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Broadcasting Decision CRTC 2005-521
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Ottawa, 21 October 2005 |
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TVA Group Inc.
Across Canada |
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Application 2005-0298-1
Public Hearing in the National Capital Region
15 August 2005 |
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Télé-Services – Category 2 specialty service
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In this decision, the Commission
approves an application for a broadcasting licence to operate a new
Category 2 specialty programming undertaking. |
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The application
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1. |
The Commission received an application from
TVA Group Inc. (TVA) for a broadcasting licence to operate a national,
French-language Category 21
specialty programming undertaking to be known as Télé-Services. |
2. |
The applicant proposed to offer a service
devoted to manual labour, such as construction, renovation, repairs,
gardening, landscaping, decorating, interior design, mechanics and
hobbies. All programming will be drawn from the following categories, as
set out in Schedule I to the Specialty Services Regulations, 1990):
2(a) Analysis and interpretation; 2(b) Long-form documentary; 3
Reporting and actualities; 5(b) Informal education/Recreation and
leisure; 7(a) Ongoing drama series; 7(b) Ongoing comedy series
(sitcoms); 7(c) Specials, mini-series or made-for-TV feature films; 7(d)
Theatrical feature films aired on TV; 9 Variety; 10 Game shows; 11
General entertainment and human interest; 12 Interstitials; 13 Public
service announcements; and 14 Infomercials, promotional and corporate
videos. The applicant also indicated that a maximum of 10% of all
programming aired during each broadcast week would be drawn from
categories 7(a), 7(b), 7(c) and 7(d). |
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Interventions
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3. |
The Commission received interventions in
connection with this application. Les Chaînes Télé Astral inc. (Astral),
a division of Astral Broadcasting Group Inc., expressed concern that
this application had been submitted by TVA, which is a subsidiary of
Québecor Média Inc. (QMI). QMI controls Vidéotron ltée (Vidéotron), the
largest cable distributor serving Francophone markets in Canada. |
4. |
Astral expressed concern about the
distribution of services not affiliated with QMI. In Astral’s view,
licensees of non-affiliated French-language Category 2 services
"[Translation] could have no guarantee that their services will receive
fair treatment in terms of access in Francophone markets versus
affiliated French-language services." Astral submitted that, since the
access rule formulated by the Commission whereby the distributor must
distribute five non-affiliated Category 2 services for each affiliated
service applies to English-language and French-language markets,
Vidéotron could choose to distribute the affiliated French-language
service proposed by TVA as well as five non-affiliated English-language
digital services. Consequently, while adhering to the policy established
by the Commission, Vidéotron could refuse to distribute any
French-language Category 2 digital service licensed by the Commission
that is not affiliated with it. |
5. |
Astral noted that the goal identified by
the Commission in Licensing framework policy for new digital pay
and specialty services, Public Notice CRTC 2000-6,
13 January 2000 (Public Notice 2000-6)
and in Introductory statement – Licensing of new digital pay and
specialty services, Public Notice CRTC 2000-171,
14 December 2000 (Public Notice 2000-171)
has been achieved in the English-language broadcasting sector, as
there is an abundant number of Category 2 services that are operated
by a broad range of licensees, whereas there are still no French-language
Category 2 digital services in operation at this time. |
6. |
According to Astral, in order for the
"[Translation] goals of the Licensing framework policy for new
digital pay and specialty services to be met in French-language
broadcasting as they have been in English-language broadcasting," the
Commission should impose the following condition of licence on the
licensee: |
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For each French-language or bilingual
Category 2 service of an affiliated programming undertaking that it
distributes, the licensee shall distribute at least five French-language
or bilingual Category 2 services of non-affiliated undertakings. |
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Applicant’s reply
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7. |
In reply to Astral’s intervention, TVA
stated that Astral "[Translation] has no reason to fear any undue
preference on the part of the distribution undertaking affiliated with
TVA," and noted that a distribution agreement has been entered into by
Vidéotron and Astral for the distribution of its Category 2 service,
Ciné-Pop. TVA added that, if the Astral services were rejected by an
affiliated distributor in favour of the applicant’s services, Astral
could file a complaint under section 9 of the Broadcasting
Distribution Regulations. |
8. |
With respect to the access rule, TVA
submitted that the ratio proposed by Astral was too high because there
is no French-language Category 2 specialty service currently in
operation. TVA did not consider it should be subject to the condition of
licence proposed by Astral because the Commission has never imposed such
conditions of licence on the distribution undertakings affiliated with
Bell Globemedia Inc. or Corus Entertainment Inc., two companies that are
also licensees of specialty programming undertakings. |
9. |
TVA added that it was "[Translation] in the
interest of the distributors serving Francophone markets to distribute
the maximum number of digital services available to them in order to
serve their own interests and to meet the needs of their subscribers,"
and that the more French-language specialty services there are,
"[Translation] the better will be the supply to the Francophone market
and the faster the migration to digital will take place." |
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Commission’s analysis and determination
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10. |
In Public Notice 2000-6,
the Commission implemented a competitive open-entry approach to the
licensing of Category 2 services. In Public Notice 2000-171,
the Commission adopted a case-by-case approach in determining whether
a proposed Category 2 service should be considered directly competitive
with an analog pay or specialty service or existing Category 1 service,
although not with an existing Category 2 service. The Commission examines
each application in detail, taking into consideration the nature of
the proposed service and the unique circumstances of the genre in
question. |
11. |
In this case, the applicant stated that
Télé-Services will place emphasis on construction, renovations, repairs,
gardening, landscaping, decorating, interior design, mechanics and
hobbies. The Commission further notes that in its application, the
applicant indicated that some French-language specialty services include
programs similar to those that will be presented by Télé-Services, but
that they represent less than 10% of its programming. |
12. |
The Commission is therefore of the view
that the nature of the proposed service for Télé-Services is
sufficiently specific to ensure that it will not be directly competitive
with any existing analog pay or specialty or existing Category 1
service. |
13. |
The Commission recognizes the special
circumstances of the French-language market, in particular the need on
the part of distributors and the Francophone public to have access to
French-language digital specialty services. The Commission considers
that the distribution of French-language Category 2 specialty services
will serve the public interest, as well as the interests of broadcasters
and distributors. |
14. |
The Commission notes that any refusal by a
distributor to distribute a non-affiliated Category 2 service in favour
of an affiliated Category 2 service could be subject to review pursuant
to section 9 of the Broadcasting Distribution Regulations. |
15. |
The Commission is satisfied that the application
is in conformity with all applicable terms and conditions announced
in Introductory statement – Licensing of new digital pay and
specialty services – Corrected Appendix 2, Public Notice CRTC
2000-171-1, 6 March
2001 (Public Notice 2000-171-1).
Accordingly, the Commission approves the application by TVA
Group Inc. for a broadcasting licence to operate the national, French-language
Category 2 specialty programming undertaking, Télé-Services. |
16. |
The licence will expire 31 August 2012 and
will be subject to the conditions set out in Public Notice
2000-171-1 as well
as to the conditions set out in the appendix to this decision.
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Issuance of the licence
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17. |
A licence will be issued once the applicant
has satisfied the Commission, with supporting documentation, that the
following requirements have been met: |
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- the applicant has entered into a distribution agreement with at
least one licensed distributor; and
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- the applicant has informed the Commission in writing that it is
prepared to commence operations. The undertaking must be operational
at the earliest possible date and in any event no later than 36 months
from the date of this decision, unless a request for an extension of
time is approved by the Commission before 21 October 2008. In order to
ensure that such a request is processed in a timely manner, it should
be submitted at least 60 days before that date.
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Secretary General |
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This decision is to be appended
to the licence. It is available in alternative format upon request,
and may also be examined in PDF format
or in HTML at the following Internet site:
http://www.crtc.gc.ca |
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Appendix to Broadcasting Decision CRTC 2005-521
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Conditions of licence
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1. The licence will be subject to the conditions set out
in Introductory statement – Licensing of new digital pay
and specialty services – Corrected Appendix 2, Public Notice
CRTC 2000-171-1,
6 March 2001.
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2. The licensee shall provide a national, French-language Category
2 specialty programming undertaking offering programming devoted to
manual labour such as construction, renovations, repairs, gardening,
landscaping, decorating, interior design, mechanics and hobbies.
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3. The programming shall be drawn exclusively from the following
categories, as set out in Schedule I to the Specialty Services
Regulations, 1990, as amended from time to time:
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2(a) Analysis and interpretation
(b) Long-form documentary
3 Reporting and actualities
5(b) Informal education/Recreation and leisure
7(a) Ongoing drama series
(b) Ongoing comedy series (sitcoms)
(c) Specials, mini-series or made-for-TV feature films
(d) Theatrical feature films aired on TV
9 Variety
10 Game shows
11 General entertainment and human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
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4. The licensee shall devote no more than 10% of all programming
broadcast during the broadcast week to programs drawn from categories
7(a), 7(b), 7(c) and 7(d).
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For the purposes of the conditions of this
licence, including condition of licence No. 1, broadcast day
refers to the 24-hour period beginning each day at midnight, or any
other period approved by the Commission. |
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Footnote:
Category 2 services are defined in Introductory
statement – Licensing of new digital pay and specialty services,
Public Notice CRTC 2000-171,
14 December 2000. |
Date Modified: 2005-10-21 |