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Broadcasting Decision CRTC 2004-15
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Ottawa, 21 January 2004 |
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CHUM Limited
Across Canada |
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Application 2002-0952-9
Public Hearing in the National Capital Region
26 May 2003 |
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MuchMoreMusic – Licence renewal
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In this decision, the Commission
renews the broadcasting licence for the specialty television
service known as MuchMoreMusic, 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 CHUM Limited (CHUM) for the renewal of the broadcasting
licence for the national, English-language specialty television service known
as MuchMoreMusic. |
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 36 letters
specifically in support of MuchMoreMusic’s licence renewal application. The
Commission also received an intervention raising concerns about the lack of
closed captioning of music videos. The concerns raised by the intervener are
discussed in this decision. |
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 MuchMoreMusic, 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 MuchMoreMusic under the same terms and conditions as the existing
licence. |
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Nature of service
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7. |
As part of the renewal process, the Commission
discussed with the licensee a number of possible amendments to
MuchMoreMusic’s nature of service condition of licence that the Commission
considered would make it clearer and more precise and would reflect the
revisions to the program categories adopted in Definitions for new types
of priority programs; revisions to the definitions of television content
categories; definitions of Canadian dramatic programs that will qualify for
time credits towards priority programming requirements, Public Notice
CRTC 1999-205, 23 December 1999
(Public Notice 1999-205). The
licensee generally agreed that the amendments suggested by the Commission
were acceptable. |
8. |
The Commission notes that MuchMoreMusic’s nature
of service condition of licence, in its current form, does not include a
specific description of the service to be provided. The Commission will
therefore add the following description, which is based on the description
set out in MuchMoreMusic – Approved, Decision CRTC
96-611, 4 September 1996, the original
licensing decision, to the service’s nature of service condition of licence: |
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The licensee shall provide a specialty television service designed for
an adult audience, consisting primarily of music video clips featuring
adult contemporary, light rock, classic hits and some soul, jazz, rhythm
and blues, reggae, and new age music.
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9. |
The Commission notes that, while MuchMoreMusic’s
existing conditions of licence specify that it must "provide programs
consisting primarily of music or music-related programs, " the term
"music-related" is not defined. The Commission will therefore add the
following definition of music-related to MuchMoreMusic’s nature of service
condition of licence: |
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"Music-related" shall be defined as about music or the music or
recording industries, or about or featuring musical artists, concerts and
musical performances, compositions or events.
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10. |
Finally, the Commission discussed with the
licensee that MuchMoreMusic’s nature of service condition of licence did not
include a list of program categories that could be broadcast. |
11. |
The licensee expressed concern that specifying
the categories from which MuchMoreMusic can draw programming could, "at some
point in the future, unintentionally restrict the types of programming the
service intends to offer its viewers." It therefore requested that all
programming categories, except category 15 Filler programming, appear in its
nature of service condition of licence. |
12. |
The Commission acknowledges that adding
categories 1 to 14 to MuchMoreMusic’s nature of service definition does not
change the overall service that MuchMoreMusic may provide. The Commission
considers that adding a list of categories from which the service may draw
programming to MuchMoreMusic’s conditions of licence, however, would be
consistent with the conditions of other specialty services and would make it
explicit that MuchMoreMusic can draw programming from any category provided
it is consistent with the service’s nature of service. Accordingly, the
Commission will add categories 1 to 14 to MuchMoreMusic’s nature of service
condition of licence. The amended condition of licence on the nature
of service is set out in the appendix to this decision. It incorporates all
the amendments discussed above. |
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Music video programs
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13. |
As part of a discussion on the appropriate
spending requirement, as discussed further below, the licensee proposed to
reduce, from 65% to 50%, the proportion of MuchMoreMusic’s schedule that is
devoted to music videos. CHUM stated that MuchMoreMusic’s audience is "not as
enamoured with music videos, so we are finding greater success with our
non-music video, music-related, but not music video programming, such as
documentaries, concerts, profiles, news and stuff like that." |
14. |
The Commission considers that reducing the
proportion of MuchMoreMusic’s schedule that is devoted to music videos would
allow the service to offer programming that better reflects the preferences
of its target audience while continuing to promote artists and new programs
that focus on music. Accordingly, the Commission reduces from 65% to 50% the
percentage of MuchMoreMusic’s schedule that must be devoted to music videos.
