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ARCHIVED - Broadcasting Decision CRTC 2004-153

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Broadcasting Decision CRTC 2004-153

  Ottawa, 23 April 2004
  Compton Cable T.V. Limited
 Utica, Port Perry, Uxbridge, Goodwood, Epsom, Prince Albert and Coppins Corners, Ontario
  Application 2003-0384-2
Public Hearing at Halifax, Nova Scotia
1 March 2004
 

Video-on-demand service

  The Commission approves the application by Compton Cable T.V. Limited for a broadcasting licence to operate an English-language general interest video-on-demand service consisting primarily of feature films.
 

The application

1.

The Commission received an application by Compton Cable T.V. Limited (Compton) for a broadcasting licence to operate an English-language video-on-demand (VOD) programming undertaking. The applicant is currently the licensee of a broadcasting distribution undertaking (BDU) providing cable television to Utica, Port Perry, Uxbridge, Prince Albert and surrounding area, Ontario.

2.

Although the proposed VOD service would consist primarily of feature films, Compton indicated that other types of programming would also be made available including, but not limited to, educational, sports, and "how-to" programming. While programming would be predominantly in English, the applicant indicated that it would be willing to provide French-language content.

3.

The Commission did not receive any interventions in connection with this application.
 

The Commission's analysis and determination

 
Closed captioning

4.

The Commission is committed to improving service to viewers who are deaf or hard of hearing, and has consistently encouraged broadcasters to increase the amount of closed captioned programming. It is the Commission's current practice to require licensees of VOD services to provide closed captions for a minimum of 90% of all programming, by no later than the beginning of the sixth year of the licence term.

5.

In its application, Compton indicated that, since it would not have the technical capability to produce closed captions, all new and recent feature films it acquired would be closed captioned at source.

6.

As part of the deficiency process, the applicant stated that it would be willing to close caption 90% of all programming during the broadcast day by the beginning of the sixth year of operation. The Commission has imposed a condition of licence to this effect, as set out in the appendix to this decision.
 
Revenues earned from exhibition of Canadian films

7.

In its application, Compton indicated that it would not agree to operate under a condition of licence requiring that it remit 100% of the gross revenues earned from the exhibition of all Canadian films to the rights holders of those films. Compton stated, however, that it would be willing to accept a condition of licence requiring it to remit 100% of the gross margin earned from the exhibition of Canadian films, indicating that it would subtract the royalty fees paid to the studio from the revenue remitted to the rights holders.

8.

The Commission wishes to clarify that VOD licensees must pass on 100% of the revenue earned to the rights holders of exhibited Canadian films, and therefore must not deduct any costs from the gross revenues. Therefore, consistent with its current practice, the Commission requires that the Compton VOD undertaking remit 100% of the gross revenues earned from the exhibition of Canadian films to the rights holders of those films. A condition of licence to this effect is set out in the appendix to this decision.

9.

Based on its examination of this application, and taking into account the Commission's determinations set out above with respect to closed captioning and the remittance of revenues to rights holders, the Commission is satisfied that this application is in conformity with the licensing framework for VOD services as 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). Accordingly, the Commission approves the application by Compton Cable T.V. Limited for a broadcasting licence to operate a video-on-demand undertaking to serve Utica, Port Perry, Uxbridge, Goodwood, Epsom, Prince Albert and Coppins Corners, Ontario.
 
French-language programming

10.

As noted above, Compton indicated that it would be willing to provide French-language programming as it is made available to it in conjunction with other Canadian programming. 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 would make its program offering available to customers in both official languages and expected that licensees would adhere to their commitments with respect to French-language programming. The Commission reiterates these expectations and confirms their applicability to Compton's proposed VOD service.
 
Programming packages

11.

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.
 
Adult programming

12.

In addition to the conditions of licence set out in the appendix to this decision 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 the applicant to adhere to its commitments with respect to adult programming as set out in Compton's Adult Programming Policy.
 
Cultural diversity

13.

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.

14.

More broadly, the Commission expects the applicant 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 applicant to ensure that the on-screen portrayal of such groups is accurate, fair and non-stereotypical.
 
Service to persons with visual impairments

15.

The Commission is committed to improving the accessibility of television programming for persons with visual impairments through the provision of audio description and video description (also known as described video). Accordingly, the Commission expects Compton to provide an audio description of all programming that provides textual or graphic information, including programming broadcast on the barker channel. The Commission also expects Compton to acquire and make available described versions of programming where possible, and to ensure that its customer service responds to the needs of visually impaired customers.
 

Issuance of the licence

16.

The licence will expire 31 August 2010, and will be subject to the conditionsspecified therein and to the conditions of licence listed in the appendix to this decision.

17.

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 23 April 2006. 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.
 

Employment equity

18.

In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.
  Secretary General
  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: http://www.crtc.gc.ca
 

Appendix to Broadcasting Decision CRTC 2004-153

 

Conditions of licence

  1. The licensee shall adhere to the Pay Television Regulations, 1990, with the exception of section 4 (logs and records).
  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.
  3. Except as authorized by the Commission, the broadcasting undertaking licensed herein shall be operated in fact by the licensee itself.
  4. The licensee shall ensure that, at all times:
 

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;

 

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

 

c) not less than 20% of all programming other than feature films in the inventory available to subscribers is Canadian.

  5. The licensee shall contribute 5% of its gross annual revenues to an existing Canadian program production fund administered independently of its undertaking.
  For the purpose of this condition:
 

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";

 

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;

 

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".

  6. The licensee shall ensure that not less than 25% of the titles promoted each month on its barker channel are Canadian titles.
  7. The licensee shall remit to the rights holders of all Canadian feature films 100% of revenues earned from the exhibition of these films.
  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.
  9. The licensee shall caption at least 90% of all titles in its inventory, beginning no later than 1 September 2008.
  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.
  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.
  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.

Date Modified: 2004-04-23

Date modified: