ARCHIVED - Broadcasting Decision CRTC 2002-388

Broadcasting Decision CRTC 2002-388

Ottawa, 28 November 2002

Telelatino Network Inc.
Across Canada

Application 2001-0226-0
Public Hearing in the National Capital Region
6 May 2002

Licence renewal for the specialty television service Telelatino

In this decision, the Commission renews the broadcasting licence for the specialty television service known as Telelatino, and imposes conditions of licence for the new licence term.

Introduction

1.

The Commission received an application by Telelatino Network Inc. (TLN) for the renewal of the licence for the national specialty television service known as Telelatino.

2.

The Commission received 153 interventions with regard to the application, including 149 letters of support. Many of the supporting interventions noted Telelatino's record of serving the various needs of large and growing Italian- and Spanish-speaking communities across Canada. All of the interventions have been taken into account by the Commission in its deliberations. Interventions in regard to specific issues are discussed in the various sections below.

3.

Based on its examination of this application, the Commission is satisfied that a long-term renewal of the licence for Telelatino is justified. Accordingly, the Commission renews the licence for Telelatino, from 1 December 2002 to 31 August 2009¹.

Distribution of ethnic programs

4.

As part of its application, the licensee proposed to amend its existing condition of licence related to the distribution of ethnic programs. Currently, the licensee is required to devote a minimum of 85% of all programming to third-language programming, and a maximum of 15% to ethnic programming in either English or French. The licensee's proposal was to reduce third-language programming to 75% of all programming, and to increase to 25% the maximum of programming in English or French which is directed to ethnic audiences.

5.

Several supporting interventions, including those submitted by the Latin American Coalition Against Racism (LACAR), Round Table Associates Productions and Elisa Murillo, expressed concern that the change in the proportion of third-language to English- or French-language ethnic programs would be injurious to ethnic audiences.

6.

In response to those concerns, TLN stated that whether Telelatino's programming is in Spanish, Italian, English, French, or some combination of languages, it is required to be and will always be 100% ethnic programming specifically directed to distinct ethnocultural audiences.

7.

The licensee stated that altering the proportions noted above to 75% third-language with a maximum of 25% English- or French-language programming would allow it to schedule bilingual programming in addition to unilingual English programming, in order to more fully serve Italian and Hispanic Canadian ethnic communities. The licensee also stated that the proposed change would "foster cross-cultural appreciation both between those communities themselves and with other Canadians".

8.

Telelatino further stated that its challenge is to serve the Italian and Hispanic communities "by appealing to the entire multi-generational multilingual population that constitutes this group". While stating that its third-language programming will always be the predominant and defining characteristic of its service, Telelatino requested the "opportunity to mirror the ethnic population it is mandated to serve, by mirroring that population's maturation as an integrated bilingual and sometimes significantly English-speaking ethnic group." In support of its proposal, the licensee also noted that, in Ethnic broadcasting policy, Public Notice CRTC 1999-117, 16 July 1999 (Public Notice 1999-117, the Ethnic Policy), the Commission defined an "ethnic program" as one in any language which is specifically directed toward a culturally or racially distinct group, other than Canada's founding cultures.

Commission's analysis and determination

9.

The Commission accepts TLN's arguments that members of ethnic communities live their lives on a bilingual basis, and that the change in the demographics of ethnic audiences means that younger generations do not necessarily use the languages of their parents. The Commission is satisfied that an increase in ethnic programming in English or French would allow TLN the flexibility to produce or acquire more mixed-language programming that can be used to target all generations of the Italian and Hispanic communities.

10.

For these reasons, the Commission approves the licensee's request to decrease the minimum requirement of third-language programming from 85% to 75%, and to increase the maximum amount of ethnic programming in the English and French languages from 15% to 25%. These changes in language proportions do not affect the requirement that 100% of the programming distributed on Telelatino must be ethnic programming, that is, programming directed to members of ethnic communities, regardless of the language of broadcast. A condition of licence specifying the required levels of ethnic programming on Telelatino is set out in the appendix to this decision.

Spanish-language programming

11.

In interventions submitted by Round Table Associates Productions and Elisa Murillo, and in letters of complaint to the licensee over the current licence term, concerns were expressed about a perceived reduction in Spanish-language programming, as well as the scheduling, amount and quality of Spanish-language programming on Telelatino, particularly in prime time. The letters also expressed dissatisfaction with the practice of dubbing mainstream programming into Spanish, instead of distributing programs which are produced with an Hispanic audience in mind.

