ARCHIVED - Broadcasting Commission Letter Addressed to Kevin Goldstein (Bell TV)
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Ottawa, 13 December 2016
BY EMAIL
Mr. Kevin Goldstein
Vice President
Regulatory Affairs, Content and Distribution
Bell TV
299 Queen Street West
Toronto, Ontario M5V 2Z5
bell.regulatory@bell.ca
Subject: Bell ExpressVu’s video-on-demand (VOD) service Canadian programming contributions
Dear Mr. Goldstein:
Following Commission’s staff review of the contributions to Canadian programming by Bell ExpressVu’s VOD service for the 2012-2013 to 2014-2015 broadcast years, it appears that Bell ExpressVu may be in non-compliance with Condition of licence # 5 from Appendix to Broadcasting Regulatory Policy CRTC 2011-59-1 imposed in its VOD licence renewal decision.
Based on information available to Commission staff in the annual returns as well as subsequent communication with Bell ExpressVu, it appears that Bell ExpressVu did not make the required contributions to an independent production fund during the period under review.
Additionally, the licensee is required to file documents demonstrating that the recipient received the funds as stated by the licensee, including the date and amount of each payment. The licensee did not file the required documentation demonstrating that the claimed payments were made.
Also, staff has been unable to determine if the Bell ExpressVu VOD service has met its Canadian programming contribution requirements over the course of the current licence term. The supporting documentation filed with the annual returns was incomplete and in some cases inconsistent. The supporting documentation must include a summary sheet detailing the monthly payments as well as payment information from the internal accounting system.
The following table presents the calculation of the contribution to Canadian programming requirements based on information provided by Bell ExpressVu in the annual returns relating to its VOD service.
Table 1 – Bell ExpressVu’s VOD contribution requirement for the 2012-2013 to 2014-2015 broadcast years
| 2012-2013 | 2013-2014 | 2014-2015 | |
|---|---|---|---|
| Reported revenues | 18,037,794 | 26,325,051 | 30,515,706 |
| 50% of revenues | 9,018,897 | 13,162,526 | 15,257,853 |
| 5% contribution requirement | 450,945 | 658,126 | 762,893 |
| Total amount paid | 414,778 | 609,489 | 697,240 |
| Apparent shortfall | 36,167 | 48,637 | 65,653 |
- Please confirm the accuracy of the figures provided in the table above including that the reported revenues line reflects 100% of the total revenues.
- Please provide the required documentation for the 2012-2013, 2013-2014 & 2014-2015 broadcast years including a summary detailing the calculations, payments and proof of payments.
- Please provide proof of payment or confirmation from the recipient of the funds demonstrating the date and amounts of the claimed payments.
- Please provide the rationale for the instances of apparent non-compliance identified above.
- Please comment on any potential apparent shortfall identified by Commission staff following review of the documentation and the possibility of the Commission requiring Bell ExpressVu to pay these amounts to the CMF or an Independent production fund in order to rectify the apparent shortfall.
Please provide comments on the above noted figures and resulting shortfalls by no later than 23 December 2016.
This letter and your response will be placed on the record of the hearing dealing with the renewal of television licences outlined in Broadcasting Notice of Consultation CRTC 2016-225. The letter and the response will form part of the record for the renewal of Bell ExpressVu’s VOD licence.
Please note that the Commission has not yet reviewed the contributions to be made for the 2015-2016 broadcast year.
If you have any questions or concerns regarding this letter please contact
Michael Bergeron at michael.bergeron@crtc.gc.ca or 819-997-4852.
Commission staff appreciates your cooperation.
Sincerely,
Barbara Motzney
Chief Consumer Officer and Executive Director
Consumer Affairs and Strategic Policy
- Date modified: