ARCHIVED - Broadcasting Decision CRTC 2002-355

Broadcasting Decision CRTC 2002-355

Ottawa, 7 November 2002

Nextlevel Television Inc., on behalf of a corporation to be incorporated
Across Canada

Benny Doro, on behalf of a corporation to be incorporated
Across Canada

Applications 2002-0267-2 and 2002-0268-0
Public Hearing in the National Capital Region
12 August 2002

Division of assets

1.

The Commission received applications by Nextlevel Television Inc., on behalf of a corporation to be incorporated (Nextlevel, OBCI) and Benny Doro, on behalf of a corporation to be incorporated (Nextlevel Doro, OBCI) to divide the assets of Nextlevel Television Inc. (Nextlevel) between the two current shareholders. The transaction would occur in the following two stages:

• the transfer by Nextlevel, OBCI of Mr. Benny Doro's 50% ownership interest in Nextlevel to Mr. Prashant Desai; and

• the acquisition by Nextlevel Doro, OBCI of the assets of the Category 2 specialty television service to be known as Power Television from Nextlevel.

2.

The Commission did not receive any intervention in connection with these applications.

3.

In 2000, the Commission approved applications by Nextlevel to operate two Category 2 specialty television services in Urban Nation, Decision CRTC 2000-637, 24 November 2000 and Power Television, Decision CRTC 2000-638, 24 November 2000. The two services were to be equally owned by Mr. Desai and Mr. Doro. The Commission has not yet issued the licences for these services because they have not implemented operations.

4.

Pursuant to the proposed division of assets, two new corporations would be formed. Mr. Desai would own and control Nextlevel Television, OBCI, licensee of the service to be known as Urban Nation, and Mr. Doro would own and control Nextlevel Doro, OBCI, licensee of the service to be known as Power Television.

5.

In the circumstances, the Commission considers that the proposed transaction is reasonable. Accordingly, the Commission approves the applications, by Nextlevel, OBCI and Nextlevel Doro, OBCI to divide the assets of Nextlevel between the two current shareholders.

6.

The licence for each service will expire 31 August 2007. Each licence will be subject to the conditions set out in Introductory statement - Licensing of new digital pay and specialty services - Corrected Appendix 2, Public Notice CRTC 2000-171-1, 6 March 2001 as well as to the conditions specified for each service in the appendices to this decision.

7.

Each licence will be issued once the respective licensee has satisfied the Commission, with supporting documentation, that the following requirements have been met for the respective service:

• an eligible Canadian corporation has been incorporated in accordance with the application in all material respects;

• the licensee has entered into a distribution agreement with at least one licensed distributor; and

• the licensee has informed the Commission in writing that it is prepared to commence operations. The undertaking must be operational at the earliest possible date and in any event no later than 24 November 2003, unless a request for an extension of time is approved by the Commission before that date. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before this date.

Secretary General

Appendix I to Broadcasting Decision CRTC 2002-355

Conditions of licence for the Category 2 specialty television service to be known as Urban Nation

1. a) The licensee shall provide a national English- and French-language Category 2 music video specialty television service dedicated to urban and hip-hop music.

b) The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990: 1, 2a, 2b, 3, 4, 5a, 5b, 6a, 6b, 7a, 7b, 7c, 7d, 7e, 7f, 7g, 8a, 8b, 8c, 9, 10, 11, 12, 13 and 14.

c) No less than 50% of the programming shall be music video clips (category 8b) and music video programs (category 8c). The balance of the programming shall be devoted to urban and hip-hop music related news, commentaries, video jockey talk shows, interviews, music concerts, specials and feature films.

d) No more than 15% of all programming broadcast during the broadcast week shall be drawn from category 7.

e) No more than six hours of feature films (category 7d) shall be broadcast during the broadcast week, and all such programming shall be urban and hip-hop music-related.

f) No less than 10% of all programming broadcast during the broadcast week shall be in the French language.

For thepurpose of this condition of licence, broadcast day shall have the same meaning as that set out in section 2 of the Television Broadcasting Regulations, 1987.