ARCHIVED - Broadcasting - Commission Letter - Craig Media Inc.
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Ottawa, 6 April 2004
Jennifer Strain
Re: Report on MTV Canada filed pursuant to Dear Ms. Strain: In Connect - a new specialty channel, Decision CRTC 2000-462, 24 November 2000, the Commission approved an application by Craig Broadcast Systems Inc., on behalf of a company to be incorporated, (Craig) for a Category 1 digital specialty service dedicated to the concerns and aspirations of Canada's youth aged 12 to 24. Craig launched the service under the MTV Canada brand in September 2001. In response to complaints filed by CHUM Television, a division of CHUM Limited and MusiquePlus Inc. in January 2002, to the effect that MTV Canada was operating in violation of its conditions of licence and in contravention of the digital licensing framework, the Commission undertook a review of the programming on MTV Canada. In Change in the ownership structure of MTV Canada and MTV2, and the Commission's findings concerning complaints regarding the compliance of these services with their licensing decisions, Broadcasting Decision CRTC 2003-65, 21 February 2003 (Decision 2003-65), the Commission found that Craig was not carrying on the MTV Canada service in accordance with the terms and conditions of its licence. Specifically, Decision 2003-65 found that: MTV Canada was offering a music-based service rather than a broadly-based teen channel; MTV was broadcasting in excess of 10% music video clips; MTV was not meeting its commitment to provide educational programming for teens, nor was it providing any programming from independent educational authorities. In light of these findings, the Commission stated that Craig must operate the MTV Canada service in accordance with its licence and the digital licensing framework, which requires that Category 1 services contribute to programming diversity and do not compete directly with existing services. The Commission also called on Craig to report within 90 days of Decision 2003-65 on the steps it had taken to bring MTV Canada into compliance. Craig filed its report in May 2003, organized by the three central findings summarized above. The Commission's determinations on Craig's report are set out according to the same three findings. Focus: Music versus non-music programming As described in Decision 2003-65, the Commission analyzed a week of MTV Canada's programming schedule and found that music-related programming represented just over 100 hours or 63.4% of the week. While the Commission recognized that music is an important component of teen culture, it noted that, in its original application filed in 2000, Craig had proposed a more broadly-based teen service, with limited amounts of music programming. Thus, the Commission found that MTV Canada was predominantly focused on music, which prevented it from providing the full range of teen-oriented information and entertainment programming as proposed in the original application and approved by the Commission. In its report, Craig indicated that it had revamped its flagship program Select to include more non-music related segments, ensuring that musical guests and video clips do not predominate in any one episode. Craig also indicated that it codes all programs internally - including individual episodes - according to whether or not they are music related. Craig provided a coded schedule with its report. An examination of the schedule provided with the report suggests that while the service still provides a significant amount of music-related programming, such programming appears to represent less than half of the schedule. Thus, the service is no longer predominantly focused on music or music-related programming. Accordingly, the Commission is satisfied that Craig has addressed this concern. Music video clips - compliance with the 10% limit In the original licensing decision, the Commission imposed the following condition of licence limiting the broadcast of music video clips on the service, as proposed by Craig: No more than 10% of all programming broadcast during each broadcast week shall be devoted to material drawn from category 8b - Music video clips. In assessing the complaints, the Commission examined MTV Canada's tapes for a full broadcast day, which demonstrated that the service had broadcast 89 music video clips, representing almost five hours of the day's schedule. Extrapolated to a week, the Commission noted that this would represent over 20% of the schedule, clearly higher than the 10% permitted by condition of licence. The Commission further noted that the high number of music video clips also contributed to a focus on music that was inconsistent with the original licensing decision. To address this concern, Craig noted in its report that it had dropped its daily two-hour music video program and that it now tracks every second of every music video clip in every program (including Select) to ensure that the service complies with the 10% limit. The Commission's original analysis had suggested that approximately 20% of the weekly schedule consisted of video clips, and the two-hour block represented just under half of that. Accordingly, the deletion of the two-hour music video block - combined with Craig's statements that music video clips do not predominate in any one episode of Select - would appear to address the concern that MTV Canada had been broadcasting over 10% music video clips. Accordingly, the Commission is satisfied that Craig has addressed this concern. Educational programming With respect to educational programming on MTV Canada, Decision 2003-65 set out a number of concerns: while the programming provided by MTV Canada in this category (Fusion and Ride Guide) technically fulfilled the condition of licence requiring 15% category 5b (informal education/recreation and leisure), it was not the informal educational programming promised by Craig in its original application and at the public hearing that resulted in the licensing of the service; the schedule included no programming from independent educational authorities, and, in fact, "during the week examined by the Commission, Craig did not appear to have offered any programming that could be characterized as educational"; and Craig had scheduled its category 5b programming almost exclusively during the overnight hours. Accordingly, the Commission stated: The Commission, therefore, expects Craig to re-examine this aspect of its programming to ensure that it is meeting its commitments to provide educational programming for teens and to ensure that its scheduling of such programming is consistent with the reasonable viewing habits of its target audience, i.e. youth between 12 and 17 years old and adults between 18 and 24 years old. In its report, Craig stated that it now airs certain category 5b programs such as Ride Guide and Fusion in more accessible time slots and indicated that it had forged a partnership with Mount Royal College to permit students to participate in creating original programming for broadcast on the network. In response to clarification questions from Commission staff, Craig elaborated on its educational programming initiatives as follows: the Mount Royal College partnership will result in programs produced by college journalism students, broadcast throughout the day, including prime viewing hours (7-11 p.m.), with a new segment produced each day on subjects relating to current affairs and world youth culture; the network acquires educational specials on topics ranging from AIDS and war to discussion panels with Nelson Mandela and Colin Powell; the prime time documentary series True Life examines the life and times of youth in America, with episodes such as "I Have An Eating Disorder," "I'm In A Wheelchair" and "I Am Bipolar;" and Select includes segments on a vast range of youth oriented subjects from career selection to substance abuse, etc. In further correspondence dated 6 February 2004, Craig provided additional information regarding the programming that has resulted from the Mount Royal College partnership, as well as further details on the broadcast and scheduling of its other educational programming, including specific educational specials and the documentary series entitled True Life. Taking into account the information provided by Craig in response to questions from Commission staff, the Commission is now satisfied that Craig is providing a range of educational programming consistent with its original commitments. Conclusions As noted in Decision 2003-65, the licensing framework under which MTV Canada was approved clearly maintained the Commission's longstanding policy of licensing only one service per genre. This policy was designed to ensure that new Category 1 services contribute to programming diversity and do not compete directly with existing services. Craig was aware of this policy framework when it filed its application, and it was based on the details of the application that the Commission considered and ultimately approved the proposal to provide a broadly based service for teens. This is the context in which the Commission ruled on MTV Canada's compliance in February 2003, and which continues to guide the Commission's assessment of Craig's ongoing performance. With this broader context in mind, and based on the findings and clarifications provided in Decision 2003-65, the Commission is satisfied that Craig has addressed the Commission's concern about its predominant focus on music. With respect to music video clips, MTV Canada now appears to be in compliance. The Commission is also satisfied that Craig is providing educational programming consistent with its original commitments. For your information, this letter and copies of your report and the additional correspondence attached to it will be added to your file and will be available for consultation by the public. Sincerely,
Diane Rhéaume Date Modified: 2004-04-06 |
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