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15. |
Furthermore, to reflect the amendments the
Commission has made to the subcategories of program category 8 in Public
Notice 1999-205, it will add
category 8(c) Music video programs to the program categories that will fulfil
the licensee’s 50% music video requirement. The amended condition of
licence is set out in the appendix to this decision. |
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Expenditures on, and exhibition of, Canadian programming
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Expenditures
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16. |
While MuchMoreMusic is not currently subject to
a traditional Canadian programming expenditure (CPE) requirement, its current
condition of licence requires it to contribute 5% of the previous year’s
gross revenues to VideoFACT, a music video production fund that was set up in
1984 by CHUM to coincide with the launch of its music video specialty
service, MuchMusic. Approximately 40% of its contributions over the last term
have gone to PromoFACT, a program within VideoFACT, for the development of
electronic promotion and press kits. CHUM submitted that the 5% level remains
appropriate given that, as mentioned in the previous section, its target
audience is not primarily interested in music videos. |
17. |
As noted above, the licensee suggested that
should the Commission reduce the proportion of MuchMoreMusic’s schedule that
must be devoted to music videos, it would be reasonable for the licensee to
assume a condition of licence requiring it to expend 31% of the previous
year’s gross revenues on Canadian programming, including a 5% contribution to
VideoFACT and PromoFACT. |
18. |
Considering the amendment to the licensee’s
nature of service condition of licence that will permit it to reduce the
proportion of its schedule devoted to music videos, the Commission considers
that the addition of a more traditional CPE requirement is appropriate.
Accordingly, the Commission is requiring the licensee, in each year of the
licence term, to expend 31% of the previous year’s gross revenues on Canadian
programming, of which 5% must be directed to VideoFACT and PromoFACT,
beginning 1 September 2004. A condition of licence to this effect is
set out in the appendix to this decision. |
19. |
In addition, the Commission notes CHUM’s
statement that approximately 40% of its 5% contribution to VideoFACT will go
to PromoFACT. |
20. |
The Commission requests that VideoFACT report
annually on the contributions it receives from music video services and on
its disbursements, including a breakdown of the amounts going to the
production of music videos and those given to PromoFACT. |
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Exhibition
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21. |
The licensee is currently required to ensure
that 30% of the music videos distributed by MuchMoreMusic, during each
broadcast week, are Canadian music videos. The licensee indicated that it
exceeded this condition of licence, airing over 33% Canadian videos over its
licence term. Nevertheless, the licensee stated that an increase in its
minimum obligation would be inappropriate given that the availability of
Canadian music videos has decreased and that MuchMoreMusic contributes to the
industry in other ways, such as broadcasting artist profiles, interviews and
concerts. |
22. |
The Commission notes the licensee’s statements
that there has been a decrease in the supply of Canadian music videos and
that increased competition in the music video genre has not spurred the
development of more music videos. In addition, the Commission recognizes that
MuchMoreMusic contributes to the industry through the broadcast of a broad
array of music-related programming. |
23. |
More importantly, the Commission’s general
approach, as set out in Public Notice
2004-2, has been to focus on
increasing the amount that the licensee spends on the production of new
Canadian programming rather than on increasing the overall amount of such
programming that it exhibits. |
24. |
In light of the above, the Commission does not
consider that increasing the proportion of MuchMoreMusic’s music videos that
must be Canadian is necessary at this time. Accordingly, the Commission
maintains the licensee’s current minimum level of 30%. |
25. |
The Commission encourages the service to
continue exceeding its 30% requirement over its next licence term. |
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Broadcast day
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26. |
At the hearing, the licensee confirmed that,
although MuchMoreMusic’s broadcast day definition is for 18 hours, the
service operates on a 24-hour broadcast day. The licensee stated that it
would prefer a 24-hour broadcast day for MuchMoreMusic given that CHUM’s four
other music video services operate on a 24-hour broadcast day. |
27. |
The Commission is of the view that an amendment
to MuchMoreMusic’s definition of a broadcast day to incorporate a 24-hour
rather than 18-hour day is appropriate. Effective 1 September 2004, the
broadcast day shall mean a 24-hour period commencing at 6 a.m., each day, or
any other period approved by the Commission. |
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Canadian independent production
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28. |
The licensee submitted that MuchMoreMusic should
not be subject to a condition of licence with regard to independent
production given that most of its schedule is devoted to music video
programming, which is, by necessity, produced in-house. |
29. |
The Commission recognizes that music video
specialty services like MuchMoreMusic must produce most of their programming
in-house and considers that, in the case of MuchMoreMusic, a condition of
licence with regard to independent production is unnecessary at this time. |
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Regional reflection and production
