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Broadcasting Public Notice CRTC 2003-38
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Ottawa, 16 July 2003
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Contributions to Canadian programming by broadcasting distribution undertakings
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1.
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In Direct-to-home (DTH) broadcasting distribution undertakings - simultaneous and non-simultaneous program deletion and the carriage of local television signals in smaller markets, Broadcasting Public Notice CRTC 2003-37, 16 July 2003 (Public Notice 2003-37), the Commission announced its determinations pursuant to a public process held to investigate concerns about the impact of the distribution of optional local television signals by direct-to-home (DTH) broadcasting distribution undertakings (BDUs) on smaller market television stations across Canada. The public process, launched by the Commission in Call for comments - Carriage of local television stations by DTH undertakings in smaller markets, Public Notice CRTC 2001-103, 28 September 2001, also came to include consideration by the Commission of applications filed in the summer and fall of 2002 by the licensees of Canada's two DTH BDUs, namely Star Choice Television Network Incorporated (Star Choice) and Bell ExpressVu Inc., the general partner, and BCE Inc. and 4119649 Canada Inc. (partners in BCE Holdings G.P), the limited partners, carrying on business as Bell ExpressVu Limited Partnership (ExpressVu). These applications were for licence amendments that would relieve the applicants of their conditions of licence obligations for performing simultaneous and non-simultaneous program deletion so long as they undertook certain alternative measures.
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2.
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In Public Notice 2003-37, the Commission determined that it would be appropriate to relieve the applicants of their program deletion conditions of licence so long as they undertook undertake certain alternative measures. In that notice, with regard to the proposals for a new programming fund filed by ExpressVu and Star Choice in their applications, the Commission found unnecessary and inappropriate, as part of a set of measures constituting an alternative to the applicants' existing program deletion conditions of licence, the provision of funding for local programming to all conventional television stations across Canada, regardless of market size or financial circumstances. The Commission also considered it inappropriate to permit the diversion of DTH contributions from the Canadian Television Fund, as proposed.
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3.
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However, the Commission did find merit in providing funding, through a new, independently administered fund, to the small market, independently owned television stations described in paragraph 163 of Public Notice 2003-37, to ensure that they are able to meet their commitments to provide local programming to their respective communities.
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4.
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Accordingly, by majority vote, the Commission hereby amends its criteria for establishing an independent production fund, solely for the purposes of creating a fund to enable DTH BDU licensees to assist the licensees of the above-noted small market, independently owned television stations to meet their commitments to local programming. The Commission considers that there should be a clearly specified formula or other mechanism established to govern the disbursement of monies from the fund. Further, the administration costs associated with such a fund should be minimal, and subject to an annual ceiling. In the Commission's view, such a fund, once it has been approved by the Commission, would constitute an independent production fund within the meaning of section 44(1)(b) of the Broadcasting Distribution Regulations. The Commission notes that other independent production funds must continue to meet the eligibility criteria set out in Contributions to Canadian Programming by Broadcasting Distribution Undertakings, Public Notice CRTC 1997-98, 22 July 1997 and Contributions to Canadian Programming by Broadcasting Distribution Undertakings, Public Notice CRTC 1999-29, 16 February 1999, which remain in effect.
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5.
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As indicated in Licence amendment for ExpressVu- relief from requirements for simultaneous and non-simultaneous program deletion, Broadcasting Decision CRTC 2003-257, 16 July 2003, and in Licence amendment for Star Choice - relief from requirements for simultaneous and non-simultaneous program deletion, Broadcasting Decision CRTC 2003-258, 16 July 2003, pertaining to the ExpressVu and Star Choice applications, respectively, the Commission has suspended, in the case of each DTH BDU, the application of the program deletion conditions of licence so long as each licensee undertakes certain alternative measures, including the contribution of monies to a new, independently administered fund.
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6.
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Accordingly, the Commission invites the licensees of the small market, independently owned television stations described in paragraph 163 of Public Notice 2003-37,or the CAB on their behalf, to file for Commission approval, by 14 October 2003, a proposal for a new, independently administered fund, the purpose of which would be to assist these licensees to meet their commitments to local programming. The proposal should specify, with supporting rationale, a) the formula or other mechanism that would govern the disbursement of monies from the fund, and b) the annual ceiling on the percentage of contributions that may be devoted to administering the fund.
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Secretary General
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This document is available in alternative format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2003-07-16
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