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Broadcasting Decision CRTC 2003-75
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Ottawa, 26 February 2003
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Food Network Canada Inc.
Across Canada
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Application 2002-0825-8
Broadcasting Public Notice CRTC 2002-79
20 December 2002
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Food Network Canada - Licence amendment
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1.
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The Commission received an application by Food Network Canada Inc. to amend the broadcasting licence for the national specialty television programming service known as Food Network Canada by deleting its condition of licence no. 8. This condition states that Corus Entertainment Inc. (Corus) or any of its affiliates may not own or control more than 10% of the voting shares in the licensee company, without the prior approval of the Commission.
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2.
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The Commission did not receive any interventions in connection with this application.
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3.
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Food Network Canada provides information and entertainment programming related to food and nutrition. Corus, one of the shareholders in the licensee of Food Network Canada, is a diversified entertainment company in radio, television and specialty television, and is affiliated with Shaw Communications Inc., the parent company of the second-largest cable distributor in Canada.
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4.
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The Commission authorized this service in New specialty television service "Food Network Canada" replaces the U.S. service "TV Food Network", Decision CRTC 2000-217, 4 July 2000. At that time, the Commission's policies and regulations restricted cable-affiliated ownership in any analog pay or specialty programming service. Based on those policies and regulations, and upon the original licence application which indicated that Corus would own 10% of the voting interest in the licensee company, the Commission imposed the following condition of licence:
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8. In addition to the requirements set out in section 10 of the Specialty Services Regulations, 1990, the licensee shall obtain the prior approval of the Commission in respect of any act, agreement or transaction that directly or indirectly would result in Corus Entertainment Inc., by itself or with an affiliate, owning or controlling more than 10% of the voting shares of the licensee. For the purposes of this condition, "affiliate" means a person who controls Corus, or who is controlled by Corus or by a person who controls Corus.
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5.
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In Amendments to the Specialty Services Regulations, 1990 and the Pay Television Regulations, 1990 - Ownership of discretionary services - Requirements for prior approval, Broadcasting Public Notice CRTC 2002-24, 9 May 2002, the Commission amended its regulations to remove the requirement that a broadcasting distribution undertaking could not acquire 10% or more of the voting interests in a specialty or pay service licensee without the prior approval of the Commission.
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6.
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In Corus Entertainment Inc.'s voting interest in Food Network Canada Inc., Broadcasting Decision CRTC 2002-465, 20 December 2002, the Commission approved a previous application by Food Network Canada Inc. to increase the voting interest held by Corus in the licensee company beyond the 10% limit imposed by condition of licence. As a result of this approval, Corus' holdings increased to 22.59% of the licensee's voting interest.
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7.
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In light of the above-noted changes, the Commission considers that the licence amendment proposed in the present application is appropriate. Accordingly, the Commission approves the application by Food Network Canada Inc. to delete its condition of licence no. 8.
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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: 2003-02-26