ARCHIVED - Broadcasting Decision CRTC 2010-193
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Route reference: 2010-193-1 Additional reference: 2009-803 | |||||
Ottawa, 30 March 2010 | |||||
ZoomerMedia Limited Across Canada Application 2009-1222-1, received 3 September 2009 | |||||
Christian Channel Inc. Fraser Valley, British Columbia and Winnipeg, Manitoba Application 2009-1223-9, received 4 September 2009 | |||||
ONE: The Body, Mind and Spirit Channel Inc. Across Canada Application 2009-1224-7, received 4 September 2009 | |||||
MZ Media Inc. Toronto and across Canada Application 2009-1278-4, received 17 September 2009 | |||||
Public Hearing in the National Capital Region 22 February 2010 | |||||
Vision TV – Acquisition of assets | |||||
The Commission approves, subject to certain conditions, the applications by ZoomerMedia Limited (ZoomerMedia), on behalf of itself and on behalf of Christian Channel Inc. and ONE: The Body, Mind and Spirit Channel Inc., for authority to effect a multi-step transaction involving the specialty television service VisionTV, the Category 1 specialty television service ONE: The Body, Mind and Spirit Channel and the television stations CHNU-TV Fraser Valley and CIIT-TV Winnipeg, as well as for a new broadcasting licence to continue the operation of VisionTV. | |||||
Further, the Commission approves an application by MZ Media Inc. for authority to transfer all its issued and outstanding shares from Mr. Moses Znaimer to ZoomerMedia. | |||||
Introduction | |||||
1. | The Commission received applications by ZoomerMedia Limited (ZoomerMedia), on behalf of itself and on behalf of Christian Channel Inc. (CCI) and ONE: The Body, Mind and Spirit Channel Inc. (ONE), for authority to effect a multi-step transaction involving the specialty television programming undertaking VisionTV, the Category 1 specialty television programming undertaking ONE: The Body, Mind and Spirit Channel and the television programming undertakings CHNU-TV Fraser Valley, British Columbia and CIIT-TV Winnipeg, Manitoba, pursuant to section 10(4) of the Specialty Services Regulations, 1990 (the Specialty Regulations) and section 14(4) of the Television Broadcasting Regulations, 1987 (the Television Regulations). ZoomerMedia requested a new broadcasting licence to continue the operation of VisionTV under the same terms and conditions as those in effect under the current licence. | ||||
2. | The Commission also received an application by MZ Media Inc. (MZ Media) for authority to transfer all the issued and outstanding shares of MZ Media, owner of the unlaunched Category 2 specialty programming undertaking to be known as Classical Digital and licensee of the radio programming undertakings CFZM, CFMZ-FM, CFMZ-DR-1 Toronto and CFMX-FM Cobourg, Ontario, from Mr. Moses Znaimer to ZoomerMedia, pursuant to section 10(4) of the Specialty Regulations and section 11(4) of the Radio Regulations, 1986 (the Radio Regulations). | ||||
3. | The proposed transactions would be implemented in the following four steps: | ||||
The acquisitions | |||||
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The corporate reorganization | |||||
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4. | Vision TV Network, the current licensee of VisionTV, is a not-for-profit corporation and the sole shareholder of CCI, the current licensee of CHNU-TV and CIIT-TV. In addition, Vision TV Network is the sole shareholder of Vision TV Digital. In turn, Vision TV Digital holds a voting interest of 47.22% in ONE, the current licensee of ONE: The Body, Mind and Spirit Channel, and exercises control by virtue of a voting trust agreement between ONE's shareholders. | ||||
5. | ZoomerMedia is a public corporation effectively controlled by Mr. Moses Znaimer, who owns directly and indirectly, through his holding corporation Olympus Management Limited, 77.89% of the voting interest in ZoomerMedia. Following the transaction, Mr. Znaimer would own, directly and indirectly, a 66.28% voting interest in ZoomerMedia and continue to exercise effective control of the corporation. | ||||
6. | The Commission received numerous interventions in support of the applications, one intervention in opposition and several comments. The public record of this proceeding is available on the Commission's website at www.crtc.gc.ca under "Public Proceedings." | ||||
Acquisitions of assets | |||||
7. | After examining the applications in light of applicable regulations and policies and taking into account the interventions received and ZoomerMedia's replies to the interventions, the Commission considers that the issues to be addressed in its determinations are the following: | ||||
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Assessment of the value of the transactions | |||||
8. | Because the Commission does not solicit competing applications for authority to transfer the ownership or control of radio, television and other programming undertakings, the onus is on the applicants to demonstrate that the proposed value of the transactions is acceptable and reasonable. | ||||
9. | In accordance with the Asset and Share Purchase Agreement (the Agreement), the purchase price for all the transactions is $25 million. | ||||
10. | The Commission's practice is to include the following in the value of a transaction: the value of conditional future payments, the value of commitments related to operating leases and the value of debt assumed by the purchaser. It is also the Commission's practice to calculate the value of a transaction as a whole without excluding certain elements. The allocation among different assets for the purpose of considering the proposed tangible benefits package only takes place after the assessment of the value of a transaction as a whole. | ||||
11. | The Agreement provides for the conditional purchase of programming for VisionTV for a maximum value of $3 million. Further, the Commission notes that ZoomerMedia will be assuming operating lease commitments that are valued at $1,369,358 in total. These lease commitments include commitments for premises before the move in one year to the broadcast centre purchased by ZoomerMedia, commitments for transmitters and other equipment and a proportion of 47.2% of the commitments related to ONE reflecting the economic interest acquired. Finally, the Commission notes that ZoomerMedia will not be assuming any debt. | ||||
12. | The following table provides the details of the revised value of the transactions: | ||||
Revised value of the transactions | |||||
Purchase price | $25,000,000
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Add: |
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Conditional purchase of programming | $3,000,000 | ||||
Lease commitments | $1,369,358 | ||||
Total | $29,369,358 | ||||
13. | The allocation of the value of the transaction is of particular importance in the context of these transactions because ZoomerMedia, on behalf of CCI, expressed the view that it should not pay tangible benefits for CHNU-TV and CIIT-TV's change in effective control. The Commission must therefore ensure that the valuation has been properly conducted and that the undertakings not subject to the benefit requirements are not overvalued. | ||||
14. | Of the $25 million purchase price, ZoomerMedia allocated $6 million (24%) to CHNU-TV and CIIT-TV and the balance (76%) to the specialty services. | ||||
15. | ZoomerMedia submitted that the $6 million value for the purchase of CHNU-TV and CIIT-TV is reasonable and that there should be no further adjustment due to the following factors:
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16. | The Commission considers that ZoomerMedia has adopted a conservative approach to valuating the stations, given that its calculations are based on past information. It is the Commission's view that a purchaser acquires assets for the expected future profits and not past results, and that the valuation should reflect that reality, including expected synergies and the prospect of economic recovery. | ||||
17. | Notwithstanding the above and in light of the recently concluded sale and the economic downturn at the time of the transaction, the Commission determines that CHNU-TV and CIIT-TV are not overvalued and accepts the portion of the purchase price allocated to these stations ($6 million, representing 24% of the transaction). Accordingly, the Commission applies the same proportions to the allocation of the revised value of the transactions as illustrated in the following table: | ||||
Allocation of the revised value of the transaction | |||||
CHNU-TV and CIIT-TV VisionTV and ONE: The Body, Mind and Spirit Channel | $7,048,646 $22,320,712 | 24% 76% | |||
Total | $29,369,358 | 100% | |||
Assessment of the proposed tangible benefits | |||||
Television | |||||
18. | As set out in Public Notice 1999-97, the Commission generally expects applicants to make clear and unequivocal commitments to provide tangible benefits representing 10% of the value of a transaction, as accepted by the Commission. Such benefits should be directed to the communities served and to the broadcasting system as a whole. Further, in order to be accepted as a benefit, the proposed expenditure must be incremental to expenditures that would generally be considered ongoing normal responsibilities of the existing licensee. | ||||
Relief from tangible benefits for CCI's change in effective control | |||||
19. | ZoomerMedia, on behalf of CCI, requested to be relieved from the obligation to provide a tangible benefits package equal to 10% of the value of the transaction for the change of effective control of CCI, licensee of CHNU-TV and CIIT-TV, beyond the benefits remaining to be paid by CCI following its acquisition of the stations from Rogers Broadcasting Inc. (Rogers) pursuant to Broadcasting Decision 2008-71. At that time, in accordance with the Commission's exemption from the benefits policy for small-market stations announced in Public Notice 2007-53 (the small-market benefits exemption policy), the Commission relieved CCI from the payment of additional benefits beyond those inherited from Rogers. ZoomerMedia argued that the same relief should also be granted in this case. It indicated that CCI's remaining benefits would be paid in part before the closing of the transaction with the balance to be expended by 31 August 2011. | ||||
20. | Consistent with the Commission's small-market benefits exemption policy and for the same reasons detailed in Broadcasting Decision 2008-71, the Commission is not requiring the applicant to provide a tangible benefits package for this change in effective control. Nevertheless, as set out in the small-market benefits exemption policy, the Commission expects the purchaser of an undertaking to fulfil any of the vendor's outstanding benefit commitments. Accordingly, the Commission directs CCI to submit, within 30 days of the date of this decision, the details of the expenditures of CCI's remaining benefits to be expended by 31 August 2011. Those expenditures must be fulfilled by the aforementioned date. Conditions of licence to this effect are set out in Appendices 4 and 5 to this decision. | ||||
Other tangible benefits | |||||
21. | With respect to the acquisition of the assets of VisionTV and the change in effective control of ONE: The Body, Mind and Spirit Channel, ZoomerMedia and ONE proposed the following tangible benefits totalling $1,900,000 to be paid over a period of seven years from the date of closing. The Commission reminds the applicant that tangible benefits must be expended in a timely manner and that expenditures must be equally distributed over the seven-year period from the date of closing. | ||||
Tangible Benefits | Amount | ||||
ZoomerMedia Documentary Fund | $665,000 | ||||
Mosaic Production Enhancement | $475,000 | ||||
Broadband Initiative/Media Literacy (enhancements to Cinémathèque Québécoise's website) | $285,000 | ||||
Broadband Initiative/Spiritual Shorts | $190,000 | ||||
Television and New Media Awareness and Outreach on Health and Wellness for an Aging Population | $190,000 | ||||
National Screen Institute | $95,000 | ||||
22. | The Commission notes that the applicant proposed that the ZoomerMedia Documentary Fund, the Mosaic Production Enhancement initiative and the Television and New Media Awareness and Outreach on Health and Wellness for an Aging Population initiative would be self-directed funds. A detailed description of all benefits is set out in Appendix 6 to this decision. | ||||
Issues raised by Writers Guild of Canada regarding the proposed tangible benefits | |||||
Intervener's concerns | |||||
23. | The Writers Guild of Canada (WGC) questioned the appropriateness of allocating funding to the Broadband Initiative/Spiritual Shorts, an initiative managed by Vision TV Network, rather than to producers not party to the transaction. WGC further argued that funding for the Mosaic Production Enhancement initiative and Broadband Initiative/Media Literacy should not qualify as tangible benefits because neither would result in programming to be broadcast on VisionTV. WGC suggested that some or all of these benefits be reallocated to independently produced drama programming. | ||||
ZoomerMedia's response | |||||
24. | In reply, ZoomerMedia acknowledged that the Broadband Initiative/Spiritual Shorts would be administered by Vision TV Network. ZoomerMedia argued that the latter's expertise in commissioning and broadcasting programming of a spiritual nature and its commitment to the Canadian production community are sufficient to make this a tangible benefit. | ||||
25. | ZoomerMedia submitted that the Mosaic Production Enhancement initiative should qualify as an on-screen benefit because it would serve to improve the production value and overall appeal of the projects submitted by independent mosaic producers, resulting in the eventual broadcast of their programs on VisionTV and its affiliated stations. In addition, ZoomerMedia cited Decision 2001-746, in which the Commission accepted funding for Cinémathèque as a tangible benefit of an ownership transaction. | ||||
Commission's determinations | |||||
26. | The Commission questions ZoomerMedia's proposal to allocate funding to Vision TV Network, the current licensee of VisionTV, for the creation of audiovisual elements called Broadband Initiative/Spiritual Shorts. The Commission generally requires applicants to demonstrate that expenditures proposed as benefits will flow predominantly to third parties, such as independent producers. The Commission considers it inappropriate to allocate tangible benefits to the party involved in the transaction. Accordingly, the Commission directs ZoomerMedia and ONE to submit, within 30 days of the date of this decision, an alternate proposal to the Broadband Initiative/Spiritual Shorts for approval by the Commission. | ||||
27. | Based on the information provided by ZoomerMedia, the Commission considers that the Mosaic Production Enhancement initiative would not only serve to create mosaic programs but also to improve the overall quality of the projects that would qualify for funding. In light of this, the Commission is satisfied that this initiative is appropriately categorized as an on-screen benefit. | ||||
28. | The Commission did accept funding for Cinémathèque Québécoise as a tangible benefit of a transfer of control approved in Decision 2001-746. However, in that case, the initiative was not categorized as an on-screen benefit. In the present case, the Commission recognizes the value of the proposed funding for Cinémathèque but notes that this initiative would not result in an on-screen benefit for any programming undertaking involved in these transactions. In the Commission's view, this initiative would more appropriately be categorized as a social benefit. | ||||
29. | In light of the foregoing, the ratio of on-screen to social benefits of these transactions shifts from 85%:15% to 70%:30%, which is inconsistent with the Commission's general approach requiring that the majority (approximately 85%) of the benefits should result in on-screen programming. Accordingly, the Commission directs ZoomerMedia and ONE to submit, within 30 days of the date of this decision, an alternate proposal to the funding for Broadband Initiative/Media Literacy for approval by the Commission. | ||||
Issues raised by the Documentary Organization of Canada and On Screen Manitoba | |||||
Interveners' concerns | |||||
30. | The Documentary Organization of Canada (DOC) and On Screen Manitoba raised concerns about the proposed ZoomerMedia Documentary Fund. DOC argued that a self-directed fund such as this one eliminates the "checks and balances" needed to ensure that benefits are allocated as widely as possible within the production community. Both interveners noted that a lifestyle series had been suggested as an example of a documentary that would be eligible for this fund. In their view, only long-form documentaries should be eligible. Finally, DOC submitted that the overall value of this fund is modest in comparison to similar ones created in the context of other benefits packages. | ||||
ZoomerMedia's reply | |||||
31. | In reply, ZoomerMedia noted that the Commission has approved the creation of a production fund administered by the parties involved as tangible benefits of other ownership transactions.2 As for the genre of documentaries that would be supported by this fund, ZoomerMedia responded that the productions would fall within the Commission's definition of a documentary program and focus on social and political issues or have an historical and archaeological nature. Finally, regarding DOC's comments on the amount allocated to the ZoomerMedia Documentary Fund, ZoomerMedia noted that it is the most significant benefit of its proposed package. | ||||
Commission's determinations | |||||
32. | The Commission has allowed applicants to administer production funds in the past. In the Commission's view, such practices are appropriate when no administrative fees are charged. The Commission therefore reminds ZoomerMedia and ONE that no administrative fees may be charged for the ZoomerMedia Documentary Fund, the Mosaic Production Enhancement initiative and the Television and New Media Awareness and Outreach on Health and Wellness for an Aging Population initiative, which are all self-directed funds. | ||||
33. | The Commission also notes DOC's comments about the level of funding allocated to the ZoomerMedia Documentary Fund and is of the view that its value is commensurate with the size and nature of the transaction. | ||||
Additional tangible benefits resulting from the revised value of the transactions | |||||
34. | Considering the revised value of the transactions for the undertakings subject to the tangible benefits policy (i.e. VisionTV and ONE: The Body, Mind and Spirit Channel), the value of the proposed tangible benefits package will increase from the proposed $1,900,000 to $2,232,071 (i.e., 10% of the revised amount of $22,320,712). Given the revised tangible benefits package, the Commission directs ZoomerMedia and ONE to submit, within 30 days of the date of this decision, the details of the additional tangible benefits totalling $332,071 for approval by the Commission, as determined by the Commission in this decision. | ||||
Annual reporting | |||||
35. | The Commission notes ZoomerMedia's agreement to file annual reports on its progress and performance in implementing the proposed benefits. Accordingly, the Commission directs ZoomerMedia and ONE to file an annual report as long as monies are outstanding and imposes conditions of licence to this effect in Appendices 1, 3, 4 and 5 to this decision. | ||||
Incrementality | |||||
36. | ZoomerMedia committed to ensure that all production associated with its tangible benefits package related to VisionTV and ONE: The Body, Mind and Spirit Channel be incremental and indicated its willingness to adhere to the following condition of licence: | ||||
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37. | The Commission is satisfied that the proposed condition of licence will ensure that the tangible benefits expenditures are incremental to the Canadian programming expenditure requirements imposed on VisionTV and ONE: The Body, Mind and Spirit Channel. Conditions of licence in this regard are set out in Appendices 1 and 3 of this decision. | ||||
38. | The Commission also requires that the tangible benefits expenditures be incremental to the programming expenditures on conventional television stations. However, the applicant did not make any commitments to ensure incrementality of the programming benefits flowing from the specialty services in the case of programs that would be broadcast on CHNU-TV and CIIT-TV. The Commission is therefore imposing conditions of licence, as set out in Appendices 4 and 5 of this decision, to ensure that any benefit spending resulting in programs to be broadcast on these television undertakings would be incremental. | ||||
Not-for-profit status of Vision TV Network | |||||
Interveners' concerns | |||||
39. | Some interveners questioned whether ZoomerMedia, a commercial corporation, should be able to hold the broadcasting licence for VisionTV, which was originally licensed to a not-for-profit corporation. | ||||
ZoomerMedia's response | |||||
40. | ZoomerMedia submitted that the key issue was not whether VisionTV should be owned by a for-profit or not-for-profit entity but rather what ownership would best sustain this Canadian multi-faith and multicultural service and ensure its future success. ZoomerMedia added that the Vision TV Charity [Vision TV Network] Board "believed, and believes, that this can best be done under the proposed new ownership." | ||||
Commission's determination | |||||
41. | The Commission does not require the licensee of a television station or specialty undertaking that provides religious programming to have a not-for-profit ownership and management structure. Accordingly, the Commission considers that it is appropriate to allow a commercial corporation to be the licensee of VisionTV. | ||||
VisionTV's programming | |||||
Interveners' concerns | |||||
42. | A number of interveners expressed the concern that should the Commission approve the acquisition of assets of VisionTV by ZoomerMedia, the station's programming would be changed from a multi-faith format to one that is more focused on spirituality and multiculturalism and that is skewed to the 50-plus demographic. | ||||
ZoomerMedia's response | |||||
43. | ZoomerMedia agreed with the interveners that in the public interest VisionTV must remain a multi-faith channel. | ||||
Commission's determination | |||||
44. | The Commission recognizes that the programming on VisionTV may be modified once the change of ownership occurs. Nevertheless, the Commission notes that ZoomerMedia confirmed that it would operate the four undertakings it is acquiring under the same terms and conditions as those in effect under the current licences. The Commission is satisfied that VisionTV's nature of service condition of licence, as most recently set out in Broadcasting Decision 2004-397, and the definition of a religious program detailed in Public Notice 1993-78 provide sufficient safeguards to ensure that the programming on VisionTV remains consistent with its religious nature of service. | ||||
Other matters | |||||
Change in effective control | |||||
45. | As noted earlier, the Commission approved CCI's acquisition of CHNU-TV and CIIT-TV in Broadcasting Decision 2008-71. Consequently, the change in effective control of these undertakings would occur shortly after a previous sale. | ||||
46. | The Commission has carefully reviewed the arguments presented by the vendor and the purchaser and is satisfied with them. Furthermore, the Commission notes that the change in effective control of CCI and its undertakings is part of a larger multi-step transaction involving other assets that have not undergone a recent change in effective control. | ||||
47. | In light of the above, the Commission is satisfied that the integrity of the licensing process is not compromised. | ||||
Implementation of the Accessibility Policy – Broadcasting and Telecom Regulatory Policy 2009-43 | |||||
48. | In Broadcasting and Telecom Regulatory Policy 2009-430 (the Accessibility Policy), the Commission stated its intention to impose on television broadcasters and broadcasting distribution undertakings, at the time of their licence renewals, conditions of licence relating to accessibility provisions. Accordingly, the Commission will consider imposing such conditions of licence on VisionTV, ONE: The Body, Mind and Spirit Channel, CHNU-TV and CIIT-TV at the time of their next licence renewals. In the meantime, the Commission expects ZoomerMedia, ONE and CCI to adhere, as soon as possible, to the applicable accessibility requirements specified in the Accessibility Policy. | ||||
Conclusion | |||||
49. | In light of the above, the Commission approves, subject to certain conditions, the applications by ZoomerMedia Limited, on behalf of itself and on behalf of Christian Channel Inc. and ONE: The Body, Mind and Spirit Channel Inc., for authority to effect a multi-step transaction involving the specialty television programming undertaking VisionTV, the Category 1 specialty television programming undertaking ONE: The Body, Mind and Spirit Channel and the television programming undertakings CHNU-TV Fraser Valley and CIIT-TV Winnipeg, pursuant to section 10(4) of the Specialty Regulations and section 14(4) of the Television Regulations, as well as for a new broadcasting licence to continue the operation of VisionTV. | ||||
50. | The Commission reminds the licensee that it expects broadcasters operating in the mandatory markets identified in Broadcasting Regulatory Policy 2010-167 to convert their full-power, over-the-air analog transmitters to digital by 31 August 2011. CHNU-TV and CIIT-TV are both located in mandatory markets and are expected to convert to digital by that time. | ||||
51. | Upon surrender of the current licence for VisionTV issued to Vision TV: Canada's Faith Network/Réseau religieux canadien, the Commission will issue a new licence to ZoomerMedia Limited. The licence will expire 31 August 2011, the current licence expiry date, and will be subject to the terms and conditions specified therein and to those set out in Appendix 1 to this decision. | ||||
Conditions of approval | |||||
52. | The Commission requires the following: | ||||
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The corporate reorganization | |||||
53. | The Commission has examined and is satisfied with the application by MZ Media for authority to effect a corporate reorganization through the transfer of all the issued and outstanding shares in the capital of MZ Media from Mr. Moses Znaimer to ZoomerMedia, a corporation also controlled by Mr. Znaimer. As a result of the transaction, effective control of MZ Media will continue to be exercised by Mr. Moses Znaimer. | ||||
54. | Accordingly, the Commission approves the application by MZ Media Inc. for authority to transfer all of its issued and outstanding shares from Mr. Moses Znaimer to ZoomerMedia Limited, pursuant to section 10(4) of the Specialty Regulations and section 11(4) of the Radio Regulations. | ||||
Secretary General | |||||
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This decision is to be appended to each 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. |
Appendix 1 to Broadcasting Decision CRTC 2010-193 | |
Terms, conditions of licence and encouragement for the specialty television programming undertaking VisionTV | |
Terms | |
The licence will expire 31 August 2011. | |
Conditions of licence | |
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2. In each broadcast year, the licensee shall devote to the exhibition of Canadian programs not less than 65% of the broadcast day and not less than 50% of the evening broadcast period. | |
3. In accordance with the Commission's position on Canadian programming expenditures as set out in New Flexibility With Regard to Canadian Program Expenditures by Canadian Television Stations, Public Notice CRTC 1992-28, 8 April 1992, in The reporting of Canadian programming expenditures, Public Notice CRTC 1993-98, 22 June 1993, and in Additional clarification regarding the reporting of Canadian programming expenditures, Public Notice CRTC 1993-174, 10 December 1993, as may be amended from time to time: | |
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i) from the minimum required expenditure for the following year of the licence term, an amount not exceeding the amount of the previous year's over-expenditure; and | |
ii) from the minimum required expenditure for any subsequent broadcast year of the licence term, an amount not exceeding the difference between the over-expenditure and any amount deducted under (i) above. | |
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(g) The solicitation of funds in Mosaic programming shall together comprise no more than 90 seconds per half-hour and no accumulation shall be permitted. | |
9. The licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.10 per subscriber per month for exhibition on the basic service. Effective 1 December 2004, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.12 per subscriber per month for exhibition on the basic service. | |
10. The licensee shall adhere to the Canadian Association of Broadcasters' Equitable Portrayal Code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended if the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
11. The licensee shall adhere to the Canadian Association of Broadcasters' Broadcast Code for Advertising to Children, as amended from time to time and approved by the Commission. | |
12. The licensee shall adhere to the Canadian Association of Broadcasters' CAB Violence Code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended if the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
13. Together with the record required to be filed with the Commission pursuant to subsection 7(2) of the Specialty Services Regulations, 1990, the licensee shall provide in its program log or machine readable record for each solicitation of funds, the time of commencement and duration. | |
14. The licensee shall provide closed captioning for not less than 90% of its programming during the broadcast day, with the exception of Mosaic programming. | |
15. The licensee shall broadcast one hour a week of described video programming starting no later than 1 September 2005 and shall increase this level to three hours a week by 1 September 2009. | |
For the purpose of these conditions of licence: | |
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Encouragement | |
Employment equity | |
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. |
Appendix 2 to Broadcasting Decision CRTC 2010-193 | |
Terms of reference for the Mosaic Program Management Group | |
The Mosaic Program Management Group is a structure designed to deal with matters of policy and action pertaining to Mosaic programming, scheduling and adherence to the Code of Ethics and Program Practices. | |
The terms of reference for this group are: | |
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Appendix 3 to Broadcasting Decision CRTC 2010-193 | |||
Terms, conditions of licence, expectations and encouragement for the Category 1 specialty programming undertaking One: The Body, Mind and Spirit Channel | |||
Terms | |||
The licence will expire 31 August 2010. | |||
Conditions of licence | |||
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(b) The programming must be drawn exclusively from the following categories set out in item 6 of Schedule I to the Specialty Services Regulations, 1990: | |||
2(b) Long-form documentary | |||
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Exhibition of Canadian programs | |||
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Broadcast day | Evening broadcast period | ||
Year one | 50% | 50% | |
Year two | 50% | 50% | |
Year three | 55% | 55% | |
Year four | 55% | 55% | |
Year five | 60% | 60% | |
Year six | 60% | 60% | |
Year seven | 60% | 60% | |
Expenditures on Canadian programs | |||
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(a) In each broadcast year following the first year of operation, the licensee shall expend on Canadian programs not less than 41% of the previous broadcast year's gross advertising, infomercial and subscription revenues; | |||
(b) In each broadcast year following the first year of operation, excluding the final year, the licensee may expend an amount on Canadian programs that is up to ten percent (10%) less than the minimum required expenditure for that year set out in or calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year's under-expenditure; | |||
(c) In each broadcast year following the first year of operation, where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year set out in or calculated in accordance with this condition, the licensee may deduct: | |||
(i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's over-expenditure; and | |||
(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the over-expenditure and any amount deducted under paragraph (i) above. | |||
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4. For the purpose of fulfilling the Canadian programming expenditure requirement, the licensee may not include any expenditure related to programming that has been funded out of the benefits package approved by the Commission with respect to the transfer of effective control of Vision TV Digital Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited's. | |||
5. In accordance with its commitment, the licensee shall file with the Commission, concurrently with the annual return, annual reports setting out the details of all expenditures related to the tangible benefits associated with the transfer of effective control of Vision TV Digital Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited. | |||
For the purpose of these conditions, the term "broadcast day" shall have the same meaning as that set out in the Television Broadcasting Regulations, 1987. | |||
Expectations | |||
Service to persons who are deaf or whose hearing is impaired | |||
The Commission expects the licensee to caption a minimum of 90% of all programming during the broadcast day. | |||
Service to persons who are blind or whose vision is impaired | |||
The Commission expects the licensee to provide an audio description of all programming that provides textual or graphic information. The Commission also expects the licensee to acquire and make available described versions of programming, where possible, and to ensure that its customer service responds to the needs of visually impaired customers. | |||
Encouragement | |||
Employment equity | |||
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. |
Appendix 4 to Broadcasting Decision CRTC 2010-193 | |
Terms, conditions of licence and encouragement for the television programming undertaking CHNU-TV Fraser Valley | |
Terms | |
The licence will expire 31 August 2011. | |
Conditions of licence | |
1. Not less than 75% of all programming broadcast by the licensee during the broadcast day and not less than 50% of the programming broadcast during peak time hours (7 p.m. to 11 p.m.) shall be devoted to programs drawn from Category 4 - Religion, as set out in Schedule I to the Television Broadcasting Regulations, 1987. | |
2. The remainder of the programming broadcast by the licensee may be: | |
a) programming that reflects broadly accepted religious, spiritual, ethical or moral values; and/or | |
b) other programming, provided it is contextualized and each contextual segment is: | |
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a) For the purpose of this condition of licence, "balance programming" is defined as programming devoted to providing differing views on issues and events presented during the station's primary programming, which addresses matters from a Christian perspective, and includes the presentation of different religions. | |
b) At least 7.5 hours of the 18 hours of balance programming referred to above shall be faith-specific programming produced by individual non-Christian groups. This programming will include presentations from the Buddhist, Hindu, Jewish, Muslim and Sikh perspectives and be broadcast on weekdays between 7 p.m. and 11 pm. and on Saturdays from 8:30 a.m. to 1:30 p.m. | |
4. The licensee shall not broadcast more than six hours per week of Canadian programs produced by CFMT-TV and/or CJMT-TV. | |
5. Not less than 50% of all programming broadcast during peak time (7 p.m. to 11 p.m.) shall be Canadian programs. | |
6. The licensee shall not broadcast more than 12 minutes of advertising material per hour, including solicitation. For clarification purposes, this condition applies to all regular programming as well as all brokered or "paid to air" programming. | |
7. The licensee shall provide closed captioning for not less than 90% of all programs broadcast during the broadcast year. | |
8. The licensee shall broadcast, at a minimum, between 7 p.m. and 11 p.m., the following amounts of described video programming: | |
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9. The licensee shall fulfill, by 31 August 2011, all outstanding required tangible benefit expenditures flowing from Christian Channel Inc.'s acquisition of the assets of the television programming undertakings CHNU-TV Fraser Valley and CIIT-TV Winnipeg approved in Acquisition of assets, Broadcasting Decision CRTC 2008-71, 31 March 2008. | |
10. For the purpose of fulfilling the spending requirement on Canadian programming, the licensee may not include any expenditure related to programming that has been funded out of the benefits package approved by the Commission with respect to the transfer of effective of control of Christian Channel Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited. | |
11. In accordance with its commitment, the licensee shall file with the Commission, concurrently with the annual return, annual reports setting out the details of all expenditures related to the tangible benefits associated with the transfer of effective control of Christian Channel Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited. | |
12. The licensee shall adhere to the guidelines on ethics set out in the Commission's Religious Broadcasting Policy, Public Notice CRTC 1993-78, 3 June 1993, as amended from time to time. | |
13. The licensee shall adhere to Canadian Association of Broadcasters' Equitable Portrayal Code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended if the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
14. The licensee shall adhere to the Canadian Association of Broadcasters' Broadcast code for advertising to children, as amended from time to time and approved by the Commission. | |
15. The licensee shall adhere to the Canadian Association of Broadcasters' CAB Violence code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended if the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
