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Broadcasting Decision CRTC 2004-13
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See also: 2004-13-1
Ottawa, 21 January 2004 |
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History Television Inc.
Across Canada |
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Application 2002-0889-4
Public Hearing in the National Capital Region
26 May 2003 |
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History Television – Licence renewal
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In this decision, the Commission
renews the broadcasting licence for the specialty television
service known as History Television, 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 History Television Inc. (History TV) for the renewal of the
broadcasting licence for the national, English-language, specialty television
service known as History Television (History). |
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). |
3. |
The Commission received 38
interventions specifically in support of History’s licence renewal
application. One intervention was submitted in opposition to the licensee’s
proposal to add game shows to History’s programming. The concern raised by
the intervener is discussed below. |
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. |
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 History Television,
from 1 March 2004 to 31 August 20101.
The licence will be subject to the conditions specified therein and to the
conditions set out in the appendix to this decision. |
6. |
The licensee requested the renewal of the
licence for History under the same terms and conditions as the existing
licence, with the exception of the addition of category 10 Game shows to the
list of categories from which History may draw its programming. |
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Expenditures on, and exhibition of, Canadian programming
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7. |
In Public Notice
2004-2, the Commission set out
its general approach to the broadcast of, and expenditure on, Canadian
programming by specialty services which, at this time, favours augmenting
expenditures over increasing exhibition time. In the present case, however,
because History’s Canadian content levels are relatively low compared to
other specialty services, the Commission is of the view that increases in
both the expenditure on, and the broadcast of, Canadian programs should be
considered. |
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Expenditures
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8. |
In each year of the current licence term,
History TV has been required by condition of licence, to expend a minimum of
34% of the previous year’s gross revenues on Canadian programs. |
9. |
Following discussions at the public hearing,
History TV offered to increase its Canadian programming expenditures (CPE) by
one percentage point in each year of the new licence term, to a maximum CPE
of 40%. This proposal was to be contingent upon History maintaining an annual
subscriber level of at least 4.8 million, a level reached in 2000. In any
year that the subscriber level fell below 4.8 million, the licensee proposed
that the previous year’s CPE level would be maintained until the subscriber
level again exceeded 4.8 million. |
10. |
In support of its proposal, History TV stated
that: |
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…the sliding scale, tied to our paid subscriber numbers will allow us to
ensure that further increases of our Canadian content expenditures will not
occur in an environment where our subscriber base is being significantly
eroded and as such the business cannot sustain the additional commitment.
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11. |
The Commission notes that History’s current CPE
requirement is one of the lowest of the specialty services licensed in 1996.
At the same time, History has been one of the most profitable of that group,
exceeding revenue projections by $46 million over the licence term, even
though expenses have exceeded projections by only $7 million over the same
period. |
12. |
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 41% 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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Exhibition
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13. |
The overall requirement for the exhibition of
Canadian programs on History during the current licence term has been based
on a ramp-up from 30% to 50%, increased over the current licence term as
subscriber levels rose. History is also required to broadcast a Canadian
content level of 33 1/3% during the evening broadcast period. These levels
are lower than the average exhibition of Canadian programs on other specialty
services. |
14. |
In its intervention, the Canadian Film and
Television Production Association (CFTPA) recommended that History’s overall
Canadian content requirement be 50%, and that it should no longer be
contingent upon subscriber levels in the new licence term. |
15. |
With respect to the level of Canadian
programming during the evening broadcast period, History TV initially opposed
any increase, stating that History’s mandate is to provide Canadians with a
window on world history, and noting the significant cost of historical dramas
and re-creations. However, following discussions at the public hearing, and
while indicating a reluctance to alter its balance of foreign and Canadian
programming, the licensee proposed to increase the Canadian programming on
History during the evening broadcast period to 40%. The licensee stated the
following: |
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We would be very reluctant to go beyond this level as we would be
concerned about the audience impact and our ability to fulfil our mandate
to bring the world’s history to Canadian audiences.
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16. |
Consistent with the licensee’s commitments, the
Commission has decided that it is appropriate to increase History’s Canadian
content requirements to a minimum of 50% during the broadcast day and a
minimum of 40% during the evening broadcast period. 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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17. |
As part of its licence renewal application, the
licensee requested an amendment to the current condition of licence
describing its nature of service to add program category 10 Game shows to the
list of categories from which it may draw its programming. History TV
proposed that not more than 5% of each broadcast year be devoted to the
broadcast of game shows. |
18. |
In support of its request, the licensee stated:
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…History Television would foresee running a weekly quiz show that
challenges contestants on their knowledge of Canadian and international
history. Contestants would be recruited from across the country and
questions would cover a range of historical and cultural issues and events
that have played a role in forming this country.
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19. |
In an intervention, Michael Warnock Shaw
expressed opposition to the licensee’s proposal to add game shows to the
programming offered by History, arguing that game shows have little relevance
to history. |
20. |
The Commission notes that History TV has
specified that any game shows to be broadcast would be devoted to the subject
of Canadian and international history, and that the ability to broadcast such
material would not enable History to be directly competitive with any other
Canadian specialty service, since the licensee would continue to be
constrained by its nature of service. |
21. |
The Commission notes in addition that History TV
proposed that no more than 5% of each broadcast year be devoted to material
drawn from program category 10. |
22. |
Accordingly, the Commission approves the
licensee's request and adds program category 10 to the list of categories
from which History may draw its programming. The condition of licence
on the nature of service is set out in the appendix to this decision. |
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Canadian independent production
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23. |
In The History and Entertainment Network –
Approved, Decision CRTC 96-599,
4 September 1996, and in Decision CRTC 99-106,
20 May 1999, which approved changes in the ownership of History TV’s parent
company, the Commission noted the licensee’s statements that programming
originally produced by companies affiliated with the licensee would account
for less than 5% of all programming on History. |
24. |
In the above-noted decisions, the Commission
also set out the expectation that the licensee broadcast at least 215 hours
per year of independently-produced Canadian programs in the history genre
each year. As part of this renewal process, History TV indicated that it
would be willing to carry that expectation forward in the new licence term. |
25. |
Also, as set out in its renewal application,
History TV indicated that it would be willing to accept an expectation that a
minimum of 75% of all Canadian programs broadcast would be produced by
independent production companies. |
26. |
Consistent with the licensee’s commitment and
with the discussion in Public Notice
2004-2, the Commission
considers that it is reasonable to expect History TV, for the duration of the
new licence term, to ensure that a minimum of 75% of all original, first-run
Canadian programming broadcast on History is acquired from non-related
producers. |
27. |
The Commission further notes the licensee’s
commitment to continue to broadcast 215 hours of independently-produced
Canadian programs in the history genre each year. |
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Regional reflection and production
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28. |
History TV stated that it is committed to
providing viewers with programming that reflects all regions of Canada, and
that it has worked extensively with producers to find regional stories that
will appeal to viewers across the country. The licensee also stated that,
since the launch of History, independent producers from outside Toronto,
Montréal and Vancouver have received approximately 23% of all licence fees
paid, and have created approximately 170 hours of programming for History. |
29. |
The Commission notes the licensee’s efforts to
ensure that the programming aired by History reflects all Canada's regions,
and expects it to continue to pursue those efforts. The Commission also
expects the licensee to continue to provide opportunities for producers
working outside the major production centres to supply programming for the
service. |
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Cultural diversity
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30. |
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 licensees to ensure that the
on-screen portrayal of such groups is accurate, fair and non-stereotypical. |
31. |
Although History TV has not yet filed with the
Commission a cultural diversity corporate plan, in its renewal application it
included a document entitled Alliance Atlantis Broadcasting Cultural
Diversity Best Practices. History TV stated that the service focuses on
programming created by film-makers of varied cultures and backgrounds,
bringing the struggles and successes of their people to the screen. History
TV also stated that it recognizes that Canada’s history does not stop at its
borders, and thus broadcasts stories about Canadians interacting with the
rest of the world, and the influence Canadians have upon events in the rest
of the world. |
32. |
The Commission notes the initiatives that the
licensee has taken in this regard during the current licence term. As set out
in Public Notice 2004-2, the
Commission expects the licensee to file a corporate plan on cultural
diversity, within three months of the date of this decision, and to provide
annual reports on its progress in achieving the plan’s objectives. Such
reports should be filed no later than 31 December of each year of the new
licence term, beginning December 2005. |
33. |
As discussed in Public Notice
2004-2, the Commission further
expects the licensee to incorporate persons with disabilities into its
cultural diversity corporate planning and to ensure that this is reflected in
its annual reports on cultural diversity. |
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Employment equity and on-air presence
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34. |
Pursuant to section 5(4) of the Broadcasting
Act, the Commission does not regulate or supervise matters concerning
employment equity in relation to broadcasting undertakings with more than 100
employees, as they are subject to the Employment Equity Act. However,
the Commission continues to regulate matters such as on-air presence. |
35. |
The Commission 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. |
36. |
The Commission notes that History does not
employ on-air staff. |
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Service to persons who are deaf or hard of hearing
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37. |
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. |
38. |
In the present case, the licensee made a
commitment to close caption 90% of all programming broadcast on History
during each broadcast day of the new licence term. |
39. |
Consistent with this commitment and with the
Commission’s general approach for English-language services, the Commission
is imposing a condition of licence requiring the licensee to close
caption 90% of all programming aired during the broadcast day, beginning not
later than 1 September 2004. The condition of licence is set out in the
appendix to this decision. |
40. |
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. |
41. |
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. |
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Service to persons who are blind or whose vision is impaired
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42. |
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 |
43. |
In its renewal application, the licensee
indicated that History is now technically capable of providing described
video via a SAP channel. It made the commitment that, provided all issues
related to the universal distribution of described video can be resolved,
History would provide two hours of described video per month in the first
three years of the licence term, increasing to four hours per month in the
seventh year of the licence term. |
44. |
Nevertheless, consistent with the approach 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 more appropriate to require the
licensee to provide a minimum of two hours of described video programming
each week, beginning 1 September 2005, and to increase that amount to a
minimum of three hours each week, beginning 1 September 2008. A condition
of licence to this effect is set out in the appendix to this decision. |
45. |
The Commission further expects that, during the
new licence term, the licensee will: |
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- provide audio description wherever appropriate;
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- acquire and broadcast the described versions of a program wherever
possible; and
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- take the necessary steps to ensure that its customer service responds
to the needs of viewers who have visual impairments.
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Programming delivered across time zones
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46. |
As discussed in Public Notice
2004-2, the Commission expects
the licensee to demonstrate responsibility in the scheduling of programming
intended for adult audiences, taking into account time zone differences
between where the program originates and where it is received. |
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Compliance with industry codes
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47. |
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. |
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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 Broadcasting Decision CRTC 2004-13
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Conditions of licence
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1. (a) The licensee shall provide a national English-language specialty
service consisting of historical documentaries, movies, mini-series and
history programs which embrace both current events and past history, with a
special emphasis on documentary and dramatic programs related to Canada’s
past.
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(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:
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2 (a) Analysis and
interpretation
(b) Long-form documentary
3 Reporting and actualities
7 Drama and comedy
(a) Ongoing dramatic series
(b) Ongoing comedy series
(sitcoms)
(c) Specials, mini-series or
made-for-TV feature films
(d) Theatrical feature films
aired on TV
(e) Animated television programs
and films
(f) Programs of comedy sketches,
improvisation, unscripted works, stand-up comedy
(g) Other drama
10 Game shows
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and
corporate videos
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(c) During each broadcast week, the licensee shall not broadcast more
than 56 hours of feature films, all of which are to be based on historical
themes.
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(d) The licensee shall not broadcast more than one two-hour movie during
the evening broadcast period.
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2. In each broadcast year, the licensee shall devote to the exhibition
of Canadian programs not less than 50% of the broadcast day, and not less
than 40% 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 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:
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(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 34% of the gross revenues derived from the operation of this
service during the previous broadcast year.
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(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 41%
of the gross revenues derived from the operation of this service during the
previous broadcast year.
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(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.
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(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:
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(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
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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 over-expenditure and any amount deducted under (i)
above.
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(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.
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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) 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.
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(c) The licensee shall not distribute any paid advertising material
other than paid national advertising.
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(d) In addition to the twelve minutes of advertising material referred
to in subsection a), the licensee may broadcast partisan political
advertising during an election period.
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5. The licensee shall charge each exhibitor of this service a maximum
monthly wholesale rate of $0.25 per subscriber, where the service is
carried as part of the basic service.
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6. The licensee shall provide closed captioning for not less than 90% of
all programs aired during the broadcast day, beginning not later than 1
September 2004.
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7. 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.
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8. 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).
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9. 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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10. 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.
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For the purpose of these conditions, the terms
"broadcast day", "broadcast month", "broadcast year", "clock hour" and
"evening broadcast period" 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; 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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Footnotes:
2Audio
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.
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