12.

In reply to the interventions, TLN stated that its Spanish-language programming currently makes up approximately 50% of the overall schedule, and that during the current licence term TLN has increased the amount of such programming aired during the evening broadcast period.

Hours and scheduling of Spanish-language programming

13.

Telelatino is currently subject to a condition of licence which requires that the service provide at least 90 hours of ethnic programming each broadcast week. A maximum of 55% of all programming must be directed to Italian audiences and a minimum of 45% to audiences in the Hispanic community.

14.

At the hearing, in response to concerns expressed in complaints and interventions, TLN stated that, on average over the last six to twelve months, Telelatino has been exceeding the required minimum of 45% of Hispanic-directed programming, distributing closer to 50%. TLN added that:

compared to historical schedules that I have looked at from years gone by and during the earlier years of the current licence term, we have actually increased the amount of Spanish-language programming in the fixed schedule that you see here by half an hour Monday to Friday in the evening. In addition, we introduced this past year late-night programming after the 11 o'clock news also in Spanish on Monday and Tuesday.

15.

At the hearing, TLN acknowledged that, while the evening broadcast period was more heavily targeted to Italian audiences, "much of our programming is special event-driven programming, particularly on the Spanish side". TLN added that Telelatino's Hispanic viewers "in recent years.have actually come to expect that these specials are regular and are continuing." The licensee added that it intends to maintain its current level of Hispanic-directed programming during the evening broadcast period.

16.

At the hearing, the Commission discussed with the licensee the possibility of increasing the amount of Spanish programming during the evening broadcast period. TLN responded that it had used its best efforts to gradually increase Spanish programming without disrupting its advertising revenue base or its Italian viewers. TLN indicated that it had aired numerous Spanish-language specials on which it had lost money, as they had not attracted enough advertising revenues to pay for themselves. TLN added that approximately 70% of its advertising revenues came from its Italian programming, which effectively subsidized the Spanish-language programming.

17.

The Commission notes that, contrary to the perception of certain interveners of a reduction in the amount of Telelatino's Spanish-language programming, the evidence shows that TLN has complied with the requirement to provide at least 45% Hispanic-directed programming, and that over the past few years of the current licence term, TLN has exceeded the minimum requirement, the most recent figures indicating that 47% of all Telelatino programming is directed to Hispanic audiences.

18.

The Commission also notes Telelatino's updated programming schedule, submitted in April 2002, which indicates that Spanish-language programs in the evening broadcast period (6:00 p.m. to 12:00 midnight) are provided from 6:00 p.m. to 7:30 p.m. on weekdays, as well as from 11:30 p.m. to 12:00 midnight on Mondays and Tuesdays, and from 6:00 p.m. to 8:00 p.m. on Saturdays. The updated schedule indicates that a total of 10.5 hours, representing 25% of the evening broadcast period is devoted to ethnic programs directed to Hispanic audiences.

Commission's analysis and determination

19.

While the amount of Spanish-language programming in the evening broadcast period is not equal to that directed to Italian audiences, it is evident that TLN has responded to viewer demand for more Spanish-language programming, without disrupting the Italian programming upon which it relies heavily for advertising revenues.

20.

Given the current level of regularly-scheduled Hispanic-directed programming during the evening broadcast period, and TLN's stated intention to maintain that level, the Commission is of the opinion that it is appropriate to require the licensee to maintain that level. The Commission has therefore imposed a condition of licence that requires the licensee to ensure that, during each broadcast month, a minimum of 25% of the evening broadcast period is devoted to Hispanic-directed programming. The text of this condition is set out in the appendix to this decision.

Quality and quantity of Spanish-language programming

21.

In response to the concerns expressed about the quality of the Spanish-language programming on Telelatino, at the hearing TLN stated that it is currently producing more Canadian content in Spanish than it was six years ago, and that with its Spanish-language programming, it intends to mirror what it has done with the Italian programming, specifically in respect of documentaries and program series.

22.

The Commission notes that, while TLN appears to have made certain efforts to improve its Spanish-language programming, such programming still lags behind Telelatino's Italian-directed programming. In particular, for its Spanish schedule, TLN relies more heavily upon Canadian programming dubbed into Spanish.