Encouragement | |
Employment equity | |
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. |
Appendix 5 to Broadcasting Decision CRTC 2010-193 | |
Terms, conditions of licence and encouragement for the television programming undertaking CIIT-TV Winnipeg | |
Terms | |
The licence will expire 31 August 2011. | |
Conditions of licence | |
1. Not less than 75% of all programming broadcast by the licensee during the broadcast day and not less than 50% of the programming broadcast during peak time hours (7 p.m. to 11 p.m.) shall be devoted to programs drawn from Category 4 Religion, as set out in item 6 of Schedule I to the Television Broadcasting Regulations, 1987. | |
2. The remainder of the programming broadcast by the licensee may be: | |
a) programming that reflects broadly accepted religious, spiritual, ethical or moral values; and/or | |
b) other programming, provided it is contextualized and each contextual segment is: | |
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a) For the purpose of this condition of licence, "balance programming" is defined as programming devoted to providing differing views on issues and events presented during the station's primary programming and includes the presentation of different religions. | |
b) At least 7.5 hours of the 18 hours of balance programming referred to above shall be broadcast between 6 p.m. and 11 p.m. and shall be original Canadian programs. | |
c) The licensee shall submit, within 60 days of the end of each broadcast year, a report for each week in the broadcast year that includes the title, the broadcast date, broadcast time and duration of its balance programs, along with a brief description of each balance program that describes how the program served to fulfil the terms of this condition. | |
4. The licensee shall not broadcast more than six hours per week of Canadian programs produced by CFMT-TV and/or CJMT-TV. | |
5. Not less than 50% of all programming broadcast during peak time (7 p.m. to 11 p.m.) shall be Canadian programs. | |
6. The licensee shall not broadcast more than 12 minutes of advertising material per hour, including solicitation. For clarification purposes, this condition applies to all regular programming as well as all brokered or "paid to air" programming. | |
7. The licensee shall provide closed captioning for not less than 90% of all programs broadcast during the broadcast year. | |
8. The licensee shall broadcast, at a minimum, between 7 p.m. and 11 p.m., the following amounts of described video programming: | |
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9. The licensee shall fulfill, by 31 August 2011, all outstanding required tangible benefit expenditures flowing from Christian Channel Inc.'s acquisition of the assets of the television programming undertakings CHNU-TV Fraser Valley and CIIT-TV Winnipeg approved in Acquisition of assets, Broadcasting Decision CRTC 2008-71, 31 March 2008. | |
10. For the purpose of fulfilling the spending requirement on Canadian programming, the licensee may not include any expenditure related to programming that has been funded out of the benefits package approved by the Commission with respect to the transfer of effective of control of Christian Channel Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited. | |
11. In accordance with its commitment, the licensee shall file with the Commission, concurrently with the annual return, annual reports setting out the details of all expenditures related to the tangible benefits associated with the transfer of effective control of Christian Channel Inc. from Vision TV: Canada's Faith Network/Réseau religieux canadien to ZoomerMedia Limited. | |
12. The licensee shall adhere to Canadian Association of Broadcasters' Equitable Portrayal Code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended if the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
13. The licensee shall adhere to the Canadian Association of Broadcasters'Broadcast code for advertising to children, as amended from time to time and approved by the Commission. | |
14. The licensee shall adhere to the Canadian Association of Broadcasters' CAB Violence Code, as amended from time to time and approved by the Commission. However, the application of the foregoing condition of licence will be suspended as long as the licensee is a member in good standing of the Canadian Broadcast Standards Council. | |
Encouragement | |
Employment equity | |
In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. |
Appendix 6 to Broadcasting Decision CRTC 2010-193 | |||
Allocation of the proposed tangible benefits | |||
On-screen benefits | |||
Benefits | Amount | Description | |
ZoomerMedia DocumentaryFund | $665,000 |
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Mosaic Production Enhancement | $475,000 |
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Broadband Initiative/Media Literacy (Cinémathèque Québécoise) | $285,000 |
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Broadband Initiative/Spiritual Shorts | $190,000 |
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Social/Community Benefits | |||
Television and New Media Awareness and Outreach on Health and Wellness for an Aging Population | $190,000 |
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National Screen Institute | $95,000 |
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Footnotes1 See Broadcasting Decision 2008-71. 2 See Broadcasting Decisions 2007-360, 2007-165 and 2000-747. |
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