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Broadcasting Decision CRTC 2006-490

  Ottawa, 8 September 2006
  Saskatchewan Telecommunications
Battleford, Estevan, Moose Jaw, North Battleford, Pilot Butte, Prince Albert, Regina, Saskatoon, Swift Current, Weyburn, White City and Yorkton, Saskatchewan
  Applications 2005-1239-4 and 2005-1237-8
Broadcasting Public Notice CRTC 2006-18
16 February 2006
 

Licence amendments related to the funding and provision of an outlet for local expression

  The Commission approves the application by Saskatchewan Telecommunications (SaskTel) proposing conditions of licence establishing the terms under which it would provide an outlet for local expression as part of the service offered by its regional, Saskatchewan-based video-on-demand (VOD) programming undertaking.
  The Commission also approves SaskTel's application for a condition of licence in respect of its broadcasting distribution undertakings (BDUs) serving communities in twelve licensed areas in Saskatchewan. The condition of licence recognizes eligible expenditures on the proposed outlet for local expression as contributions to local expression under the contribution scheme set out in section 29 of the Broadcasting Distribution Regulations. In the case of each BDU, these contributions may be deducted from the amount that the BDU would otherwise be required to direct to Canadian programming in accordance with that section. Depending on the number of subscribers served by the BDU within a given licensed area, the deductions may range from a maximum of 2% of its annual gross revenues derived from broadcasting activities within that licensed area, to a maximum of 5% of those revenues.
  The Commission denies the request by SaskTel that it also be authorized to direct to the outlet for local expression a portion of the annual contribution that, by condition of licence, must be made by its VOD undertaking to an existing, independently-administered Canadian program production fund.
 

The applications

1. The Commission received applications by Saskatchewan Telecommunications (SaskTel) for amendments to the licence it holds for the operation of a regional, Saskatchewan-based video-on-demand (VOD) programming undertaking and to the licence that authorizes it to carry on broadcasting distribution undertakings (BDUs) serving the twelve communities noted above.1 SaskTel is the incumbent telephone company for the Province of Saskatchewan. It is also a provincial crown corporation. The two applications are described below.
 

The VOD application

2. SaskTel proposed to offer an outlet for local expression that would be delivered to BDU subscribers as part of its digital interactive VOD service. The proposed community programming provided on the outlet for local expression, while free of charge, would otherwise differ from that distributed on a traditional community channel, where programs are delivered to subscribers at set times in accordance with a schedule. Instead of the familiar linear programming model of the latter, the proposed outlet for local expression would provide subscribers with access to a broad inventory of individual programs, each of which would be available to subscribers on demand, 24 hours per day, seven days per week. SaskTel proposed to work with community members, local clubs, and local production companies to create a range of programming that would reflect the communities in each of its licensed areas and the province as a whole.
3. SaskTel further proposed that the Commission apply conditions of licence reflecting regulatory requirements that would be similar to those applicable to the community programming distributed on the community channels operated by cable BDUs, as set out in sections 27, 27.1 and 28 of the Broadcasting Distribution Regulations (the Distribution Regulations).
4. In addition, SaskTel stated that it would be willing to adhere to specific terms of reference for the operation of an independent programming committee that it would establish for the purpose of ensuring that programming distributed on the outlet for local expression reflects the freedom of expression and journalistic, creative, and programming independence contemplated in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences) SOR/85-627, 27 June 1985, as amended by SOR/97-231, 22 April 1997 (the Direction).
5. SaskTel also requested an amendment to its existing condition of licence, which currently requires adherence to the requirements of the Pay Television Regulations, 1990 (Pay TV Regulations).2 Section 3(2)(e) of the Pay TV Regulations generally prohibits a licensee from distributing programming, other than filler programming, that is produced either by the licensee or by a person related to the licensee. As an exception to that prohibition, SaskTel requested that it be permitted to distribute programming on its proposed outlet for local expression, up to 10% of which would be produced by it or by a related person.
6. SaskTel requested a further amendment that would allow it to distribute sponsorship and commercial messages exclusively as part of its outlet for local expression programming, as permitted on community channels under section 27 of the Distribution Regulations. Since the Pay TV Regulations prohibit the distribution of programming that contains any commercial messages, SaskTel suggested the addition of a condition of licence to allow it to distribute such sponsorship and commercial messages.
7. Further, SaskTel requested an amendment to its current condition of licence that requires it to contribute 5% of the gross annual revenues earned by its VOD undertaking to an existing, independently administered Canadian program production fund. Specifically, SaskTel proposed that it be allowed to direct up to 2% of its gross annual revenues to the proposed outlet for local expression, thereby reducing its contribution to the Canadian program production fund to no less than 3% of its gross annual revenues.
8. SaskTel also indicated that it would be prepared to provide programming in French and in other languages in accordance with audience demand.
 

The BDU application

9. SaskTel proposed to deduct amounts representing up to 2% of the gross annual revenues derived from the broadcasting activities of each of its BDUs from its contributions to Canadian programming required under section 29 of the Distribution Regulations. The deductions would be in recognition of expenditures representing those amounts on the proposed outlet for local expression distributed as part of SaskTel's digital interactive VOD service.3 SaskTel requested that its BDU licence be amended through the addition of a condition of licence that would recognize these deductions as contributions to local expression under section 29 of the Distribution Regulations.
10. SaskTel proposed that, while the funds spent on the proposed outlet for local expression (both from the BDU and VOD operations) would generally be allocated in a manner that would take into account the number of subscribers served by the SaskTel BDU in each licensed area, up to 20% of the funds that would otherwise be attributed to the Regina and Saskatoon licensed areas purely on the basis of subscriber numbers might be reallocated, depending on program submissions and program needs, to programming produced in the smaller licensed areas, to programming produced outside the licensed areas or to programming covering provincial events. According to the applicant, this approach would ensure that each community receives an appropriate share of SaskTel's expenditures on the proposed outlet for local expression.
 

Interventions

11. More than forty interventions were filed with respect to SaskTel's applications. Of these, several interventions were by parties who supported the applicant's plans for the provision and funding of an outlet for local expression as part of SaskTel's VOD service. Many parties, however, expressed concern regarding SaskTel's proposals. One concern related to the potential for provincial government interference in SaskTel's community programming. A second focus of concern was the proposed redirection, away from the Canadian Television Fund (CTF) and other independent production funds, of annual cash amounts that, whether by condition of licence or regulation, must currently be channelled to those production funds from the gross annual revenues earned by SaskTel's VOD undertaking, as well as by its BDUs in Saskatchewan. Interveners questioned whether this was, in and of itself, appropriate or desirable, and whether it would be equitable to stand-alone VOD licensees or consistent with the VOD licensing policy framework. Interveners also suggested that approval of SaskTel's funding proposals may create a potential disincentive for the continued operation of analog community channels by cable BDUs, and encourage them to fund the operation of VOD services instead.
12. The applicant's position with respect to these issues is examined further below, followed by the Commission's analysis and determinations.
 

Provision of community programming by a crown corporation

13. As indicated above, certain interveners were concerned that the community programming to be produced by or on behalf of the applicant, a provincial crown corporation, would be subject to potential political influence or interference by the Government of Saskatchewan. In their view, the applicant might be prevented from exercising the freedom of expression and journalistic, creative and programming independence required under the Direction.
14. In its applications, SaskTel noted that, in New cable distribution undertaking in Saskatchewan, Decision CRTC 2001-171, 12 March 2001 (Decision 2001-171), the Commission determined that SaskTel qualified as an "independent carrier", was not directly controlled by the Government of Saskatchewan, and thus met the eligibility criteria set out in the Direction with respect to the holding a broadcasting licence. The applicant acknowledged that, although the Commission had decided to impose a condition of licence prohibiting SaskTel's BDUs from operating a community channel, no such restriction was imposed by the Commission in New video-on-demand service for Saskatchewan, Broadcasting Decision CRTC 2003-451, 5 September 2003 (Decision 2003-451), which granted SaskTel a licence to carry on a regional, Saskatchewan-based VOD programming undertaking.
15. In its reply to interventions, the applicant argued that the passage of time has firmly established that SaskTel operates its BDUs and its VOD programming undertaking independently of the Government of Saskatchewan and is free from political interference in programming decisions, noting that:
 

The Government of Saskatchewan has not influenced or interfered in any programming or other decisions pertaining to the undertakings. All programming and operation decisions for SaskTel's MAX operations are made by production managers within the MAX division.

