|
Decision CRTC 2001-357
|
|
Ottawa, 18 June 2001
|
|
Star Choice Television Network Incorporated
Across Canada 2000-2089-2
|
|
Application processed by Public Notice CRTC 2001-35 dated 7 March
2001 |
|
Amendment to condition of licence related to spending on program
production
|
1. |
The Commission approves an application by Star Choice
Television Network Incorporated (Star Choice), to amend condition #9
of Star Choice's Direct-to-Home (DTH) distribution undertaking
licence related to contributions to program production funds.
|
2. |
The existing condition of licence requires the licensee to
contribute each year to an existing, independently-administered
Canadian program production fund, at least 5% of the annual gross
revenues from the preceding year.
|
3. |
Star Choice proposed that it be permitted to allocate up to 20%
of its annual contribution to specific elements in the Canadian
broadcasting system. The licensee specified that recipients would
include the Aboriginal Peoples Television Network (APTN), other
native broadcasters, francophone broadcasters and distance learning
enterprises that require external support.
|
4. |
In support of the request, Star Choice stated that its parent
company Canadian Satellite Communications Inc. (Cancom) can no
longer satisfy the funding requirements of the groups noted above,
given the limited growth opportunities of Cancom's SRDU operations,
following its acquisition of Star Choice.
|
5. |
Interventions from the Canadian Association of Broadcasters (CAB)
and the Alberta Motion Picture Industries Association (AMPIA)
expressed concerns with the amendment proposal. The AMPIA stated
that, while funding of APTN and other funds is certainly worthwhile,
the approval of the application could set a precedent, resulting in
general reductions in funding to independent producers. AMPIA
further noted that wide-spread reductions could result in a lack of
stability for independently-administered Canadian program production
funds.
|
6. |
In its response to the AMPIA, Star Choice indicated that the
current recipients of contributions from Star Choice will not be
prejudiced in any way. The licensee also expressed the view that
approval of this application is unlikely to serve as a precedent for
similar applications from other undertakings, since this proposal
has been made in response to unique circumstances, including
Cancom's acquisition of Star Choice.
|
7. |
The CAB, while expressing support for the proposal, suggested
that Star Choice should be subject to a condition of licence
requiring the filing of reports on all contributions to Canadian
programming other than those made to production funds. In response
to that suggestion, Star Choice stated that it is in full agreement
with the imposition of such a condition of licence.
|
8. |
The Commission is satisfied with the licensee's responses to the
concerns raised, and is convinced that some flexibility in directing
the required funding contribution will result in support for
undertakings not generally well funded. The Commission therefore approves
the amendment application. The existing condition relating to
spending is deleted, and replaced with the following condition of
licence:
|
|
9.(a) Subject to the provisions of 9.(b), the licensee shall,
in each year (i.e. the period from 1 September to the following 31
August), contribute to an existing, independently-administered,
Canadian program production fund, an amount equal to or greater
than 5% of the annual gross revenues earned by its broadcasting
activities.
|
|
(b) An amount not exceeding 20% of the total contribution
referred to in (a) above, may be directed to support Canadian
broadcasting undertakings other than existing,
independently-administered Canadian program production funds.
|
|
(c) The licensee shall remit its contributions in the form of
monthly instalments, representing a minimum of 5% of each month’s
gross revenues, payable within 45 days of the end of the
month in question.
|
|
(d) All contributions shall be reported to the Commission
concurrently with the licensee’s annual return.
|
9. |
The Commission also acknowledges and has considered the
interventions submitted in support of this application.
|
|
Secretary General
|
|
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
|