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Broadcasting Decision CRTC 2004-7
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Ottawa, 21
January 2004 |
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MusiquePlus Inc.
Across Canada |
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Application 2002-0893-5
Public Hearing in the National Capital Region
26 May 2003 |
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MusiMax – Licence renewal
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In this decision, the
Commission renews the broadcasting licence for the
specialty television service known as MusiMax, 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 MusiquePlus Inc. for the renewal of the broadcasting
licence for the national, French-language specialty television service
known as MusiMax. |
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 nine
interventions regarding MusiMax’s licence renewal application. Three of
these interveners submitted comments, while six opposed the amendments
proposed by the licensee as part of its licence renewal application.
The concerns raised by the interveners related specifically to this
application are discussed below. |
4. |
Other interveners raised general concerns
related to all of the specialty television licence renewal applications
considered as part of this public process. These concerns are discussed
in Public Notice 2004-2. |
5. |
On the basis of its review of this licence
renewal application and having considered the interveners' comments, the
Commission renews the broadcasting licence for MusiMax, 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 requested amendments to its condition of licence pertaining
to its nature of service. Specifically, the amendments would modify its
wording, add program categories, reduce the number of music video
programs and reduce the percentage of Canadian content in the evening
broadcast period. The proposed amendments are discussed below. |
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Nature of service
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7. |
As part of its licence renewal application,
the licensee requested amendments to the current condition of licence
describing its nature of service, that would: |
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- replace the phrase "… devoted to music …" with the phrase "…that
will be devoted predominantly to music …";
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- add to the phrase "… devoted to music in all its forms …" the
phrase "… its works, its history and personalities …";
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- introduce the flexibility to broadcast up to 10% of programs that
have no connection with music; and
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- add the following four program categories to the list of program
categories that can be broadcast on the service: 2(a) Analysis and
interpretation, 2(b) Long-form documentary, 7(c) Specials,
mini-series, or made-for-TV feature films, and 9 Variety.
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8. 8 |
MusiMax indicated that the proposed wording
would provide the necessary flexibility to meet the needs of its
audience by offering programs in other areas of cultural activity as a
complement to its primary programming. |
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Interventions
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9. |
The Union des artistes (UDA), the
Association québécoise de l’industrie du disque, du spectacle et de la
vidéo (ADISQ), the Société des auteurs de radio, télévision et cinéma
(SARTEC), the Canadian Broadcasting Corporation (CBC), ARTV inc. and TQS
inc. (TQS) all opposed the licensee’s proposed amendments. The
interveners expressed concern that these changes might permanently alter
MusiMax’s nature of service and result in MusiMax’s impinging on the
mandate of other French-language conventional and specialty television
services. |
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The licensee’s reply
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10. |
The licensee stated that the purpose of the
proposed amendments was not to fundamentally alter the nature of its
service but to give it a minimum of flexibility. The licensee added
that, with the proposed amendments, MusiMax would not cease to be a
service whose programming focuses essentially on music in all its forms. |
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The Commission’s analysis and determination
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11. |
The Commission finds that, in addition to
providing the flexibility to broadcast up to 10% of programs having no
connection with music, the proposed addition of the phrase "… that will
be devoted predominantly to music …," would enable the licensee to
broaden MusiMax’s nature of service and would not help to promote the
original orientation of this service: the presentation of music in all
its forms. An authorization to broadcast programs having no connection
with music would enable MusiMax to compete with certain program genres
already occupied by other Canadian conventional or specialty television
broadcasters and would represent a departure from the Commission’s
policy of authorizing only one service per genre. Accordingly, the
Commission denies the two aforementioned amendments. |
12. |
However, the Commission approves the
proposed addition of the phrase "… its works, its history and
personalities …." The Commission also approves the addition of
program categories 2(a), 2(b), 7(c) and 9, provided that the programs
are related to the nature of service: music in all its forms, its works,
its history and personalities. In addition, the licensee shall, by
condition of licence, devote no more than 15% of the broadcast year
to programs relating to music in all its forms, its works, its history
and personalities, drawn from category 7. |
13. |
The licensee also proposed three other
amendments related to its nature of service: |
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- to decrease from 65% to 50% the number of category 8(c) Music
video programs that it must broadcast;
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- to delete the condition of licence requiring that all programs
broadcast by MusiMax shall be subject to a music-to-spoken word ratio
of no less than 60:40; and
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- to replace the current requirement that it not broadcast more than
one music-related feature film in each broadcast week with a
requirement that it not broadcast more than 52 music-related feature
films in each broadcast year.
