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Broadcasting Decision CRTC 2003-451
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Ottawa, 5 September 2003
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Saskatchewan Telecommunications
Saskatchewan
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Application 2002-0977-7
Public Hearing in the National Capital Region
14 July 2003
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New video-on-demand service for Saskatchewan
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In this decision, the Commission approves the application by Saskatchewan Telecommunications for a licence to operate a regional, Saskatchewan-based, English-language, general interest video-on-demand service consisting primarily of feature films.
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The application
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1.
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The Commission received an application by Saskatchewan Telecommunications (SaskTel) for a broadcasting licence to operate a regional, Saskatchewan-based, English-language, video-on-demand (VOD) programming service. The applicant is currently the licensee of a broadcasting distribution undertaking (BDU) providing cable television service to Regina, Saskatoon, Moose Jaw and several other Saskatchewan communities.
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2.
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Although the proposed VOD service would consist largely of feature films, SaskTel indicated that other types of programming, including music videos, concerts, television shows, and children's programming, could also be made available. SaskTel added that, while programming would be predominantly in English, programming in French and in other languages would also be offered in accordance with audience demand.
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Intervention
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3.
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The Commission received one intervention to this application. In its comment, the Canadian Cable Television Association (CCTA) argued that SaskTel, in its capacity as a BDU licensee, should only be permitted to distribute the proposed VOD programming in those communities where it is authorized to provide cable service, and that the VOD programming, if it is to be distributed outside of those communities, should be distributed via the facilities of other BDUs. In response, SaskTel indicated that its initial plans are to limit distribution of the service to its own BDU customers.
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4.
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The Commission notes SaskTel's response, but reminds the applicant that the Commission has established a competitive licensing framework for the VOD industry, and that SaskTel may negotiate arrangements for the distribution of its proposed VOD service by other BDUs in the region.
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The Commission's determination
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5.
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The above-mentioned licensing framework for VOD services is set out in Licensing of New Video-on-demand Programming Undertakings - Introduction to Decisions CRTC 97-283 to 97-287,Public Notice CRTC 1997-83, 2 July 1997 (Public Notice 1997-83) and Introductory statement to Decisions CRTC 2000-733 to 2000-738: Licensing of new video-on-demand and pay-per-view services, Public Notice CRTC 2000-172, 14 December 2000 (Public Notice 2000-172). The Commission notes in this regard, the commitment made by SaskTel in its application to adhere to all applicable terms and conditions of the VOD licensing framework. Further, based on its examination of this application, the Commission is satisfied that the application is in conformity with the licensing framework and, accordingly, approves the application by SaskTel for a licence to operate a video-on-demand service.
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Issuance of the licence
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6.
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The licence will expire 31 August 2010, and will be subject to the conditions of licence specified therein and to the conditions of licence listed in the appendix to this decision. A licence for this undertaking will be issued once the applicant 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 months from the date of this decision, unless a request for an extension of time is approved by the Commission before 5 September 2005. 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.
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Other matters
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French-language programming
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7.
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As noted above, SaskTel indicated that French-language programming would be offered in accordance with audience demand. In Public Notice 2000-172, the Commission underscored the importance it places on subscribers being able to select programming in the official language of their choice. Accordingly, as part of its licensing framework for VOD services, the Commission stated that it would expect, to the maximum extent possible, that: ".each VOD service make its on-demand program offering available to customers in both official languages [and that licensees] adhere to their commitments with respect to French-language programming." The Commission reiterates these expectations and confirms their applicability to SaskTel's proposed VOD service.
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Programming packages
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In accordance with its policy on programming packages set out in Public Notice 2000-172, the Commission expects the applicant to ensure that its programming packages are made available to viewers for periods not exceeding one week.
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Adult programming
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In addition to the conditions of licence contained in the appendix requiring that the licensee adhere to the Pay television and pay-per-view programming code regarding violence, and to the Industry code on programming standards and practices governing pay, pay-per-view and video-on-demand services, the Commission expects SaskTel to adhere to its commitment to submit its internal policy on the broadcast of adult programming before it implements the service.
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Cultural diversity
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Section 3(1)(d)(iii) of the Broadcasting Act stipulates 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".
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11.
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More broadly, the Commission expects the licensee to endeavour, through its programming and employment opportunities, to reflect the presence in Canada of cultural and racial minorities and Aboriginal peoples. The Commission further expects the licensee to ensure that the on-screen portrayal of such groups is accurate, fair and free of stereotypes.
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Service to persons with visual impairments
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12.
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The Commission is committed to improving the television service available to persons with visual impairments through the provision of audio description and video description (also known as described video). Accordingly, the Commission expects SaskTel to provide an audio description of all programming that contains textual or graphic information, including programming broadcast on the barker channel. The Commission also expects SaskTel to acquire and make available described versions of programming where possible, and to ensure that customer service responds to the needs of visually impaired customers. Further, it encourages SaskTel to ensure that a proportion of its titles is available with description.
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Employment equity
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13.
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Because this applicant is subject to the Employment Equity Act and files reports concerning employment equity with Human Resources Development Canada, its employment equity practices are not examined by the Commission.
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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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Appendix to Broadcasting Decision CRTC 2003-451
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Conditions of licence for the English-language, general interest video-on-demand programming undertaking carried on by Saskatchewan Telecommunications
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1. The licensee shall adhere to the Pay Television Regulations, 1990, with the exception of section 4 (logs ands records).
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2. The licensee shall maintain for a period of one year, and submit to the Commission upon request, a detailed list of the inventory available on each file server, identifying each program by programming category and by country of origin, and indicating the period of time that each program was on the server and available to subscribers.
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3. Except as authorized by the Commission, the broadcasting undertaking licensed herein shall be operated in fact by the licensee itself.
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4. The license shall ensure that, at all times:
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a) not less than 5% of the English-language feature films and not less than 8% of the French-language feature films in the inventory available to subscribers are Canadian;
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b) the feature film inventory includes all new Canadian feature films that are suitable for VOD exhibition and which meet the approved Industry code of programming standards and practices governing pay, pay-per-view and video-on-demand services; and
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c) not less than 20% of all programming other than feature films in the inventory available to subscribers is Canadian.
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5. The licensee shall contribute 5% of its gross annual revenues to an existing Canadian program production fund administered independently of its undertaking.
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For the purpose of this condition:
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a) "gross annual revenues" shall be 50% of the total revenues received from customers of the broadcasting distribution undertaking distributing the video-on-demand service, when the video-on-demand service is a "related service";
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b) a "related service" is one in which the broadcasting distribution undertaking distributing the video-on-demand service, or any of its shareholders owns, directly or indirectly, 30% or more of the equity of the video-on-demand service;
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c) "gross annual revenues" shall be the total amount received from the broadcasting distribution undertaking distributing the video-on-demand service, when the video-on-demand service is not a "related service".
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6. The licensee shall ensure that not less than 25% of the titles promoted each month on its barker channel are Canadian titles.
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7. The licensee shall remit to the rights holders of all Canadian films 100% of revenues earned from the exhibition of these films.
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8. The licensee shall not enter into an affiliation agreement with the licensee of a distribution undertaking unless the agreement incorporates a prohibition against linkage of its service with any non-Canadian discretionary service.
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9. No later than 1 September 2008 and until the end of the licence term, the licensee shall caption at least 90% of all titles in its inventory.
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10. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' 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 is a member in good standing of the Canadian Broadcast Standards Council.
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11. The licensee shall adhere to the Pay television and pay-per-view programming code regarding violence,as amended from time to time and approved by the Commission.
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12. The licensee shall adhere to the Industry code of programming standards and practices governing pay, pay-per-view and video-on-demand services, as amended from time to time and approved by the Commission.
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Date Modified: 2003-09-05
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