16. SaskTel emphasized that the Government of Saskatchewan has confirmed SaskTel's programming independence and has protected its broadcasting activities from political interference by issuing an Order in Council empowering SaskTel to accept from the CRTC a licence to operate a broadcasting distribution undertaking on the condition that such licence is operated by SaskTel's officers and other employees with freedom of expression and journalistic, creative and programming independence.
17. The applicant also noted that sections 27 and 28 of the Distribution Regulations clearly prescribe the programming and operational requirements that a BDU licensee must follow in the delivery of community programming. It stated that it will adhere to each specific requirement where applicable, and that it would be willing to accept conditions of licence that require adherence to these provisions, including requirements stipulating that it:
 
  • retain a daily log of all local programming;
 
  • respond to complaints filed by anyone with the Commission regarding community programming; and
 
  • be subject to the Commission's powers to monitor SaskTel's compliance with programming requirements and to take remedial action should those requirements not be met.
18. Further, SaskTel stated that it would accept a condition of licence requiring the creation of an independent programming committee (IPC) that would be responsible for ensuring that SaskTel's community programming represents the communities served. SaskTel proposed that the IPC be made up of volunteers who would have no connection to SaskTel, and would be ".nominated at the local level from non-profit cultural, sporting and recreational organizations and who have strong associations within the communities they reside and a strong desire to showcase a balanced view of their community." It added that the IPC would be responsible for ".all decisions relating to or affecting television programming available for broadcast by the licensed undertaking," including decisions relating to program content and presentation, with a view to ensuring that ".programming is in conformity with any applicable conditions, regulations, and policies of the [Commission] and the Broadcasting Act."
 

Proposal for funding the outlet for local expression

19. SaskTel requested that it be authorized to allocate, as expenditures on its proposed outlet for local expression, up to 2% of the gross annual revenues derived from the broadcasting activities of its VOD undertaking and BDUs in Saskatchewan. This proposal would reduce, from 5% to 3%, the percentage of the gross revenues earned by its VOD undertaking in each broadcast year that must now, by condition of licence, be contributed to an independently administered Canadian program production fund. SaskTel's proposal would also reduce, from 5% to 3%, the percentage of gross revenues earned by its BDUs in each broadcast year that must now, in accordance with section 29 of the Distribution Regulations, be contributed to Canadian programming.
20. Certain of the interveners who addressed the applicant's funding proposals were concerned by the effect that their approval would have in reducing SaskTel's annual contributions to the CTF and to other independent production funds. Some parties especially objected to the applicant's request that it be permitted to divert revenues to its proposed outlet for local expression from two sources, i.e., from the revenues both of its VOD undertaking and of its BDUs. According to one intervener, approval would create a precedent that might give rise to similar requests by other BDU licensees who also operate or are associated with VOD and pay-per-view (PPV) undertakings, a situation the intervener described as "triple-dipping." Other interveners argued that approval of these proposals would be inequitable to the operators of direct-to-home BDUs and of stand-alone VOD undertakings for whom the provision of an outlet for local expression does not constitute a practical option.
21. As noted above, some interveners were concerned that approval of SaskTel's applications might persuade other distributors to allocate funds to VOD services rather than to traditional community channels. Parties noted that, whereas VOD programming undertakings have served principally as an additional window for feature films, approval of the proposals would effectively expand the scope of the VOD policy framework. Other interveners saw the applications as being at odds with the community channel policy, which was developed for traditional linear community channel programming, and noted that not all of the provisions of the community channel policy can be applied to a video-on-demand service.
22. In its reply to interventions, SaskTel argued that its proposed outlet for local expression should have funding comparable to that available to other Class 1 BDUs for their community channel operations. The applicant submitted that the Commission provided for a degree of flexibility in this regard by including a provision in the Distribution Regulations that would permit exceptions to the specified contribution formula, by condition of licence. From the applicant's perspective, it was also important that it be able to allocate funds from both its VOD undertaking and its BDUs for use in content production and in the creation of local employment opportunities.
23. SaskTel asserted that, in preparing its applications, it had "carefully considered the existing regulatory regimes, and [had] appropriately fashioned a proposal that does not undermine them in any way." SaskTel acknowledged that its proposal was unique and that its critics were "partly right" in noting that it represents a departure from the existing regulatory framework:
 

SaskTel is proposing to use the flexibility and adaptability of its digital distribution platform to provide its customers with a leading edge service enhancement (the first of its kind in Canada) in order to meet customer demand and provide Saskatchewan residents with a competitive alternative to traditional community programming.

24. SaskTel also submitted that its proposal falls within the parameters set by the Commission in the Distribution Regulations, which incorporate, among other things, the policy framework for contributions by BDUs to the provision of local expression and Canadian programming. In its discussion of those matters, the Commission stated that any terrestrial distributor who intends to provide an outlet for local expression, other than a community channel, may present a proposal to the Commission to do so.
 

Commission's analysis and determinations

 

Provision of community programming by a crown corporation

25. The Commission has given careful consideration to the concerns of interveners regarding the potential for provincial government interference in the programming offered by SaskTel on its outlet for local expression. The Commission has also examined the commitments offered by the applicant to alleviate those concerns.
26. Under the terms of the Direction, provincial governments and their agents may not hold broadcasting licences. However, the Direction provides for an exception that would allow an entity, such as SaskTel, to be licensed provided it qualifies as an independent carrier. The Direction defines an independent carrier as follows:
 

"ìndependent carrier" means a corporation that is either a Canadian carrier within the meaning of the Telecomunications Act that is owned by Her Majesty in right of any province, that was operating on August 6, 1996 and that continues to be operated as a Canadian carrier, or a subsidiary corporation of the Canadian carrier, where

 

(a) the Commission determines that the corporation is not directly controlled by Her Majesty in right of any province, and

 

(b) without limiting the generality of paragraph (a), the corporation enjoys freedom of expression and journalistic, creative and programming independence in the pursuit of its objectives and in the exercise of its powers.

27. In Decision 2001-171, the Commission approved SaskTel's application for a BDU licence provided that the applicant make certain changes to the terms and conditions related to the appointment of its Board of Directors, for the purpose of ensuring that SaskTel qualified as an independent carrier under the Direction. The Commission also noted that SaskTel had indicated in its application that the opportunity for journalistic and creative input for the operator of a BDU would be confined largely to the community channel. Given the applicant's indication at the time that it did not intend to operate a community channel, at least at the outset, the Commission imposed a condition of licence stipulating that SaskTel not operate a community channel.
28. The Commission considers that the applicant's commitments in the present application with respect to the creation and operation of an IPC to oversee SaskTel's programming, in accordance with established terms of reference, will serve to ensure that the programming fully reflects and preserves the applicant's "freedom of expression and journalistic, creative, and programming independence." Specifically, the Commission notes that under the terms of reference for the IPC, that committee shall be responsible for making all programming decisions relating to or affecting television programming available for broadcast on the outlet for local expression, including decisions relating to the content and presentation of that programming. To ensure a high level of citizen participation and community involvement, the IPC will also be charged with seeking opportunities for programming proposals and encouraging submissions that reflect the makeup of the communities served. The Commission also notes that the IPC's terms of reference specify that no change to those terms shall be made unless prior Commission approval is obtained. The IPC terms of reference are set out in Appendix C to this decision.
29. Furthermore, the Commission notes the applicant's commitment, in response to concerns about programming of a partisan political character, to comply with a condition of licence requiring that it ensure that all accredited political parties are allocated an equal number of titles of equal duration in its programming inventory, and that it not have any programming of a partisan political character in its inventory during provincial election periods.
30. The Commission is satisfied that these commitments adequately address the concerns of interveners with respect to the applicant's ability and its resolve, as an independent carrier within the meaning provided in the Direction, to exercise "freedom of expression, and journalistic, creative and programming independence". The Commission is further satisfied that the Commission would be able to respond effectively, on a case-by-case basis, to any complaint it might receive about the operation of the proposed outlet for local expression.
 

Proposal for funding the outlet for local expression

31. Sections 27, 27.1 and 28 of the Distribution Regulations contemplate the delivery of community programming, based on the operation of traditional linear community channels. Section 29 makes provision for contributions to local expression by BDU licensees that distribute their own community programming on the community channel.
32. In New Regulatory Framework for Broadcasting Distribution Undertakings, Public Notice CRTC 1997-25, 11 March 1997 (Public Notice 1997-25), which announced the Commission's policy determinations that subsequently led to publication of the Distribution Regulations in Public Notice 1997-150, the Commission emphasized its intention "to give all terrestrial distributors the opportunity to present innovative proposals for providing outlets for local expression within the purview of the [Broadcasting Act]." Moreover, as SaskTel mentioned in its reply to interventions, in Public Notice 1997-150, the Commission invited terrestrial distributors wishing to provide an outlet for local expression, other than a community channel, to present their proposals to the Commission.
33. The Commission notes that approval of SaskTel's applications would allow the introduction of a model for the provision of local expression that differs considerably from the traditional model followed over the last four decades, whereby community programming has been distributed on community channels. While such approval would also represent an evolutionary departure from the offerings of conventional VOD undertakings, it would be in keeping with the Commission's intention, as originally expressed in Public Notice 1997-25, to encourage innovative proposals for providing outlets for local expression.
34. The Commission places great importance on the role played by BDUs in the provision of community programming and on the value of community programming that is of particular relevance to the communities served. In this particular instance, the Commission considers that there are a number of benefits that would be realized through implementation of the applicant's plans, not the least of which would be the provision of community programming to SaskTel's BDU subscribers, who do not currently have access to such programming. In addition, SaskTel subscribers would benefit from the ability of the applicant's digital distribution platform to provide virtually unlimited shelf space for community programming and offer diversity of choice on an on-demand basis rather than in accordance with any fixed schedule.
35. The Commission also notes SaskTel's willingness to adhere to conditions of licence establishing requirements for the provision of community programming, thereby ensuring that its programming would essentially parallel that offered by BDUs on their community channels, pursuant to sections 27, 27.1 and 28 of the Distribution Regulations. In particular, the Commission notes that, consistent with section 27.1, at least 60% of the program offering for each licensed area would be local community television programming, and at least 30% would be community access television programming.
36. Given all of the above, the Commission considers that it would be appropriate to recognize SaskTel's proposed programming, offered as part of the applicant's VOD service, as local expression, as contemplated under the contribution scheme set out in section 29 of the Distribution Regulations.
37. In the circumstances, the Commission also considers that it would be appropriate to permit SaskTel to distribute programming on the proposed outlet for local expression, up to 10% of which would be produced by it or by a related person, and to distribute sponsorship messages as permitted on community channels.
38. As discussed above, SaskTel proposed to allocate up to 2% of the gross annual revenues derived from the broadcasting activities of its VOD undertaking and its BDUs in Saskatchewan to local expression, and to reduce its required annual 5% contributions to independent Canadian program production funds by a corresponding percentage of those gross annual revenues.
39. Section 29(6) of the Distribution Regulations permits a Class 1 BDU licensee having 20,000 or more subscribers and distributing its own community programming on the community channel in a licensed area to make a deduction of a maximum of 2% of its gross annual revenues earned from broadcasting activities from the amount it must otherwise contribute to Canadian programming, i.e., to the CTF and other independent production funds, to reflect its contribution to local expression. Under section 29(5) of the Distribution Regulations, a Class 1 BDU licensee that has fewer than 20,000 subscribers and that distributes its own community programming on the community channel in a licensed area is permitted to make a deduction of up to a maximum of 5% of its gross annual revenues earned from broadcasting activities, i.e., the entire amount it must otherwise contribute to Canadian programming, to reflect its contribution to local expression.
40. The contribution scheme set out in section 29 of the Distribution Regulations draws a distinction between smaller and larger BDUs. Given that SaskTel has been granted a regional licence authorizing it to carry on BDUs in a number of licensed areas, the Commission considers it appropriate that SaskTel be permitted to deduct from its contributions to Canadian programming up to 5% of the gross annual revenues that are derived from the broadcasting activities of its BDUs in those licensed areas having fewer than 20,000 subscribers, provided that it contributes that amount, at a minimum, to local expression. Consistent with section 29(6) of the Distribution Regulations, the maximum deduction for contributions to local expression in licensed areas having 20,000 or more subscribers will be 2% of a BDU's gross annual revenues derived from broadcasting activities.
41. Further, the Commission finds reasonable SaskTel's proposal to reallocate, depending on program submissions and program needs, up to 20% of the funds that would otherwise be apportioned by SaskTel to local expression in each of the Regina and Saskatoon licensed areas to programming produced in the smaller licensed areas, to programming produced outside the service areas or to programming covering provincial events. As proposed by the applicant, this approach would ensure that each community receives an appropriate share of expenditures on local expression.
42. With respect to SaskTel's VOD undertaking, its current conditions of licence require it to contribute 5% of the gross annual revenues to an independent Canadian program production fund. This condition of licence is consistent with the licensing framework for VOD and PPV services set out in 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. In the Commission's view, approval of this aspect of SaskTel's VOD application would be inconsistent with the licensing framework for VOD services.
 

Conclusion

43. Based on all of the forgoing, the Commission approves the application by Saskatchewan Telecommunications for licence amendments pertaining to its provision of an outlet for local expression as part of the service offered by its regional, Saskatchewan-based VOD programming undertaking. The Commission also approves Saskatchewan Telecommunications's application for licence amendments recognizing the licensee's expenditures on local expression, for the purposes of the contribution scheme set out in section 29 of the Distribution Regulations.
44. The Commission denies the request by Saskatchewan Telecommunications that it also be authorized to redirect to the outlet for local expression any portion of the annual contribution that, by condition of licence, must be made by its VOD undertaking to an existing, independently-administered Canadian program production fund.
45. Appendix A and Appendix B to this decision pertain to SaskTel's BDU licence and to its VOD licence, respectively. In those appendices, the Commission sets out the conditions of licence that specify the various requirements relating to the funding of, and the programming offered on, the outlet for local expression, in keeping with the licensee's commitments.
  Secretary General
  This decision is to be appended to each of the licences. 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 
 

Appendix A to Broadcasting Decision CRTC 2006-490

 

Amendments to the broadcasting licence issued to Saskatchewan Telecommunications (SaskTel) to carry on a broadcasting distribution undertaking serving Battleford, Estevan, Moose Jaw, North Battleford, Pilot Butte, Prince Albert, Regina, Saskatoon, Swift Current, Weyburn, White City and Yorkton, Saskatchewan

  The licensee shall continue to be subject to the conditions set out in New cable distribution undertaking in Saskatchewan, Broadcasting Decision CRTC 2001-171, 12 March 2001, in addition to the following conditions.
  The licensee shall be subject to the following conditions of licence as an exception to the requirements set out in section 29 of the Broadcasting Distribution Regulations:
 
  • If the licensee has 20,000 or more subscribers in the licensed area of a broadcasting distribution undertaking (BDU) on August 31 of the previous broadcast year and distributes programming that qualifies as local expression on a video-on-demand or pay-per-view service, the licensee shall make, in each broadcast year, a contribution to Canadian programming of not less than the greater of
 

(a) 5% of its gross revenues derived from broadcasting activities in the licensed area in the year, less any contribution to local expression made by the licensee in the licensed area in that year, and

 

(b) 3% of its gross revenues derived from broadcasting activities in the licensed area in the broadcast year.

 
  • If the licensee has fewer than 20,000 subscribers in the licensed area of a BDU on August 31 of the previous broadcast year and distributes programming that qualifies as local expression on a video-on-demand or pay-per-view service, the licensee shall make, in each broadcast year, a contribution of not less than 5% of its gross revenues derived from broadcasting activities in the licensed area in the year to Canadian programming, less any contribution to local expression made by the licensee in the licensed area in that year.
 
  • If the licensee has 20,000 or more subscribers in the licensed area of a BDU on August 31 of the previous broadcast year and does not distribute programming that qualifies as local expression on a video-on-demand or pay-per-view service, and if a community programming undertaking is licensed in the licensed area, the licensee shall make, in each broadcast year, a contribution of not less than
 

(a) 3% of its gross revenues derived from broadcasting activities in the licensed area in the broadcast year to Canadian programming, and

 

(b) 2% of its gross revenues derived from broadcasting activities in the licensed area in the broadcast year to the community programming undertaking.

 
  • If the licensee has fewer than 20,000 subscribers in the licensed area of a BDU on August 31 of the previous broadcast year and does not distribute programming that qualifies as local expression on a video-on-demand or pay-per-view service, and if a community programming undertaking is licensed in the licensed area, the licensee shall make, in each broadcast year, a contribution of 5% of its gross revenues derived from broadcasting activities in the licensed area in the broadcast year to the community programming undertaking.
 
  • If a licensee does not distribute programming that qualifies as local expression on a video-on-demand or pay-per-view service, and if no community programming undertaking is licensed in the licensed area, the licensee shall make, in each broadcast year, a contribution of not less than 5% of its gross revenues derived from broadcasting activities in the licensed area in the year to Canadian programming.
 
  • For the purpose of calculating the licensee's contribution to local expression for each of the Regina and Saskatoon licensed areas, the licensee may include the contributions to local expression made for programming produced in other licensed areas, for programming produced outside the licensed areas or for programming covering provincial events, up to a maximum of 20% of the total contribution to local expression applicable for each of the Regina and Saskatoon licensed areas.
 

For the purpose of these conditions:

  "video-on-demand service" means the video-on-demand programming undertaking authorized in New video-on-demand service for Saskatchewan, Broadcasting Decision CRTC 2003-451, 5 September 2003, as amended from time to time;
  "pay-per-view service" means the pay-per-view programming undertaking authorized in Pay-per-view service, Broadcasting Decision CRTC 2006-491, 8 September 2006, as amended from time to time:
  "contribution to local expression" means the eligible expenses for local expression made in accordance with Public Notice CRTC 1997-25, entitled New Regulatory Framework for Broadcasting Distribution Undertakings, as amended from time to time;
  "local expression" refers to programming that qualifies as local expression in accordance with the conditions of licence applicable to the programming service.
 

"contribution to Canadian programming" shall have the meaning set out in section 29(1) of the Broadcasting Distribution Regulations.

 

Appendix B to Broadcasting Decision CRTC 2006-490

 

Amendments to the broadcasting licence issued to Saskatchewan Telecommunications (SaskTel) to carry on a regional, Saskatchewan-based video-on-demand programming undertaking

  1. The licensee shall continue to be subject to the conditions set out in New video-on-demand service for Saskatchewan, Broadcasting Decision CRTC 2003-451, 5 September 2003, with the exception of condition of licence 1, which is replaced by the following condition:
 

The licensee shall adhere to the Pay Television Regulations, 1990, with the exception of section 3(2)(d) (commercial messages); section 3(2)(e) (programming produced by the licensee); section 3(2)(f) (programming produced by a person related to the licensee); and section 4 (logs and records).

  2. The condition of licence approved in Max Front Row - Licence amendments, Broadcasting Decision CRTC 2006-132, 5 April 2006 is replaced by the following condition:
 

The licensee shall not include as part of its video-on-demand offering any program containing a commercial message except as otherwise provided in the conditions of licence relating to local expression, or where:

 

a) the message was already included in a program previously broadcast by a Canadian programming service;

 

b) the program's inclusion as part of the video-on-demand offering is in accordance with the terms of a written agreement entered into with the operator of the Canadian programming service that broadcast the program; and

 

c) the program is offered to subscribers on an on-demand basis at no charge.

  3. (1) Subject to 3.(2) and 3.(3) below, the following programming will qualify as local expression for the purpose of contributions to local expression by a broadcasting distribution undertaking:
 

(a) community programming;

 

(b) a public service announcement;

 

(c) an information program funded by and produced for a federal, provincial or municipal government or agency or a public service organization;

 

(d) the question period of the legislature of the province of Saskatchewan in which each of SaskTel's BDUs' licensed areas is located;

 

(e) a still image programming service as described in Public Notice CRTC 1993-51, entitled Exemption Order Respecting Still Image Programming Service Undertakings, if the service is produced by the licensee or by members of the community served by the undertaking and does not contain commercial messages, other than commercial messages contained within the programming service of a licensed radio station; or

 

(f) the programming of a community programming undertaking.

  (2) The community programming offered pursuant to 3.(1)(a) above may include:
 

(a) an announcement providing information about the community programming that is offered as local expression;

 

(b) a commercial message that mentions or displays the name of a person who sponsored a community event or the goods, services or activities sold or promoted by the person, if the mention or display is in the course of, and incidental to the production of, community programming relating to the event;

 

(c) an oral or written acknowledgement, that may include a moving visual presentation of no more than 15 seconds per message, contained in community programming that mentions no more than the name of a person, a description of the goods, services or activities that are being sold or promoted by the person, and their address and telephone number, if the person provided direct financial assistance for the community programming in which the acknowledgement is contained; and

 

(d) an oral or a written acknowledgement contained in community programming that mentions no more than the name of a person, the goods or services provided by the person and their address and telephone number, if the person provided the goods or services free of charge to the licensee for use in connection with the production of the community programming in which the acknowledgement is contained.

  (3) The programming offered as local expression will qualify as local expression for purposes of the contributions to local expression by a broadcasting distribution undertaking if:
 

(a) the licensee establishes an independent programming committee, in accordance with the terms of reference set out in Appendix C to this decision, as amended and approved by the Commission from time to time, with a view to ensuring that the licensee enjoys freedom of expression and journalistic, creative and programming independence in the pursuit of its objects and in the exercise of its powers;

 

(b) the programming is offered to subscribers on an on-demand basis at no charge;

 

(c) the licensee devotes not less than 60% of the programming offered as local expression for each licensed area to local community television programming;

 

(d) the licensee devotes not less than 30% of the programming offered as local expression to community access television programming;

 

(e) the licensee devotes from 30% to 50% of the programming offered as local expression for each licensed area to community access television programming, according to requests;

 

(f) where one or more community television corporations are in operation in a licensed area, the licensee makes available to them for community access television programming, on an equitable basis, up to 20% of the programming offered as local expression for each licensed area;

 

(g) where, during an election period, the licensee offers programming in a licensed area that is of a partisan political character, the licensee shall allocate an equal number of titles of equal duration for all accredited political parties and rival candidates; and

 

(h) the licensee shall not offer any programming of a partisan political character during provincial election periods.

  4. The licensee shall retain a clear and intelligible audio-visual recording of each program offered as part of the programming that qualifies as local expression for a period of:
 

(a) four weeks after the latest date on which the program is offered; or

 

(b) eight weeks after the latest date on which the program is offered, if the Commission receives a complaint from a person regarding the program or, for any other reason, wishes to investigate, and so notifies the licensee before the end of the period referred to in paragraph (a).

  5. If before the end of the relevant period referred to in condition of licence 4, the Commission requests from a licensee a clear and intelligible audio or audio-visual recording of a program, the licensee shall immediately furnish the recording to the Commission.
  For the purpose of these conditions,
  "community access television programming", "community programming", "licensed area", and "local community television programming" shall have the meaning set out in section 1 of the Broadcasting Distribution Regulations.
 

Appendix C to Broadcasting Decision CRTC 2006-490

 

Terms of Reference for the Independent Programming Committee

  In order to ensure programming independence, the licensee will establish an Independent Programming Committee in accordance with the following:
  1) There shall be a committee of nine (9) persons, one person from each of the broadcasting distribution undertakings' licensed areas, to be known as the Independent Programming Committee that shall be responsible for making all programming decisions.
  "Programming decisions" means all decisions relating to or affecting the programming offered as local expression by the PPV and VOD undertakings, and includes decisions relating to the content and presentation of this programming.
  2) The Independent Programming Committee shall ensure the programming is in conformity with any applicable conditions, regulations, and policies of the Canadian Radio-television and Telecommunications Commission (CRTC), as well as with the Broadcasting Act.
  3) The licensee shall seek nominations of individuals from non-profit cultural, sporting, and recreational organizations who have strong associations within the communities they reside and a strong desire to showcase a balanced view of their community.
  4) To ensure a high level of citizen participation and community involvement in the outlet for local expression, members of the Independent Programming Committee shall seek opportunities for program proposals and encourage submissions that reflect the makeup of their communities from within the communities they represent.
  5) No member of the Independent Programming Committee shall be a member of the Board, a director, or an employee of the licensee or any of its affiliates.
  6) All of the members of the Independent Programming Committee shall be residents of the serving community they represent.
  7) Members of the Independent Programming Committee shall be appointed for a period of two (2) years.
  8) A quorum of the Independent Programming Committee shall be a majority of its members.
  9) Decisions of the Independent Programming Committee shall be made by a majority of the members present at a meeting of the Committee, either in person or by telephone.
  10) No change shall be made to these criteria unless prior CRTC approval is obtained.
  Footnotes:
 1 Broadcasting Public Notice CRTC 2006-18, 16 February 2006 incorrectly listed Melfort as one of the Saskatchewan communities in which SaskTel is licensed to carry on a BDU undertaking.

2 With the exception of those requirements pertaining to commercial messages and to the retention of logs and records.  

3 In Pay-per-view service, Broadcasting Decision CRTC 2000-491 of today's date, the Commission approves an application by SaskTel for a broadcasting licence to operate a national general interest terrestrial pay-per-view (PPV) programming undertaking, whose service would also include an outlet for local expression. The proposed community programming provided on the outlet for local expression would consist primarily of amateur sports offered to subscribers free of charge.

Date Modified: 2006-09-08

Date modified: