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Broadcasting Decision CRTC 2006-346
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Ottawa, 9 August 2006
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Ethnic Channels Group Limited
Across Canada
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Application 2004-1314-6
Public Hearing at Québec, Quebec
20 March 2006
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Chinese/Cantonese Home TV Channel - Category 2 specialty service
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In this decision, the Commission approves an application for a broadcasting licence to operate a new Category 2 specialty programming undertaking.
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The application
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1.
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The Commission received an application by Ethnic Channels Group Limited (ECGL), for a broadcasting licence to operate a national, ethnic Category 21 specialty programming undertaking to be known as Chinese/Cantonese Home TV Channel.
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2.
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The applicant proposed to offer a third-language, general interest service that would be devoted to the Cantonese-speaking community in Canada that has links with Hong Kong. The service would offer programming for families in the Cantonese language and would draw a significant portion of its programming from producers based in Hong Kong. The applicant proposed that not less than 90% of all programming broadcast during the broadcast week would be in the Cantonese language.
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3.
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All of the programming would be drawn from the following categories, as set out in Schedule 1 to the Specialty Services Regulations, 1990: 2(a) Analysis and interpretation; 2(b) Long-form documentary; 4 Religion; 5(b) Informal education/Recreation and leisure; 6(a) Professional sports; 6(b) Amateur sports; 7(a) Ongoing drama series; 7(b) Ongoing comedy series (sitcoms); 7(c) Specials, mini-series or made-for-TV feature films; 7(d) Theatrical feature films aired on TV; 7(e) Animated television programs and films; 7(f) Programs of comedy sketches, improvisations, unscripted works, stand-up comedy; 7(g) Other drama; 8(a) Music and dance other than music video programs or clips; 8(b) Music video clips; 8(c) Music video programs; 9 Variety; 10 Game shows; 11 General entertainment and human interest; 12 Interstitials; 13 Public service announcements; and 14 Infomercials, promotional and corporate videos.
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4.
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The applicant also requested that it be authorized, by condition of licence, to broadcast up to six minutes per hour of local or regional advertising.
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Interventions
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5.
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The Commission received interventions in connection with this application by Multivan Broadcast Limited Partnership2 (Multivan), the licensee of ethnic television programming undertaking CHNM-TV Vancouver, by NMTV inc. (NMTV), the licensee of the national ethnic Category 2 specialty programming undertaking known as NuevoMundo Television, and by Fairchild Television Ltd. (Fairchild). Fairchild is the licensee of Fairchild Television, a national ethnic specialty television service whose service is directed primarily to the Cantonese-speaking communities in Canada. It is also the licensee of Talentvision, a national ethnic specialty service whose primary target audience is the Mandarin-speaking communities of Canada.
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6.
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While Multivan did not oppose the licensing of the proposed service, it did oppose the applicant's request for authority to broadcast local and regional advertising. Multivan contended that the Commission's policy to generally permit new ethnic Category 2 services to broadcast up to six minutes per hour of local advertising would generate additional competition that would impede CHNM-TV's ability to fulfill its regulatory obligations and prevent it from becoming profitable.
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7.
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NMTV commented on the high volume of applications filed with the Commission for new third-language ethnic services and the process involved in the granting of these types of broadcasting licences.
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8.
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Fairchild noted that, in Revised approach for the consideration of broadcasting licence applications proposing new third-language ethnic category 2 pay and specialty services,Broadcasting Public Notice CRTC 2005-104, 23 November 2005 (Public Notice 2005-104) the Commission established a buy-through requirement, under which broadcasting distribution undertakings (BDUs) choosing to distribute a general interest, third-language ethnic specialty service operating in Cantonese, Mandarin, Italian, Spanish, Greek or Hindi, must distribute that service only to subscribers who also subscribe to the existing analog third-language ethnic specialty service operating in the same language. Fairchild further stated that, in its opinion, BDUs choosing to distribute this service should be allowed to do so only to subscribers who also subscribe to both Fairchild Television and Talentvision.
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Applicant's replies
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9.
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In response to Multivan, the applicant maintained that the intervener did not make a compelling case for the Commission to change its practice of generally permitting ethnic Category 2 services to broadcast up to six minutes per hour of local advertising. The applicant further contended that Multivan had not provided any evidence that approval of this application would have any impact on the intervener.
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10.
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The applicant did not respond to NMTV's comment.
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11.
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In response to the intervention by Fairchild, ECGL stated that the service would fit within the definition of a general interest service and acknowledged that the buy-through requirement as set out in Public Notice 2005-104 would apply to the proposed service.
