ARCHIVED - Broadcasting Decision CRTC 2002-393

Broadcasting Decision CRTC 2002-393

Ottawa, 3 December 2002

Cogeco Inc., on behalf of TQS inc.
Montréal and Rimouski, Quebec

Applications 2001-1441-3 and 2002-0124-4
Broadcasting Public Notice CRTC 2002-33
26 June 2002

Licence amendments for the TQS television network and CFJP-TV and its transmitter CJPC-TV

1.

The Commission received applications by Cogeco Inc., on behalf of TQS inc. (TQS), to amend the licences for the TQS television network and for CFJP-TV Montréal and its transmitter CJPC-TV Rimouski.

2.

TQS submitted the applications to comply with the Commission's requirements imposed as a condition of approval in paragraph 7 of Transfer of effective control of TQS - Transfer of the assets of Cogeco Radio Television Inc. stations at Trois-Rivières, Sherbrooke and Chicoutimi/Jonquière, affiliated with TQS and SRC - Amendment to TQS licences - Applications approved, Decision CRTC 2001-746, 7 December 2001 (Decision 2001-746).

3.

The applicant proposed to add the following conditions of licence:

• the licensee shall allocate $6,798,000 (i.e. 92% of the proposed tangible benefit package) to Canadian independent producers, excluding undertakings directly or indirectly linked to shareholders of the licensee, for the production of new priority programs from categories 7b) (On-going comedy series (sitcoms) and 9 (Variety) for original broadcast on the TQS network.

For the purpose of this condition, the licensee also proposed to include in the priority programming categories eligible as benefits, programming from category 7f) (Programs of comedy sketches, improvisations, unscripted works, stand-up comedy), programs from category 8a) (Music and dance) and regionally produced programs from category 11 (General entertainment and human interest).

• the licensee shall file an audited annual report to be used to verify the implementation of the tangible benefits. These detailed annual reports must be consistent with the format proposed by the applicant and accepted by the Commission, as set out in the appendix to Decision 2001-746.

Interventions

4.

The Commission received 42 interventions in support of the applications. The Directors Guild of Canada (DGC) opposed the applicant's proposal to add other program categories to those designated in Decision 2001-746 for the use of the funds directed to Canadian independent producers for the production of new priority programming.

5.

The DGC stated that TQS should honour the commitments it made at the outset, as described in Decision 2001-746, or at least strive to honour them. The intervener considered that, given their nature, the new program categories proposed would not require the use of independent producers as much as categories 7b) and 9. The DGC also noted that category 11 was not designated as a priority program category in Building on Success - A Policy Framework for Canadian Television, Public Notice CRTC 1999-97, 11 June 1999 (the Television Policy).

The applicant's reply

6.

In response, TQS argued that the intent of its application was to achieve some flexibility, and not to shirk its obligations. It stated that some programs that it had considered to be in category 9 actually belonged to category 7f) or category 8. TQS submitted that programming in category 11 produced in the regions would provide a unique opportunity to broadcast regional events and would benefit the communities served.

7.

As for DGC's claim that the new categories require less involvement by independent producers, the applicant pointed out that the Association des producteurs de films et de télévision du Québec, whose interests coincide with those of the DGC, did not oppose TQS's application.

The Commission's analysis and conclusion

8.

The Commission notes that the benefits proposed in Decision 2001-746 related to investment in independent production were intended to create priority programming. In that respect, TQS's proposal complies with the spirit of that decision while extending the benefits to other program categories which also have priority status, in accordance with 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 CRTC 1999-205, 23 December 1999, concerning the definitions of new types of priority programming.

9.

The Commission further notes that in its Television Policy it broadened the definition of "priority program" to grant priority status to programming from other categories that is produced in the regions, including the category 11 programs included in TQS's proposal. This measure was taken to provide an incentive for broadcasters and producers to produce more material in areas of Canada where production volume is very low.

10.

In view of the foregoing, the Commission finds that approval of these applications will benefit the Canadian independent production industry as well as the Canadian broadcasting system and viewers in the regions served. Accordingly, the Commission approves the applications as filed by the applicant.

Secretary General

La présente décision devra être annexée à la décision CRTC 2001-746. Elle est disponible, sur demande, en média substitut et peut également être consultée sur le site Internet suivant : www.crtc.gc.ca