ARCHIVED - Decision CRTC 2001-669
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Decision CRTC 2001-669 |
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Ottawa, 2 November 2001 |
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Vision TV: Canada's Faith Network |
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19 June 2001 Public Hearing |
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Short-term licence renewal for Vision TV: Canada's Faith Network |
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The Commission renews the licence issued to Vision TV for its national, multi-faith, English-language specialty television service. This renewal is for a term of 33 months only, from 1 December 2001 to 31 August 2004. The Commission will use this period to assess the effectiveness of mechanisms intended to ensure the licensee's compliance with its condition of licence concerning the exhibition of Canadian content. |
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The licence will be subject to the conditions specified in this decision and in the licence to be issued. These include a condition specifying that compliance with Canadian content requirements be calculated and achieved on a six-month, rather than on an annual basis. |
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As an unrelated matter, the Commission denies a proposed increase in Vision TV's wholesale rate; the Commission is not convinced of the appropriateness of an increase at this time. |
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Compliance with Canadian content requirements |
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1. |
Vision TV is a not-for-profit, specialty programming service devoted to the provision of balanced programming about the varied religious practices and beliefs of Canadians. Notwithstanding the concerns addressed below, the Commission shares the views of almost all interveners regarding Vision TV's positive contribution to the Canadian broadcasting system, and its role in promoting understanding of and co-operation among different religious groups in Canada. |
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2. |
Vision TV's current conditions of licence include a requirement that the licensee provide a minimum of 60% Canadian content in the programming offered during the broadcast year and during the evening broadcast period. According to evidence on the public file, including the licensee's acknowledgement of shortcomings in this regard, Vision TV has been out of compliance with these requirements during the broadcast year by approximately 3% in each of the past four years, as well as during the evening broadcast period in 1998/99. |
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3. |
The licensee attributed its non-compliance to a number of factors. These include repeated and persistent errors over the period with respect to the logging of Canadian content. Vision TV also cited the failure of independent producers in years past to obtain Canadian certification for much of the Mosaic* programming they had produced on behalf of individual religious groups and organizations for broadcast on Vision TV. |
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4. |
According to the licensee, increasing program costs have compounded its difficulties. It noted, for example, that various projects to which it had committed financial support subsequently failed to obtain funding from the Canadian Television Fund. According to Vision TV, this and other factors have had the effect of obliging it to spend more money on fewer projects. |
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5. |
The Commission is deeply concerned by the licensee's persistent failure over much of the past licence term to achieve the minimum levels of Canadian content required by its licence conditions. Given the gravity of Vision TV's non-compliance, the Commission is not prepared to renew its licence for more than the 33 month period noted at the outset of this decision. At the same time, the Commission believes that Vision TV understands the seriousness of the problems that existed in its management, tracking and reporting of Canadian content, and that it is now prepared to take all necessary steps to ensure no future recurrence of its non-compliance. As stated by the licensee: |
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6. |
Vision TV stressed that it is under new management, and confirmed that, following the review mentioned above, it has appointed a Director of Programming Operations, with specific responsibility for the development, implementation and monitoring of systems to ensure compliance. Software has been purchased and three additional staff members employed to track the Canadian content in Vision TV's program inventory and schedules, and to make any necessary corrections before problems occur. These new staff will also be active in processing requests for certification of programs as Canadian and will ensure that these requests are filed in a timely manner. The licensee added that a program will not be broadcast without first having been certified as Canadian, and stated that it is "confident that these changes.will ensure compliance this year and in the future". |
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7. |
The Commission wishes to be assured of the ongoing effectiveness of the various steps taken by Vision TV. Accordingly, the Commission expects the licensee to adhere to its commitments to remain in compliance, to monitor closely the results of the mechanisms it has put in place for this purpose, and to refine and improve upon them as necessary. In addition, the Commission wishes to assess the licensee's compliance on a more frequent basis than it has in the past. It has therefore decided to impose a condition of licence requiring the licensee to achieve a minimum level of 60% Canadian content during both the broadcast day and the evening broadcast period on the basis of a six-month measurement period. This is as opposed to the current measurement period of a broadcast year. |
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8. |
This and other conditions of licence applicable to Vision TV, are set out in the appendix to this decision. The Commission will review the licensee's compliance with these conditions at the time of next licence renewal. |
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Proposed rate increase |
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9. |
As a dual status service, Vision TV is carried as part of the basic service package offered by most cable distribution undertakings. As such, Vision TV receives the largest portion of its revenues from a monthly wholesale rate remitted to it by distributors. The Commission has set this rate, by condition of licence, at eight cents per subscriber per month. Vision TV also earns revenue from advertising, the sale of airtime for the broadcast of Mosaic programming, program sales to religious broadcasters operating outside of Canada, and from other sources such as donations and grants. |
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10. |
As part of its renewal application, Vision TV requested that its licence be amended to increase the authorized monthly wholesale rate by seven cents, to a total of fifteen cents per subscriber. It indicated that the proposed increase was needed to maintain the existing level of service and to enable it to bring about an "increase in programming unique to the system". The licensee stated that its audience has been declining in size in recent years, in part because it has had to increase the level of repeat broadcasts of Canadian programming to meet its Canadian content obligations. It added that, without the proposed rate increase, it would be unable to pursue its programming initiatives, and that this would lead to further audience erosion. According to the licensee's projections, this audience erosion could translate into a decline of almost $14 million per year in the revenues it earns from advertising, the sale of airtime, and from donations and grants. |
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11. |
The Commission has examined the audience measurement data for Vision TV over the course of the past five years. Notwithstanding the licensee's claim that its audience has decreased, the Commission finds the data inconclusive on this issue, particularly with respect to the size of the licensee's primary target demographic of those 50 years of age and older. Moreover, during the period in which Vision TV asserts that its audience levels have decreased, its revenues have been increasing. In particular, those revenue streams most closely associated with audience size - advertising, airtime sales and fundraising activities - have shown stable growth over the period. In the circumstances, all things being equal, the Commission considers it reasonable to expect that Vision TV's revenues will continue to expand, contrary to the applicant's projections. |
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12. |
The Commission evaluates applications by specialty television services such as Vision TV for increases in the wholesale rate on a case-by-case basis, taking into account the particular circumstances of each applicant. Ultimately, the decision to approve or deny any such application must also be based upon the public interest and the objectives of the Broadcasting Act. As a rule, however, it is not the Commission's policy to grant a rate increase based solely on a projected or potential decrease in revenues. Based on the available evidence, the Commission is not convinced of the appropriateness of an increase in Vision TV's wholesale rate at this time, and, accordingly, denies the applicant's request. |
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Other matters |
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Cultural diversity |
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13. |
The Commission expects Vision TV, and all other specialty and pay television licensees, to contribute to a broadcasting system that accurately reflects the presence in Canada of cultural and racial minorities and Aboriginal peoples. The Commission further expects licensees to ensure that their on-screen portrayal of all such groups is accurate, fair and free of stereotypes. These expectations are fully in keeping with section 3(1)(d)(iii) of the Broadcasting Act, which states that the Canadian broadcasting system should, "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society" (the Act's cultural diversity objective). |
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In Public Notice CRTC 2001-88, Representation of cultural diversity on television - Creation of an industry/community task force, the Commission called upon the Canadian Association of Broadcasters to develop an action plan for a joint industry/community task force. The role of this task force is to sponsor research, identify "best practices", and help define the issues and present practical solutions to ensure that the Canadian broadcasting system reflects all Canadians. In its notice, the Commission emphasized the importance of having the participation of all sectors of the broadcasting industry, including specialty services. Consistent with the licensee's commitment at the hearing, the Commission expects Vision TV to contribute to the work of the task force. |
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As a multifaith service, Vision TV fills an important niche in Canada's broadcasting system. It serves as a window for the broadcast of a significant amount of programming obtained from independent producers. This Mosaic programming features the stories and the perspectives of Canadians representing a wide range of distinct religious and cultural backgrounds. Through this programming in particular, which is not generally of a type that finds broad exposure on other elements of the system, Vision TV has consistently demonstrated its sensitivity to the importance of providing a reflection of Canada's cultural diversity. |
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The Commission notes the licensee's ongoing commitment to ensure that this diversity continues to find reflection in all aspects of its service. Nevertheless, and consistent with the expectations the Commission is placing on the licensees of other specialty and pay television services whose licences are being renewed at this time, the Commission expects Vision TV to develop and implement a comprehensive corporate plan that explains how it intends to continue to improve its representation of Canada's cultural diversity, and to file this plan with the Commission within three months of the date of this decision. The plan should include specific commitments to corporate accountability and to the reflection of diversity in programming, and should make provision for the gathering of feedback on the effectiveness of these commitments. The plan should also set goals for achieving the full, fair and consistent reflection of diversity in Canada. |
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With respect to corporate accountability, the plan should address how Vision TV will create an environment that supports the cultural diversity objectives outlined above, by: |
| · creating a corporate culture that recognizes and supports Canada's cultural diversity; | |
| · assigning accountability to a senior executive for corporate practices related to cultural diversity, and for ensuring that management becomes more reflective of Canada's multicultural reality; | |
| · ensuring that managers receive proper training; | |
| · ensuring that regular opportunities are provided for assessing progress towards attaining these objectives and for identifying future opportunities and challenges; and | |
| · setting out plans for the hiring, retention and ongoing training of visible minorities and Aboriginal peoples. | |
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18. |
With respect to the reflection of diversity in programming, the plan should focus on how the licensee will ensure the presence and the fair, accurate and non-stereotypical portrayal of cultural minorities and Aboriginal peoples in the programming it produces or acquires. Specifically, the plan should include provisions for making certain that: |
| · on-air personalities reflect Canada's diversity; | |
| · those responsible for casting, in particular for casting leading and recurring roles, make a concerted effort to hire visible minority and Aboriginal actors; | |
| · those responsible for script development ensure that minorities and Aboriginal peoples are not portrayed stereotypically; and | |
| · programming obtained from independent producers reflects the presence of visible minorities and Aboriginal peoples in Canadian society and provides for their accurate portrayal. | |
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As for feedback, the corporate plan should describe the specific mechanisms the licensee will put in place to ensure that it receives effective input from community groups concerning its performance in reflecting cultural diversity in programming. |
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Employment equity/on-air presence |
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20. |
The Commission reminds the licensee that the expectations set out above with respect to cultural diversity are over and above its longstanding and more general expectations concerning employment equity. Specifically, the Commission expects the licensee to adhere to the comprehensive employment equity plan that it filed with its application. The Commission also encourages Vision TV to continue to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. |
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Service to the visually impaired |
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21. |
In decisions issued last December, the Commission encouraged the licensees of new Category 1 specialty services, over their new licence terms, to provide increasing amounts of programming accompanied by audio or video description. More recently, in decisions issued in the fall of this year renewing the licences for the television stations owned by CanWest Global, CTV and TVA, the Commission imposed conditions of licence regarding the provision of increasing amounts of such programming. |
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"Audio description" and "video description" or "described video" are methods of improving the service that television broadcasters provide to people who are visually impaired. Audio description involves the provision of basic voice-overs of textual or graphic information displayed on the screen. A broadcaster providing audio description will, for example, not simply display sports scores on the screen, but also read them aloud so that people who are visually impaired can receive the information. |
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Video description, or described video as it is also known, consists of narrative descriptions of a program's key visual elements that enable people who are visually impaired to form a mental picture of what is occurring on the screen. These descriptions can be provided on the Secondary Audio Programming (SAP) channel. Not all broadcasters are currently equipped to deliver an SAP signal. Thus, the introduction of described video via the SAP channel could require significant capital expenditures to upgrade a licensee's transmission facilities. |
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The Commission notes the increasing amount of described programming available for acquisition, particularly from U.S. sources. It notes as well the encouragement given to the operators of the new Category 1 specialty services and the requirements it has placed on the television stations operated by the three larger broadcasting groups concerning the provision of such programming. In correspondence with Vision TV, the Commission requested the licensee's views on implementing audio description, video description or described video. In the circumstances, the Commission considers it reasonable to expect the operators of the pay and specialty services whose licences are being renewed at this time to take similar steps to respond to the needs of viewers who are visually impaired. |
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25. |
Accordingly, the Commission expects Vision TV to: |
| · provide audio description (defined as the provision of basic voice-overs of textual or graphic information displayed on screen) wherever appropriate: | |
| · undertake the necessary upgrades to permit the broadcast of described programming (for example, via the second audio programming, or SAP, channel). | |
| · acquire and broadcast the described versions of a program wherever possible; and | |
| · take the necessary steps to ensure that its customer service responds to the needs of visually impaired viewers. | |
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In addition, and consistent with the approach adopted for the new Category 1 services, the Commission encourages the licensee to provide, at a minimum, one hour per month of described programming in the period between 1 December 2001 and 31 August 2002, and to increase this monthly minimum by at least one hour in each subsequent year of its licence term. |
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Closed captioning |
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27. |
The Commission is committed to improving service to television viewers who are deaf or hearing impaired. Over the period since the Commission announced its policy on closed captioning in Public Notice CRTC 1995-48, it has consistently encouraged broadcasters to increase the amount of captioned programming they provide. The Commission now requires the licensees of conventional television, specialty and pay television undertakings to achieve a minimum level of captioned programming appropriate to the nature of the service that each provides. Generally, the specified minimum requirement is 90% of all programming. |
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In its application, Vision TV described the difficulties it would face in captioning the portion of its program schedule that is devoted to the broadcast of Mosaic programming. The licensee noted that this programming is largely the product of independent producers who have neither the financial nor technical resources required to caption their programs. Vision TV also noted that it routinely receives this Mosaic programming very close to the hour it is scheduled for broadcast. The licensee stated that the only option would be for it to provide "real time" captions, but that this would constitute a substantial financial burden for the service. Vision TV did state, however, that it would be prepared to caption its entire Cornerstone schedule within the first year of the new licence term. |
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29. |
The Commission accepts that it may be unreasonable to require Vision TV to assume the costs of providing real time captioning for its Mosaic programming at this time. It has therefore decided not to impose any obligation in this decision regarding the captioning of this portion of the licensee's schedule (approximately 45%). The Commission notes, however, the licensee's commitment with respect to the captioning of all of its Cornerstone programming (a minimum of 45% of all programming). Under Vision TV's licence conditions, the remaining 10% of the schedule may come from any or all other program categories. |
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30. |
Consistent with Vision TV's commitment, the Commission has decided to require the licensee, beginning 1 December 2001, to close caption 90% of all of its programming, with the exception of its Mosaic programming. A condition of licence to this effect is contained in the appendix to this decision. |
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31. |
The 90% obligation is based on the recognition that requiring 100% captioning at all times may not be reasonable or appropriate. Thus, the obligation is designed to provide some flexibility to cover unforeseen circumstances (such as late delivery of captions, technical malfunctions, or the lack of availability of captions for programs acquired outside North America), or programming where captioning may not be feasible, such as third language programming. |
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32. |
The Commission expects the licensee to focus on improving the quality, reliability and accuracy of closed captioning, and to work with representatives of the deaf and hard of hearing community to ensure that captioning continues to meet their needs. The Commission also expects the licensee to work with the producers of its Mosaic programming in order to provide for the captioning of as much Mosaic programming as possible. |
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Secretary General |
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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 |
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______________________________ * "Mosaic" programs are defined as paid-time denominational presentations produced or acquired at arm's length by various faith groups. They comprise approximately 45% of the licensee's schedule. Much of the remainder of the program schedule (a minimum of 45% by condition of licence) consists of "Cornerstone" programs, which are general, interfaith programs produced or acquired by the licensee itself.
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Appendix to Decision CRTC 2001-669 |
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Conditions of licence for the specialty service provided by |
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| 1. (a) The programming provided by the licensee shall consist exclusively of interfaith, religious programming that is related to, inspired by, or arises from persons' spirituality, including related moral or ethical issues. | ||
| (b) Subject to 1. (a), not less than 90% of the programming provided by the licensee shall be drawn from category 4 (Religion) as set out in Schedule I of the Specialty Services Regulations, 1990. | ||
| 2. The licensee shall devote not less than 45% of the total hours distributed in any one broadcast year to the distribution of Cornerstone programming. | ||
| 3. During the period between 1 December 2001 and 31 August 2002, the licensee shall devote to the distribution of Canadian programs not less than 60% of: | ||
| (a) the total number of hours devoted by the licensee to broadcasting during the aggregate of the broadcast months in that period, and | ||
| (b) the total time devoted to the broadcasting of programs between six o'clock in the afternoon and midnight. | ||
| 4. Beginning 1 September 2002 the licensee shall devote to the distribution of Canadian programs not less than 60% of: | ||
| (a) each broadcast semester over the licence term, and | ||
| (b) the evening broadcast period. | ||
| 5. The Board of Directors of Vision TV shall consist of a minimum of nine members and a maximum of twelve members, and shall include representatives of at least three of the following world religions: Buddhism, Christianity, Hinduism, Islam, Judaism, Bahai, Native Spirituality, Sikhism, Unitarianism and Zoroastrianism. | ||
| 6. The licensee shall ensure that, with respect to members of the Board of Directors, no more than two new or replacement directors shall have backgrounds that reflect a subdivision or denomination of any one world religion, or shall share a single faith perspective. | ||
| 7. The licensee shall maintain over the licence term a Mosaic Program Management Group with the terms of reference, membership and mandate set out on page 15 of the original application for a licence dated 30 April 1987. | ||
| 8. The licensee shall file a report with the Commission on or before 30 November of each year, | ||
| (a) enumerating the world religions as well as the subdivisions, denominations or faith perspective thereof, represented on the Board of Directors as of the preceding 31 August; | ||
| (b) describing how Vision TV has reflected, over the 12-month period ending the preceding 31 August, the range of Canadian religious beliefs, including a list of the groups that have purchased Mosaic time and the amount of time each has purchased; | ||
| (c) providing a breakdown of the programming distributed on Vision TV over the 12-month period ending the preceding 31 August between Cornerstone and Mosaic programming; and | ||
| (d) providing a description of the membership and activities of the Mosaic Program Management Group over the 12-month period ending the preceding 31 August. | ||
| 9. (a) In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1993-93 and 1993-174, the licensee shall, in each broadcast year, expend not less than 45% of its gross revenues for the previous year on the acquisition of and/or investment in, Canadian programs. | ||
| (b) In any broadcast year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming that is up to five percent (5%) less than the minimum required expenditure for that year 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 underspending. | ||
| (c) In any broadcast year of the licence term, including the final year, the licensee may expend an amount on Canadian programming that is greater than the minimum required expenditure for that year calculated in accordance with this condition; in such case, 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 overspending; and | ||
| (ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overspending and any amount deducted under paragraph (i) above. | ||
| (d) Notwithstanding the above, during the licence term, the licensee shall expend on Canadian programming, at a minimum, the total of the minimum required expenditures calculated in accordance with the licensee's condition of licence. | ||
| 10. (a) Subject to subsections (b) and (d) below, the licensee shall not distribute more than twelve minutes of advertising material during each clock hour. Advertising material shall include all commercial activities, such as solicitations, merchandising and give-aways. | ||
| (b) 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. | ||
| (c) The licensee shall not distribute any paid advertising material other than paid national advertising. | ||
| (d) 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 those clock hours occupied by the program does not exceed the maximum number of minutes that would otherwise be allowed per clock hour. | ||
| (e) All solicitation of funds on Vision TV must conform with the provisions of the licensee's Code of Ethics and Program Practices, as amended from time to time and approved by the Commission, subject to the limitations as to time set out in this condition. 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). | ||
| (f) The solicitation of funds in Cornerstone programming shall together comprise no more than 90 seconds per half-hour and no accumulation shall be permitted. | ||
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(g) The solicitation of funds in Mosaic programming shall together comprise no more than 90 seconds per half-hour, and no accumulation shall be permitted. |
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| 11. The licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.08 per subscriber per month for exhibition on the basic service. | ||
| 12. 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). | ||
| 13. The licensee shall 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. | ||
| 14. 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. | ||
| 15. Together with the record required to be filed with the Commission pursuant to subsection 7(2) of the Specialty Services Regulations, 1990, the licensee is required to provide in its program log or machine readable record for each solicitation of funds, the time of commencement and duration. | ||
| 16. Beginning on 1 December 2001, the licensee shall close caption 90% of its programming during the broadcast day, with the exception of Mosaic programming. | ||
| For the purpose of these conditions of licence: | ||
| (a) all time zone periods shall be reckoned according to the eastern time zone; | ||
| (b) the terms "broadcast day," "broadcast month," "broadcast year," and "clock hour" shall have the same meaning as those set out in the Television Broadcasting Regulations, 1987; | ||
| (c) the term "broadcast semester" shall mean the total number of hours devoted by the licensee to broadcasting during the aggregate of the broadcast months in a six month period, beginning 1 September 2002. | ||
| (d) the term "evening broadcast period" shall mean the total time devoted to the broadcasting of programs between six o'clock in the afternoon and midnight during each broadcast semester; | ||
| (e) "paid national advertising" shall mean advertising that is purchased at a national rate and which receives national distribution on the service; and, | ||
| (f) "Cornerstone programming" shall mean general interfaith programs produced or acquired by the licensee itself, while "Mosaic programming" shall mean paid-time denominational presentations produced or acquired at arm's length by various faith groups. Where Cornerstone programming and Mosaic programming are logged, the program classes used must be "COR" and "MOS", respectively. | ||
Date Modified: 2001-11-02
- Date modified: