ARCHIVED - Broadcasting Public Notice CRTC 2003-59

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.


Broadcasting Public Notice CRTC 2003-59

  Ottawa, 30 October 2003
  The Commission has received the following applications:


15 December 2003


Across Canada
Applications Nos. 2003-0139-1, 2003-0867-8 and 2003-0222-4 (e)
  Applications by THE SPORTS NETWORK INC. (TSN), LE RÉSEAU DES SPORTS (RDS) INC. (RDS) and COUNTRY MUSIC TELEVISION LTD. (CMT) to amend the licence of their national analog specialty programming undertaking respectively known as The Sports Network, Réseau des sports and Country Music Television.
  As a result of changes made (or proposed) by broadcasting distribution undertakings (BDUs) to the distribution of the applicants' services, i.e. by displacing their service to the basic tier, the applicants request that the Commission amend the Distribution and linkage requirements (D&L rules) set out in Public Notice CRTC 2003-42 so as to confer "modified dual status" upon each of their services, instead of their present "dual status", in respect of their carriage on Class 1 BDUs.
  The amendment would be effected by moving TSN, RDS and CMT from section 5 to section 6 of the D&L rules.
  As part of its application, TSN indicated its willingness to accept a condition of licence specifying that Class 3 BDUs may distribute TSN on the basic service at a wholesale rate of $1.07 per subscriber per month.
  CMT, as part of its application, is also applying to introduce a maximum monthly wholesale fee of $0.07 when it is distributed as part of the basic service in Anglophone markets and $0.05 in Francophone markets
  TSN and RDS' rationale for their applications includes the following arguments:

- to prevent rate-deregulated Class 1 and Class 2 BDUs from moving their respective services to the basic tier for the sole benefit of the BDU and to the detriment of both the programming services as well as the BDU's basic service subscribers who will likely be asked to pay more for basic programming;


- to restore some of the regulatory symmetry to the relationship between rate-deregulated BDUs and the specialty programming service;


- to enable them to continue to invest in Canadian programming at significant levels and to maintain the high quality service its viewers have come to expect; and


- TSN further argues that the amendment would allow it to remain competitive by placing it on a level playing field with The Score and SportsNet, which are authorized with a "modified dual"status, while RDS raises the negative impact that maintaining "dual status" would have on other francophone services that remain on the discretionary tier, as well as the instability that could result in the French-language market.

  For its part, CMT argues the following:

- The lack of a basic wholesale rate has made the CMT service a target for migration from discretionary carriage to basic by distributors facing pricing pressure from increased competition;


- The corresponding loss of subscription revenue to CMT when it is carried on basic (at no cost) without a corresponding increase in advertising revenues, will impact CMT's contribution towards Canadian production and video development and the overall quality of its service; and


- The change in distribution status would ensure that the BDUs' basic service remains affordable; and that they have the ability to move CMT from the basic tier to a discretionary tier without CMT's consent.

  General policy issues
  The Commission notes that these applications raise general policy issues, such as:

- The appropriateness of the Commission's existing distribution regulatory requirements with regard to the analog specialty services;


- Potential effects on the dynamics of negotiations between BDUs and program operators; and


- Possible impact on subscribers both from the quality and diversity of programming and the cost of obtaining this programming.

  The Commission is consequently inviting comments on the particulars of these applications, as well as on the potential effects that approval of these applications would have on the broadcasting industry as a whole.
  Licensees' addresses:

The Sports Network Inc.
c/o CTV Specialty Television Inc.
9 Channel Nine Court
Scarborough, Ontario
M1S 4B5
Fax: (416) 332-4580

Le Réseau des Sports (RDS) inc.
1755 René-Lévesque Boulevard East
Montréal, Quebec
H2K 4P6
Fax: (514) 599-2249

Country Music Television Ltd.
Unit 18
64 Jefferson Avenue
Toronto, Ontario
M6K 3H4
Fax: (416) 530-2215
  Examination of applications:

9 Channel Nine Court
Scarborough, Ontario

1755 René-Lévesque Boulevard East
Montréal, Quebec

Corus Entertainment
Unit 18
64 Jefferson Avenue
Toronto, Ontario

[ Intervention Form]






15 December 2003

  The intervention must be received by the CRTC and by the applicant ON OR BEFORE the above-mentioned date. The Commission cannot be held responsible for postal delays.
  Your intervention will be considered by the Commission, and will form part of the public record of the proceeding without further notification to you, provided the procedure set out below has been followed. You will be contacted only if your submission raises procedural questions.
  Submit your written intervention to the Secretary General of the Commission in ONLY ONE of the following formats:

by using the form
[ Intervention Form]




by electronic mail to




by mail at
CRTC, Ottawa, Ontario, K1A 0N2




by fax to the
Secretary General - (819) 994-0218

  A true copy MUST be sent to the applicant and proof that this has been done must accompany the intervention sent to the Commission.
  Where the intervention is filed by electronic means, the line ***End of document*** should be entered following the last paragraph of the document, as an indication that the document has not been damaged during electronic transmission.
  Please note that only the documents (applications and interventions) electronically filed will be available on the Commission's web site. You will be able to access these documents by indicating the public notice or the notice of public hearing number.
  Each paragraph of the document should be numbered.
  Your intervention should clearly identify the application and indicate whether you support or oppose the application, or if you propose changes to it, include the facts and grounds for your proposal.
  Documents are available at the local address provided in this notice and at the Commission offices and documentation centres directly involved with these applications or, upon request, within 48 hours, at any other CRTC offices and documentation centres.
  Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A 0N2
Tel: (819) 997-2429 - TDD: 994-0423
FAX: (819) 994-0218
  Metropolitan Place
99 Wyse Road, Suite 1410
Dartmouth, Nova Scotia B3A 4S5
Tel: (902) 426-7997 - TDD: 426-6997
FAX: (902) 426-2721
  405 de Maisonneuve Blvd East
2nd Floor, Suite B2300
Montréal, Quebec H2L 4J5
Tel: (514) 283-6607
FAX: (514) 283-3689
  55 St. Clair Avenue East, Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
FAX: (416) 954-6343
  Kensington Building
275 Portage Avenue, Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
FAX: (204) 983-6317
  Cornwall Professional Building
2125 - 11th Avenue, Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
FAX: (306) 780-3319
  10405 Jasper Avenue, Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224
FAX: (780) 495-3214
  530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
FAX: (604) 666-8322
  This document is available in alternative format upon request and may also be examined at the following Internet site:
  Secretary General
Date modified: