ARCHIVED - Broadcasting Commission Letter Addressed to Du-Yi Leu (Bell Media Inc.)

Ottawa, 5 November 2015

VIA EMAIL: bell.regulatory@bell.ca

Ms. Du-Yi Leu
Director, Regulatory Affairs
Bell Media Inc.
299 Queen Street West
Toronto, Ontario M5V 2Z5

Re: Follow-up to Broadcasting Decision 2015-243 – Revised tangible benefits proposal by Bell Media Inc. related to the former Astral assets that were divested

Ms. Leu:

The Commission sets out below its determinations in regard to the revised tangible benefits proposal related to the former Astral assets that were divested, which Bell Media Inc. (Bell) filed on 9 July 2015 as required in Decision 2015-243.^{Footnote 1}

Allocation and timeframe for payment

As set out in Decision 2015-243, the total value of the additional tangible benefits is $12,594,300. Further, as set out in that decision and in accordance with the approach set out in Regulatory Policy 2014-459,^{Footnote 2} at least 80% of the tangible benefits shall be allocated to the Canada Media Fund (CMF) or certified independent production funds with a minimum of 60% of this amount allocated to the CMF. The remaining 20% of tangible benefits may be allocated to discretionary initiatives.

Bell proposed to allocate 80% ($10,075,440) of the benefits to funds, of which 60% would go to the CMF ($6,045,264) and 40% to the Harold Greenberg Fund ($4,030,176). These benefits would be allocated equally between the English- and French-language markets. The remaining 20% of the tangible benefits ($2,518,860) would be allocated to discretionary initiatives, at a ratio of 64% to the French-language market, and 36% to the English-language market. The benefits would be allocated in equal payments to the various funds and initiatives over the remaining five years of the tangible benefits term approved in Decision 2015-243, and be paid in full by 31 August 2020.

The Commission notes that the Harold Greenberg Fund is an eligible initiative, as it is a certified independent production fund that supports the production of English- and French-language films, as well as French-language documentaries, musicals, special events and video-clips. The Commission is of the view that Bell’s proposed allocation of the benefits is consistent with Decision 2015-243 and Regulatory Policy 2014-459, and that the proposed timeframe for payment is consistent with that approved in Decision 2015-243. Consequently, subject to the comments below respecting the eligibility of discretionary initiatives, the Commission approves the proposed allocation of additional tangible benefits.

Eligibility of discretionary initiatives

The Commission approves the proposed discretionary initiatives numbered 1 to 11 in the appendix to this letter.

In regard to the initiatives numbered 12 to 20, the Commission notes that Bell proposes to direct contributions to a number of third-party organizations that are not directly related to the broadcasting industry.  However, the Commission finds that Bell proposes to fund specific activities that would be run by those organizations and that would provide support to:

• independent production;
• digital media content production; and
• broadcasting industry-related training and conferences operated by third parties.

As set out in Regulatory Policy 2014-459, the Commission puts the onus on licensees to demonstrate the eligibility of spending in their annual tangible benefits reports. As such, Bell is required to file, as a part of these reports, a letter from all recipients confirming the amount of funding received and how it was used in the way it was intended by the Commission as described in the decision granting the funding.

In light of the above, the Commission approves the proposed discretionary initiatives numbered 12 to 20 in the appendix to this letter, subject to the conditions set out in the table below that are intended to ensure the benefits go toward initiatives that are eligible pursuant to Regulatory Policy 2014-459. These conditions should be detailed in the recipient letters included in the annual tangible benefits reports.

Lastly, the Commission notes that Bell proposes to direct $900,491 to the Canadian Film Centre and, more specifically, its Dramatic Series Writing Program. The Commission expects that attending the program will be made possible for screenwriters from all regions of Canada and that this issue will be addressed in the annual tangible benefits report.

The Commission’s files will be updated and will reflect the information stipulated in this letter of approval.

All letters of approval issued by the Commission are made available upon request for public examination at the Commission's central and regional offices. The Commission also requires you to append this letter to your licence.

Sincerely,

John Traversy
Secretary General

Appendix – Additional tangible benefits package related to the former Astral assets that were divested

Date modified:

2015-11-05