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Interventions
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14. |
Société de télédiffusion du Québec, ADISQ
and TQS opposed the requested decrease in the percentage of programs
that must be drawn from category 8(c). According to these interveners,
this amendment would fundamentally alter MusiMax’s nature of service by
reducing the number of French-language and Canadian music videos that it
broadcasts and enabling it to compete directly with conventional
television. According to ADISQ, TQS and CBC, it is essential to maintain
the requirement that all programs broadcast by MusiMax shall be subject
to a music-to-spoken word ratio of not less than 60:40, so as to ensure
that MusiMax remains a specialty service centred on music videos and
music in general. |
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The licensee’s reply
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15. |
According to the licensee, these amendments
would give it more flexibility to provide the adult Fancophone audience
for MusiMax with programming that is more varied and less centred on
music videos, while also lightening the service’s administrative burden.
The licensee added that its request to reduce the percentage of music
video programs reflects the state of the supply of music videos aimed at
its target audience. This supply is far more limited than the supply of
music videos aimed at younger audiences. |
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The Commission’s analysis and determination
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16. |
The Commission is of the view that the
proposed reduction in the number of music video programs, together with
the preceding denial of MusiMax’s request to broadcast programs that
have no connection with music, will enable the licensee to offer
programming that better reflects the tastes of its target audience while
continuing to showcase artists and new programs that are focused on
music. Accordingly, the Commission approves the request to reduce
the number of music video programs to 50% from 65%. The licensee shall,
by condition of licence, ensure that it draws not less than 50%
of its music video programs from categories 8(b) Music video clips and
8(c) Music video programs, in the course of each broadcast year. |
17. |
The Commission also considers that, in the
case of MusiMax, the music-to-spoken word ratio of 60:40 is hard to
measure and considerably limits the licensee’s choice of programs. The
Commission is confident that MusiMax’s nature of service is specific
enough to ensure that its programming will reflect the service’s musical
orientation. As for the proposal regarding feature films, the Commission
notes that the total number of feature films broadcast over the year
will not be changed and that the proposed amendment will give the
licensee additional flexibility when broadcasting certain theme events.
The Commission therefore approves the request to delete the
requirement regarding the 60:40 ratio of music-to-spoken word. The
Commission also approves the proposed amendment regarding the
broadcast of feature films. The licensee shall therefore, by
condition of licence, broadcast no more than 52 feature films each
broadcast year and shall ensure that the feature films it broadcasts are
related to its nature of service. The Commission reminds the licensee
that all programs broadcast must conform to the definition of MusiMax’s
nature of service. |
18. |
The Commission considers that the
aforementioned measures, which structure the nature of service that
MusiMax can offer in such a way that all programming will be devoted to
music in all its forms, its works, its history, and personalities, and
which limit to no more than 15% of the broadcast year the music-related
programs that can be drawn from category 7, will help to preserve
MusiMax’s musical orientation and address the interveners’ concerns. The
condition of licence on the nature of service is set out in the appendix
to this decision. |
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Canadian content
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19. |
The licensee proposed to decrease its
percentage of Canadian content during the evening broadcast period from
60% to 50%. The licensee submitted that this proposed reduction in
Canadian content in the evening would enable it to enhance the quality
of its programming, reduce its repeat factor, and increase the average
budget allocated for each hour of original Canadian programming. |
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Interventions
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20. |
Télé-Québec, ADISQ, UDA and CBC opposed
this proposal. The interveners argued that this change would result in
an increase in the number of hours of foreign programming in prime time
and that the licensee has not demonstrated that its situation justified
any special treatment. |
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The licensee’s reply
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21. |
The licensee responded that the proposed
reduction in the evening percentage of Canadian content is intended to
increase the diversity, the quality, and the drawing power of its
Canadian programming. It added that, while the number of hours of
Canadian programming would be reduced, the level of expenditures on
Canadian programming would, at a minimum, remain the same. |
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The Commission’s analysis and determination
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22. |
The Commission has approved a 15% reduction
in music video content earlier in this decision. It is concerned that,
if it were now to approve a reduction in Canadian content during the
evening broadcast period, these music video programs might be replaced
largely by non-Canadian programs. The Commission is also of the view
that maintaining the level of Canadian content in the evening would be
an incentive for the licensee to offer high quality Canadian programming
in order to remain competitive in prime time. Accordingly, the
Commission denies the proposal to reduce from 60% to 50% the
percentage of Canadian content during the evening broadcast period. |
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Broadcasting of Canadian music video clips and French-language music
video clips
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23. |
The licensee must currently ensure that at
least 30% of the total number of music video clips that Musimax exhibits
during each broadcast week are Canadian music video clips, and that at
least 30% are French-language music video clips. The licensee indicated
it did not wish to increase the percentage of Canadian music video
clips, given their relatively limited availability. The licensee also
indicated, however, that it would be prepared to accept an increase in
the percentage of French-language music video clips, from 30% to 35%. |
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Interventions
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24. |
UDA and CBC favoured an increase in the
percentage of French-language music video clips from 30% to 35% if the
Commission were going to approve the proposed 15% decrease in music
video programs. ADISQ also favoured this increase, without any reduction
in music video programs. |
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The Commission’s analysis and determination
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25. |
Given that the supply of music video clips
aimed at MusiMax’s target audience is limited, and that it would be
preferable to avoid overexposing them, the Commission will not increase
the requirement regarding the exhibition of Canadian music video clips.
However, in accordance with the licensee’s statement, and by
condition of licence, at least 35% of the total number of music
video clips that the licensee broadcasts during each broadcast week
shall be French-language music video clips. |
26. |
The Commission encourages the licensee to
exceed the minimum requirements of 30% for Canadian music videos and 35%
for French-language music video clips specified in the conditions of
licence set out in the appendix, according to the supply of music video
clips available. |
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Canadian programming expenditures
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27. |
In Broadcasting Notice of Public Hearing
CRTC 2003-3, 21 March 2003, the Commission stated the following: |
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The Commission will examine the appropriateness of increasing the
licensee’s contributions to Canadian programming, in terms of the
exhibition of Canadian content and/or expenditure commitments, where
existing commitments to Canadian programming and/or to Canadian
programming expenditures are low in relation to other specialty
services, or where the financial situation or nature of service
warrants it.
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28. |
The Commission notes that MusiMax is
required, by condition of licence, to contribute at least 5% of its
gross revenues to MaxFACT for the creation and production of Canadian
music video clips. MusiMax is not currently subject to a condition of
licence regarding expenditures on Canadian programming. |
29. |
MusiMax’s expenditures on Canadian
programming represented 14% of its gross revenues during the current
licence period and averaged 18% of its gross revenues over the past two
years. At the hearing, the licensee made a commitment to devote, by
condition of licence, in addition to the current requirement of 5% to
MaxFACT, at least 18% of the undertaking’s gross revenues from the
previous year to investing in or acquiring Canadian programming during
the new licence term, equating to a total of 23% of the undertaking’s
gross revenues. This commitment was made in the context of the
licensee’s request to reduce its percentage of music video programs from
65% to 50% and was designed to ensure that this request would not result
in a reduction in the direct expenditures allocated by MusiMax to the
acquisition and production of Canadian programs. |
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Interventions
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30. |
Several interveners, including ADISQ,
Cogeco Cable Inc. and UDA, pointed out the significant growth in
revenues and in profit before interest and tax (PBIT) that Canadian
specialty services as a whole have experienced since 1996. Télé-Québec
and SARTEC pointed out, in particular, the sound financial health of
MusiMax. |
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The licensee’s reply
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31. |
The licensee disputed the interveners’
conclusions with regard to the financial situation of MusiMax in
particular and of specialty services as a whole. The licensee submitted
that, given the current financial situation of MusiMax and MusiquePlus
Inc. compared with that of the other specialty services, there is no
objective economic reason that would justify imposing an increase in
MusiMax’s Canadian programming expenditures at the end of its first
licence term. According to the licensee, before imposing additional
financial obligations on the specialty services, the Commission should
consider the overall economic situation and its impact on the ability of
licensees with multiple licences to adequately support the development
of all the specialty services. |
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The Commission’s analysis and determination
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32. |
Following the discussions held on this
subject at the public hearing and its review of the financial capacity
of MusiMax and of the licensee, MusiquePlus Inc., the Commission is of
the view that the licensee is in a position to increase its Canadian
programming expenditures. In making this determination, the Commission
has taken a number of factors into account. |
33. |
The Commission notes that the only
requirement to which MusiMax is currently subject is its contribution to
MaxFACT. Considering the amendments authorized in this decision, and in
particular the one that allows the licensee to reduce to 50% from 65%
the number of music video programs broadcast by MusiMax, the Commission
considers it appropriate to add a new requirement, similar to the one
imposed on the other specialty services, and based on Canadian
programming expenditures as a percentage of the annual gross revenues of
the undertaking. |
34. |
Over the last two years of operation of
this service, the financial data have shown a healthy level of
profitability. Moreover, the licensee, MusiquePlus Inc., is in very good
financial health. It has no long-term debt, an excellent working capital
ratio, and an enviable net rate of return on shareholders’ equity. The
Commission also notes that the licensee is owned equally by two major
Canadian broadcasting groups that operate in the specialty television
services industry: Astral Broadcasting Group Inc. and CHUM Limited. |
35. |
Consistent with the foregoing, and
considering the review of the financial situation of the service and the
licensee, the Commission considers that an expenditure on Canadian
programming of 31% of gross revenues is appropriate. The licensee shall,
therefore, by condition of licence, devote to the investment in
or the acquisition of Canadian programs during each broadcast year,
beginning not later than 1 September 2004, at least 31% of the previous
year’s gross revenues. This percentage includes the licensee’s 5%
contribution to MaxFACT, which is discussed in the following section.
This condition of licence is set out in the appendix to this decision.
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36. |
The Commission encourages the licensee to
contribute significantly to the independent production industry. |
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Contribution to the development and the production of Canadian music
video clips
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37. |
The licensee is currently required to
allocate to MaxFACT, for the development and production of Canadian
music video clips, at least 5% of the previous year’s gross revenues.
The licensee has proposed to maintain its contribution with regard to
MaxFACT for the new licence term. MaxFACT is a music video production
fund that was set up by the licensee when it launched MusiMax. |
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Interventions
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38. |
ADISQ proposed increasing MusiMax’s
contribution to the production of French-language Canadian music video
clips to 6% from 5%, considering the profitability of the undertaking.
ADISQ also stated that the calculation of the contribution should
include all revenues related to the presence of the service on the
Canadian broadcasting system. Revenues generated by the Internet should
be excluded. |
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The licensee’s reply
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39. |
The licensee argued that the financial
situation of MusiMax and MusiquePlus Inc. did not justify an increase in
its contribution to the production of Canadian music video clips. |
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The Commission’s analysis and determination
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40. |
Considering the aforementioned new
requirement regarding MusiMax’s contribution to the investment in or the
acquisition of Canadian programs, the Commission is of the view that
there is no need to increase MusiMax’s contribution to the production of
Canadian music video clips. The licensee shall therefore continue to be
required, by condition of licence, to allocate to MaxFACT, for
the development and production of Canadian music video clips, at least
5% of the previous year’s gross revenues. |
41. |
With respect to ADISQ’s comment concerning
the calculation of the licensee’s contribution, the Commission finds
that the licensee has not been including all of its revenues in
calculating its contribution. The Commission reminds the licensee that
for the purposes of applying the appended conditions of licence relating
to the calculation of MusiMax’s contributions to the investment in or
the acquisition of Canadian programs and to the development and
production of Canadian music video clips, gross revenues include all
revenues related to the presence of the service on Canadian broadcast
airwaves, except revenues generated by the Internet. |
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Regional reflection and production
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42. |
The Commission expects the licensee to
ensure that the programming aired by MusiMax 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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43. |
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. |
44. |
The licensee stated that MusiMax showcases
artists of all cultural origins in its music programming, and that it
intends to continue to do so. The Commission notes the initiatives that
the licensee has taken 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. |
45. |
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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46. |
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. |
47. |
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 also expects the
licensee 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 MusiMax. |
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Service to persons who are deaf or hard of hearing
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48. |
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 imposed on 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. |
49. |
As part of its application for the renewal
of the licence for MusiMax, the licensee agreed, as a condition of
licence, to close caption a minimum of 50% of all programming, except
music video clips, beginning not later than 1 September 2006 and
continuing throughout the remainder of the licence term. Following
clarifications, the licensee also agreed to a condition of licence
whereby at least 90% of the prerecorded programs it produces, other than
music video clips, will be closed captioned by the end of the new
licence term. |
50. |
Consistent with these commitments and with
the Commission’s general approach for French-language services, the
Commission requires the licensee, by condition of licence, to
close caption at least 50% of all programs aired during the broadcast
day, beginning not later than 1 September 2006. The Commission also
requires, by condition of licence, that at least 90% of the
prerecorded programs produced by the licensee, other than music video
clips, be closed captioned, beginning not later than 1 September 2009.
These two conditions of licence are set out in the appendix to this
decision. |
51. |
The Commission expects the licensee to
ensure that all music video clips produced with the financial support of
MaxFACT are captioned throughout the licence term. The Commission
encourages the licensee to caption all music video clips aired by
MusiMax. |
52. |
The Commission further advises the licensee
that, at the time of its next licence renewal, the Commission intends to
require that this service provide captioning for a minimum of 90% of all
programming, other than music video clips. Accordingly, the Commission
encourages the licensee, by the time of its next licence renewal, to
caption 90% of all programming aired during the broadcast day. |
53. |
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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54. |
The Commission is committed to improving
the accessibility of television programming for persons with visual
impairments through the provision of audio description
2and video description (also
known as described video).3 |
55. |
The licensee intends to make its program
hosts more aware of the benefits that persons whose vision is impaired
receive from having the program host provide, when possible and
appropriate, an audio description of certain elements of information
that appear on screen in textual or graphic form. The licensee also
indicated that it is closely following technical developments that will
enable it to give persons whose vision is impaired better access to
Canadian programming services. It also intends to participate in the
industry forums where these issues will be examined. |
56. |
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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57. |
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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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 2004-7
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Conditions of licence
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1. (a) The licensee shall provide a national French-language
specialty television service designed for an adult audience and
devoted to music in all its forms, its works, its history and
personalities.
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(b) At least 90% of the programming shall be drawn exclusively
from the following categories, as set out in section 6 of Schedule I
of the Specialty Services Regulations, 1990, as amended from
time to time:
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2 (a) Analysis and interpretation
(b) Long-form documentary
7 (c) Specials, mini-series or made-for-TV feature films
(d) Theatrical feature films aired on TV
8 (a) Music and dance other than music video programs or clips
(b) Music video clips
(c) Music video programs
9 Variety
11 General entertainment and human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
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(c) The licensee shall devote no more than 15% of the broadcast
year to programs relating to music in all its forms, its works, its
history and personalities, drawn from category 7 Drama and comedy.
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(d) The licensee shall devote at least 50% of each broadcast year
to programs drawn from categories 8(b) and 8(c).
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(e) The licensee shall not broadcast more than 14 hours of
programs drawn from category 11 each broadcast week.
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(f) The licensee shall broadcast not more than 52 music-related
feature films in each broadcast year. Each 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) All category 7 programs broadcast by the licensee shall be
related to the world of music or spotlight a personality from the
world of music.
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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 60% of the evening broadcast period.
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(b) Not less than 30% of the total number of music video clips
exhibited by the licensee during each broadcast week shall be
Canadian music video clips.
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(c) Not less than 35% of the total number of music video clips
exhibited by the licensee during each broadcast week shall be in the
French language.
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(d) The licensee shall schedule its Canadian and French-language
music video clips evenly throughout the 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 to MaxFACT, for the development and production of
Canadian music videos, not less than 5% of the previous broadcast
year’s gross revenues derived from the operation of its service.
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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 MaxFACT, 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 (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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5. The licensee shall charge each exhibitor of this service a
maximum wholesale rate of $0.15 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
50% of all programs other than music video clips aired during the
broadcast day, beginning not later than 1 September 2006.
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7. The licensee shall provide closed captioning for not less than
90% of prerecorded programs other than music video clips beginning not
later than 1 September 2009.
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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
term "broadcast day" shall mean a 24-hour day commencing at 00:00:01
each day, or any other period approved by the Commission; the terms
"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 mean seven consecutive broadcast days beginning on a Friday; and
"paid national advertising" shall mean advertising material as defined
under 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:
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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