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Broadcasting Decision CRTC 2004-9
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Ottawa, 21
January 2004 |
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1163031 Ontario Inc.
Across Canada |
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Application 2002-0897-7
Public Hearing in the National Capital Region
26 May 2003 |
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Outdoor Life Network – Licence renewal
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In this decision, the
Commission renews the broadcasting licence for the
specialty television service known as Outdoor Life 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 1163031 Ontario Inc. for the renewal of the broadcasting
licence for the national, English-language specialty television service
known as Outdoor Life Network (OLN). |
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 100
interventions specifically in support of OLN’s licence renewal
application, including a petition with 72 signatures. Five interventions
opposing specific amendments to OLN’s licence were also received. The
concerns raised by these interveners are discussed in this decision. |
4. |
Other interveners raised general concerns
related to all of the specialty television licence renewal applications
considered as part of this public process. These concerns are discussed
in Public Notice 2004-2. |
5. |
On the basis of its review of this licence
renewal application and having considered the interveners’ comments, the
Commission renews the broadcasting licence for Outdoor Life
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. |
As part of its licence renewal application,
the licensee proposed to increase its Canadian content levels during the
broadcast day and the evening broadcast period. The licensee also
requested an amendment to its condition of licence in order to add
categories
6(a) Professional sports and 7(a) Ongoing drama series, 7(b) Ongoing
comedy series (sitcoms), 7(c) Specials, mini-series or made-for-TV
feature films, 7(d) Theatrical feature films aired on TV and 7(g) Other
drama to the list of categories from which it may draw programming. The
proposed amendments are discussed below. |
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Ownership
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7. |
1163031 Ontario Inc., the licensee of OLN,
is owned by 1163030 Ontario Inc. (the parent corporation), which in turn
is owned in equal parts (33.33% each) by CTV Inc. (CTV), Rogers
Broadcasting Limited (Rogers) and Outdoor Life Network L.L.C., a
non-Canadian entity. |
8. |
The Commission has generally required that
an independent programming committee be put in place with full
programming responsibility in cases where the non-Canadian voting
interests of a parent corporation are higher than 20%. |
9. |
In this case, the licensee submitted that
it should not be required to establish an independent programming
committee to oversee OLN’s programming decisions given that its
shareholder agreement gives the management group, which is composed of
CTV personnel, complete discretion over OLN’s programming schedule and
that its service agreement with CTV appoints CTV as the manager of OLN. |
10. |
The licensee further stated that the terms
of its existing service agreement are currently being renegotiated and
that it would consider adding a provision in the new agreement that
would preclude its board of directors from issuing any directions
related to programming. Furthermore, the licensee agreed at the hearing
that its board of directors would exclude representatives of the
non-Canadian shareholder. |
11. |
The Commission is satisfied that, given the
existing and proposed mechanisms, neither the parent corporation nor the
non-Canadian shareholder will control or influence any of the licensee’s
programming decisions and that, therefore, the ownership requirements
specified in Direction to the CRTC (Ineligibility of non-Canadians),
P.C. 1997-486, 8 April 1997, are met. |
12. |
In light of the above, the Commission has
decided not to require that the licensee establish an independent
programming committee to oversee OLN’s programming decisions.
Nevertheless, the Commission requires that: |
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- the licensee submit a duly signed and executed copy of its new
service agreement by 22 March 2004; reflecting the provision noted in
paragraph 10 above;
- the licensee obtain the Commission’s prior approval before making
any substantial changes to the shareholder agreement or to the service
agreement; and
- no member of the licensee’s board of directors be a person who is
a director, an officer, or a current or former employee of any
non-Canadian shareholder of the licensed undertaking.
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Expenditures on, and exhibition of, Canadian programming
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Expenditures
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13. |
OLN’s current condition of licence requires
it to expend 37% of the previous year’s gross revenues on Canadian
programming expenditures (CPE). The licensee proposed that OLN’s CPE
requirement should remain the same over the new licence term. In support
of this proposal, the licensee submitted that the service’s current CPE
requirement is consistent with that of other specialty services licensed
at the same time as OLN in 1996. It further stated that, although OLN
has one of the lowest wholesale rates among analog specialty services,
it has maintained its commitment to CPE over the course of its first
licence term. |
14. |
While the Commission acknowledges that OLN
has met its commitment to CPE over the first licence term, it also notes
that OLN’s current CPE requirement is below the average obligation of
the other specialty services licensed in 1996. In addition, OLN has seen
a positive financial performance over its licence term. The Commission
notes that the service’s historical average profit before interest and
tax (PBIT) margin has been in the range of 25% to 29%. Taking this into
account and consistent with the approach described in Public Notice
2004-2, the Commission has determined that an increase of four
percentage points is appropriate. Accordingly, the Commission is
requiring the licensee, in each year of the licence term, to expend a
minimum of 41% 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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15. |
As noted above, the licensee proposed to
increase its commitment to Canadian programming by raising the Canadian
content levels required by condition of licence from 30% to 50% during
the broadcast day and from 30% to 35% during the evening broadcast
period. |
16. |
The licensee provided a number of arguments
to support evening Canadian content levels for OLN that are lower than
the average evening requirement for the other specialty services
licensed in 1996. According to the licensee, obtaining Canadian
programming for OLN’s niche service is more difficult than obtaining
Canadian programming for other services. A higher Canadian content
requirement could therefore lead to an increase in OLN’s repeat factor.