Commission's determination

23.

The Commission notes that TLN has stated that it has in development a Spanish-language program series similar to a series produced for its Italian audience. Notwithstanding the licensee's plans with regard to the production of Spanish-language programming, given the concerns expressed about the amount of Spanish-language programming on Telelatino, the Commission expects TLN, over the new licence term, to increase the amount of programming created specifically for Hispanic viewers of Telelatino. The Commission notes the concerns expressed about the quantity of dubbed programming directed to Hispanic viewers, and expects TLN to decrease the amount of mainstream programming currently dubbed into the Spanish language.

24.

In addition to the conditions and requirements set out above, the Commission requires the licensee to report, by 1 December 2003, on its progress toward increasing the quantity of programming produced in the Spanish language distributed on Telelatino, and decreasing the amount of programming on the service which is dubbed into Spanish. The report should include details of Spanish-language programming being produced or acquired, the scheduling of programming directed to Hispanic viewers, and concrete commitments in this regard for the remainder of the licence term.

Contributions to Canadian programming

25.

As a condition of licence, TLN is currently required to expend a minimum of 16% of its previous year's gross revenues for the acquisition of, or investment in, Canadian programming.

26.

Prior to the public hearing, the licensee submitted to the Commission revised financial projections for a seven-year period. The revised projections were based on a number of assumptions, including an increase in Canadian programming expenditures (CPE), from the current 16% to 20% by the seventh year of the new licence term. TLN proposed that the CPE would increase by 1% annually, beginning 1 September 2005.

27.

Notwithstanding the projected increased CPE, and additional costs associated with proposed higher levels of Canadian content, TLN's revised financial projections also indicated profits before interest and taxes (PBIT), ranging from 34% in the first year of the new licence term to 27% in the seventh. These projections are well above the industry average of 18% in 2001. TLN's financial health may be due in part to the fact that TLN is carried on extended basic tiers in some distribution systems.

28.

There are currently five ethnic specialty services in operation in Canada. They are Fairchild, Telelatino, Talentvision, SATV and Odyssey. The current CPE contribution for Fairchild and Talentvision is 29%, Odyssey contributes 27% , Telelatino's level is 16% and SATV contributes 15%.

29.

Given TLN's improved and projected healthy financial performance, the Commission explored with the licensee the possibility of further increasing Telelatino's CPE, to levels that would be more in line with those of other specialty services. In response to those discussions, the licensee made a commitment to increase its CPE from 16% to 23%, beginning 1 September 2008, the start of the seventh year of the new licence term.

30.

The Commission notes that, of the five ethnic specialty television services noted above, only two - Fairchild and Telelatino, achieved positive profit PBIT in 2001. The Commission further notes that, of the two, Telelatino has been profitable in each of the last eight years, and Telelatino's 2001 PBIT was more than four times that of Fairchild. The Commission further notes that TLN's proposed CPE of 23%, while an increase from 16%, would still be the second-lowest CPE rate of the five existing ethnic specialty television services.

Commission's analysis and determination

31.

In light of the continued and projected profitability of Telelatino, and given the ownership position in TLN of Corus Entertainment Inc. (Corus), a well-established media group, the Commission finds that implementation earlier than September 2008 of the proposed 23% CPE level would not have an undue negative effect upon the financial health of Telelatino. Moreover, the increased CPE could result in higher-quality programming capable of attracting larger audiences and therefore more advertising revenues.

32.

The Commission has therefore decided to require that TLN increase Telelatino's annual required contribution to CPE from 16% to 23%, by 1 September 2004. The increase is to be phased in, with a 1% increase in the first year of the new licence term, and with 3% increases in each of the second and third years of the licence term. A condition of licence specifying the required expenditures is set out in the appendix to this decision.

Canadian content

33.

Telelatino's current Canadian content requirement is for the broadcast of 25% Canadian content during each semester (six-month period beginning either 1 March or 1 September each year). In addition to that requirement, as part of this application, TLN proposed that a minimum of 15% of the evening broadcast period (6:00 p.m. to 12:00 midnight) be devoted to the broadcast of Canadian programs.

34.

