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Decision CRTC 2001-645
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Ottawa, 11 October 2001
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Bell Globemedia Publishing Inc.
Across Canada 2001-0571-9, 2001-0610-6, 2001-0611-3, 2001-0612-1
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10 September 2001 Public Hearing
National Capital Region
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Ownership Change for ROBTv
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1. |
The Commission approves the applications noted above by
Bell Globemedia Publishing Inc. (Bell Globemedia Publishing).
Approval of these applications will allow the applicant to acquire,
via a multi-step transaction, control of Report on Business
Television, general partnership (ROBTv partnership), licensee of
ROBTv, a national English language programming undertaking.
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2. |
The multi-step transaction can be summarized as follows:
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· Step 1 (application 2001-0571-9) – Bell Globemedia
Publishing will acquire G and M Business News Holdings Limited’s
(G and M Holdings) 50% partnership interest in ROBTv.
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The Commission notes that, in Decision CRTC 2001-483, it approved
an application by G and M Holdings to acquire a 50% partnership
interest in ROBTv. This interest had been beneficially owned by
Global Communications Limited and was, at the time of the decision,
under a trust arrangement.
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· Step 2 (application 2001-0610-6) – Transfer of all
the issued and outstanding shares of G and M Business News Limited
(G and M Business) held by Mr. Kenneth Thomson to Bell Globemedia
Publishing (transfer of control). G and M Business is the other
general partner in the ROBTv general partnership, holding a 50%
partnership interest.
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· Step 3 (applications 2001-0611-3 and 2001-0612-1) –
Transfer of the following to CTV Television Inc. (CTV Television):
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a) Bell Globemedia Publishing’s 50% partnership interest in
ROBTv (transfer of assets); and,
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b) Bell Globemedia Publishing’s 100% voting interest in G
and M Business (which includes G and M Business’ 50%
partnership interest in ROBTv) (transfer of control).
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3. |
The end result of this multi-step transaction is that ROBTv will
continue to operate under a general partnership arrangement with G
and M Business and CTV Television as general partners, each with a
50% partnership interest. The effective control of ROBTv will now
rest with Bell Globemedia Inc.
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4. |
Upon surrender of the current licence, the Commission will issue
a new licence to the general partners CTV Television and G and M
Business to continue the operation of the specialty service
undertaking known as ROBTv. The new licence will be subject to the
terms and conditions set out in the appendix to this decision.
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Benefits
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Value of the transaction for determining benefits
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5. |
The Commission generally expects applicants proposing to acquire
specialty television undertakings to make commitments to clear and
unequivocal tangible benefits representing a financial contribution
of 10% of the value of the transaction, as accepted by the
Commission.
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6. |
When G and M holdings acquired CanWest Global’s 50% partnership
interest in ROBTv (Decision 2001-483), the value of the transaction
accepted by the Commission was $30 million dollars. G and M
holdings therefore proposed a benefits package of approximately $3
million dollars to be spent over a five-year period. As part of the
current application, Bell Globemedia Publishing indicated that CTV
Television would assume responsibility for the $3 million in
benefits accepted in the transaction approved in Decision 2001-483.
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7. |
As well, since as a result of the current transaction, CTV
Television will own (directly and indirectly) 100% of the
partnership interest in ROBTV, it proposed additional benefits for
the other half of the value of ROBTv ($30 million). These additional
benefits have a value of approximately $3 million, to be spent over
five years.
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8. |
The applicant did not, however, consider that it should be
obligated to pay additional benefits on the 50% partnership interest
formerly held by G and M Holdings. It noted that G and M Holdings
proposed to hold its interest in ROBTv only on a temporary basis,
pursuant to the Purchase Agreement concluded between CanWest Global
and Thomson Canada Limited. Bell Globemedia Publishing therefore
considered that requiring it to pay benefits on the 50% of the
interest for which G and M Holdings had already made benefits
commitments would be inappropriate and unfair.
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9. |
In the context of the current transaction, the Commission accepts
Bell Globemedia’s position on this matter. Consequently CTV
Television will not be required to spend an additional $3 million in
benefits for the portion of the ROBTv partnership that it will
acquire from G and M Holdings.
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Description of benefits that CTV Television will assume from G
and M Holdings
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10. |
The licensee will spend $2.5 million over five years to develop
and broadcast western Canadian business programming on ROBTv. This
programming, to be developed in Calgary, will provide a western
perspective on business issues to a national audience. |
11. |
As well, the licensee will donate $500,000 over five years to the
School of Policy Studies at Queen’s University. This money will be
used to upgrade the school’s public opinion archive so that it can
be readily searched by television journalists and documentary
makers.
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CTV Television's proposed benefits |
12. |
The licensee will spend $1.5 million over five years to enhance
ROBTv’s access to business information and reporting from Europe. |
13. |
Further CTV Television will donate $1.5 million over five years
to York University. These funds will be use to create and endow a
professorship in broadcast management.
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Other matters
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14. |
The Commission notes that this licensee is subject to the Employment
Equity Act and therefore files reports concerning employment
equity with Human Resources Development Canada.
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15. |
The Commission acknowledges the interventions submitted in
support of this application.
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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 at the
following Internet site: http://www.crtc.gc.ca
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Appendix to Decision CRTC 2001-645
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Terms of licence for the national English-language programming
undertaking (specialty television service) known as Report on
Business Television (ROBTv)
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Upon surrender of the current licence, the Commission will issue
a new licence to the general partners CTV Television Inc. and G and
M Business News Limited, expiring 31 August 2003 (the current
expiry date).
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Conditions of licence
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The licence will be subject to the conditions set out below and
to any other condition specified in the licence to be issued.
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1. The licensee shall provide a national English-language
specialty service consisting of business and financial news and
information, and shall draw programs exclusively from Categories 1
(News), 2(a) (Analysis and interpretation), 2(b) (Long form
documentary), 3 (Reporting and actualities), 5(b) (Informal
education/recreation and leisure), 12 (Interstitials), 13 (Public
service announcements), and 14 (Infomercials, promotional and
corporate videos) as set out in item 6 of Schedule I of the Specialty
Services Regulations, 1990, and as defined in Public Notice
CRTC 2000-92 as amended from time to time.
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2. The licensee shall devote to the distribution of Canadian
programs not less than 75% of each broadcast day and not less than
75% of the evening broadcast period.
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3. In accordance with the Commission’s position on Canadian
programming expenditures as set out in Public Notices CRTC 1992-28,
1993-93 and 1993-174:
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a) In the broadcast year following the first year of
operation, and in each subsequent broadcast year, the licensee
shall expend on Canadian programs not less than 50% of the
previous broadcast year’s gross revenues derived from the
operation of this service.
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b) In the broadcast year following the first year of
operation, and in each subsequent broadcast year, excluding the
final year, the licensee may expend an amount on Canadian
programs that is up to five percent (5%) less than the minimum
required expenditure for that year calculated in accordance with
this condition; in such case, the licensee shall expend in the
next broadcast year of the licence term, in addition to the
minimum required expenditure for that year, the full amount of
the previous year’s underexpenditure.
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c) In the broadcast year following the first year of
operation, and in each subsequent broadcast year where the
licensee expends an amount on Canadian programs that is greater
than the minimum required expenditure for that year calculated
in accordance with this condition, the licensee may deduct:
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(i) from the minimum required expenditure for the next
broadcast year of the licence term, an amount not exceeding
the amount of the previous broadcast year’s overexpenditure;
and
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(ii) from the minimum required expenditure for any
subsequent broadcast year of the licence term, an amount not
exceeding the difference between the overexpenditure and any
amount deducted under (i) above.
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d) Notwithstanding the above, during the licence term, the
licensee shall expend on Canadian programs, at a minimum, the
total of the minimum required expenditures calculated in
accordance with the licensee’s condition of licence.
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4. a) Subject to subsection (b), the licensee shall not
distribute more than twelve (12) minutes of advertising material
during each clock hour.
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b) In addition to the twelve minutes of advertising material
referred to in subsection (a) the licensee may distribute during
each clock hour, a maximum of 30 seconds of additional
advertising material that consists of unpaid public service
announcements.
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c) The licensee shall not distribute any paid advertising
material other than national paid advertising.
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5. From the commencement of service, the licensee shall charge
each exhibitor of this service a maximum wholesale rate of $0.25
per subscriber per month, where the service is distributed as part
of the basic service.
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6. The licensee shall adhere to the guidelines on gender
portrayal set out in the Canadian Association of Broadcasters’
(CAB’s) Sex role portrayal code for television and radio
programming, as amended from time to time and approved by the
Commission.
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7. The licensee shall adhere to the provisions of the CAB’s Broadcast
code for advertising to children, as amended from time to time
and approved by the Commission.
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8. The licensee shall adhere to the guidelines on the depiction
of violence in television programming set out in the CAB’s Voluntary
code regarding violence in television programming, as amended
from time to time and approved by the Commission.
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For the purpose of these conditions of licence, the terms broadcast
day, broadcast year, evening broadcast period and clock
hour shall have the same meaning as those set out in the Television
Broadcasting Regulations, 1987; first year of operation shall
mean the first broadcast year in which the licensee is in operation
for a period exceeding 90 days, excluding any free trial period; and
paid national advertising shall mean advertising material as
defined in the Specialty Services Regulations, 1990 and that
is purchased at a national rate and receives national distribution
on the service.
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Date Modified: 2001-10-11 |