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Broadcasting Decision CRTC 2003-621
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Ottawa, 19 December 2003
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TQS inc.
Montréal, Quebec
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Application 2003-0303-2
Public Hearing in the National Capital Region
20 October 2003
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CFJP-TV Montréal - transitional digital television licence
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The Commission approves an application to carry on a transitional digital television undertaking in association with CFJP-TV Montréal.
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1.
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The Commission has received an application from TQS inc. for a licence to carry on a transitional digital television undertaking in association with CFJP-TV Montréal. The digital undertaking would operate from the Canadian Broadcasting Corporation Tower on Mont Royal, on channel 42C, with an effective radiated power (ERP) of 7,000 watts.
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2.
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The Commission received no intervention with respect to this application.
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Commission policy respecting the transition to digital television
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3.
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The Commission announced its policy framework for the transition from analog to digital television in A licensing policy to oversee the transition from analog to digital, over-the-air television broadcasting, Broadcasting Public Notice CRTC 2002-31, 12 June 2002 (transitional digital TV policy; Public Notice 2002-31). Certain key elements of that policy framework are as follows:
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- Digital technology will be treated as a replacement for analog technology.
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- A voluntary, market-driven transition model, without mandated deadlines, is the most appropriate approach for Canada.
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- A new transitional digital television licence will be issued for each digital television (DTV) undertaking, subject to the Commission's approval of an application. Licensees who wish to use DTV facilities to provide programming consisting essentially of a simulcast of their existing analog services will qualify for licensing, subject to specific terms and conditions. The duration of a licence term will be considered as part of the application process.
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- The Commission will give fast track consideration to applications that are by existing over-the-air broadcasters, are in accordance with the Commission's transitional digital policy, and are based on the Department of Industry's (the Department's) allotment plan for DTV.
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- Existing broadcasters are encouraged to apply early for new transitional digital television licences and to implement the digital transmitters necessary to make the transition.
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- The Commission's existing policies and regulations, as well as the conditions of licence currently applicable to a broadcaster in respect of its analog television service, will also apply to any transitional digital programming service the broadcaster may be licensed to provide. These include requirements for the provision of 60% Canadian content during the broadcast year and 50% during the evening broadcast period, and for the exhibition of a minimum of 8 hours per week of priority programming where required by condition of licence.
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The Commission's determination
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4.
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The Commission approves the application by TQS for a licence to carry on a digital television undertaking in association with CFJP-TV Montréal. Except as qualified below, the Commission finds that the application conforms to the transitional digital TV policy framework.
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Programming
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Canadian content obligations and the 14 hour program allowance
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5.
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The applicant committed to simulcast the current over-the-air programming service of CFJP-TV on its transitional DTV undertaking, with the exception of up to 14 hours per week of digital programming that would not be duplicated on the analog service. The applicant stated that it would accept a condition of licence requiring its adherence to this commitment.
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6.
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According to the applicant, the 14 hours of unduplicated programming would initially consist of films, but would later be combined with special events, current events and news programming.
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7.
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The applicant further committed to ensure that a minimum of 50% of the supplementary, unduplicated programming is Canadian, but was opposed to having its adherence to this commitment made subject to a condition of licence:
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[TRANSLATION] We do not believe it necessary to make that commitment a condition of licence. Over time, TQS will gradually attain that 50% objective. At the outset. programming will basically consist of films. TQS could make a commitment to ensure that the 50% objective is reached by the end of the licence term.
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8.
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The Commission agrees with TQS that it may be difficult to fill 50% of the 14 hours of supplementary and unduplicated programming with Canadian film. However, the Commission notes that, under the transitional digital TV policy, the 14 hours per week of unduplicated digital programming is a maximum. The applicant thus has the flexibility it needs to decrease the proposed number of hours of unduplicated programming in order to satisfy the requirement that 50% of its unduplicated digital programming be devoted to Canadian programs. A condition of licence to that effect is appended to this decision.
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Simulcast of high definition and wide screen programming, and the availability of program rights
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9.
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The Commission asked the applicant to comment, as part of its application, on the possible imposition of conditions of licence reflecting, among others things, the two key principles of the transitional digital TV policy relating to the simulcasting of HD and wide screen programming. Specifically, the Commission asked whether TQS would adhere to conditions of licence requiring that:
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· all of the simulcast programming on the undertaking that has been produced in the wide screen (16:9 aspect ratio) be broadcast in that aspect ratio; and,
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· all of the simulcast programming on the undertaking aired during the evening broadcast period that has been produced in HD also be broadcast in HD.
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10.
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TQS responded that it intends to broadcast in HD and wide screen format all unduplicated programming and all Canadian programming, whether or not identical, that is aired during the evening broadcast period. However, the applicant objected to the imposition of conditions of licence pertaining to these issues. The applicant stated that its ability to adhere to commitments of this type could be affected by changes in technology, the availability of wide screen and HD programs, and its ability to acquire rights to those programs. It added that its full adherence to such a commitment might not always be commercially appropriate for TQS.
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11.
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The availability of rights to HD and wide screen programming was an issue raised in the proceeding that led to the transitional digital TV policy. Broadcasters were concerned that the rights to such programs, especially for productions originating in the U.S., might be sold separately from the rights to the same programs produced in the traditional analog format, or may not be sold in the Canadian market at all. The issue was raised in submissions filed in response to Call for comments on a proposed policy framework for the distribution of digital television services, Broadcasting Public Notice CRTC 2002-32, 12 June 2002, and was addressed again in The regulatory framework for the distribution of digital television signals, Broadcasting Public Notice CRTC 2003-61, 11 November 2003. In the latter notice, the Commission stated:
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Some parties were concerned that rights holders would refuse to provide Canadian broadcasters with non-Canadian programming in HD. While it is not clear at this time how practices with respect to the granting of digital rights will evolve, the Commission notes the parties' concerns and, should the withholding of HD rights become an issue, the Commission would consider an application to remove the authority to distribute the non-Canadian service in question.
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12.
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Because there may be cases where HD or wide screen versions may exist, but cannot be obtained, the Commission considers that it would be inappropriate to impose conditions of licence categorically requiring that simulcast programming be aired in wide screen format or that simulcast programming during the evening broadcast period be in HD format. Accordingly, in order to take into account the availability to the licensee of HD and wide screen versions of the programs to be simulcast, the wording of the conditions of licence appended to this decision has been modified from that set out above by the addition of the phrase "and that are available".
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13.
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The Commission reiterates that the applicant shall not be required to broadcast unduplicated programming. If it should decide to do so, however, the Commission requires, by condition of licence, that all unduplicated programming broadcast by the undertaking be broadcast in wide screen, HD format. This condition of licence is appended to this decision.
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Data transmission
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14.
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In the transitional digital TV policy, the Commission expressed the view that DTV should be used to promote the development of new Canadian programming of high quality, and to make this available to viewers in a picture format that is superior to the current analog NTSC format. To that end, the Commission emphasized that broadcasters should ensure that the high definition programming they purchase or produce is transmitted to viewers without loss of signal quality. As such, the Commission requires, by condition of licence, that the licensee ensure that the transmission of data does not affect the quality or quantity of high definition programming.
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Priority programs
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15.
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Paragraph 58 of Building on Success: A Policy Framework for Canadian Television, Public Notice CRTC 1999-97, 11 June 1999 (the Television Policy) provides that licensees of stations that fall within the largest multi-station ownership groups shall, by condition of licence, broadcast a minimum of eight hours of priority programs in peak hours(7 p.m. to 11 p.m.), calculated on an annual basis.
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16.
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Further, as indicated earlier in this decision, the transitional digital television policy (at paragraph 25) requires that broadcasters exhibit on their transitional DTV service a minimum of 8 hours a week of priority programming where the same requirement is a condition of licence for their analog television service.
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17.
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During the deficiency process, the Commission asked the licensee if it was prepared to abide by a condition of licence requiring it to broadcast a minimum of 8 hours a week of priority programming on the transitional DTV undertaking associated with CFJP-TV. TQS replied that it was not prepared to do so. It argued that the Commission, in Renewal of the Licences of the Quatre Saisons Television Network, of CFJP-TV Montréal and its Transmitter CJPC-TV Rimouski, as well as of CFAP-TV Québec, Decision CRTC 2000-418, 27 October 2000 (Decision 2000-418), did not impose such a condition of licence, but instead noted TQS's commitment to broadcast a minimum of 5 hours a week of priority programming during peak hours on CFJP-TV.
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18.
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The Commission has considered the matter and has determined that it would be appropriate, in the case of the transitional DTV undertaking associated with CFJP-TV, to require the licensee to meet the same expectations as were imposed on the TQS network and CFJP-TV in Decision 2000-418. Accordingly, the Commission expects the licensee to honour its commitment to broadcast a minimum of 5 hours of priority programming per broadcast week on its proposed transitional digital television undertaking.
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Issuance of the licence
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19.
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The Commission will issue a transitional digital television licence to TQS subject to the conditions set out in the appendix to this decision. The licence will expire on 31 August 2008, coincident with the expiry of the licence for CFJP-TV Montréal.
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20.
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The Commission reminds the licensee that, pursuant to section 22(1) of the Broadcasting Act, no licence may be issued until the Department notifies the Commission that its technical requirements have been met, and that a broadcasting certificate will be issued.
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21.
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Furthermore, the licence for this undertaking will be issued once 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 months from the date of this decision, unless a request for an extension of time is approved by the Commission before 19 December 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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Employment equity
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22.
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Because this licensee 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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Date Modified: 2003-12-19