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Commission's analysis and determinations
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12.
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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.
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13.
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The Commission is satisfied that the application 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). Furthermore, given that the service will offer more than 90% of its programming in a third language, the Commission is satisfied that the application falls under the definition of a third-language service established in Public Notice 2005-104. Accordingly, the Commission approves the application by Ethnic Channels Group Limited for a broadcasting licence to operate the national, general interest third-language ethnic Category 2 specialty programming undertaking, Chinese/Cantonese Home TV Channel.
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14.
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With respect to the request to broadcast up to six minutes per hour of local or regional advertising, the Commission notes that, as set out in Public Notice 2005-104, the Commission generally permits new third-language services to broadcast up to six minutes per hour of local advertising unless an intervener makes a compelling case to the contrary.
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15.
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In the present case, Multivan did not provide any evidence that a negative financial impact would result from permitting the proposed service to broadcast up to six minutes per hour of local or regional advertising.
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16.
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The Commission therefore approves the applicant's request for authority to broadcast up to six minutes per hour of local and regional advertising. A condition of licence to that effect is set out in the appendix to this decision.
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17.
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The Commission notes that Chinese/Cantonese Home TV Channel will devote at least 90% of its program schedule to programming in the Cantonese language. In accordance with Public Notice 2005-104, the remainder of the program schedule, i.e., up to 10% may be in one or both official languages. The Commission encourages the applicant to ensure that all such programming serves to promote Canada's linguistic duality.
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18.
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Distribution of this service is subject to the distribution and linkage rules that apply to third-language general interest Category 2 services that offer 40% or more of their program schedule to programming in any of the Cantonese, Mandarin, Italian, Spanish, Greek, or Hindi languages, as set out in Distribution and linkage requirements for Class 1 and 2 licensees, Broadcasting Public Notice CRTC 2005-119, 14 December 2005, and Linkage requirements for direct-to-home (DTH) satellite distribution undertakings, Broadcasting Public Notice CRTC 2005-120, 14 December 2005, as amended from time to time. These rules require that such Category 2 services only be offered to customers who also subscribe to the analog service operating in the same language.
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19.
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The licence will expire 31 August 2012, and will be subject to the conditions set out in Public Notice 2000-171-1, as well as to the conditions set out in the appendix to this decision.
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Issuance of the licence
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20.
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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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- 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 before9 August 2009. 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: www.crtc.gc.ca
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Appendix to Broadcasting Decision CRTC 2006-346
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Conditions of licence
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1. The licence will be subject to the conditionsset out in Introductory statement - Licensing of new digital pay and specialty services - Corrected Appendix 2, Public Notice CRTC 2000-171-1, 6 March 2001, except for condition 4(d) which will not apply, and condition 4a), which is replaced by the following:
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Except as otherwise provided in subparagraphs b) and c), the licensee shall not broadcast more than twelve (12) minutes of advertising material during each clock hour, no more than six (6) minutes of which may consist of local or regional advertising.
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2. The licensee shall provide a national, general interest, third-language, ethnic Category 2 specialty programming service devoted to the Cantonese-speaking community in Canada that has links with Hong Kong. The service will offer programming for families in the Cantonese language.
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3. The programming shall 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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2 (a) Analysis and interpretation
(b) Long-form documentary
4 Religion
5(b) Informal education/Recreation and leisure
6 (a) Professional sports
(b) Amateur sports
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
(f) Programs of comedy sketches, improvisations, unscripted works, stand-up comedy
(g) Other drama
8 (a) Music and dance other than music video programs or clips
(b) Music video clips
(c) Music video programs
9 Variety
10 Game shows
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 Cantonese language.
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5. Where the licensee broadcasts religious programming as defined in the Religious Broadcasting Policy, Public Notice CRTC 1993-78, 3 June 1993, the licensee shall adhere to the guidelines set out in sections III.B.2.a) and IV of that public notice with respect to balance and ethics in religious programming, as amended from time to time.
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For the purposes of the conditions of this licence, including condition of licence no. 1, broadcast day means the period of up to 18 consecutive hours, beginning each day not earlier than six o'clock in the morning and ending not later than one o'clock in the morning of the following day, as selected by the licensee, or any other period approved by the Commission.
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Footnotes:
[] 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.
[] Multivan Broadcast Corporation (the general partner) and 650504 B.C. Ltd., Dougals M. Holtby, Geoffrey Y.W. Lau, Robert H. Lee, Joseph Segal and RCG Forex Service Corp. (the limited partners), carrying on business as Multivan Broadcast Limited Partnership
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Date Modified: 2006-08-09
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