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30. |
The licensee stated that MuchMoreMusic has
increased its regional coverage of the Canadian music and cultural scene
through regional music-related stories submitted by east- and west-coast
videographers and freelancers stationed throughout the country. These
features and reports are shown in daily news dispatches and in a weekly
compilation program. The licensee further indicated that MuchMoreMusic’s
playlist features artists from across the country in a number of genres. |
31. |
The Commission expects the licensee to continue
to ensure that the programming aired by MuchMoreMusic reflects all Canada’s
regions. |
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Cultural diversity
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32. |
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. |
33. |
During the current licence term, the licensee
filed a corporate cultural diversity plan with the Commission setting out
specific commitments relating to corporate accountability, reflection of
diversity in programming, and community involvement as they relate to the
presence and portrayal of cultural diversity. MuchMoreMusic adheres to the
policies, procedures and initiatives of the CHUM Cultural Diversity Best
Practices plan. |
34. |
The Commission expects the licensee to continue
to contribute to cultural diversity and to implement the commitments set out
in the CHUM corporate cultural diversity plan. 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, beginning with the report to be
filed in December 2004. |
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Employment equity and on-air presence
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35. |
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. The
Commission continues to regulate matters such as on-air presence. |
36. |
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. The Commission further expects CHUM to take steps during the new
licence term to address any gaps in the on-air presence of members of the
four designated groups on MuchMoreMusic. |
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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 non-music programming, including
presentations by program hosts, broadcast on MuchMoreMusic during each
broadcast day of the new licence term by August 2005. The licensee
estimated that it would cost $200,000 to caption 90% of all non-music
programming immediately. |
39. |
One intervener, Mr. Joe Clark, argued that music
videos should be closed captioned. |
40. |
In response to Mr. Clark, the licensee confirmed
that all VideoFACT-funded videos are captioned: |
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It is a requirement of receiving VideoFACT funding that videos must be
closed captioned. However, MuchMoreMusic has, in the past, not been
immediately serviced with the closed-captioned versions, and therefore,
non-captioned versions were broadcast on the service. We now no longer
consider a VideoFACT-funded video for airplay until a captioned version has
been received.
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41. |
The Commission has generally extended some
flexibility to those services with revenues under $10 million. It notes,
however, that MuchMoreMusic earns more than $10 million in annual revenue.
Furthermore, in the Commission’s view, the cost of offering closed captioning
is part of the expense of holding a broadcasting licence. |
42. |
In light of the above and consistent with its
general approach for English-language services, the Commission is imposing a
condition of licence requiring the licensee to close caption at least
90% of all non-music programming, including presentations by program hosts,
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. |
43. |
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. |
44. |
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. |
45. |
The Commission further expects the licensee to
fulfil its commitment that VideoFACT-funded videos will not be considered for
airplay until a captioned version has been provided. In addition, the
Commission encourages the licensee to ensure that all videos are captioned. |
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Service to persons who are blind or whose vision is impaired
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46. |
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. |
47. |
The licensee stated that CHUM channels follow
guidelines governing the use of voice-overs to accompany on-screen text
information. It further indicated that it is CHUM’s policy to inform existing
and new producers about the importance of accessibility to television for all
people. |
48. |
The licensee also indicated that MuchMoreMusic
is not currently technically equipped for described video, but added that the
service could be equipped within 90 days of the resolution of the outstanding
delivery issues described in Public Notice
2004-2. Furthermore, the
licensee submitted that while MuchMoreMusic does not believe that specific
commitments to described video are appropriate for a music video service, it
undertakes to obtain and broadcast described versions of programming whenever
they are available. |
49. |
The Commission 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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50. |
The Commission notes that there have been some
concerns about the scheduling by MuchMoreMusic of potentially inappropriate
programming at times when children may be watching. |
51. |
The licensee stated that it has mechanisms in
place to ensure that it is sensitive to its viewers in terms of its
programming and its scheduling. It explained, for example, that, on a weekly
basis, a team of producers and programmers screens all videos submitted to
its music stations. When any member of the team considers that a video’s
content could raise problems with respect to the Canadian Association of
Broadcasters’ codes, the video may not be considered for broadcast until it
has been reviewed and accepted by the Internal Review Committee (IRC). |
52. |
The licensee also stated that it adheres to all
of the industry codes and, based on the advice of its IRC, will broadcast
certain music videos or long-form programming only after 9 p.m. or after
midnight, with appropriate advisories, as warranted. |
53. |
The Commission notes the steps MuchMoreMusic is
taking to address viewers’ concerns. The Commission further reminds the
licensee that, while the target audience of the service may not be children
or youth, it must continue to schedule its programming in a way that takes
into account that children or youth may be watching at any time. 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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54. |
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 2004-15
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Conditions of licence
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1. (a) The licensee shall provide a national, English-language specialty
television service designed for an adult audience, consisting primarily of
adult contemporary, light rock, classic hits and some soul, jazz, rhythm
and blues, reggae, and new age music.
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(b) The licensee shall also provide programs consisting of music, or
music-related programs with music and pop news or commentaries, interviews,
concerts, profiles and specials, plus music feature films and music-related
or -themed series or programs. "Music-related" shall be defined as about
music or the music or recording industries, or about or featuring musical
artists, concerts and musical performances, compositions or events.
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(c) The licensee shall draw programming 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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1 News
2 (a) Analysis and
interpretation
(b) Long-form documentary
3 Reporting and actualities
4 Religion
5 (a) Formal education and
pre-school
(b) Informal
education/Recreation and leisure
6 (a) Professional sports
(b) Amateur sports
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
8 (a) Music and dance other than
music video programs or clips
(b) Music video clips
(c) Music video programs
9 Variety
10 Game shows
11 General entertainment and
human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and
corporate videos
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(d) The licensee shall devote not less than 50% of the broadcast week to
programming from categories 8(b) and (c).
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(e) The licensee shall devote not more than 15% of the broadcast week to
music-related programs from categories 7(a), (d) and (e).
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(f) The licensee shall not broadcast more than one music-related feature
film in each broadcast week. This film may be broadcast only once during
the evening broadcast period, but it may be repeated up to three (3) times
in other time periods during the same week.
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(g) No more than 30% of video clips broadcast on MuchMoreMusic shall be
country music videos. The definition of country music is music falling into
subcategory 22 Country and country-oriented as set out in Revised
content categories and subcategories for radio, Public Notice CRTC
2000-14, 28 January 2000, as
amended from time to time.
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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 50% of the evening broadcast period.
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(b) Not less than 30% of the total number of music videos distributed by
the licensee during each broadcast week shall be Canadian music videos.
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(c) The licensee shall schedule its Canadian music videos evenly
throughout each broadcast week and in a reasonable manner throughout each
broadcast day.
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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
contribute 5% of the previous broadcast year’s gross revenues derived from
the operation of its service to VideoFACT.
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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 31%,
including 5% to VideoFACT for Canadian talent development, of the gross
revenues derived from the operation of MuchMoreMusic 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 national paid advertising.
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5. The licensee shall charge each exhibitor of
this service a maximum wholesale rate of $0.03 per subscriber per month,
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 non-music programming, including presentations
by program hosts, aired during the broadcast day, beginning not later than 1
September 2004. |
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7. 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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8. 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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9. 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. "Broadcast week" shall
have the same meaning as that set out in 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. Effective 1
September 2004, the term "broadcast day" shall mean a 24-hour day commencing
at 6 a.m. each day, or any other period approved by the Commission. |
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Footnotes:
1 In Administrative
renewals, Broadcasting Decision CRTC
2003-290, 21 July 2003, the Commission granted a six-month administrative
renewal for MuchMoreMusic, from 1 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. |
Date Modified: 2004-01-21 |