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ARCHIVED - Broadcasting Decision CRTC 2004-64

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Broadcasting Decision CRTC 2004-64

  Ottawa, 30 January 2004
  CTV Television Inc.
Toronto, Ontario
  Application 2003-0610-2
Public Hearing in the National Capital Region
17 November 2003
 

CFTO-TV Toronto - transitional digital television licence

  In this decision, the Commission approves the application by CTV Television Inc. for a licence to operate a transitional digital television undertaking in association with CFTO-TV Toronto.
 

The application

1.

The Commission received an application by CTV Television Inc. (CTV) for a broadcasting licence to operate a transitional digital television undertaking in association with CFTO-TV Toronto. The applicant proposed that the station simulcast the current analog programming service of CFTO-TV Toronto, with the exception of up to 14 hours per week of programming that would not be duplicated on the analog service. The digital undertaking would operate from the CN Tower on channel 40VU with an effective radiated power (ERP) of 17,400 watts.
 

Interventions

2.

The Commission received one intervention in opposition to this application from Mr.Dan Adam and one intervention offering general comments from the Canadian Cable Television Association (CCTA). Mr. Adam opposed the licensing of CFTO-TV Toronto because, in his view, CTV has not shown any real commitment to the creation of original widescreen (16:9 aspect ratio)/high definition television (HDTV) content. Mr. Adam expressed concern that CTV would largely simulcast programming from US networks until it commits to a large amount of original programming produced in high definition (HD). Mr. Adam therefore was of the opinion that approval of the application would not benefit the Canadian broadcasting industry.

3.

In its intervention, the CCTA recommended that the Commission establish clear minimums for the broadcast of enhanced or HD programming and impose these minimums as conditions of licence.
 
The applicant's reply

4.

CTV noted that the position of the CCTA appears to be contrary to the Commission's existing licensing framework for digital over-the-air television broadcasting, which permits, but does not obligate, a licensee to broadcast a maximum of 14 hours per week of programming that is not duplicated on the analog version of the service. CTV noted that the CCTA supported this policy.

5.

CTV further noted that the CCTA did not oppose the recent application by CITY-TV for a transitional digital television licence to serve Toronto, and that it would be unfair to impose the requirements sought by the CCTA when a competitor has already been licensed on a different basis.

6.

CTV did not reply to Mr. Adam's intervention.
 

The Commission's policy

7.

The Commission set out 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 (Public Notice 2002-31). Some of the key elements of that policy framework are the following:
 
  • Digital technology will be treated as a replacement for analog technology.
 
  • A voluntary, market-driven transition model, without mandated deadlines, is the most appropriate approach in Canada.
 
  • A new transitional digital television licence will be issued for each digital television undertaking, subject to the Commission's approval of an application. Licensees who wish to use digital television 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.
 
  • The Commission will give fast track consideration to applications by existing over-the-air broadcasters that accord with the Commission's transitional digital policy as set out in Public Notice 2002-31, and are based on the Department of Industry's (the Department's) DTV Transition Allotment Plan.
 
  • Existing broadcasters are encouraged to apply early for new transitional digital television licences and to implement the digital transmitters necessary to make the transition.
 
  • 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.
 

The Commission's analysis and determination

8.

Based on its examination of this application, the Commission is satisfied that it is in conformity with all applicable terms and conditions announced in Public Notice 2002-31, and in The regulatory framework for the distribution of digital television signals, Broadcasting Public Notice CRTC 2003-61, 11 November 2003 (Public Notice 2003-61).

9.

Accordingly, the Commission approves the application by CTV Television Inc. for a broadcasting licence to operate a digital television undertaking in association with CFTO-TV Toronto.

10.

With regard to the CCTA's suggestion that the Commission establish clear minimums for the broadcast of enhanced or HD programming and impose those minimums as conditions of licence, the Commission notes that it has already established a process to examine these questions and established a policy, as outlined in Public Notice 2002-31.
 

Programming

 

Canadian content obligations and the 14-hour program allowance

11.

The applicant made a commitment to simulcast the current programming service of CFTO-TV, with the exception of up to 14 hours per week of supplementary programming that would not be duplicated on the analog service. The applicant further committed to ensure that a minimum of 50% of the unduplicated, supplementary programming broadcast by the undertaking is Canadian. Consistent with the applicant's commitments, the Commission has applied conditions of licence, set out in the appendix to this decision. The Commission further requires, by condition of licence, that all unduplicated, supplementary programming broadcast on the undertaking is broadcast in a wide screen, HD format.
 

Simulcast of high definition and wide screen programming, and program rights availability

12.

