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Broadcasting Decision CRTC 2004-12
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Ottawa, 21 January 2004 |
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TELETOON Canada Inc.
Across Canada |
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Application 2002-0942-0
Public Hearing in the National Capital Region
26 May 2003 |
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Teletoon/Télétoon – Licence renewal
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In this decision, the Commission
renews the broadcasting licence for the specialty television service
known as Teletoon/Télétoon, from 1 March 2004 to 31 August 2010. The details
regarding the licensee’s specific proposals for the new licence term, and the
conditions of licence and other obligations determined by the Commission are
set out below. |
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The application
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1. |
The Commission received an
application by TELETOON Canada Inc. (Teletoon Canada) for the renewal of the
broadcasting licence for the national, English- and French-language,
specialty television service known as Teletoon/Télétoon. The service provides
both English- and French-language programming on separate signals originating
in the Eastern time zone, and English-language programming on a second signal
originating in the Pacific time zone. |
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2. |
The Commission's general analysis
with respect to its consideration of this and other applications heard at the
26 May 2003 Public Hearing for the licence renewal of specialty television
services is set out in Introduction to Broadcasting Decisions CRTC 2004-6
to 2004-27 renewing the licences of 22 specialty services, Broadcasting
Public Notice CRTC 2004-2, 21
January 2004 (Public Notice 2004-2). |
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3. |
The Commission received 42
interventions specifically in support of Teletoon/Télétoon's licence renewal.
In addition to those submissions, two expressed a desire to see a greater
commitment to the acquisition of French-language production from Quebec
producers. Five expressed specific concern for the potential broadening of
Teletoon/Télétoon’s nature of service through the addition of program
categories. Three interventions suggested alternate peak time definitions and
requested that production by related producers should be limited to 25%, and
one opposed entirely a proposed shift in peak viewing period. The concerns
raised by the interveners related to this application specifically are
discussed in this decision. |
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4. |
Other interveners raised general concerns
related to all of the specialty television licence renewal applications
considered as part of this public process. These concerns are discussed in
Public Notice 2004-2. |
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5. |
On the basis of its review of this licence
renewal application and having considered the interveners' comments, the
Commission renews the broadcasting licence for Teletoon/Télétoon, from
1 March 2004 to 31 August 2010.1
The licence will be subject to the conditions specified therein and to
the conditions set out in the appendix to this decision. |
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6. |
The licensee requested the renewal of the
licence for Teletoon/Télétoon under the same terms and conditions as the
existing licence, with the exception of the addition of categories 7(a)
Ongoing dramatic series, 7(b) Ongoing comedy series (sitcoms), 7(c) Specials,
mini-series or made-for-TV feature films and 7(g) Other drama to the list of
categories from which Teletoon/Télétoon may draw its programming. The
licensee also proposed to amend the definition of "peak viewing period" for
the purpose of assessing the exhibition of Canadian programming on
Teletoon/Télétoon. |
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Expenditures on Canadian programming
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7. |
In each year of the current licence term,
Teletoon Canada has been required by condition of licence to expend on
Canadian programs a minimum of 40% of the previous year’s total revenues with
respect to Teletoon/Télétoon. |
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8. |
In its renewal application, and at the public
hearing, Teletoon Canada stated its commitment to adhere to its current level
of Canadian programming expenditures (CPE). In support of its view that
Teletoon/Télétoon’s CPE should not be increased, the licensee stated that its
current requirement is higher than any other specialty service targeted to
children, and that CPE requirements based on profitability are not
necessarily valid. Teletoon Canada indicated that, under the existing 40%
requirement, it projects expenditures of $176 million on Canadian programming
over the new licence term. |
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9. |
The Commission notes that the service’s
historical average profit before interest and tax (PBIT) margin has been over
40%. Taking this into account, and consistent with the approach described in
Public Notice 2004-2, the
Commission has determined that an increase of seven percentage points is
appropriate. Accordingly, the Commission is requiring the licensee, in each
year of the licence term, to expend 47% of the previous year’s gross revenues
on Canadian programming, beginning 1 September 2004. A condition of
licence to this effect is set out in the appendix to this decision. |
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Nature of service
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10. |
In its application, Teletoon Canada requested an
amendment to Teletoon/Télétoon’s current condition of licence describing its
nature of service, in order to add program categories 7(a) On-going dramatic
series, 7(b) On-going comedy series (sitcoms), 7(c) Specials, mini-series or
made-for-TV feature films, and 7(g) Other drama to the list of categories
from which Teletoon/Télétoon may draw its programming. Teletoon Canada stated
that, consistent with its original condition of licence, no more than 10% of
its programming would be non-animated programming drawn from categories other
than 7(d) Theatrical feature films aired on TV and 7(e) Animated television
programs and films. |
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11. |
During the licence renewal process, the
Commission asked Teletoon Canada to propose a description that the licensee
could accept as a condition of licence, and that would more closely describe
the nature of Teletoon/Télétoon’s service. |
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12. |
In response to the Commission’s request,
Teletoon Canada proposed that a maximum of 5% of all programming would be
drawn from categories 12 Interstitials, 13 Public service announcements and
14 Infomercials, promotional and corporate videos. Of the remaining
programming, at least 90% of all programming would be animated programming
drawn from categories 7(d) and 7(e). All other programs would consist
exclusively of "animation-related" programming except for material from
categories 12, 13 and 14. The licensee proposed that animation-related be
defined as: |
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i) programs that were originally inspired by animated or illustrated
characters or concepts;
ii) programs that contain animation and non-animation formats within a
single program; or
iii) programs about animation or animators/illustrators.
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13. |
At the hearing, the licensee withdrew its
request to add category 7(g) to the list of categories from which
Teletoon/Télétoon’s programming may be drawn. It also indicated that it did
not require category 15 Filler programming, and requested the addition of
category 5(b) Informal education/recreation and leisure to accommodate the
broadcast of programming about animation. |
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Interventions
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14. |
Five interventions were submitted in opposition
to the proposed addition of categories and expressing concern about the
proposed definition of animation-related programming. Those interveners were
the Société des auteurs de radio, télévision et cinema (SARTEC), CHUM Limited
(CHUM), the Canadian Broadcasting Corporation (CBC), TQS inc. (TQS) and
Global Television Network Inc. (Global). All of those interveners expressed
concern that a broadening of Teletoon/Télétoon’s nature of service would
result from approval of the proposal. |
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15. |
SARTEC opposed the addition of any non-animated
programming to Teletoon/Télétoon, on the grounds that it would not be in
keeping with the service’s nature of service. |
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16. |
CHUM expressed a concern that "animated-related"
was too broad a term, and that examples given by Teletoon Canada, such as
Star Trek, Beetlejuice and The Addams Family are best
classified as science fiction and fantasy, and would be more suitable for
broadcast on Space: the Imagination Station, owned by CHUM. CHUM also
disagreed with Teletoon Canada’s view that the live-action examples given
were appropriate for exhibition on an animation service because they were
inspired by well-known animated series and characters. CHUM maintained that
this is not the case, since a number of the examples were "originally science
fiction or fantasy feature films or television series that were later made
into animated-series in order to appeal to children, not vice-versa." |
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17. |
CHUM took the position that approval of Teletoon
Canada’s proposal would "allow Teletoon to derogate from its original
commitment to broadcast programming in the animation field". |
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18. |
The CBC stated in its intervention that Teletoon
Canada’s proposal, if approved, could permit programming on the
French-language feed to overlap with that of existing French-language
broadcasters and compete with conventional broadcasters such as Radio-Canada.
The CBC was further concerned that non-animated programming could be
broadcast on Teletoon/Télétoon during prime time, further exacerbating the
threat to other services. |
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19. |
TQS took the position that the addition of
non-animated drama and comedy programming, especially 7(a), would result in a
fundamental change to Teletoon/Télétoon’s nature of service, and would allow
the service to compete with conventional networks such as TQS. |
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20. |
Global indicated in its intervention that the
Commission should not approve any proposal that would allow a specialty
service to increase its foreign Category 7 programming by more than 10%. |
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Teletoon Canada’s replies
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21. |
In response to the concerns expressed by a
number of interveners, the licensee submitted that: |
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… the additional sub-categories sought for the service are
non-substantive in nature, and the fact that no more than 10% of
Teletoon/Télétoon’s overall schedule can be comprised of non-animated
programming underscores the inherent safeguard built in to our nature of
service, which should effectively meet any of the concerns raised by the
interveners.
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22. |
In addition, in reply to CHUM’s intervention,
Teletoon Canada expressed the view that CHUM had mischaracterized the
proposed changes, stating that the changes "are in reality, non-substantive
amendments to Teletoon’s existing licence condition", since the original
condition allows Teletoon/Télétoon to include both animated and live-action
feature films in its schedule. |
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23. |
Teletoon Canada also clarified that "it does not
intend to acquire live-action programming such as the Star Trek series
as such series would not fall within the scope of an animation-related
program". |
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The Commission’s analysis and determination
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24. |
The Commission notes that Teletoon/Télétoon has
been a successful animation service, and notes the statements by the licensee
that it recognizes that its continued success lies in retaining the character
of Teletoon/Télétoon as an animation service. |
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25. |
The Commission is satisfied that the changes
proposed serve to clarify the existing service offered by the licensee and
will not expand its nature of service. The Commission therefore adds the
phrase "devoted to animation and animated-related programs" to the condition
of licence describing Teletoon/Télétoon’s nature of service. |
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26. |
With respect to the addition of category 5(b),
the Commission is satisfied that the inclusion of this category would allow
Teletoon/Télétoon to broadcast "how-to" programming related to animation that
would be consistent with Teletoon/Télétoon’s nature of service, and has added
category 5(b) to the list of categories from which Teletoon/Télétoon may draw
its programming. |
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27. |
The Commission further notes that, as proposed
by the licensee, a maximum of 5% of all programming on Teletoon/Télétoon may
be drawn from categories 12, 13 and 14. Of the remaining programming, 90%
would continue to be animated programming drawn from categories 7(d) and
7(e). The Commission also notes that, with the stricter nature of service
definition approved above, all programming on the service, other than that
drawn from categories 12, 13 and 14, would be animated or animation-related.
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28. |
The Commission therefore approves the
licensee's request to add program categories 7(a), 7(b), and 7(c) to the list
of categories from which Teletoon/Télétoon may draw its programming, and to
delete category 15 from that list. |
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29. |
The condition of licence describing the
nature of Teletoon/Télétoon’s service is set out in the appendix to this
decision, and includes all of the changes approved by the Commission. |
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The definition of "peak viewing period"
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30. |
Teletoon/Télétoon is currently required to
devote 60% of the "evening broadcast period" (6:00 p.m. to midnight) to the
broadcast of Canadian programs. |
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31. |
As part of its renewal application, Teletoon
Canada proposed to modify its evening broadcast period with a new definition
of "peak period". The licensee indicated that, in order to best serve its
core audience of family viewers, a more appropriate "peak period" would be
from 2:00 p.m. to 8:00 p.m. each day. |
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Interventions
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32. |
One intervention in opposition to the licensee’s
proposal was submitted by Société de télédiffusion du Québec (Télé-Quebec).
The intervener expressed the concern that, if the proposed shift in "peak
period" were to be adopted, Teletoon/Télétoon would be able to broadcast
entirely foreign programming between the hours of 8:00 p.m. and midnight. The
intervener stated that the change is not necessary for financial reasons, and
that allowing Teletoon/Télétoon to abandon Canadian programming between 8:00
p.m. and midnight would harm both competing broadcasters and Canadian program
producers. Global’s intervention also expressed a concern that the proposed
shift in peak period could increase the quantity of foreign programming that
could appear on Teletoon/Télétoon during the evening hours. |
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33. |
Four interventions were submitted with
alternative proposals for Teletoon/Télétoon’s "peak period". The four
interveners were the Canadian Film and Television Production Association
(CFTPA), the Association des Producteurs de Films et de Télévision du Québec
(APFTQ), Productions Pascal Blais and the Union des Artistes (UDA). |
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34. |
The CFTPA suggested a more appropriate peak
period for Teletoon/Télétoon would be 3:30 p.m. to 9:30 p.m., and the APFTQ
suggested the hours 4:00 p.m. to 10:00 p.m. Both of these interveners made
their suggestions on the grounds that the alternative time periods would
encompass both the after-school time period aimed at children under 12 years
of age, and part of the evening hours aimed at teens, young adults and
viewers over 18 years old. |
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35. |
The intervention submitted by Productions Pascal
Blais suggested that Teletoon/Télétoon’s peak period should be 4:00 p.m. to
10:00 p.m., so as to capture a larger age range. The UDA indicated that,
since students arrive home from school at 3:30 p.m. and generally watch
television until 9:00 p.m., the peak period should be 3:00 p.m. to 9:00 p.m.
The UDA also suggested that, for Teletoon/Télétoon, the period from 6:00 a.m.
to 7:30 a.m. could also be considered a peak period. |
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The licensee’s reply
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36. |
Teletoon Canada responded to the interventions
by reiterating that its proposal to shift the peak period to 2:00 p.m. to
8:00 p.m. was intended to maximize Teletoon/Télétoon’s core audience of 2-11
year olds, provide significant Canadian content to pre-schoolers, and to
establish an appropriate demarcation point after which Teletoon/Télétoon’s
primary target audience would change from its younger viewers to an audience
primarily made up of parents, teens and young adults. |
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37. |
In response to the concern that, if the change
were approved, Teletoon/Télétoon would have free rein to schedule foreign
programming after 8:00 p.m., the licensee expressed its continuing commitment
to schedule Canadian programs reasonably throughout the broadcast day, and
stated that a number of existing and proposed Canadian programs are planned
for broadcast after 8:00 p.m. At the hearing, Teletoon Canada made a
commitment that a minimum of one hour of Canadian programming would be
broadcast daily between 8:00 p.m. and midnight. |
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The Commission’s analysis and determination
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38. |
The Commission has considered the positions of
both the licensee and the interveners, and recognizes that children do tune
to television services at different times than do adults. The Commission
notes that Teletoon/Télétoon does not attract the bulk of its audience
between 6:00 p.m. and midnight, as do most specialty television services, but
appears to have a peak period in the early morning, and again from 3:00 p.m.
to 9:00 p.m. on the English feed and from 4:00 p.m. to 10:00 p.m. on the
French-language feed. In particular, BBM data shows a definite peak in
Teletoon/Télétoon’s viewership, beginning at 8:00 p.m. on the
English-language feed and beginning at 9:00 p.m. on the French-language feed.
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39. |
The Commission is of the view that an alternate
peak period would recognize that Teletoon/Télétoon has a different peak
viewing period than other specialty services. However, the Commission wishes
to ensure that, during the evening viewing period, viewers continue to have
access to Canadian programming. The Commission has therefore decided to adopt
a peak period of 4:00 p.m. to 10 p.m. This revised peak period would also
have the potential to stimulate some production of Canadian animated material
that would appeal to a slightly older audience. A revised period of from
4:00 p.m. to 10:00 p.m. would ensure that, at times when Teletoon/Télétoon’s
audience is greatest, a significant percentage of the programming being
viewed would be Canadian. |
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40. |
Accordingly, the Commission approves in part
the licensee’s request. The Commission will define Teletoon/Télétoon’s "peak
period" as the time period each day between 4:00 p.m. and 10:00 p.m. In
addition, consistent with the licensee’s commitment, the Commission requires
that at least one hour of each broadcast day between 8:00 p.m. and midnight
be devoted to the broadcast of Canadian programs. A condition of licence
to this effect is set out in the appendix to this decision. |
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Compliance with requirement for the exhibition of Canadian programming
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41. |
Teletoon Canada is currently required to ensure
that not less than 60% of the broadcast year, and not less than 60% of the
evening broadcast period (6:00 p.m. to midnight), is devoted to Canadian
programs. |
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42. |
The logs for Teletoon/Télétoon programming in
the broadcast year 1999-2000 indicate that the licensee was not in compliance
during that broadcast year, with regard to the broadcast of Canadian content.
The shortfall was noted during the evening broadcast period on the
English-language feed, and during both the evening broadcast period and the
broadcast day on the French-language feed. |
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43. |
Teletoon Canada admitted that the shortfall had
occurred, and submitted that the reason it had not met its Canadian content
requirements was due to the purchase of programming believed to be Canadian,
from CINAR. It was subsequently discovered that the programming did not
qualify as Canadian programming. Teletoon Canada argued that, because the
programs were purchased in good faith, and that CINAR was in breach of its
contract with the licensee, Teletoon Canada should not be sanctioned for the
shortfall. |
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44. |
The licensee outlined the following safeguards,
put in place to ensure that a similar situation does not arise in the future:
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- Deal memos and long-form program licence agreements (PLAs) contain
clear and unqualified representations and warranties by the
producer/licensor that the program will receive Canadian content
certification.
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- PLAs requires the licensor to provide full and final Canadian content
certification, and failure to do so would constitute a material breach of
contract.
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- In addition to relying on representations and warranties, the licensee
will conduct its own analysis of the planned project to verify that it will
qualify as Canadian.
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- The licensee will monitor its logs and follow up with producers on a
regular basis concerning Canadian content certification numbers.
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- Contracts will clearly stipulate that final payment is contingent upon
delivery of final Canadian content certification numbers.
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- The licensee will increase its efforts to ensure that certification of
programs is obtained prior to broadcast, by requiring a copy of the
licensor’s application to certify the project before initial payments are
made.
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45. |
Teletoon Canada also indicated that its
employees now monitor and track missing Canadian content certification
numbers. In addition, at the hearing, the licensee stated that it had removed
from Teletoon/Télétoon’s schedule any decertified CINAR programming or CINAR
programming still awaiting certification. |
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Interventions
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46. |
Several interveners touched upon
Teletoon/Télétoon’s non-compliance, and indicated that many broadcasters had
been affected by CINAR, and that, in their opinion, no further action on the
part of the Commission was necessary. SARTEC took a different view, stating
that since CINAR is a shareholder of Teletoon Canada, it should not benefit
from a problem it created. |
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The Commission’s analysis and determination
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47. |
The Commission emphasizes that the broadcaster
is responsible for ensuring that all programming requirements are fulfilled
at all times. Nevertheless, the Commission considers that the present
situation is unique. |
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48. |
The Commission is satisfied that the shortfall
of Canadian content on Teletoon/Télétoon was a result of CINAR’s activities,
and that the measures now in place will minimize any reoccurrence of
non-compliance. |
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French-language production
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Interveners
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49. |
While generally pleased that Teletoon Canada has
met and exceeded commitments to new Canadian animation programming,
interventions submitted by UDA and SARTEC expressed the view that
Teletoon/Télétoon should make a greater commitment to animation production in
Quebec. |
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50. |
Both UDA and SARTEC suggested that
Teletoon/Télétoon should be subject to a requirement that a minimum number of
Canadian programs be developed and produced in French to support the
animation industry in Quebec. |
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The licensee’s reply
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51. |
At the hearing, Teletoon Canada made the
following commitments related to the acquisition of programming produced in
the French language: |
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- Through Quebec-based industry associations, Teletoon Canada will meet
with Quebec-based animation producers and talent, to discuss the overall
issues and develop solutions for creating Quebec-based animation. Teletoon
Canada will keep the Commission informed of the progress of this
initiative.
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- To place a priority on productions that commit to produce the
French-language version using Quebec-based talent.
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- To acquire, when available, all French-language dubbed audio tracks
created in Quebec for all foreign productions or co-productions, rather
than the internationally-dubbed versions, regardless of cost.
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- To direct a minimum of one-third of all of Teletoon/Télétoon’s script
and concept development expenditures to Canadian French-language producers.
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To produce a minimum of 700 new half-hours of Canadian productions,
each available in English and in French, over the new licence term.
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The Commission’s analysis and determination
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52. |
The Commission notes Teletoon Canada’s success
in creating new Canadian programming, and the licensee’s commitment to a
minimum of 700 new half-hours of Canadian production over the new licence
term. The Commission recognizes that, since all of the planned production is
created in both English and French, the licensee will effectively create
1,400 half-hours of new programming. |
|
53. |
At the same time, the Commission is of the view
that licensees of French-language services, including Teletoon/Télétoon,
should strive to provide opportunities to French-language producers from
across Canada, and that simply broadcasting in both official languages does
not fulfil the obligations of a bilingual broadcaster. |
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54. |
Accordingly, the Commission expects the licensee
to adhere to its commitments set out above. Also, consistent with the
licensee’s commitments, the Commission has imposed conditions of licence,
requiring that Teletoon Canada must acquire, when available, all
Canadian-created French-language audio tracks for non-Canadian productions or
co-productions that it broadcasts, and that Teletoon Canada direct a minimum
of one-third of all script and concept expenditures to Canadian
French-language producers. The texts of these conditions of licence
are set out in the appendix to this decision. |
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Canadian independent production
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55. |
In Teletoon – Approved, Decision CRTC
96-598, 4 September 1996 (Decision
96-598), by condition of licence the
Commission required that, by the end of the current licence term, 50% of all
Canadian programs broadcast on Teletoon/Télétoon be financed by parties other
than the licensee, its shareholders, their shareholders or any of their
affiliates. In that decision, the Commission also required that, by the end
of the licence term, 50% of all expenditures for the development and creation
of new programs should be set aside for parties other than the licensee, its
shareholders, their shareholders or any of their affiliates. Decision
96-598 also required that the licensee not
remit any program development funds to its shareholders or affiliated
corporations. |
|
56. |
Prior to the public hearing, Teletoon Canada
submitted a proposal to revise two of the three conditions noted above. The
proposed conditions, as revised, are: |
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- In each broadcast year, a minimum of 50% of Teletoon’s expenditures on
the acquisition or commissioning of original Canadian programming shall be
set aside for parties other than the licensee, its shareholders, their
shareholders or any of their affiliates.
|
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- The licensee shall not remit any script and concept development
expenditures to its shareholders or affiliated corporations.
|
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Interventions
|
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57. |
The APFTQ and Productions Pascal Blais submitted
that 75% of Canadian programming should come from unrelated producers, and
that 75% of expenditures for the development and creation of new programs
should be directed to unaffiliated producers. The CFTPA recommended that
Teletoon/Télétoon be subject to a requirement that 75% of original Canadian
programming come from independent producers. |
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The licensee’s reply
|
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58. |
Teletoon Canada submitted that the current 50%
levels remain appropriate because "the animation industry has been subject to
significant volatility" and that "the total supply of animation programming
is small, relative to live action programming". |
|
59. |
The licensee also stated that the 50% levels are
minimums that have been exceeded on occasion, "depending upon the inventory
of animation production". Teletoon Canada maintained that: "…it would not be
prudent for the Commission to impose a condition of licence for which
compliance may not be possible in all cases". |
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The Commission’s analysis and determination
|
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60. |
With respect to expenditures for programming
acquired from independent producers, the Commission agrees that requiring the
licensee to increase its spending for original, Canadian programming to be
broadcast on Teletoon/Télétoon would be inappropriate, given the approach
adopted for other specialty services currently under consideration. |
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61. |
Accordingly, the Commission is of the view that
it is reasonable to require Teletoon Canada, for the duration of the new
licence term, to continue to ensure that a minimum of 50% of all expenditures
for original, first-run Canadian programming broadcast on Teletoon/Télétoon
continues to be directed to non-related producers. A condition of licence
to this effect is set out in the appendix to this decision. |
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62. |
With respect to the exhibition of independently
produced programming, consistent with the approach taken in the case of a
number of other specialty television undertakings, and consistent with the
approach set out in Public Notice
2004-2, the Commission considers that it is reasonable to expect Teletoon
Canada, for the duration of the new licence term, to ensure that a minimum of
75% of all original, first-run Canadian programming broadcast is acquired
from non-related producers. |
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Regional reflection and production
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63. |
The licensee stated that, notwithstanding the
fact that animation series are typically situated in fictitious or imaginary
worlds, the importance of reflecting stories from around the country has
always been an important goal. Teletoon Canada indicated that it does this
through programming set in a variety of Canadian locations, from British
Columbia to Prince Edward Island. In addition, the licensee stated that it
acquires programming from smaller production centres across the country. In
addition, Teletoon Canada noted that, for Teletoon/Télétoon’s French-language
feed, it strives to acquire versions of foreign programming that are dubbed
using the voice talents of well-known Quebec actors, in order to ensure a
distinctly regional flavour. |
|
64. |
The Commission notes the licensee’s efforts to
ensure that the programming aired by Teletoon/Télétoon reflects all Canada's
regions, and expects it to continue to pursue those efforts. The Commission
also expects the licensee to provide opportunities for producers working
outside the major production centres to supply programming for the service. |
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"Safe haven"
|
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65. |
In Decision
96-598, the Commission noted the licensee’s commitment that
Teletoon/Télétoon would "create a unique "safe haven" for young children
throughout the day", and that Teletoon/Télétoon would "broadcast twelve hours
of programming every weekday from 6:00 a.m. to 6:00 p.m. suitable for
unsupervised viewing by young children". |
|
66. |
The Commission notes the licensee’s statement
that Teletoon Canada will adhere to this commitment throughout the new
licence term. The Commission further notes Teletoon Canada’s commitment to
schedule a minimum of 31.5 hours of advertising-free programming Monday to
Friday of each broadcast week, during the hours 6:00 a.m. to 6:00 p.m. |
| |
Other matters
|
|
67. |
As part of its renewal application, Teletoon
Canada indicated that it would continue to adhere to the commitment noted in
Decision 96-598, that "primary
responsibility for the development, acquisition and investment in programming
for the service will be held by Teletoon’s President and the Senior Director
of Programming, neither of whom will be employees or principals of any
shareholders". The Commission expects the licensee to adhere to its
commitment throughout the new licence term. |
|
68. |
Consistent with the terms set out in Decision
96-598, the Commission requires the
licensee to maintain separate program logs for its English-language and
French-language feeds. A condition of licence to this effect is set
out in the appendix to this decision. |
| |
Cultural diversity
|
|
69. |
As stated in Public Notice
2004-2, the Commission expects
the licensee to endeavour, through its programming and employment
opportunities, to reflect Canada’s ethno-cultural minorities and Aboriginal
peoples. The Commission further expects the licensee to ensure that the
on-screen portrayal of such groups is accurate, fair and non-stereotypical. |
|
70. |
Teletoon Canada stated its intention to adhere
to the cultural plan developed by Astral Media, which sets out specific
commitments relating to corporate accountability, reflection of diversity in
programming, and community involvement as they relate to presence and
portrayal of cultural diversity. |
|
71. |
The Commission expects the licensee to continue
to contribute to cultural diversity and to implement the commitments set out
in Astral Media’s corporate cultural diversity plan. As discussed in Public
Notice 2004-2, the Commission
further expects the licensee to work with Astral Media to incorporate persons
with disabilities into its cultural diversity corporate planning. |
| |
Employment equity and on-air presence
|
|
72. |
The Commission's expectations with respect to
cultural diversity are over and above its longstanding and more general
expectations concerning employment equity and on-air presence. In accordance
with Implementation of an employment equity policy, Public Notice
CRTC 1992-59, 1 September 1992,
the Commission encourages the licensee to consider employment equity issues
in its hiring practices and in all other aspects of its management of human
resources. |
|
73. |
With respect to on-air presence, the Commission
also expects the licensees of specialty television services to ensure that
the on-air presence of members of the four designated groups (women,
Aboriginal persons, persons with disabilities and members of visible
minorities) is reflective of Canadian society, and that members of these
groups are presented fairly and accurately. |
|
74. |
The Commission notes that Teletoon/Télétoon has
no on-air positions, since almost all of its programming is animated. The
Commission, however, notes the licensee’s statements that it engages a number
of different actors, both male and female, to perform voice-over work for use
in Teletoon/Télétoon’s animated station identification announcements and
other production material. Teletoon Canada further stated that, while it uses
more female voices during programs aimed at pre-school age children, it seeks
to use a balance of male and female voices, using a variety of different
accents and styles. |
| |
Service to persons who are deaf or hard of hearing
|
|
75. |
The Commission is committed to improving service
to viewers who are deaf or hard of hearing, and has consistently encouraged
broadcasters to increase the amount of closed captioned programming they
broadcast. The Commission generally requires all broadcasters to offer a
minimum percentage of closed captioned programs consistent with the nature of
their services. Most English-language services must close caption at least
90% of their programming. The closed captioning requirement currently imposed
on the French-language programming broadcast by Teletoon/Télétoon
and on other French-language services is less than the 90% level
generally required of English-language services. This is in recognition of
the significantly greater challenges involved in captioning French-language
programming. |
|
76. |
In the present case, the licensee made a
commitment to close caption 90% of all English-language programming,
broadcast on Teletoon/Télétoon during each broadcast day of the
new licence term. Teletoon Canada also made a commitment to immediately close
caption 75% of all French-language programming broadcast on Teletoon/Télétoon
during each broadcast day, and to increase the amount of closed captioning to
90% of all French-language programming in the sixth year of the new licence
term. |
|
77. |
Consistent with these commitments and with the
Commission’s general approach for English- and French-language services, the
Commission is imposing a condition of licence requiring the licensee
to close caption 90% of all English-language programming aired during the
broadcast day, beginning not later than 1 September 2004. It is also imposing
a condition of licence requiring the licensee to close caption 75% of
all French-language programming aired during the broadcast day beginning not
later than 1 September 2004, 80% beginning 1 September 2005, 85% beginning 1
September 2007, and 90% beginning 1 September 2008. The conditions of
licence are set out in the appendix to this decision. |
|
78. |
The 90% obligation is based on the recognition
that requiring 100% captioning at all times by condition of licence may not
be reasonable. Thus, the obligation is designed to provide some flexibility
to cover unforeseen circumstances (such as late delivery of captions,
technical malfunctions, or the lack of availability of captions for programs
acquired outside North America), or programming where captioning may not be
feasible, such as third language programming. |
|
79. |
The Commission expects that, during the new
licence term, the licensee will focus on improving the quality, reliability
and accuracy of its closed captioning, and work with representatives of the
deaf and hard of hearing community to ensure that captioning continues to
meet their needs. |
| |
Service to persons who are blind or whose vision is impaired
|
|
80. |
The Commission is committed to improving the
accessibility of television programming for persons with visual impairments
through the provision of audio description2
and video description (also known as described video).3 |
|
81. |
In its renewal application, the licensee
indicated that Teletoon/Télétoon is not currently technically
capable of providing descriptive video. It stated, however, that once a
solution is found to the problems related to signal delivery, it would
exhibit one hour each month of described programming. |
|
82. |
Teletoon Canada also stated that it is prepared
to provide audio description where appropriate, and made commitments to
undertake the necessary upgrades to permit the broadcast of described
programming via the SAP channel, to acquire and broadcast the audio described
versions of programs wherever possible and to take the necessary steps to
ensure that Teletoon/Télétoon’s customer service responds to the needs of
viewers who have visual impairments. |
|
83. |
Consistent with its approach as set out in
Public Notice 2004-2, and given
the nature of the service and the programming it provides, the Commission has
determined that it would be appropriate to require the licensee to provide a
minimum of two hours of described video programming each week, beginning not
later than 1 September 2005, and to increase that amount to a minimum of
three hours each week, beginning not later than 1 September 2008. A
condition of licence to this effect is set out in the appendix to this
decision. |
|
84. |
The Commission notes that, while
Teletoon/Télétoon is not currently equipped to provide described video, the
requirement to provide a minimum of two hours per week of described video
programming will not take effect until 1 September 2005. This should provide
sufficient time for the licensee to develop programming plans and make the
necessary system upgrades. |
|
85. |
The Commission further expects that, during the
new licence term, the licensee will: |
| |
- provide audio description wherever appropriate;
|
| |
- acquire and broadcast the described versions of a program wherever
possible; and
|
| |
- take the necessary steps to ensure that its customer service responds
to the needs of viewers who have visual impairments.
|
| |
Programming delivered across time zones
|
|
86. |
The Commission notes that Teletoon/Télétoon is
available on three feeds: a French-language signal originating in the Eastern
time zone and two English-language signals, one originating in the Eastern
time zone and one in the Pacific time zone. Nevertheless, as discussed in
Public Notice 2004-2, the
Commission expects the licensee to continue to demonstrate responsibility in
the scheduling of programming intended for adult audiences, taking into
account the time zone differences between where the program originates and
where it is received. |
| |
Compliance with industry codes
|
|
87. |
In accordance with its usual practice for
specialty television services, the Commission is imposing conditions of
licence requiring the licensee to adhere to industry codes related to
sex-role portrayal, advertising to children, and the depiction of violence in
television programming. |
| |
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 Broadcasting Decision CRTC 2004-12
|
| |
Conditions of licence
|
| |
1. (a) The licensee shall provide a national
specialty television service devoted to animation and animation-related
programs, with both English- and French-language feeds. |
| |
(b) The programming must be drawn exclusively from the following
categories, as set out in section 6 of Schedule I of the Specialty
Services Regulations, 1990, as amended from time to time:
|
| |
5 (b) Informal education/Recreation and leisure
7 (a) Ongoing dramatic 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
7 (e) Animated television programs and films
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
|
| |
(c) The licensee shall devote not more than 5% of the broadcast year to
programs from categories 12, 13 and 14. In the remainder of the broadcast
year, a minimum of 90% of all programs shall be animated programming drawn
from categories 7(d) and 7(e). All programs provided by the licensee shall
consist exclusively of animation and animation-related programming, with
the exception of those drawn from categories 12, 13 and 14.
|
| |
2. (a) In each broadcast year, the licensee
shall devote to the exhibition of Canadian programs not less than 60% of the
broadcast day, and not less than 60% of the peak viewing period. |
| |
(b) Over the broadcast year, during each broadcast day the licensee
shall devote a minimum of one hour between 8:00 p.m. and midnight to the
distribution of Canadian programs.
|
| |
(c) The licensee shall schedule its Canadian programs reasonably
throughout the broadcast day.
|
| |
3. In accordance with the Commission's position
on Canadian programming expenditures as set out in New Flexibility With
Regard to Canadian Program Expenditures by Canadian Television Stations,
Public Notice CRTC 1992-28, 8
April 1992, in The Reporting of Canadian Programming Expenditures,
Public Notice CRTC 1993-93,
22 June 1993 and in Additional Clarification Regarding the Reporting of
Canadian Programming Expenditures, Public Notice CRTC
1993-174, 10 December 1993: |
| |
(a) In the broadcast year ending 31 August 2004, the licensee shall
expend on the acquisition of and/or investment in Canadian programs a
minimum of 40% of the gross revenues derived from the operation of this
service during the previous broadcast year.
|
| |
(b) In the broadcast year beginning 1 September 2004, and in each
subsequent broadcast year of the licence term, the licensee shall expend on
the acquisition of and/or investment in Canadian programs a minimum of 47%
of the gross revenues derived from the operation of this service during the
previous broadcast year.
|
| |
(c) In each broadcast year of the licence term, 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 under-expenditure.
|
| |
(d) In each broadcast year of the licence term 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:
|
| |
(i) from the minimum required expenditure for the following year of
the licence term, an amount not exceeding the amount of the previous
year's over-expenditure; and
|
| |
(ii) from the minimum required expenditure for any subsequent
broadcast year of the licence term, an amount not exceeding the
difference between the over-expenditure and any amount deducted under (i)
above.
|
| |
(e) Notwithstanding paragraphs (c) and (d) 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
this condition of licence.
|
| |
4. (a) Subject to subsection (b), the licensee
shall not distribute more than twelve (12) minutes of advertising material
during each clock hour. |
| |
(b) Where a program occupies time in two or more consecutive clock
hours, the licensee may exceed the maximum number of minutes of advertising
material allowed in those clock hours if the average number of minutes of
advertising material in the clock hours occupied by the program does not
exceed the maximum number of minutes that would otherwise be allowed per
clock hour.
|
| |
(c) The licensee shall not distribute any paid advertising material
other than paid national advertising.
|
| |
5. In each broadcast year, a minimum of 50% of
all expenditures for the acquisition or commissioning of original first-run
Canadian programming shall be set aside for non-related producers. |
| |
6. (a) The licensee shall not remit any script
and concept development expenditures to its shareholders or affiliated
corporations. |
| |
(b) The licensee shall direct a minimum of one-third of all script and
concept development expenditures to Canadian French-language producers.
|
| |
7. The licensee shall charge each exhibitor of
this service a maximum monthly wholesale rate of $0.35 per subscriber, where
the service is carried as part of the basic service. |
| |
8. (a) The licensee shall provide closed
captioning for not less than 90% of all programs aired during the broadcast
day on the English-language feeds, beginning not later than 1 September 2004. |
| |
(b) The licensee shall provide closed captioning for the following
percentages of all programs aired during the broadcast day on the
French-language feed:
|
| |
Beginning not later than 1 September 2004: 75%
|
| |
Beginning not later than 1 September 2005: 80%
|
| |
Beginning not later than 1 September 2007: 85%
|
| |
Beginning not later than 1 September 2008: 90%
|
| |
9. In each broadcast year of the licence term,
the licensee shall provide a minimum of two hours of described video
programming during each broadcast week, beginning not later than 1 September
2005, increasing to a minimum of three hours beginning not later than 1
September 2008. In fulfilling this condition, a minimum of 50% of the
required hours must be original to the service. |
| |
10. The licensee shall acquire, when available,
all French-language audio-tracks created in Canada for non-Canadian
productions or for co-productions that it broadcasts. |
| |
11. The licensee shall maintain separate program
logs for its English-language and French-language feeds. |
| |
12. The licensee shall adhere to the guidelines
on gender portrayal set out in the Canadian Association of Broadcasters’
(CAB) Sex-role portrayal code for television and radio programming, as
amended from time to time and approved by the Commission. The application of
the foregoing condition of licence will be suspended as long as the licensee
remains a member in good standing of the Canadian Broadcast Standards Council
(CBSC). |
| |
13. 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. |
| |
14. 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. The application of
the foregoing condition of licence will be suspended as long as the licensee
remains a member in good standing of the CBSC. |
| |
For the purpose of these conditions, the terms
"broadcast day", "broadcast month", "broadcast year", and "clock hour" shall
have the same meanings as those set out in the Television Broadcasting
Regulations, 1987. The term "broadcast week" shall have the same meaning
as that set out in the Radio Regulations, 1986. "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. "Peak viewing period" means
the period 4:00 p.m. to 10:00 p.m. "Animation-related programming" means: |
| |
i. programs that were demonstrably originally inspired by animated or
illustrated characters or concepts.
|
| |
ii. Programs that contain animation and non-animation formats within a
single program.
|
| |
iii. Programs about animation or animators/illustrators.
|
| |
Footnotes:
1 In Administrative renewals,
Broadcasting Decision CRTC 2003-290,
21 July 2003, the Commission granted a six-month administrative renewal of
Teletoon/Télétoon, from 2 September 2003 to 29 February 2004.
2 Audio description
involves the provision of basic voice-overs of textual or graphic information
displayed on the screen. A broadcaster providing audio description will, for
example, not simply display sports scores on the screen, but also read them
aloud so that people who are visually impaired can receive the information.
3 Video description, or
described video, consists of narrative descriptions of a program’s key visual
elements so that people who are visually impaired are able to form a mental
picture of what is occurring on the screen. |
