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Broadcasting Decision CRTC 2004-6
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See also: 2004-6-1
Ottawa, 21
January 2004 |
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The Comedy Network Inc.
Across Canada |
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Application 2002-0896-9
Public Hearing in the National Capital Region
26 May 2003 |
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The Comedy Network – Licence renewal
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In this decision, the
Commission renews the broadcasting licence for the
specialty television service known as The Comedy Network, 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 The Comedy Network Inc. (Comedy Network) for the renewal
of the broadcasting licence for the national, English-language,
specialty television service known as The Comedy Network (Comedy). |
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 138
interventions specifically in support of Comedy’s licence renewal
application. Two interventions were submitted in opposition to Comedy
Network’s proposal to decrease the Canadian content on Comedy during the
evening broadcast period. The concerns raised by interveners related
specifically to this application are discussed in the various sections
of 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 The Comedy
Network, 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. |
The licensee proposed to increase its
exhibition of Canadian content measured over the entire day, while
decreasing its Canadian content during the evening broadcast period, and
requested the addition of category 7(g) Other drama to the list of
categories from which Comedy 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 approach to the broadcast of and investment in Canadian
programming by specialty services. The Commission’s general approach is
to focus on augmenting financial contributions to the production of
Canadian programming, rather than on increasing the overall amount of
such programming to be exhibited. |
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Expenditures
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8. |
In each year of the current licence term,
Comedy Network has been required by condition of licence, to expend on
Canadian programs a minimum of 41% of the previous year’s total revenues
with respect to Comedy. |
9. |
At the public hearing, the licensee made a
commitment to increase its Canadian programming expenditures (CPE ) to
43% of the previous year’s gross revenues, contingent upon the
Commission approving its request to decrease its requirement for
Canadian content during the evening broadcast period from 72% to 60%.
The licensee’s proposals related to the exhibition of Canadian
programming are discussed and approved in part, later in this decision.
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10. |
The Commission notes that the service’s
historical average profit before interest and tax (PBIT) margin has been
in the range of 20-25%. Taking this into account, and consistent with
the approach described in Public Notice
2004-2, the Commission has
determined that an increase of three percentage points is appropriate.
Accordingly, the Commission is requiring the licensee, in each year of
the licence term, to expend 44% 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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11. |
Comedy Network is currently required to
devote a minimum of 58% of the broadcast day, and 72% of the evening
broadcast period, to the broadcast of Canadian programs. |
12. |
As part of its renewal application, Comedy
Network proposed to increase to 60% the amount of Canadian programming
broadcast overall, and to decrease the Canadian programs broadcast in
the evening broadcast period, from 72% to 60%. |
13. |
In support of its request to decrease the
Canadian content level in the evening broadcast period, the licensee
stated that, industry-wide, the inventory of Canadian comedy programming
has been depleted, due to increased competition with other specialty
services. Comedy Network also stated that Canadian comedy series tend to
have fewer episodes, making it more difficult to build viewer loyalty,
and leading to decreasing audiences for series that are repeated
multiple times. The licensee asserted that a decrease in the amount of
Canadian content in the evening would allow it to focus on developing
high-quality Canadian series with more original episodes. Higher-quality
series would lead to increased advertising revenues, making it possible
to improve quality and reduce repetition. |
14. |
Interventions in opposition to the proposal
to decrease the level of Canadian programming during the evening were
submitted by Cogeco Cable Inc. (Cogeco) and the Canadian Film and
Television Production Association (CFTPA). Cogeco stated that Comedy
Network had not demonstrated that the quality of Comedy’s programming
would improve if Canadian content levels were decreased, and the CFTPA
pointed out that Comedy Network committed to the current Canadian
content levels in the context of a highly competitive process. |
15. |
The Commission agrees that competition for
the acquisition of comedy programming has increased, and that fewer
programs and more repeats could lead to audience loss. The Commission
also notes that Comedy currently has one of the highest requirements for
Canadian content in the evening hours, and that, even if the proposed
decrease were to be approved, the level would be higher than the average
for all English-language analog specialty services (54%). The Commission
is also of the view that ensuring that Canadian programming is of
consistently high quality is of great importance. Given the increase in
Comedy’s required expenditures on Canadian programming set out above, as
well as Comedy Network’s proposal to increase its Canadian content over
the broadcast day, the Commission considers that the level of Canadian
content during the evening broadcast period on Comedy may be decreased
with no serious implications. At the same time, the Commission is not
convinced that the full reduction proposed by Comedy Network would be
appropriate. |
16. |
Accordingly, the Commission approves in
part the licensee’s requests. The Commission approves the
licensee’s request to increase Comedy’s Canadian content requirement to
60% during the broadcast day. The Commission has, however, set the level
for the evening broadcast period at 65%, instead of the 60% requested by
the licensee. A condition of licence setting out the requirements
for Canadian programming on Comedy is set out in the appendix to this
decision. |
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Compliance
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Exhibition of Canadian programming
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17. |
As noted above, during the current licence
term, the programming on Comedy has been subject to the condition that,
at a minimum, 58% of the broadcast day be devoted to the broadcast of
Canadian programs. |
18. |
Analysis of Comedy’s program logs for the
1998 broadcast year indicated that the total of Canadian programming
during that period represented 54.43% of the broadcast day. |
19. |
Comedy Network indicated that the apparent
non-compliance with its Canadian content requirement was due to a staff
error in calculating the Canadian programming requirement based on a
24-hour broadcast day instead of the authorized broadcast day of 18
hours. |
20. |
The Commission notes the licensee’s
explanation, the fact that the licensee would have been in compliance if
the broadcast day had been calculated as a 24-hour period, and that the
non-compliance has not reoccurred. |
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Nature of service
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21. |
Analysis of Comedy’s program logs also
indicated some evidence of non-compliance with its nature of service
condition of licence. In both the 1998 and 1999 broadcast years, the
licensee agreed that Comedy broadcast programs drawn from unauthorized
categories. |
22. |
In one instance, a short program was logged
as Category 7(c) Specials, mini-series, or made-for-TV feature films.
The program was broadcast a number of times during the 1998 broadcast
year, representing a total of 26 minutes. The licensee indicated that
its review of the program led it to believe that the show was within the
nature of service for Comedy. It indicated, however, that it no longer
carries the program. |
23. |
In the 1998 and 1999 broadcast years, the
program logs also indicated that Comedy’s programming included 64 hours
22 minutes, and 24 hours, respectively, of material from Category 7(e)
Animated television programs and films. The licensee explained that,
since the launch of Comedy, it had been programming animated comedy
series, logging them as category 7(b) Ongoing comedy series. The
licensee explained further that 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, the Commission redefined
Category 7(b) as "ongoing comedy series (sitcoms)". |
24. |
Comedy Network subsequently applied for an
amendment to Comedy’s nature of service condition of licence, to add
category 7(e) to the list of authorized categories, to ensure logging
compliance. The Commission approved that request in Addition of
animated programming, Decision CRTC 2001-690, 9 November 2001
(Decision 2001-690). Decision
2001-690 also sets out a 10% limit on the
use of material from category 7(e) during the broadcast day, and a limit
of one hour during the period 7:00 p.m. to 11:00 p.m. daily. |
25. |
The Commission notes the licensee’s
explanations and the steps taken to correct all of the compliance issues
noted above. |
26. |
In a related matter, the Commission notes
that the list of authorized categories from which Comedy’s programming
may be drawn does not currently include Category 10 Game shows, although
two programs, Win Ben Stein’s Money and Beat the Geeks
appear on the service’s program logs. While the licensee has logged
these programs as other than game shows, the Commission is of the view
that they are more properly described as material from Category 10.
However, the Commission is of the view that the programs in question are
not inconsistent with Comedy’s nature of service. Accordingly, it has
added Category 10 to the list of authorized categories from which
Comedy’s programming may be drawn. |
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Nature of service
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Nature of service description
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27. |
During the licence renewal process, the
Commission asked Comedy Network to propose a description that would more
closely describe the nature of Comedy’s service and that the licensee
could accept as a condition of licence. |
28. |
In response to the Commission’s request,
Comedy Network proposed the following description: |
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The Comedy Network is a national English-language specialty
service devoted to comedy programs. The programs broadcast on the
service will reflect comedy in its various forms and formats.
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29. |
The Commission is satisfied that the
proposed definition serves to clarify the existing service offered by
the licensee. The Commission therefore amends the condition of licence
describing Comedy’s nature of service. |
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Addition of programming categories
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30. |
As part of its licence renewal application,
the licensee requested an amendment to the current condition of licence
describing its nature of service in order to add program category 7(g)
Other drama to the list of categories from which it may draw its
programming. |
31. |
The licensee made its request after
becoming aware that while most episodes of the program Comedy Now
are drawn from Category 7(f) Programs of comedy sketches, improvisation,
unscripted works, stand-up comedy, some have been characterized as
Category 7(g). |
32. |
The Commission notes that no interventions
were submitted in opposition to this proposal, and that category 7(g) is
a catch-all for drama programs (such as puppet shows) which do not fall
under any other category. It also notes that, if the request were to be
approved, any programs broadcast from category 7(g) would have to be
consistent with Comedy’s nature of service. |
33. |
The Commission is of the view that the
addition of category 7(g) does not raise concerns about the integrity of
the nature of Comedy’s service. Accordingly, the Commission approves
the licensee's request to add program category 7(g) to the list of
categories from which Comedy may draw its programming. |
34. |
The condition of licence describing
the nature of Comedy’s service, reflecting all of the amendments
approved by the Commission, is set out in the appendix to this decision. |
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Canadian independent production
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35. |
In The Comedy Network – Approved,
Decision CRTC 96-596, 4 September 1996, the Commission noted the
commitment that 75% of Comedy’s expenditures on original Canadian
production would go to the independent production community. |
36. |
In its renewal application, the licensee
stated that its original commitment had been fulfilled. It added that,
over the current licence term, it had commissioned or acquired
54 programs from Canadian independent producers. Comedy Network added
that it would be willing to accept as a condition of licence, the
requirement that it direct 75% of all expenditures for original Canadian
production to independent producers. |
37. |
In its intervention, the CFTPA suggested
that, rather than a percentage of expenditures, 75% of all original
Canadian programming broadcast on Comedy should be acquired from
independent producers. |
38. |
The Commission is satisfied with the
licensee’s level of commitment to the use of independent production, and
expects Comedy Network to fulfil its commitment that 75% of expenditures
on original Canadian production will be directed to non-related Canadian
producers. |
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Regional reflection and production
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39. |
Comedy Network stated that it has
encouraged submissions, commissioned programs and engaged talent from
across the country. It noted that programs on Comedy have been
commissioned from producers in various smaller centres, including
Ottawa, Halifax, Victoria, Edmonton and Calgary. It further stated that
it is conscious of the need to include regional origin and reflection,
in the projects that it develops and the programming that it acquires.
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40. |
The Commission expects the licensee to
continue to ensure that the programming aired by Comedy reflects all of
Canada's regions. 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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41. |
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. |
42. |
The Commission notes that Comedy is subject
to CTV Inc.’s corporate cultural 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. The Commission expects the
licensee to continue to contribute to cultural diversity, to ensure that
the programming broadcast on Comedy continues to showcase a diverse
range of talent, and to implement the commitments set out in its
corporate cultural diversity plan. The Commission notes that CTV Inc.’s
corporate cultural diversity plan currently encompasses persons with
disabilities. As discussed in Public Notice
2004-2, the Commission
expects the licensee to continue 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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43. |
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. |
44. |
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. |
45. |
The Commission further expects Comedy
Network 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 Comedy.
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Service to persons who are deaf or hard of hearing
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46. |
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. |
47. |
In the present case, the licensee made a
commitment to close caption 90% of all programming broadcast on Comedy
during each broadcast day of the new licence term. |
48. |
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. |
49. |
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. |
50. |
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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51. |
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 |
52. |
In its renewal application, Comedy Network
stated that Comedy is not currently technically capable of delivering
video description via a SAP channel. It stated that such capability
would require a capital upgrade to its master control. The licensee
further stated that it would therefore require some time before it would
be able to offer described programming. At the same time, Comedy Network
stated that it would attempt to acquire described versions of programs
wherever possible, and to provide the described video once the service
is technically capable of doing so. |
53. |
With respect to audio description, Comedy
Network stated that all programming advisory notices, and all still
image elements posted on the screen, such as phone numbers, stock
information or weather information, are provided both in voice-over and
in a visual form. |
54. |
At the hearing, the licensee stated that,
if the technical issues surrounding the distribution of described
programming are resolved, it would commit to the provision of two hours
of described programming each week in the first two years of the licence
term, increasing to three hours each week in September 2005, and to four
hours in September 2007. |
55. |
Consistent with this commitment and with
its 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. |
56. |
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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57. |
The Commission notes that the licensee
already provides a time-shifted signal. Nevertheless, as discussed in
Public Notice 2004-2, the Commission expects the licensee to continue to
demonstrate responsibility in the scheduling of programming intended for
adult audiences, taking into account 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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58. |
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 2004-6
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Conditions of licence
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1. (a) The licensee shall provide a national English-language
specialty television service devoted to comedy programs. The
programs broadcast on the service will reflect comedy in its various
forms and formats.
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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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7 (b) Ongoing comedy
series (sitcoms)
(e) Animated television
programs and films
(f) Programs of
comedy sketches, improvisation, unscripted works, stand-up
comedy
(g) Other drama
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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(c) All programming drawn from category 7(e) must be targeted
strictly to adults.
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(d) Programming drawn from category 7(e) will be limited to 10%
of the licensee’s broadcast day, and to no more than one hour during
the period from 7:00 p.m. to 11:00 p.m.
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2. 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 65% 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 41% 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 44% 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 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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6. 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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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; 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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