As part of this proceeding, the Commission asked the applicant to comment on the possible imposition of conditions of licence reflecting, among other things, the two key principles set out in Public Notice 2002-31 relating to the simulcast of HD and wide screen programming. Specifically, the Commission asked whether CTV would adhere to conditions of licence requiring that:
 
  • all simulcast programming on the undertaking produced in the wide screen format (16:9 aspect ratio) be broadcast in that format; and
 
  • all simulcast programming on the undertaking aired during the evening broadcast period produced in HD be broadcast in HD.

13.

CTV responded that it could not accept as a condition of licence that all programming aired during the evening broadcast period produced in HD be broadcast in that format. CTV indicated that, while an HD version of a program may exist, it may not always be possible to acquire the broadcast rights to that version. CTV stated, however, that if it were able to acquire such rights, that program would be broadcast in HD.

14.

The availability of rights to HD and wide screen programming was an issue raised in the proceeding that led to the transitional digital television policy set out in Public Notice 2002-31. Broadcasters were concerned that the rights to such programs, especially for productions originating in the U.S., may 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 addressed in Public Notice 2003-61, and remains unresolved:
 

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.  

15.

In a letter dated 17 June 2003, CTV addressed concerns regarding the availability of program rights, and requested flexibility for the simulcast of HD and wide screen programming:
 

While a high definition version of a program may exist, it may not always be possible to acquire the high definition broadcast rights to such program. Provided that we are able to acquire such rights, programming on the DTV-T undertaking aired during the evening broadcast period that was produced in a high definition format will be broadcast in that format.

16.

The Commission notes CTV's concerns, and acknowledges that there may be extraordinary cases when HD or wide screen versions of programs exist, but cannot be obtained. In the circumstances, it would be inappropriate to impose conditions of licence requiring that all simulcast programming produced in the widescreen format be broadcast in that format, or that all simulcast programming during the evening broadcast period that is produced in HD be broadcast in HD. Accordingly, the conditions of licence set out in the appendix to this decision take into account the variable availability of wide screen and HD versions of the programs to be simulcast.
 

Acquisition of separate program rights

17.

CTV stated that the licensing of transitional HDTV undertakings creates the potential that program rights for both the HDTV and the analog versions of the same program could be sold separately to different purchasers. CTV indicated that if this is permitted to occur, it could severely disrupt the program rights marketplace. CTV made the commitment that it would not acquire from a distributor the rights to an HD program separately from the analog rights to such a program. CTV also expressed the view that the Commission should seek a similar commitment from all applicants for HDTV licences. In the Commission's view, the condition of licence set out in the appendix to this decision is adequate to address this issue.
 

Data transmission

18.

In Public Notice 2002-31, the Commission expressed the view that HDTV 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 National Television Standards Committee (NTSC) format. To that end, the Commission emphasized that broadcasters should ensure that the HD programming they purchase or produce is transmitted to viewers without loss of signal quality. Consistent with that aim, the Commission requires, by condition of licence, that the licensee ensure that the transmission of data does not affect the quality or quantity of HD programming.
 

Technical considerations

19.

The undertaking will operate on channel 40 VU with an average ERP of 17,400 watts. The Commission is satisfied that these technical parameters will provide effective coverage to the Toronto area within the constraints of the Department's DTV Transition Allotment Plan.
 

Issuance of the licence

20.

The Commission will issue a transitional digital television licence to CTV Television Inc., 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 CFTO-TV Toronto.

21.

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.

22.

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 30 January 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

23.

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.
  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: www.crtc.gc.ca 
 

Appendix to Broadcasting Decision CRTC 2004-64

 

Conditions of licence

 

1. In addition to the conditions set out below, the licence is subject to the terms and conditions applicable to the analog television station CFTO-TV Toronto, as set out in Licence renewal for CFTO-TV, Decision CRTC 2001-457-4, 2 August 2001.

 

2. The licensee shall ensure that all programming broadcast on the undertaking is a simulcast of the programming broadcast on CFTO-TV, with the exception of up to 14 hours per week of unduplicated, supplementary programming.

 

3. The licensee shall ensure that at least 50% of the unduplicated, supplementary programming broadcast on the undertaking is Canadian.

 

4. The licensee shall ensure that all unduplicated, supplementary programming broadcast on the undertaking is broadcast in a wide screen (16:9 aspect ratio), high definition format.

 

5. The licensee shall ensure that all programs that are simulcast on the undertaking, and that are available to the licensee in a wide screen (16:9 aspect ratio) format, are also broadcast in that format.

 

6. The licensee shall ensure that all programs that are simulcast on the undertaking during the evening broadcast period, and that are available to the licensee in high definition, are also broadcast in high definition.

 

7. The licensee shall ensure that the transmission of data does not affect the quality or quantity of high definition programming.

Date Modified: 2004-01-30

Date modified: