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Broadcasting Decision CRTC 2005-147
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Ottawa, 11 April 2005
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Claire Bourgeois, on behalf of a corporation to be incorporated
Across Canada
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Application 2004-0689-4
Public Hearing in the National Capital Region
29 November 2004
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NuevoMundo Television (NMTV) - Category 2 specialty service
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In this decision, the Commission approves the application for a broadcasting licence to operate a new national ethnic Spanish-language Category 2 specialty television undertaking.
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The application
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1.
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The Commission received an application by Claire Bourgeois, on behalf of a corporation to be incorporated (Claire Bourgeois), for a broadcasting licence to operate a national, ethnic Spanish-language Category 21 specialty programming undertaking to be known as NuevoMundo Television (NMTV).
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2.
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The applicant proposed a service that would reflect the community life, lifestyles and needs of the Hispanic community of Canada through educational and cultural programming, with 90% of all programs to be broadcast in the Spanish language, and with significant amounts of programming targeted to youth. Programming would cover subjects such as Canadian law, health matters, education, the economy and work-related issues.
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3.
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The applicant indicated that it would offer a maximum of 10% of all programming in either the French or English language, including programs focussed on helping new immigrants to master those languages. The applicant also stated that it would limit its acquisition of foreign-produced programming, and that it would produce approximately twenty hours of original Spanish-language programming per week.
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The interventions
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4.
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The Commission received several interventions in support of this application, and one in opposition, submitted by Telelatino Network Inc. (TLN), licensee of the specialty service Telelatino, which offers a general interest service targeting the Italian- and Spanish-speaking communities in Canada.
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5.
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TLN expressed the view that NMTV, as proposed, would offer the same mix of programming categories and genres as provided by Telelatino, and would thereby compete directly with Telelatino. The intervener stated that the broad range of program categories proposed to be used by the applicant would not ensure that NMTV would be an educational service.
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6.
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According to TLN, 52.5% of Telelatino's programming schedule is currently devoted to programming in Spanish, and much of that programming has the same objective as that stated for NMTV, namely, to provide Spanish-speaking Canadians with general-interest programming related to their needs and interests.
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7.
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TLN argued that Telelatino is subject to significantly more onerous regulatory obligations than those required of a Category 2 service. Telelatino's Canadian content level is presently set at a minimum of 27%, while ethnic Category 2 services generally are required to provide only 15% Canadian content. TLN also noted that it must devote at least 23% of Telelatino's gross revenues to Canadian programming, although Category 2 services have no such requirement.
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8.
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The intervener also noted that, although the applicant indicated that it would limit its acquisition of foreign-produced programming, and produce programming itself, no specific commitment was made by the applicant in this regard.
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9.
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TLN expressed the concern that approval of this application would cause significant audience fragmentation and erosion of Telelatino's advertising revenue, particularly in view of the Commission's recent decision to add five non-Canadian Spanish-language services to the lists of eligible satellite services for digital distribution, as set out in Requests to add non-Canadian third-language services to the lists of eligible satellite services for distribution on a digital basis, Broadcasting Public Notice CRTC 2004-50, 15 July 2004. TLN added that this additional negative impact would come at a time when Telelatino is adjusting to new conditions of its licence and additional expectations for its Spanish-language programming.
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The applicant's reply
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10.
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In response to TLN's intervention, the applicant stated that while it would offer a range of program categories similar to those offered by Telelatino, in its view NMTV's focus would be quite different from that of Telelatino. NMTV would offer a service devoted entirely to a Spanish-speaking audience, focusing on education, culture and integration into the Canadian way of life. The proposed service would also provide Canadian programs about the realities of Hispanic society in Canada, and language studies to encourage increased facility in the English and French languages.
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11.
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According to the applicant, NMTV would also be differentiated from Telelatino by the language of broadcast, since Telelatino provides a minimum of 45% of all programming in Spanish, while NMTV would offer 90% of all programs in Spanish. The applicant also stated that no more than 27% of all evening programming on Telelatino is offered in the Spanish language, and that only a small proportion of its programming in the 7:00 p.m. to 11:00 p.m. period is devoted to Spanish-language programs.
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12.
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The applicant further argued that, while TLN has indicated that it offers approximately 4,600 hours of Spanish-language programming annually, only slightly more than 100 hours of that total are produced by members of Canada's Hispanic community, covering subjects of concern to that group. The applicant indicated that, in cooperation with members of the Canadian Spanish-speaking community, it would produce about twenty hours of Spanish-language programming to be broadcast each week, covering subjects such as immigration, law, family life and the economy, key issues that would facilitate the integration of Spanish-speaking persons into Canadian society. Moreover, the applicant stated that it would broadcast levels of Canadian content significantly higher than the 15% minimum required, and that its goal, over a period of three years, would be to attain an eventual level of Canadian content of more than 66% of all programming.
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13.
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In response to concerns about potential revenue loss for Telelatino, the applicant replied that the licensing of NMTV would not result in an undue negative financial impact on Telelatino, because, according to TLN, 70% of Telelatino's advertising revenues are derived from its Italian-language programming.
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The Commission's analysis and determination
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14.
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In Licensing framework policy for new digital pay and specialty services, Public Notice CRTC 2000-6, 13 January 2000, the Commission implemented a competitive, open-entry approach to licensing Category 2 services. While the Commission does not consider the impact that a new Category 2 service might have on an existing Category 2 service, it does seek to ensure that newly licensed Category 2 services do not compete directly with any existing pay or specialty television service, including any Category 1 service.
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15.
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In Introductory statement - Licensing of new digital pay and specialty services, Public Notice CRTC 2000-171, 14 December 2000, and Public Notice CRTC 2000-171-1, 6 March 2001 - Corrected Appendix 2, the Commission adopted a case-by-case approach in determining whether a proposed Category 2 service should be considered directly competitive with an existing analog pay or specialty or Category 1 service. The Commission examines each application in detail, taking into consideration the proposed nature of service and the unique circumstances of the genre in question.
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16.
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In the present case, the Commission is satisfied that NMTV would provide a service directed entirely to a Spanish-speaking audience, with 90% of all programming to be offered in the Spanish language, including a prime time schedule exclusively devoted to a Spanish-speaking audience. The Commission notes in particular the focus that would be placed on formal and informal educational programming, and that the applicant would produce a significant amount of original Spanish-language programming. The Commission also notes the applicant's commitment to increase the amount of Canadian programming it will broadcast over the first three years of operation, up to a minimum of 66% of the broadcast year. Accordingly, the Commission is satisfied that the service proposed by Claire Bourgeois would not be directly competitive with Telelatino.
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17.
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Based on its examination of this application, the Commission is further satisfied that it is in conformity with all applicable terms and conditions announced in Introductory statement - Licensing of new digital pay and specialty services - Corrected Appendix 2, Public Notice CRTC 2000-171-1, 6 March 2001 (Public Notice 2000-171-1). Accordingly, the Commission approves the application by Claire Bourgeois, on behalf of a corporation to be incorporated, for a licence to operate a national ethnic Spanish-language Category 2 specialty programming undertaking to be known as NuevoMundo Television. (NMTV)
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18.
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The licence will expire 31 August 2011, and will be subject to the conditions set out in Public Notice 2000-171-1, as well as to the conditions of licence set out in the appendix to this decision.
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Issuance of the licence
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19.
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A licence will be issued once the applicant has satisfied the Commission, with supporting documentation, that the following requirements have been met:
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- an eligible Canadian corporation has been incorporated in accordance with the application in all material respects;
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- the applicant has entered into a distribution agreement with at least one licensed distributor; and
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- 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 36 months from the date of this decision, unless a request for an extension of time is approved by the Commission before 11 April 2008. In order to ensure that such a request is processed in a timely manner, it should be submitted at least 60 days before that date.
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Secretary General
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This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: http://www.crtc.gc.ca
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Appendix to Broadcasting Decision CRTC 2005-147
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Conditions of licence
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1. The licence will be subject to the conditions set out in Introductory statement - Licensing of new digital pay and specialty services - Corrected Appendix 2, Public Notice CRTC 2000-171-1, 6 March 2001, as well as to the following conditions of licence:
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2. The licensee shall provide a national ethnic Category 2 specialty programming undertaking to be known as NuevoMundo Television (NMTV). The service will be wholly devoted to reflecting the lifestyles and the needs of the Hispanic community of Canada, including programming dedicated to youth. The programming will be comprised of formal and informal educational programs designed to inform, educate and facilitate the integration of Hispanic persons into Canadian society, as well as cultural, Canadian variety and public affairs programs.
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3. The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990, as amended from time to time:
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1 News
2 (a) Analysis and interpretation
(b) Long-form documentary
5 (a) Formal education and pre-school
(b) Informal education/Recreation and leisure
7 Drama and comedy
(a) Ongoing drama series
(b) Ongoing comedy series (sitcoms)
(c) Specials, mini-series or made-for-TV feature films
(d) Theatrical feature films aired on TV
(e) Animated television programs and films
8 (b) Music video clips
(c) Music video programs
9 Variety
11 General entertainment and human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
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4. Not less than 90% of all programming broadcast during the broadcast week shall be
in the Spanish language.
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For the purposes of the conditions of this licence, including condition of licence no. 1, broadcast day refers to the 24-hour period beginning at 6:00 a.m. each day.
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Footnote:
[]The Category 2 services are defined in Introductory statement - Licensing of new digital pay and specialty services, Public Notice CRTC 2000-171, 14 December 2000.
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Date Modified: 2005-04-11