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Broadcasting Decision CRTC 2004-22
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See also: 2004-22-1
Ottawa, 21 January 2004 |
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Astral Broadcasting Group Inc.
Across Canada |
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Application 2002-0887-8
Public Hearing in the National Capital Region
26 May 2003 |
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Canal Vie – Licence renewal
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In this decision, the Commission
renews the broadcasting licence for the specialty television
service known as Canal Vie, 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 Astral Broadcasting Group Inc. (Astral) for the renewal
of the broadcasting licence for the national, French-language specialty
television service known as Canal Vie. |
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 seven
interventions concerning Canal Vie’s licence renewal application. Six
interveners opposed the addition of program category 7(a) Ongoing
dramatic series. The concerns raised by the interveners related
to this application specifically are discussed below. |
4. |
Other interveners raised
general concers related to all of the specialty television licence
renewal applications considered as part of this public process. These
concerns are discussed in Public Notice CRTC
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
Canal Vie, from 1 March 2004 to 31 August 2010.1
The licence will be subject to the conditions specified therein and to
the conditions set out in the appendix to this decision. |
6. |
As part of its licence renewal
application, the licensee proposed an amendment to the condition of
licence describing its nature of service. The proposed amendment is
discussed below. |
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Nature of service
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7. |
As part of its licence renewal
application, the licensee requested an amendment to the current
condition of licence pertaining to its nature of service in order to add
program category 7(a) to the list of categories from which it may draw
programming. |
8. |
According to the licensee, the
proposed amendment would enable it to broaden its supply of dramatic
programming dealing with the network’s themes: wellness, health,
lifestyle and social life, with an accent on human relations. The
licensee added that it would thus be able to continue to meet the demand
that its target audience has clearly expressed for this type of
programming. |
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Interventions
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9. |
La Société de télédiffusion du
Québec (Télé-Québec), Union des Artistes (UDA), Société des auteurs de
radio, télévision et cinéma (SARTEC), the Canadian Broadcasting
Corporation (CBC), ARTV inc. and TQS inc. opposed the amendment
requested by the licensee. For its part, Association des producteurs de
films et de télévision du Québec (APFTQ) stated that it was not opposed
to this amendment. The opposing interveners were particularly concerned
that the proposed change would enable Canal Vie to compete with all of
the other French-language services, because of its broadened nature of
service. They also pointed out that the licensee had not specified any
maximum percentage of programs to be drawn from the proposed category. |
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The licensee’s response
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10. |
In response to the opposing
interventions, the licensee stated that in 1996 Canal Vie was authorized
to distribute information and entertainment programs, from the outset,
including dramatic programs that were relevant to the nature of its
service and that reflected the themes to which it was dedicated. The
licensee added that it would accept a condition of licence limiting the
programs to be drawn from category 7(a) to no more than 15% of the
broadcast day, and no more than 15% of the evening broadcast period, on
an annual basis. |
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The Commission’s analysis and determination
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11. |
The description of the nature
of the service to be offered by Canal Vie is as follows: |
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The licensee shall provide a national French-language specialty
service that is dedicated to information and entertainment programs
focussed on three very specific subjects:
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- lifestyle (human relations, social and interpersonal);
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- health (physical and mental); and
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- outdoor activities for families or individuals.
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12. |
As some of the interveners
pointed out, the Commission notes that the description of Canal Vie’s
nature of service is relatively broad, and its "lifestyles" theme could
very readily include the vast majority of dramatic series that compose
category 7(a). In this regard, the Commission notes that the licensee’s
proposal to limit the broadcasting of such programs to 15% of the
broadcast day and 15% of the evening broadcast period could allow it to
broadcast up to 3.6 hours of category 7(a) programming in each 24-hour
period, including one hour during the evening broadcast period.
Moreover, if this calculation were done on an annual basis, as the
licensee proposed, it could allow the licensee to concentrate its airing
of category 7(a) programs at times of the year that are critical to
French-language conventional television broadcasters, and thus compete
with them. |
13. |
Given that Canal Vie is already
authorized to broadcast programs in categories 7(c) Specials,
mini-series or made-for-TV feature films and 7(d) Feture
films/Theatrical releases, the Commission approves the proposed
addition of category 7(a). However, to minimize the potential
competition with conventional broadcasters, the licensee shall, as a
condition of licence, devote no more than 5% of the broadcast day
and no more than 5% of the evening broadcast period to programs from
category 7(a) in each broadcast week. |
14. |
The condition of licence on the
nature of service is set out in the appendix to this decision. |
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Canadian programming expenditures
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15. |
The licensee did not propose
any change in the expenditures that it must devote to Canadian
programming. It expects to expend on Canadian programming 45% of the
gross revenues derived from the operation of this service during the
previous broadcast year. |
16. |
In response to questioning by
the Commission, the licensee submitted that it would not be appropriate
to increase the percentage of gross revenues that Canal Vie must expend
on Canadian programming, with the sole purpose of establishing a
requirement that would be closer to the industry average. In the
licensee’s view, the percentage of revenues devoted to Canadian
programming is only one of many elements of the concept and the business
plan accepted by the Commission when it decided to issue a licence to a
Canadian specialty service, following a competitive process. |
17. |
The Commission notes that the
service’s historical average profit before interest and tax (PBIT)
margin has been in the range of 35% to 39%. Taking this into account and
consistent with the approach described in Public Notice
2004-2, the
Commission has determined that an increase of six percentage points in
Canal Vie’s Canadian programming expenditure level is appropriate.
Accordingly, the Commission is requiring the licensee, in each year of
the licence term, to expend 51% 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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Regional reflection and production
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18. |
In accordance with its
commitment, Canal Vie has devoted at least 80% of its hours of original
first-run Canadian programming to programs produced by the independent
production industry. The Commission expects the licensee to continue to
abide by its commitment in this regard. |
19. |
The Commission expects the
licensee to ensure that the programming aired by Canal Vie reflects all
of Canada’s regions. The Commission also expects the licensee to provide
opportunities for producers working outside the major production centres
to supply programming for the service. |
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Cultural diversity
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20. |
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. |
21. |
The licensee stated that, like
Astral’s other services, Canal Vie is careful to reflect society’s
changing ethno-cultural makeup, not only in terms of the subjects that
Canal Vie addresses, but also in its choice of program hosts,
announcers, and resource persons. The licensee added that the service
also takes care to ensure appropriate representation of, and interviews
with, members of many ethnic and cultural groups in its various
documentary and magazine programs. |
22. |
The Commission notes the
initiatives that the licensee has undertaken in this regard. 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 presence and portrayal of
cultural diversity. |
23. |
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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24. |
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. |
25. |
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. |
26. |
In this regard, the licensee
stated that it does not have any on-air employees. The licensee,
nevertheless, added that Canal Vie gives high priority to representing
persons of all races in its original productions. |
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Service to persons who are deaf or hard of hearing
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27. |
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. The
closed captioning requirement currently imposed on all French-language
services is less than the 90% level generally required of
English-language services. This is in recognition of the significantly
greater challenges involved in captioning French-language programming. |
28. |
In the context of Canal Vie’s
licence renewal application, the licensee stated that it was prepared to
commit, as a condition of licence, to gradually increase the percentage
of all its programming that will be closed captioned, so as to achieve a
captioning level of 65% in the sixth year of its new licence term. The
licensee added that it has also set itself the general objective of
achieving a captioning level of 90% in the sixth year of its new licence
term. |
29. |
Consistent with this commitment
and with the Commission’s general approach for French-language services,
the Commission is imposing a condition of licence requiring the
licensee to close caption at least 65% of all programming aired during
the broadcast day, beginning not later than 1 September 2008. The
condition of licence is set out in the appendix to this decision. The
Commission also notes that the licensee indicated that it intends to
achieve a captioning level of 90% of its programming by the end of the
new licence term. The Commission further advises the licensee
that, at the time of its next licence term, the Commission intends to
require this service to provide captioning for a minimum of 90% of all
programming. |
30. |
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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31. |
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 |
32. |
The Commission notes the steps
the licensee has taken during the current licence term to provide
improved access to viewers who have visual impairments. The licensee
intends to make the independent producers, which provide programs for
Canal Vie, more aware of the benefits for people who are visually
impaired of having the program host provide, wherever possible and
appropriate, audio description of certain information elements that
appear on screen in textual or graphic form. The licensee also indicated
that it is closely following technical developments that will improve
access to Canadian programming services for people who have visual
impairments, and that it intends to participate in the industry forums
where these issues will be examined. |
33. |
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 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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34. |
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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35. |
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 2004-22
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Conditions of licence
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1. (a) The licensee shall provide a national French-language
specialty television service that is dedicated to information and
entertainment programs focussed on three very specific subjects:
lifestyle (human relations, social and interpersonal), health
(physical and mental), and outdoor activities for families or
individuals.
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(b) The programming must be dawn 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
5 (b) Informal education/Recreation and leisure
7 (a) Ongoing dramatic series
(c) Specials, mini-series or made-for-TV feature films
(d) Theatrical feature films aired on TV
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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(c) In each broadcast week, the licensee shall devote no more
than 5% of the broadcast day and no more than 5% of the evening
broadcast period to programs from category 7(a).
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(d) In each broadcast week, the licensee shall not broadcast more
than two (2) feature films 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 60% 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
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 45% 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 51% 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) In addition to the twelve (12) minutes of advertising
material referred to in subsection (a), the licensee may broadcast
partisan political advertising during an election period.
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(d) The licensee shall not distribute any paid advertising
material other than paid national advertising.
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5. (a) The licensee shall charge each exhibitor of this service
in Francophone markets a maximum wholesale rate of $0.60 per
subscriber per month, when the service is distributed as part of the
basic service;
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(b) The licensee shall charge each exhibitor of this service in
Anglophone markets a maximum wholesale rate of $0.15 per subscriber
per month, when the service is distributed as part of the basic
service;
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(c) For the purpose of this condition, an exhibitor will be
considered to be operating in a Francophone market where the
population having French as its mother tongue represents more than
50% of the total population of all cities, towns and municipalities,
encompassed in whole or in part within the licensed area of the
exhibitor, according to the most recent population figures published
by Statistics Canada.
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6. The licensee shall provide closed captioning for not less than
65% of all programs aired during the broadcast day, beginning no later
than 1 September 2008.
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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
term "broadcast day" shall mean a 24 hour day commencing at 4:00 a.m.
each day, or any other period approved by the Commission; and the terms
"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 the
term "paid national advertising" shall have the same meaning as that set
out in the Specialty Services Regulations, 1990. |
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Footnotes:
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.
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Date Modified: 2003-01-21 |