The licensee also submitted that, given OLN’s low wholesale rate, it
should not be expected to provide the same level of Canadian content as
other services with higher rates. Furthermore, the licensee expressed
concern that an increase in its Canadian content would decrease its
audience, thereby decreasing its advertising revenue, a significant part
of its revenue, given its low wholesale rate. |
17. |
In its intervention, the Canadian Film and
Television Production Association (CFTPA) supported OLN’s proposed
increases in Canadian content. |
18. |
Having considered the licensee’s arguments
with respect to its proposed Canadian content levels, the Commission is
of the view that the licensee’s concerns are not unique to OLN.
Furthermore, the Commission notes that the programming for a service of
OLN’s genre is relatively inexpensive compared to drama or live sports,
and that OLN has seen a positive financial performance over the past
licence term. In light of the above, the Commission determines that it
is appropriate to bring OLN’s exhibition levels more in line with the
levels of other analog specialty services. Accordingly, it has increased
OLN’s Canadian content requirement to 50% during the broadcast day and
40% during the evening broadcast period. A condition of licence
is set out in the appendix to this decision. |
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Nature of service
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19. |
OLN’s current nature of service requirement
stipulates that the service’s "programs will deal exclusively with
outdoor recreation, conservation, wilderness and adventure." The
original licensing decision also describes OLN’s programming as
consisting of eight key themes: 1) outdoor exploration and adventure; 2)
marine recreation; 3) winter recreation; 4) conservation; 5) nature
enthusiasts; 6) anglers; 7) outdoor cooking and 8) hunting." |
20. |
OLN is currently permitted to draw
programming from the following categories: |
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2 (a) Analysis and interpretation
(b) Long-form documentary
5 (b) Informal education/Recreation and leisure
6 (b) Amateur sports
11 General entertainment and human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
15 Filler programming
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Category 6(a) Professional sports
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The application
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21. |
The licensee proposed to add category 6(a)
Professional sports to the list of categories from which OLN may draw
programming to ensure that the service has the necessary regulatory
authority to continue broadcasting what it referred to as non-mainstream
professional sports. The licensee noted that certain programs that had
previously been logged as category 6(b) Amateur sports are now being
classified by the Commission as category 6(a). Accordingly, to ensure it
could continue to broadcast such programs, it needed to add category
6(a) to the list of categories from which it may draw programming. The
licensee added that programming from category 6(a) would make up no more
than 15% of OLN’s broadcast year. According to the licensee, the
addition of this category would help broaden the service’s appeal to a
wider audience, which would increase the service’s advertising revenue.
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Interventions
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22. |
Global Television Network (Global) opposed
the licensee’s request to add category 6(a) to the list of categories
from which OLN may draw programming. Global argued that OLN’s entry into
the professional sports market would raise rights prices and negatively
affect the relatively new Category 2 digital services Xtreme Sports and
Fox Sports World, which already carry the type of programming OLN
proposed to carry. |
23. |
The Canadian Broadcasting Corporation (CBC)
expressed concern that, if the proposed amendment were approved, the
service could become a second window for TSN programming. |
24. |
While The Score Television Network Ltd.
(The Score) recommended that the licensee’s request to add category 6(a)
to OLN’s nature of service definition should be denied, it also
suggested that, in the event of approval, a comprehensive series of
limitations should be applied. Like the CBC, The Score expressed concern
that OLN could become a second window for TSN and CTV programming. In
order to prevent this, The Score recommended that OLN and CTV-related
companies, as well as OLN and Rogers, not be permitted to share or
source any professional sports programming. |
25. |
The Score stated that, although the
licensee indicated that the addition of category 6(a) would increase the
service’s advertising revenue, it did not demonstrate that OLN has a
financial need for this addition. More importantly, in The Score’s view,
the licensee did not propose a corresponding contribution to the
Canadian broadcasting system. For these reasons, The Score recommended
that, should OLN be permitted to broadcast programming from category
6(a), it should be required to expend 45% of its revenues on Canadian
production. |
26. |
Furthermore, as part of its
recommendations, The Score suggested that OLN should not be permitted to
broadcast live professional event programming or any professional sports
programming of the following types: ice hockey, baseball, football,
basketball, golf, soccer, rugby, horse racing, automobile racing,
tennis, cricket, boxing, curling, wrestling and figure skating. It also
recommended a requirement that 50% of all professional sports events
broadcast on OLN be Canadian. |
27. |
The Score further suggested that, should
OLN be permitted to broadcast programming from category 6(a), such
programming should be limited to no more than 5% of OLN’s schedule. The
Score also recommended that OLN’s compliance be measured quarterly. |
28. |
The Score emphasized that its suggested
limitations were "a second best alternative to outright denial of the
Application for Category 6(a) programming which is The Score’s
recommendation." |
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The applicant’s reply
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29. |
In response to the limitations suggested by
The Score, the licensee submitted that the safeguards it suggested in
its application were adequate. In the licensee’s view, given OLN’s
narrow nature of service definition and the limited availability of
outdoor- and adventure-themed sports programming, The Score’s proposal
would make OLN’s ability to broadcast professional sports programming in
a way that makes economic sense almost meaningless. |
30. |
In response to the concerns expressed by
the CBC and The Score with respect to OLN becoming a second window for
TSN and CTV programming, the licensee contended that a 10% limit on
programming shared between OLN and CTV or Rogers would be more realistic
than the total prohibition proposed by The Score. |
31. |
The licensee also stated that The Score
provided no rationale as to why live coverage of professional events
should be precluded from OLN. In addition, according to the licensee,
the list of prohibited sports put forward by The Score is unnecessary
given that OLN has already committed not to broadcast any of the major
North American "stick and ball" sports, and that all sports programming
broadcast on OLN must be consistent with the service’s outdoor- or
adventure-themed nature of service. |
32. |
With respect to The Score’s recommendation
that 50% of all professional sports events broadcast on OLN should be
Canadian, the licensee submitted that this level was overly restrictive,
especially in light of OLN’s proposal to increase its overall Canadian
content to 50%. |
33. |
Furthermore, the licensee stated that the
5% limit proposed by The Score with respect to the amount of programming
the service can draw from category 6(a) would unduly restrict OLN’s
ability to continue carrying the types of sporting events that it
currently carries, "to the extent that such events are characterized as
professional sports." |
34. |
The licensee was amenable to The Score’s
suggestion that OLN’s compliance with regard to category 6(a)
programming be measured on a quarterly basis. |
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The Commission’s analysis and
determination
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35. |
As to limitations, the Commission is of the
view that The Score’s recommendations are too restrictive overall.
However, the Commission recognizes The Score’s broad concerns and has
incorporated elements of its suggestions in its determinations. |
36. |
While the Commission acknowledges The
Score’s concern that OLN could become a second sports programming window
for its other Canadian shareholders, it notes that OLN’s programming
must deal exclusively with outdoor recreation, conservation, wilderness
and adventure and, therefore, even with the addition of category 6(a),
the service would not be permitted to broadcast many of the types of
sports that The Score suggested should not be permitted on the service.
With respect to the concerns expressed by Global, the Commission
considers that the required nature of OLN’s programming would also limit
the service’s impact on the professional sports rights market. |
37. |
In light of the above, the Commission
approves the licensee’s request and adds program category 6(a) to
the list of categories from which OLN may draw its programming,
reminding the licensee that all such programming must be consistent with
its outdoor recreation theme. While the Commission is of the view that
the amount of such programming should be limited, it considers the 5%
limit proposed by The Score is overly restrictive and considers that a
15% limit is more appropriate. Nevertheless, the Commission has
determined that the type of professional sports programming permitted on
OLN should be defined. Accordingly, the service will not be permitted to
broadcast professional sports programming that includes stick and/or
ball sports, including hockey, baseball, football, basketball, golf,
soccer and tennis. A condition of licence on the nature of
service is set out in the appendix to this decision, and incorporates
the limitations on the use of material from category 6(a). |
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Categories 7(a), (b), (c), (d) and (g)
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The application
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38. |
In its application, the licensee proposed
to add categories 7(a) Ongoing drama series, 7(b) Ongoing comedy series
(sitcoms), 7(c) Specials, mini-series or made-for-TV feature films,
7(d) Theatrical feature films aired on TV and 7(g) Other drama, to the
list of categories from which OLN may draw programming. It proposed that
programming from these categories would make up no more than 15% of
OLN’s broadcast year and would be directly related to outdoor
recreation, conservation, wilderness or adventure. According to the
licensee, the addition of these categories would help broaden the
service’s appeal to a wider audience, which would increase the service’s
advertising revenue. It would also place OLN on a more level playing
field with other specialty services that are permitted to broadcast
category 7 programming provided it is directly related to the service’s
core mandate. |
39. |
At the hearing, the licensee withdrew its
request to add category 7(b) to the list of categories from which OLN’s
programming may be drawn. |
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Interventions
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40. |
Astral Broadcasting Group Inc. (Astral)
expressed concern that the 15% limit on category 7 programming proposed
by the licensee was too high and would result in a dilution of OLN’s
nature of service. |
41. |
Similarly, the CFTPA submitted that to
preserve the emphasis on lifestyle programming devoted to outdoor
recreation, conservation, wilderness and adventure, OLN’s category 7
programming should be limited to 5% of its schedule. |
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The applicant’s reply
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42. |
In response to the interventions, the
licensee stated that a maximum of 5% programming from category 7 would
be sufficient and requested that category 7(d) not be subject to this
limitation. |
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The Commission’s analysis and
determination
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43. |
The Commission notes that it has allowed
drama programming on many lifestyle services in the past. It therefore
considers that there is a place for category 7 programming on a
lifestyle channel such as OLN. |
44. |
The Commission is satisfied that the
addition of category 7 programming would not allow for a shift in OLN’s
nature of service, given that all its programming must adhere to OLN’s
nature of service condition of licence. As discussed in Public Notice
2004-2, the Commission has also determined that, in support of Canadian
drama programming, any programming broadcast from the new category must
be Canadian drama. In light of the above, the Commission approves
the licensee’s request and adds program categories 7(a), (c), (d) and
(g) to the list of categories from which OLN may draw its programming,
provided that such programming is consistent with the nature of service
and that it is exclusively Canadian programming. |
45. |
Nevertheless, the Commission is of the view
that the amount of such programming should be limited and will therefore
impose a condition of licence that no more than 5% of the programs
broadcast on OLN shall be drawn from category 7, including
category 7(d), as well as a condition that the service shall not
broadcast more than one feature film per week. A condition of licence
on the nature of service is set out in the appendix to this decision,
and incorporates the limitations on the use of material from category 7. |
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Category 15 Filler programming
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46. |
The Commission notes that OLN’s statement
that it will not draw programming from category 15 Filler programming is
consistent with the Commission’s policy with regard to filler
programming as set out in Introductory statement – Licensing of new
specialty and pay television services, Public Notice CRTC
1994-59, 6
June 1994. Accordingly, the Commission will remove category 15 from the
list of categories from which OLN may draw programming. The amended
condition of licence is set out in the appendix to this decision. |
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Canadian independent production
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47. |
In its application, the licensee proposed
to maintain its existing condition of licence that stipulates that it
shall not remit any program development funds to its shareholders or
affiliated corporations. The licensee also proposed to maintain its
existing commitment that 60% of OLN’s new independent Canadian
productions would come from arm’s length sources. |
48. |
In its intervention, Alliance Atlantis
Broadcasting Inc. (Alliance) recommended that OLN should be required to
ensure that at least 75% of its original Canadian programs are the
product of independent producers. As noted in Public Notice
2004-2,
CFTPA made the same recommendation. |
49. |
In response, the licensee indicated that it
would be willing to accept a condition of licence that no less than 75%
of OLN’s new independent productions would come from non-affiliated
producers. |
50. |
Consistent with the approach outlined in
Public Notice 2004-2, the Commission considers that it is reasonable to
expect the licensee, for the duration of the new licence term, to ensure
that a minimum of 75% of all original, first-run, Canadian programming
broadcast on OLN is acquired from non-related producers. |
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Regional reflection and production
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51. |
The licensee indicated that OLN reflects
Canada’s regional diversity to viewers by including, within its program
schedule, programming that reflects Canada’s various and unique regions.
OLN also commissions programming from independent producers outside
Toronto, Montréal and Vancouver. |
52. |
The Commission expects the licensee to
ensure that the programming aired by OLN reflects all 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 |
53. |
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. |
54. |
The Commission notes that OLN is subject to
the CTV Inc. cultural diversity plan, which sets out specific
commitments relating to corporate accountability, reflection of
diversity in programming, and community involvement as they relate to
the presence and portrayal of cultural diversity. 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. |
55. |
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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56. |
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. |
57. |
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. |
58. |
The Commission further expects the licensee
to take steps during the new licence term to address any gaps in the
on-air presence of members of the four designated groups on OLN. |
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Service to persons who are deaf or hard of hearing
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59. |
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. |
60. |
In the present case, the licensee made a
commitment to close caption 90% of all programming broadcast on OLN
during each broadcast day of the new licence term. |
61. |
Consistent with this commitment and with
the Commission’s general approach for English-language services, the
Commission is imposing a condition of licence requiring the
licensee to close caption not less than 90% of all programming aired
during the broadcast day, beginning not later than 1 September 2004. The
condition of licence is set out in the appendix to this decision. |
62. |
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. |
63. |
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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64. |
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 |
65. |
In the present case, the licensee stated
that OLN is not technically able to provide described video. It
indicated, however, that most of OLN’s programming is intrinsically
descriptive in nature. The licensee submitted that OLN tries to acquire
described versions of programs wherever possible and to ensure that, for
any of the original productions that it commissions, the producer is
sensitive to the needs of persons whose vision is impaired. |
66. |
Consistent with these commitments and with
Public Notice 2004-2, the Commission expects that, during the new
licence term, the licensee will: |
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- provide audio description wherever appropriate;
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- acquire and broadcast the described versions of a program wherever
possible; and
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- take the necessary steps to ensure that its customer service
responds to the needs of viewers who have visual impairments.
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Programming delivered across time zones
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67. |
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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68. |
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 2004-9
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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 exclusively to programs that
deal with outdoor recreation, conservation, wilderness and
adventure.
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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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2 (a) Analysis and interpretation
(b) Long-form documentary
5 (b) Informal education/Recreation and leisure
6 (a) Professional sports
(b) Amateur sports
7 (a) Ongoing dramatic series
(c) Specials, mini-series or made-for-TV feature films
(d) Theatrical feature films aired on TV
(g) Other drama
11 General entertainment and human interest
12 Interstitials
13 Public service announcements
14 Infomercials, promotional and corporate videos
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(c) In each broadcast year, the licensee shall devote to programs
drawn from category 6(a) not more than 15% of the broadcast day and
such programming shall not include stick and/or ball sports,
including hockey, baseball, football, basketball, golf, soccer, and
tennis.
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(d) The licensee shall devote to programs drawn from categories
7(a), (c), (d) and (g) not more than 5% of the broadcast year,
including no more than one feature film per broadcast week, and all
such programs shall be Canadian.
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2. In each broadcast year, the licensee shall devote to the
exhibition of Canadian programs not less than 50% of the broadcast
day, and not less than 40% of the evening broadcast period.
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3. In accordance with the Commission’s position on Canadian
programming expenditures as set out in New Flexibility With Regard
to Canadian Program Expenditures by Canadian Television Stations,
Public Notice CRTC 1992-28, 8 April 1992, in The Reporting of
Canadian Programming Expenditures, Public Notice CRTC
1993-93, 22 June 1993 and in Additional Clarification Regarding the
Reporting of Canadian Programming Expenditures, Public Notice CRTC
1993-174, 10 December 1993:
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(a) In the broadcast year ending 31 August 2004, the licensee
shall expend on the acquisition of and/or investment in Canadian
programs a minimum of 37% 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 41% 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 charge each exhibitor of this service a
maximum wholesale rate of $0.10 per subscriber per month, where the
service is carried as part of the basic service.
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6. The licensee shall provide closed captioning for not less than
90% of all programs aired during the broadcast day, beginning not
later than 1 September 2004.
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7. The licensee shall not remit any program development funds to
its shareholders or affiliated corporations.
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8. The licensee shall adhere to the guidelines on gender portrayal
set out in the Canadian Association of Broadcasters’ (CAB) Sex-role
portrayal code for television and radio programming, as amended
from time to time and approved by the Commission. The
application of the foregoing condition of licence will be suspended as
long as the licensee remains a member in good standing of the Canadian
Broadcast Standards Council (CBSC).
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9. The licensee shall adhere to the provisions of the CAB’s
Broadcast code for advertising to children, as amended from time
to time and approved by the Commission.
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10. The licensee shall adhere to the guidelines on the depiction of
violence in television programming set out in the CAB’s Voluntary
code regarding violence in television programming, as amended from
time to time and approved by the Commission. The application of
the foregoing condition of licence will be suspended as long as the
licensee remains a member in good standing of the CBSC.
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For the purpose of these conditions, the
terms "broadcast day," "broadcast year," "evening broadcast period" and
"clock hour" shall have the same meanings as those set out in the
Television Broadcasting Regulations, 1987; "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:
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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