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Decision CRTC 2000-457

Ottawa, 14 December 2000

The Sports Network Inc.

Across Canada — 200010645

14 August 2000 Public Hearing
National Capital Region

 

 

Women’s Sports Network — a new specialty channel

 

On 24 November 2000, the Commission made a decision to issue a licence for a new national English-language Category 1 specialty television service to be called "Women’s Sports Network" (WSN). The Commission noted at that time that reasons, terms and conditions of the new licence would follow at a later date.

 

WSN will be devoted entirely to sports programming featuring female athletes and participants. As noted in Public Notice CRTC 2000-171 issued today, WSN and 20 other new digital specialty services will be made available to subscribers by all distributors who offer programming to the public using digital technology and by some cable operators who serve smaller markets using analog technology. The licence, when issued, will expire 31 August 2007.

 

WSN will add diversity to the Canadian broadcasting system by providing a showcase for women’s sports, an area of sports coverage that is underrepresented in the programming of conventional television stations and existing sports specialty services. WSN will be the first service of its kind in the world. In Public Notice 2000-171, the Commission discusses the general criteria for the approval of this and other applications for new specialty services.

 

The applicant is a wholly owned subsidiary of NetStar Communications Inc. (NetStar), a Canadian corporation. CTV Inc. has effective control of Netstar via its wholly-owned subsidiary 3578704 Canada Inc. (80% voting interest). Netstar’s remaining shareholder is 3167488 Canada Inc. (ESPN Sub), a wholly-owned subsidiary of ESPN Inc., an American company (20% voting interest).

 

Terms and conditions of licence common to all of the new Category 1 specialty services are set out in an appendix to Public Notice 2000-171. Conditions specific to this application can be found in the appendix to this decision.

 

 

 

Programming

 

Nature of service

 

WSN will provide a national English-language specialty television service consisting exclusively of sports programming featuring female athletes and participants. It will showcase sports where women are the principal competitors, or where women and men compete together or against each other. WSN will also broadcast magazine shows,
documentaries and instruction programs related to women’s sports. The program categories identified by WSN as forming the service’s content are set out in a condition of licence found in the appendix to this decision.

 

Contributions to diversity

 

WSN will contribute to increased diversity in the Canadian broadcasting system since programming related to women’s sports is underrepresented in the sports coverage currently provided by conventional television stations and existing specialty services. The service will bring new sports programming to the screen that will be of special interest to Canadian women and fans of women’s sports. Sports at all levels and in a variety of disciplines will be featured in formats that include coverage of live events, magazine shows, instructional programs and drama. WSN also responds directly to several important policy objectives expressed on numerous occasions by the Commission, namely, the positive portrayal of women in programming, and the need for more on-air representation of women, especially as experts and commentators.

 

Canadian content

 

The licensee made a commitment to broadcast a minimum of 30% Canadian content from 6 a.m. to midnight, and from 6 p.m. to midnight, in the first year of the licence term. WSN’s commitment will be increased gradually over the licence term. By the seventh year of the term, a minimum of 50% Canadian content will be broadcast, both during the period from 6 a.m. to midnight and between 6 p.m. and midnight. A condition of licence setting out the levels of Canadian programming required annually can be found in the appendix to this decision.

 

Following discussions at the hearing, the licensee further committed to broadcast a minimum of 700 hours of original Canadian programs in each year of the licence term.

 

Canadian programming expenditures

 

Beginning in the year following the first year of operation, the licensee will expend a yearly minimum of 53% of the previous year’s gross advertising, infomercial and subscription revenues on Canadian programming. The licensee estimates that, in accordance with this formula, it will spend approximately $36 million over the licence term to acquire or produce Canadian programs. A formula for the calculation of the required amounts is set out in a condition of licence found in the appendix to this decision.

 

 

 

Independent production

 

The licensee indicated that, over the licence term, it would spend $14 million on program acquisitions from independent producers. WSN will broadcast an average of 525 hours per year of programming from independent and freelance producers. The Commission notes the licensee’s commitments, and as set out in Public Notice 2000-171, all Category 1 services will be subject to a standard condition of licence in this regard.

 

Interactivity

 

At the outset of its operations, WSN will offer a website that focuses on information, statistics and news that relates to women’s sports. This site will evolve into a complementary "web-zine" (a web-based magazine and portal). As the technology evolves, WSN will offer expanded television interactivity, including personalized viewing guides as well as virtual coaching and personal training.

 

Ownership and synergies

 

CTV Inc. has effective control of NetStar via its wholly-owned subsidiary 3578704 Canada Inc. (80% of the voting interest). NetStar is the parent company of TSN. The applicant indicated that WSN would use the studios, control rooms and related equipment in the CTV facilities in Toronto. Synergies will also result from the fact that CTV owns other sport-related programming services such as Outdoor Life, RDS and pay-per-view sports. WSN will benefit significantly from NetStar’s experience in sports programming and cross promotional opportunities.

 

Other matters

 

Rate

 

In its business plan, the licensee proposed a monthly wholesale rate of $0.16 per subscriber in the first year two years of operation, rising to $0.18 for years three, four and five, and to $0.19 for years six and seven.

 

Service to the hearing-impaired

 

The licensee has committed to install a TTY (teletypewriter) and to close caption at least 30% of the programming on WSN in the first year of operation. That level will increase by 10% each year, resulting in a minimum of 90% of programming to be closed captioned in the seventh year. The Commission expects the licensee to fulfil these commitments.

 

Service to the visually-impaired

 

WSN noted that most of its programming will be readily accessible to the visually-impaired upon launch since all sports events broadcast will include commentary and analysis. The licensee also stated that it would make every effort to acquire the rights for descriptive video when it acquires programming. WSN further made a commitment to broadcast 100 hours a year of described video programming by the end of the licence term.

 

 

 

The Commission requires WSN to be technically equipped to deliver described video programming and to fulfil the commitments included in the application. In addition, the Commission encourages the licensee to provide audio description of visual information wherever possible, and to provide described video programming as outlined in Public Notice 2000-171.

 

Employment equity

 

The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 and therefore files reports concerning employment equity with Human Resources Development Canada.

 

Conclusion

 

The Commission is satisfied that WSN will offer attractive and unique programming in an underserved niche that will increase the diversity of sports programming available in the Canadian broadcasting system. The Commission is confident that the expertise and experience of all of the parties involved in the new service, and the resources that will therefore be available to it, will ensure the success of WSN.

 

 

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

 

 

Appendix to Decision CRTC 2000-457

 

The licence for the national English-language programming undertaking (specialty television service) known as the Women’s Sports Network will be subject to the following conditions, as well as those set out both in Public Notice CRTC 2000-171, and in the licence to be issued.

 

Nature of service

 

1. (a) The licensee shall provide a national English-language Category 1 specialty television service that is dedicated entirely to sports that feature female athletes and participants, including coverage of professional and amateur sporting events, magazine shows, documentaries and instructional programs. Sports event programming on WSN shall not include sports where males are the principal competitors.

 
  1. The programming must be drawn exclusively from the following categories, as set out in Schedule I to the Specialty Services Regulations, 1990:

1

News

7c

Specials, mini-series, made-for-TV feature films

2b

Long-form documentary

7d

Theatrical feature films aired on TV

5b

Informal education/recreation and leisure

12

Interstitials

6a

Professional sports

13

Public service announcements (PSAs)

6b

Amateur sports

14

Infomercials, promotional/corporate video

 

c) No more than 5% of all programming broadcast during each broadcast week shall be drawn from category 7. All feature films must have themes related to women in sports.

 

d) No more than 10% of all programming broadcast during each broadcast week shall be programming that has been broadcast on the CTV Television Network or on the TSN specialty service.

 

Exhibition of Canadian programs

 

2. In each broadcast year or portion thereof, the licensee shall devote to the distribution of Canadian programs the following percentages of the broadcast day and the evening broadcast period:

   

Broadcast day

Evening broadcast period

 

Year one

30%

30%

 

Year two

30%

30%

 

Year three

35%

35%

 

Year four

40%

40%

 

Year five

45%

45%

 

Year six

50%

50%

 

Year seven

50%

 

50%

 

 

 

 

Expenditures on Canadian programs

 

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, except as amended below:

 

(a) In each broadcast year following the first year of operation, the licensee shall expend on Canadian programs not less than 53% of the previous broadcast year’s gross advertising, infomercial and subscription revenues;

 

(b) In each broadcast year following the first year of operation, excluding the final year, the licensee may expend an amount on Canadian programs that is up to ten percent (10%) less than the minimum required expenditure for that year set out in or calculated in accordance with this condition; in such case, the licensee shall expend in the next year of the licence term, in addition to the minimum required expenditure for that year, the full amount of the previous year’s underexpenditure;

 

(c) In each broadcast year following the first year of operation, where the licensee expends an amount on Canadian programs that is greater than the minimum required expenditure for that year set out in or calculated in accordance with this condition, the licensee may deduct:

 

(i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year’s overexpenditure; and

 

(ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overexpenditure and any amount deducted under paragraph (i) above.

 

(d) Notwithstanding paragraphs (b) and (c) above, during the licence term, the licensee shall expend on Canadian programs, at a minimum, the total of the minimum required expenditures set out in or calculated in accordance with the licensee’s condition of licence.

 

Definition

 

The term "broadcast day" shall be defined as a 24 hour period beginning at 6 a.m. each day.

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