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Broadcasting Decision CRTC 2004-19
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See also: 2004-19-1
Ottawa, 21 January 2004 |
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CHUM Limited
Across Canada |
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Application 2002-0955-3
Public Hearing in the National Capital Region
26 May 2003 |
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Space: The Imagination Station – Licence renewal
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In this decision, the Commission
renews the broadcasting licence for the specialty television
service known as Space: The Imagination Station, 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.
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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 Space: The Imagination Station (Space). |
2.
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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.
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The Commission received seven
interventions specifically in support of Space’s licence renewal
application. |
4.
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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.
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On the basis of its review of this licence
renewal application and having considered the interveners' comments, the
Commission renews the licence for Space: The Imagination Station,
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.
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The licensee requested the renewal of the
licence for Space under the same terms and conditions as the existing
licence. |
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Expenditures on Canadian programming
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7.
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In each year of the current licence term,
CHUM 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 Space. |
8.
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During the licence renewal process, CHUM
indicated that it does not believe that an increase in Canadian
programming expenditures (CPE) is warranted. It stated that the 40%
condition, applied in 1996, was based upon the Commission’s
consideration of what would be appropriate for the service as proposed
and that "there is no reason to conclude (that) Space’s current Canadian
programming expenditure requirement is not appropriate going forward". |
9.
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The Commission notes that the service’s
historical average profit before interest and tax (PBIT) margin has been
less than 20%. Taking this into account, and consistent with the
approach described in Public Notice
2004-2, the Commission has
determined that an increase is not warranted at this time. Accordingly,
the Commission has required the licensee to maintain its expenditures on
Canadian programming at a minimum of 40% of the previous year’s gross
revenues. A condition of licence to this effect is set out in the
appendix to this decision. |
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Expenditures on program development
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10.
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In Space: The Imagination Station –
Approved, Decision CRTC 96-605, 4 September 1996, the Commission
noted the licensee’s commitment to spend a total of $50,000 annually on
program development, including the encouragement of script development
from Canadian writers in the science fiction, science fact and
speculation genres. |
11.
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In its application to renew the licence for
Space, CHUM stated that it would carry this commitment forward, and that
it would increase the existing commitment to $100,000 annually. The
Commission notes the commitment, and expects the licensee to fulfil this
commitment throughout the new licence term. |
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Nature of service
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12.
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Analysis of the programming offered by
Space during the current licence term indicated that, over the broadcast
years 1997-1998, 1998-1999 and 1999-2000, Space broadcast almost 100
hours of programming drawn from subcategory 8(b) Music video clips, a
subcategory that is not included in the list of categories in the
condition of licence describing Space’s nature of service. The
Commission notes that this non-compliance represented approximately 1%
or less of each of the three broadcast years affected. |
13.
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In response to this apparent
non-compliance, the licensee stated: |
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Shortly after the launch of Space the programmers began to run a
small number of "outer space related" music videos, a category not
included in Condition of Licence number 1. This oversight was
noticed and has been corrected.
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14.
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CHUM also stated that: |
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CHUM has now developed and installed new software that
automatically tracks conditions of licence in the program logs for
our various services. Should the program or traffic department
attempt to schedule material not included within the nature of
service for a particular channel, this software will "flag" any such
occurrences and allow for corrective action before it happens.
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The development and implementation of this software system was a
direct result of the oversight noted above. We believe these
safeguards, along with proper training and information flow will
prevent any such incident from happening in the future.
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15.
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The Commission notes the mechanisms that
CHUM has put in place, and is satisfied that they will be sufficient to
prevent the future broadcast on Space of material drawn from
unauthorized categories. |
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Exhibition of Canadian programming
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16.
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In each broadcast year, Space is currently
required to devote a minimum of 50% of the broadcast day, and 40% of the
evening broadcast period to Canadian programs. In the new licence term,
CHUM proposed to maintain those levels, throughout the new term. |
17.
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During the licence renewal process, the
Commission explored with the licensee the possibility of increasing the
Canadian content level on Space. CHUM responded: |
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CHUM submits that Space’s Canadian content levels remain entirely
appropriate given the service’s genre going forward. Sci-fi and
fantasy are genres that are most dependent on high budgets,
costumes, props, sets and visual effects in order to satisfy
audience expectations. […] The collapse of the international market
for film and television programming and a trend toward variety and
reality-based programming have contributed to a reduction in the
number of all fiction-based drama programs being produced. As a
result of these developments, Space is being forced to spend more
for each hour of programming and is experiencing real difficulty
finding content suitable for the channel.
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18.
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The Commission is satisfied that the
current level of Canadian programming for Space is appropriate in the
circumstances, accepts the licensee’s commitment for the new term, and
has imposed a condition of licence to that effect. The text of
the condition is set out in the appendix to this decision. |
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Canadian independent production
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19.
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The licensee stated that, while only two
regular programs and a few individual programs each year are produced
in-house, it was of the view that the appropriate level of programming
broadcast on Space to be acquired from Canadian independent producers
would be 50% of all Canadian programs, other than news and current
affairs. |
20.
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In its intervention in support of Space’s
licence renewal, the Canadian Film and Television Production Association
suggested that a more appropriate level would be 75%. |
21.
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The Commission notes that, according to
CHUM, the current level of self-production on Space is much lower than
50% of all Canadian programming. The Commission further notes that CHUM
has not presented submissions or evidence to justify a need to increase
self-production. The Commission is therefore not convinced that CHUM has
made a compelling argument for setting the minimum level of independent
production at 50%. |
22.
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The Commission notes that, while there is
currently no standard minimum level of independent production required
for specialty television services, a preponderance of Space’s
programming is currently acquired from independent producers. |
23.
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Based on the above, the Commission
considers that it is reasonable to expect CHUM, for the duration of the
new licence term, to ensure that a minimum of 75% of all original,
first-run Canadian programming other than news and current affairs
broadcast on Space is acquired from non-related producers. |
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Regional reflection and production
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24.
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In its renewal application, CHUM stated
that television series set on far-off planets and on space stations in
the future are not generally appropriate vehicles for the reflection of
regional realities. It did state, however, that filming locations have
ranged from New Brunswick to Victoria. CHUM further noted that
SpaceNews had taken a cross-Canada journey to explore stories
submitted through the Space website, and that the resulting reports were
expanded into three half-hour specials on Space. |
25.
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The Commission expects the licensee 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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26.
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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. |
27.
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The Commission notes that Space is subject
to the CHUM corporate diversity plan, 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. |
28.
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The Commission expects the licensee to
continue to contribute to cultural diversity and to implement the
commitments set out in its 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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29.
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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. |
30.
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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. |
31.
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The Commission further expects CHUM to take
steps during the new licence term to address any gap in the on-air
presence of members of the four designated groups on Space. |
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Service to persons who are deaf or hard of hearing
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32.
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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. |
33.
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In the present case, the licensee made a
commitment to close caption 90% of all programming broadcast on Space
during each broadcast day of the new licence term, beginning
1 September 2004. |
34.
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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 not less than 90% of all programming aired
during the broadcast day, beginning not later than 1 September 2004. A
condition of licence to this effect is set out in the appendix to this
decision. |
35.
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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. |
36.
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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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37.
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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 |
38.
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In its renewal application, CHUM stated
that Space is not currently technically capable of delivering video
description. Nevertheless, CHUM indicated that it would be able to
broadcast three hours of described programming per week, beginning in
September 2004, increasing to four hours per week in September 2006,
matching the commitment of its NewNet stations. With respect to audio
description, CHUM noted that it had guidelines governing the use of
voice-overs to accompany on-screen text information. |
39.
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Consistent with CHUM’s commitment and 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 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. |
40.
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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 version 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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41.
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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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42.
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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 2004-19
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Conditions of licence
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1. (a) The licensee shall provide a national, English-language
specialty television service consisting of science fiction, science
and fantasy.
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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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1 News
2 (a) Analysis and
interpretation
(b) Long-form documentary
3 Reporting and
actualities
5 (b) Informal
education/Recreation and leisure
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
11 General entertainment
and human interest
12 Interstitials
13 Public service
announcements
14 Infomercials,
promotional and corporate videos
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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 each broadcast year of the licence term, 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.
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(b) 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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(c) 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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(d) Notwithstanding paragraphs (b) and (c) above, during the
licence term, the licensee shall expend on Canadian programs, at a
minimum, the total of the minimum required expenditures 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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5. The licensee shall charge each exhibitor of this service a
maximum monthly wholesale rate of $0.29 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. The term "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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Footnote:
In Administrative renewals, Broadcasting Decision CRTC
2003-290, 21 July 2003, the Commission granted a six-month
administrative renewal of Space: The Imagination Station, from
1 September 2003 to 29 February 2004.
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.
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. |