Interventions submitted by Round Table Associates Production and Elisa Murillo expressed the view that the minimum level for Canadian content in the evening broadcast period should be higher than the 15% proposed by the licensee.

35.

TLN stated that, unlike specialty programming services, Telelatino is not programmed on a "wheel" with groups of programs being repeated several times each day, and so its audience has come to expect a service that does not repeat its programs often. It added that Telelatino is highly dependent on advertising revenue, and that any increase in costs related to additional Canadian programming beyond the current or proposed levels would result in lost advertising revenue. TLN estimated that Telelatino would suffer a decrease in annual advertising revenues of approximately 15% if evening Canadian content were to be increased beyond the proposed 15%.

36.

According to TLN, broadcasting more than the proposed level of 15% evening Canadian content would be difficult because ".we are trying to provide the staples. of their programming diet, which include news, a telenovella and in the case of the Italian audience, the nightly 9:00 p.m. to 11:00 p.m. foreign Italian programming slot from RAI. That has been a long-standing scheduling practice." TLN added that if it had to remove a popular show with established revenues in order to make room for another program, there could be a negative impact on viewer relations and audience expectations as well as advertising revenues.

37.

During the renewal process, the Commission also explored with the licensee the possibility of increasing its overall Canadian content level. TLN's position is that any overall increase would result in more repeated programs, not more production, because TLN is currently working to increase the quality of its Canadian content to bring it to a level "that is competitive with mainstream broadcasting".

38.

At the hearing, the Commission explored with the licensee which would be more onerous for TLN: an overall increase to 30% Canadian content or a requirement for 25% Canadian content during the evening broadcast period. The licensee stated that a 25% evening requirement would be the "much more challenging option", due to the way its advertising revenues and revenue-generating programming are structured for that period of the day.

Commission's analysis and determination

39.

The Commission reiterates that the production and exhibition of Canadian programming is a fundamental objective of the broadcasting system, and that during the 1998-1999 review of the Ethnic Policy, Canadian programming was identified by ethnic communities as a priority. The Commission is of the view that it is in TLN's best interest to provide attractive Canadian programming to its audiences.

40.

In Ownership change for Telelatino, Decision CRTC 2001-665, 29 October 2001 (Decision 2001-665), the Commission approved an application by Corus to acquire effective control of TLN by increasing its holdings from 20% to 50.5%. As part of that transaction, the Commission accepted a benefits package, part of which called for $1.1 million to be spent over a seven-year period for "licence fee top-up funding" for the production of programs directed to Canada's Italian and Hispanic communities. Corus considered that this would assist independent producers of ethnic programming and would increase the library of Canadian programming available to Telelatino.

41.

The Commission is of the opinion that a small increase in the overall exhibition level of Canadian content could be absorbed in the Telelatino schedule, and that TLN's concerns about the costs of new production and/or program acquisition should be alleviated by the increase in Canadian programming expenditures imposed above. The Commission is also of the view that its approval of TLN's proposal to decrease Telelatino's minimum requirement for third-language programming will give the licensee further flexibility in scheduling more Canadian programming.

42.

Moreover, the Commission is of the view that the ownership changes approved in Decision 2001-665 have resulted in new synergies for Telelatino, putting TLN in a better position to commit more resources to Canadian programming.

43.

Finally, the Commission notes that, as discussed in detail below, it has removed Telelatino's current condition of licence prohibiting the distribution of news or actualities produced by TLN. The ability to produce and distribute news programming would allow TLN further flexibility to schedule Canadian programming.

44.

Given TLN's relative financial strength in relation to other ethnic specialty services, as noted above, its established position as an ethnic broadcaster, Corus' investment in the service and the various benefits flowing from the recent ownership change, the Commission has decided to impose a condition of licence which requires an increase of Canadian content on Telelatino from 25% overall to 30% overall, bringing it into line with other established ethnic specialty broadcasters. The increase will be phased in on an incremental basis, with annual increases of 1% starting in the second year of the new licence term. A condition of licence specifying the annual levels of Canadian content required is set out in the appendix to this decision.

45.

The Commission commends TLN for putting forward the proposal of 15% Canadian content in the evening broadcast period, and is satisfied that the imposition of that minimum, while a relatively low level, represents a significant increase, since TLN currently has no obligation for Canadian programming during this time period. In accordance with the licensee's commitment, the Commission has imposed a condition of licence which requires TLN to distribute a minimum of 15% Canadian content during the evening broadcast period. The text of this condition can be found in the appendix to this decision.

News programming on Telelatino

46.

As a condition of its current licence, Telelatino is prohibited from producing "any Canadian news, reports or actualities for distribution on its undertaking".

47.

The prohibition on news programming was first placed on the service in Telelatino Network Ltd., Decision CRTC 90-630, 6 July 1990 (Decision 90-630). In that decision, the Commission stated that the licensee's plans to begin the production of its own news programming would represent a significant departure from the type of programming service originally proposed by the licensee and approved by the Commission.

48.

Interventions from LACAR, Round Table Associates Productions and Elisa Murillo, as well as a number of letter complaints note that the condition of licence prohibiting the production of news deprives the community of valuable content and that news, reports and actualities are the framework for the community to see itself reflected within Canada. Accordingly, the interveners requested that the prohibition on news on Telelatino be dropped.

49.

At the hearing, TLN stated that it has not "determined nor has there been any great request for, a TLN-produced Canadian news show from the people in the community that we talk to." The licensee added that while it would not object to the removal of the condition, it would have to examine feasibility, demand, logistics and technical infrastructure before deciding whether or not to produce news. It further stated that producing news would be a departure from its production and Canadian programming strategy.

Commission's analysis and determination

50.

The Commission is of the view that removing the condition of licence prohibiting the distribution of news on Telelatino will allow TLN to respond to viewer demand for Canadian news if warranted, and could provide TLN with a way to increase Canadian content on the service while responding to such a demand, some of which was evident in this proceeding. For the upcoming licence term, therefore, a condition of licence prohibiting the carriage of news on Telelatino has not been applied.

Cultural diversity

51.

As part of its application, TLN stated that, by its very nature as an ethnic broadcaster, it is especially sensitive to issues of diversity and on-air representation of diversity.

52.

It further stated that its acquired programming, particularly from Hispanic broadcasters, includes visible minorities in many on-air positions. As far as its own productions are concerned, its "programming and production departments are attuned to the need to ensure the representation of members of the four designated groups in on-air positions."

53.

As noted above, in Decision 2001-665, the Commission approved an application by Corus to acquire effective control of Telelatino. Corus stated at that time that its corporate plan for cultural diversity will apply to all of the specialty services under its control. Corus submitted a corporate cultural diversity plan in May 2002.

Commission's determination

54.

The Commission expects the licensee to adhere to the Corus corporate plan for cultural diversity.

Complaint and feedback mechanisms

55.

At the public hearing, the Commission explored TLN's complaints and feedback mechanisms, in light of programming complaints that had been received during the licence term.

56.

TLN stated that it has recently become a member of the Canadian Broadcast Standards Council (CBSC), which is an industry body that deals with complaints about broadcasting matters on behalf of its members. TLN also noted that Telelatino's staff meet on a weekly basis to respond to any concerns that have been received.

57.

With respect to feedback mechanisms, TLN stated that it has both formal and informal ways of collecting audience input. It has a staff of community relations employees who take calls from the public, and a monthly informal meeting is held to study the audience feedback that has been gathered. The licensee also has daily informal contact with the community groups that are involved in the production of some of its programs.

58.

The service also holds formal focus group sessions for both Spanish and Italian audiences. In addition, TLN conducted a telephone survey to gain a further understanding of the needs of each ethnic community, sends out 3,000 weekly newsletters, and during the program "Usted Decide" encourages audience members to send in feedback along with their responses to an "issue of the week".

Commission's analysis and determination

59.

The Commission considers, especially given the fact that TLN has joined the CBSC, that the various mechanisms noted above are adequate to deal with viewer complaints and feedback.

Service to persons with hearing impairment

60.

The current licence for Telelatino includes no requirement to provide captioned programming for persons with hearing impairment.

61.

During the renewal process, the licensee stated that captioning 90% of all English-language programming would be very difficult. At the hearing, however, TLN stated that it would commit to captioning 90% of the programs that are broadcast on Telelatino entirely in English, by the end of the new licence term.

62.

TLN noted, however, that captioning dual-language programming was a greater challenge, complicated by both high costs and the use of various dialects. It also stated that since it receives much of its third-language programming via satellite, there is often little time available to add captions before it is distributed. The licensee stated that much of its third-language programming is not captioned at source, although it has explored this issue with its program providers.

Commission's analysis and determination

63.

The Commission is of the opinion that it is appropriate to require that TLN caption 90% of the programs broadcast on Telelatino entirely in English, beginning 1 September 2007. A condition of licence to this effect is set out in the appendix to this decision.

64.

In addition, the Commission encourages TLN to make its best efforts to acquire captioned third-language programming, and to caption the third-language programming it produces.

Service to persons with visual impairment

65.

66.

Described video consists of narrative descriptions of a program's key visual elements so that people who are visually impaired are able to form a mental picture of what is occurring on the screen. These descriptions can be provided on the Secondary Audio Programming (SAP) Channel.

67.

68.

Commission's analysis and determination

69.

Employment equity

70.

Because this licensee is subject to the Employment Equity Act and files reports with Human Resources Development Canada, its employment equity practices are not examined by the Commission.

71.

The intervention submitted by LACAR expressed a desire to see more members of the Canadian Latin American community in decision-making positions with the licensee corporation.

72.

In response, the licensee stated that TLN managerial staff includes not only Latinos but many nationalities and ethnic origins from Peru, Argentina, the Philippines and the Republic of Mauritius.

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 Broadcasting Decision CRTC 2002-388

Conditions of licence for Telelatino

The licensee shall provide a programming service consisting of ethnic programming directed to Italian and Hispanic/Spanish audiences, of which a minimum of 75% will be Italian- or Spanish-language ethnic programs and a maximum of 25% will be English- or French-language ethnic programs.

The licensee shall provide a minimum of 90 hours per week of ethnic programming, of which a maximum of 55% will be directed to Italian audiences and a minimum of 45% will be directed to Hispanic/Spanish audiences.

In each broadcast month, the licensee shall provide a minimum of 25% Hispanic-directed programming during the evening broadcast period (6:00 p.m. to 12:00 midnight).

The licensee shall devote to the distribution of Canadian programs:

a) Beginning 1 September 2002, not less than 25% of the total hours devoted to all programming during each semester;

b) Beginning 1 September 2003, not less than 26% of the total hours devoted to all programming during each semester;

c) Beginning 1 September 2004, not less than 27% of the total hours devoted to all programming during each semester;

d) Beginning 1 September 2005, not less than 28% of the total hours devoted to all programming during each semester;

e) Beginning 1 September 2006, not less than 29% of the total hours devoted to all programming during each semester; and

f) Beginning 1 September 2007, not less than 30% of the total hours devoted to all programming during each semester.

During each semester, the licensee shall devote to the distribution of Canadian programs not less than 15% of all programming distributed during the evening broadcast period (6:00 p.m. to 12:00 midnight).

a) In accordance with the Commission's position on Canadian programming expenditures as set out in The reporting of Canadian programming expenditures, Public Notice CRTC 1993-93, 22 June 93, and in Additional clarification regarding the reporting of Canadian programming expenditures, Public Notice CRTC 1993-174, 10 December 1993, the licensee shall devote to the acquisition of, or investment in, Canadian programming the following percentages of the licensee's gross revenues earned during the previous year:

In the broadcast year commencing 1 September 2002, 17%

In the broadcast year commencing 1 September 2003, 20%

In the broadcast year commencing 1 September 2004, and for each of the remaining broadcast years in the licence term, 23%.

b) In each 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 conditions of licence.

a) The licensee shall restrict the distribution of commercial messages on its undertaking to a maximum of twelve minutes per hour, no more than six minutes of which may consist of local or regional advertising.

b) In addition to the maximum of twelve minutes of commercial messages referred to in 7a), the licensee may distribute during each clock hour, a maximum of 30 seconds of additional advertising material that consists of unpaid public service announcements.

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, up to a maximum of ten minutes in any clock hour, provided that the average number of minutes of advertising material in those clock hours occupied by the program does not exceed twelve minutes.

Beginning 1 September 2007, in each broadcast year the licensee shall caption 90% of all programming broadcast entirely in the English language, as well as 90% of all portions of programs that are broadcast in the English language.

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).

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.

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 ethnic program, 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 semester means the six-month period beginning 1 March and 1 September of each year.