that, on a national basis, very few Canadians view television programs during large portions of the midnight - 6:00 a.m period. The extra Canadian programs broadcast during this period would, in many cases, reach very small audiences. In view of the fact that CHUM would be content to continue under the current condition of licence, the Commission denies the proposed change. In the appendix to this decision, a condition of licence is set out, requiring that 60% of the broadcast day and 50% of the evening broadcast period, in each broadcast year, be devoted to Canadian programs. The broadcast day remains defined as an 18-hour period.

Contributions to Bravo!FACT

Under the terms of its current licence, granted in Decision CRTC 94-281, Bravo! is subject to two different and separate conditions of licence with respect to Canadian programming expenditures (CPE). Under the first condition, Bravo is required to contribute to CPE (with some flexibility), a yearly minimum equal to 33% of the previous broadcast year's gross revenues. In addition to that amount, Bravo! is required to contribute annually to the production fund Bravo!FACT (formerly known as ArtsFACT) the greater of $600,000, or 5% of the previous broadcast year's gross revenues.

During the current licensing process, however, CHUM stated:

The Commission disagrees with CHUM's interpretation of the two conditions of licence. The two conditions were clearly meant to be separate, with a total commitment representing 38% of the service's annual gross revenues. The Commission is also of the view that this interpretation is consistent with CHUM's original commitments at the time of licensing, made in the context of a competitive process.

In the appendix to this decision, two conditions of licence related to programming expenditures are set out. Condition of licence 3 requires the licensee to devote a minimum of 33% of the previous year's gross revenues to CPE. Condition of licence 4 requires the licensee, in addition to the requirement of condition 3, to devote the greater of $600,000 or 5% of the previous year's gross revenues to Bravo!FACT. Flexibility to either underspend or overspend the spending requirements in a given year forms part of each condition.

Interventions with respect to CPE expenditure included one submitted by the CFTPA, which expressed the opinion that Bravo!'s commitments to CPE could be higher, due to its continued profitability. An intervention from the DGC expressed the view that the 5% commitment to Bravo!FACT should be increased, as it is the service's only firm commitment made to independent production.

Bravo!'s response to the CFTPA indicated that Bravo! should be applauded for operating a successful service that exceeds regulatory minima, and that an imposed increase could have the effect of prompting applications for reductions in CPE from less successful undertakings. With respect to the DGC intervention, CHUM expressed the view that its Bravo!FACT requirement acts as a "stimulant" for independent productions.

Bravo!FACT contribution shortfall

As noted earlier, during the current term of licence, CHUM has devoted 33% of its annual gross revenues to Canadian programming expenditures as contemplated by condition of licence #3. It has, however, failed to fulfil the 5% expenditure to Bravo!FACT, required under condition of licence #4. The Commission calculates that a short-fall of $130,000 is owed to Bravo!FACT, in respect of the commitment for the current licence term, and the Commission requires the licensee to pay $130,000 to Bravo!FACT, by 31 August 2003.

Other matters

Cultural diversity

The Commission notes that CHUM Limited has established a mission statement entitled Cultural Diversity Best Practices, which covers diversity in both employment and programming. It encourages the licensee to continue its efforts in this regard.

Employment equity

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.

Service to the hearing-impaired

In its renewal application, the licensee stated that "100% of our in-house production and 100% of our newly commissioned production must be closed captioned, wherever appropriate." Bravo! commits to an increase of 50% in its financial support for the creation of new captioning on Bravo! This would increase the commitment from the current yearly amount of $100,000 to $150,000 per year.

As part of the renewal process, Bravo! stated that given its reliance on archival material licensed from third parties, captioning of 90% of all programming is not achievable. If such a level were imposed, the licensee indicated that classic programming would have to be dropped from Bravo!'s programming, and the "history of the arts" approach the service has taken would have to be ignored.

The Commission acknowledges the licensee's statements. It notes that the pure music and dance components of Bravo!'s programming need not be captioned, and also notes that other specialty services with strong focuses on older programming have been required to caption 90% of all programming by the end of their respective licence terms.

For the reasons noted above, the Commission is of the opinion that no exception to its usual practice is warranted in the case of Bravo! Consistent with its standard approach to this issue, it therefore requires the licensee to caption 90% of all programming 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 changes to the program categories that make up Bravo!'s nature of service. The changes are set out in Public Notice CRTC 2000-137, and do not reflect any significant alteration to Bravo!'s existing nature of service.

Interventions

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

Related CRTC documents

• Decision 2001- 89 - Two-month administrative renewal for Bravo!

• Decision 2000- 161 - Six-month administrative renewal for Bravo!

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

• Decision 99-79 - Flexibility in the scheduling of commercial breaks for Bravo!

• Decision 98-213 - Suspensive conditions of licence for Bravo!

• Decision 98-150 - Licence amendment for Bravo!

• Decision 97-77 - Licence amendment for Bravo!

• Decision 94-281 - Bravo! - Approved

• Public Notice 2000-137 - Amendments to licences of specialty and pay services reflecting revised program categories

• Public Notice 1999-205 - Definitions for new types of priority programs; revisions to 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 2001-231

(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.

i) from the minimum required contribution 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 contribution 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;