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Decision CRTC 2000-85
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Ottawa, 24 March 2000
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Sportscope Television Network
Ltd.
Across Canada 199910584
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6 December 1999 Public Hearing
National Capital Region
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Summary
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The Commission approves the application by
Sportscope Television Network Ltd. (Sportscope) to amend its licence. The amendments will
allow the applicants Headline Sports service to:
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· broadcast
a limited amount of live sports event coverage up to a maximum of 15% of its quarterly
programming schedule; and
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· devote
up to a maximum of 10% of its quarterly programming schedule to regional programming.
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The Commission considers that, subject to
the conditions of licence imposed, the addition of limited coverage of live sports events
and regional programming to the schedule of Headline Sports will not compromise its
overall role as a service that presents video sports highlights as well as sports results
and information.
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The first part of the condition relating to
live coverage of sports events requires that sports results and information be displayed
on part of the screen at the same time as a sports event is being shown. This could, for
example, be accomplished by running an alphanumeric display of sports results and
information at the bottom or side of the screen during the game.
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The second part of the condition requires
Headline Sports to break away from live sports events coverage at least once every fifteen
minutes to present video highlights of sports events, as well as sports results and
information, in a format that includes both audio and video components.
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The Commission also approves amendments to
the condition of licence relating to the exhibition of Canadian programming by Headline
Sports. Under the amended condition, the licensee must ensure that the following
proportions of its schedule are devoted to Canadian programming:
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· at
least 80% over the broadcast year;
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· at
least 60% between 6 p.m. and midnight; and |
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· at
least 50% of all live coverage of sports events broadcast during the total hours from
6 p.m. to midnight Monday to Friday and from noon to midnight on Saturday and Sunday.
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The application |
1.
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The Commission licensed Sportscope in Decision
CRTC 96-610 to provide a service that would broadcast
video highlights of sports events as well as text and graphic displays that provide sports
scores and schedules. This service is now known as Headline Sports. |
2.
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Sportscope applied to amend two of the
conditions of licence that were imposed in Decision 96-610. The first of these conditions
relates to the nature of the service that Headline Sports provides; the second sets out
the levels of Canadian programming that must be broadcast. In addition, Sportscope applied
for a new condition of licence that would allow it to split its national feed so that it
could offer some regional programming.
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Nature of service
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3.
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Decision 96-610 included the following
condition of licence defining the nature of service that Headline Sports could provide:
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- The licensee shall provide a national English-language specialty service
that is dedicated solely to the broadcast of sports results and information in a video and
textual form and shall draw its programs exclusively from category 1 (News) and category 6
(Sports), as set out in item 6 of Schedule I of the Specialty Services
Regulations, 1990. The licensee shall not broadcast any live sports event coverage.
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4.
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Sportscope requested that the Commission amend
this condition thereby permitting Headline Sports to offer coverage of live sports events,
up to a maximum of 15% of its quarterly programming schedule. Under this revised
condition, Headline Sports would be able to broadcast about 25 hours of live sports events
per week.
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5.
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The applicant considered that introducing
limited amounts of live coverage of sports events would allow Headline Sports to improve
its competitive position by building audience awareness and increasing the duration of
viewing to the service. As a result, the applicant considered that this change would
improve Headline Sports' financial health. |
6.
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At the hearing, Sportscope indicated that it
would maintain its orientation to the presentation of sports highlights and results even
during the presentation of live sports events. It stated: |
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On Headline Sports, a game wont be a continuous three hour full screen start to
finish production dedicated strictly to the game. Instead, we intend to deliver both real
time sports news and highlights while the game goes on.
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- First, we will provide breaking news and scores on our ticker. The ticker
will never leave the screen, emphasising our commitment to our original core mandate.
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- Second, we will break into the games every 15 minutes and provide
viewers with simultaneous real time updates of all the news and highlights from the world
of sport.
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- Third, our on-air hosts will not only deliver sports news as it happens,
they will also provide their commentary and insights on game coverage as it unfolds.
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- Fourth, we will offer a seamless transition from the games to the news,
stories and highlights that flow from it.
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7.
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The applicant also confirmed that it was its
intention to introduce limited live sports event coverage without increasing its wholesale
rate, stating:
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At ten cents on basic, we are one of the best bargains available and we are not proposing
to change that very low wholesale rate.
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Canadian content |
8.
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In Decision 96-610, the Commission imposed the
following condition of licence for Headline Sports: |
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- The licensee shall devote to the distribution of Canadian programs not
less than 100% of the broadcast year.
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9.
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As part of the current application, Sportscope
proposed that this condition of licence be amended so that Headline Sports would provide
at least 80% Canadian content over the broadcast year as a whole, and at least 60%
Canadian content for the evening broadcast period (6 p.m. to midnight). The applicant
noted that, even with the proposed reduction, the Canadian content levels would remain
among the highest of the specialty services.
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10.
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In its reply to interventions, the applicant
further indicated that it would accept a condition of licence requiring that at least 50%
of all live sports event coverage broadcast during prime time be Canadian. The licensee
defined "prime time" for the purposes of this condition as the total hours
between 6 p.m. and midnight Monday to Friday, and noon to midnight Saturday and Sunday.
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11.
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The applicant considered that these reductions
in the levels of Canadian programming would provide Headline Sports a measure of
flexibility that would permit it to broadcast limited amounts of live sports events
received from non-Canadian sources. |
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Regional programming
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12.
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Headline Sports is currently licensed as a
national service. In this proceeding, Sportscope applied for a condition of licence that
would allow it to distribute separate regional programming in place of its national
service to affiliated distribution undertakings. This regional programming would not
exceed 10% of the licensees quarterly programming schedule.
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13.
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Sportscope argued that this flexibility is
necessary to allow Headline Sports to purchase regional rights to long-form sports
programming.
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14.
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As well, the applicant considered that the
ability to offer a regional feed would enable Headline Sports to cover sports news and
information, such as information related to regional amateur sports events, that may only
be relevant to one area of the country.
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Interventions
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15.
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The Commission received interventions
supporting Sportscopes application from a variety of interests. These included
associations and teams involved in amateur and professional sports, broadcasting
distribution undertakings and their associations, and companies with an interest in sports
advertising. These parties generally considered that approving the application would
provide viewers with another source of live sports programming. Some expressed the view
that approval would make Headline Sports more attractive both to viewers and advertisers.
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16.
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The Canadian Interuniversity Athletic Union
(CIAU) noted that Headline Sports is strongly committed to Canadian university sports and
broadcasts the results of all CIAU games. It considered that the applicant's proposal to
broadcast The CIAU Week in Review, if the application were approved, would be a
positive step forward for amateur sports. CTV supported the application but only on
condition that the Commission approved CTVs own application to acquire a 68.48%
interest in NetStar Communications (operators of the sports specialty services TSN and
RDS), while still retaining its 40% holding in CTV SportsNet.
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17.
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The application was, however, opposed by
NetStar and CTV SportsNet as well as by the Friends of Canadian Broadcasting. All three
parties considered that approval of the proposed amendments would fundamentally change the
nature of the service that Headline Sports provides. NetStar considered that the
amendments, taken together, would allow Headline Sports to abandon its format based on
sports results and highlights during the evening viewing period. This programming would
then be replaced with sports events, many of which would originate from outside of Canada.
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18.
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NetStar also noted that the Commissions
policy is not to license a specialty service within a specific program genre that would be
directly competitive with the service offered by another specialty undertaking. It
considered that, if the Commission were to approve Sportscopes application, Headline
Sports would be able to broadcast live event sports programming in direct competition with
TSN. Friends of Canadian Broadcasting shared this concern, and considered that approval of
this application would serve as a precedent for competitive applications in other program
genres covered by existing specialty services.
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19.
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CTV SportsNet considered that Sportscope's
proposal represented a fundamental change to the nature of service provided by Headline
Sports. It was of the view that the Commission should not approve such a change,
especially since the service had launched only about two years ago.
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The Commissions decision |
20.
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As indicated by NetStar, the Commissions
policy has been not to license a specialty service that would be directly competitive with
another specialty service in the type of programming it provides. This policy was extended
to category 1 digital services in the Licensing framework policy for new digital pay
and specialty services set out in Public Notice CRTC 2000-6.
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21.
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There are considerable differences in the
programming offered by the three English-language sports services that the Commission has
licensed. TSN is primarily a national service, SportsNet is primarily a regional sports
service, while Headline Sports specializes in the presentation of sports news, results and
highlights. Clearly, the Commissions policy is to avoid any action that would make
Headline Sports directly competitive with the other two services.
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22.
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The Commission notes, however, that the amount
of live sports event coverage that would be distributed by Headline Sports under this
proposal would not exceed about 25 hours per week. Under the applicant's proposal, 85% of
the programming broadcast would be unaffected. The Commission considers that the
introduction of this limited amount of live sports programming will not make Headline
Sports directly competitive with TSN or SportsNet, particularly if it is done in a way
that preserves Headline Sports' current orientation. |
23.
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The Commission therefore approves
Sportscopes application to broadcast live coverage of sports events on Headline
Sports as outlined in its application, subject to a condition of licence based on
commitments made by the applicant at the hearing. The first part of the condition
specifies that Headline Sports must continue to present sports results and information
while it covers live sports events. This could be done using an alphanumeric display that
would run at the bottom or side of the screen during the game. The applicant referred to
this display as "the ticker".
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24.
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The second part stipulates that Headline
Sports must break into its coverage of live sports events at least once every fifteen
minutes to present video sports highlights as well as sports results and information in a
format that includes both audio and video components. The text of this condition is set
out in the appendix to this decision.
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25.
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The Commission considers that this condition
of licence, as well as the limited amount of live sports event coverage being approved,
will ensure that the basic nature of the service provided by Headline Sports does not
change. It will remain a service that is primarily oriented to the presentation of sports
highlights, results and information.
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26.
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The Commission agrees with the applicant that
Headline Sports should have the flexibility to present some sports events that originate
outside of Canada. However, it is concerned that Headline Sports not implement a schedule
that is predicated on the consistent presentation of non-Canadian sports events in prime
time. Therefore, in addition to approving the revised Canadian content commitments
set out in the application, the Commission is imposing a condition of licence
requiring that at least 50% of live sports event coverage broadcast in prime time for
sports viewing be Canadian. The applicant defined prime time for sports coverage as the
total number of hours included in the period between 6 p.m. and midnight Monday to
Friday and from noon to midnight Saturday and Sunday. The text of this condition is also
set out in the appendix to this decision.
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27.
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The Commission also approves the
applicants proposal to offer regional programming during a maximum of 10% of its
quarterly programming schedule. The Commission notes that this 10% level is consistent
with the permissible level of regional programming on TSN, which is licensed as a sports
service that is primarily national in its orientation.
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28.
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The Commission considers that the introduction
of limited coverage of live sports events and regional programming to the schedule of
Headline Sports, subject to the conditions set out in this decision, will allow this
innovative service to continue to develop without compromising its overall role as a
service that presents sports results and highlights. |
29.
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The Commission further notes the commitments
made by Sportscope to implement new programming designed to promote amateur sports and
expects the licensee to fulfill these commitments.
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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 viewed at the
following Internet site: http://www.crtc.gc.ca |