ARCHIVED -  Decision CRTC 94-664

Decision

Ottawa, 18 August 1994

Decision CRTC 94-664

Pelmorex Communications Inc.

Montréal, Quebec - 932230600

Licence renewal for MétéoMédia/The Weather Network

Following a Public Hearing held in the National Capital Region beginning on 25 April 1994, the Commission renews the broadcasting licence for the French- and English-language specialty programming undertaking known as MétéoMédia/The Weather Network, from 1 September 1994 to 31 August 2001. The licence will be subject to the conditions specified in the appendix to this decision and in the licence to be issued.

MétéoMédia/The Weather Network is available to cable television affiliates accross the country for distribution on a dual status basis.

Ownership

In Decision CRTC 93-200 dated 10 June 1993, the Commission approved the transfer of effective control of Météomédia Inc. to Pelmorex Weather Network Inc./Pelmorex Météomédia Inc., which company was subsequently amalgamated with other corporations to form Pelmorex Communications Inc. (Pelmorex). The Commission advised the new licensee that the commitments relating to the monthly wholesale rate and programming expenditures noted in the transfer application would be reviewed by the Commission at licence renewal time, for the purpose of setting new conditions of licence.

Background

The licence to provide a national weather specialty programming service was granted to Météomédia Inc. in 1987. The service began operation in September 1988 and currently reaches about 6.4 million households through approximately 290 cable affiliates.

Since its introduction in 1988, the service has met or exceeded each condition of licence set for it by the Commission. In addition, Pelmorex has met the benefit commitments for the current term made when it applied for the transfer of control of the undertaking, and has projected, in its renewal application, that it will meet or exceed all benefits proposed in the transfer application to the end of the 5-year benefit period.

With specific regard to the subscriber rate, Pelmorex implemented a reduction in September 1993, as promised in the transfer application, to a level of $0.23 per subscriber per month. This rate will be maintained throughout the new licence term.

Expenditures on Canadian programming

The licensee proposed to amend its condition of licence relating to expenditures on Canadian programming by expressing the required level of expenditures as a percentage of its subscription and advertising revenues, rather than as cash values.

This amendment is consistent with the licensee's commitment expressed in Decision CRTC 93-200, and with the Commission's practice, to calculate minimum expenditures on Canadian programming based on percentages of gross revenues. In addition, the licensee asked to include in its condition of licence the word "cash" advertising, in order to avoid having to calculate its requirement on revenues which it has not yet received. The Commission, however, is not convinced of the need to base the calculations on "cash" advertising, especially since the previous year's gross revenue level will now be used to assess compliance by licensees of specialty services with respect to Canadian program expenditure requirements.

Therefore, the Commission approves in part, the request to amend the condition of licence with respect to Canadian programming expenditures, by deleting the existing condition of licence and replacing it with the following:

 The licensee shall expend not less than 37% of its gross revenue (Canadian subscription and advertising revenues) of the previous year on the investment in and/or acquisition of Canadian programs.

Furthermore, the Commission has decided to extend to licensees of specialty and pay television services the same flexibility already granted to licensees of conventional television stations.

Advertising

The licensee also requested an amendment to the definition of advertising material to allow it to
promote Canadian programs without having to count such programming as advertising material.

The Commission notes in this regard that, following a recent amendment to the Specialty Services Regulations, 1990 announced in Public Notice CRTC 1994-81 dated 11 July 1994, promotions for Canadian programs are no longer considered to be advertising material. Accordingly, no further action is required with respect to this request.

The licensee also requested that its condition of licence be amended to include an allowance for unpaid public service announcements over and above the 12 minutes of advertising per hour that it is currently authorized to distribute. This request is consistent with the Commission's practice with respect to specialty services, and the licensee's relevant condition of licence is amended accordingly.

Other matters

In Public Notice CRTC 1992-59 dated 1 September 1992 and entitled "Implementation of an Employment Equity Policy", the Commission announced that the employment equity practices of broadcasters would be subject to examination by the Commission. It encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

The Commission notes that Pelmorex voluntarily adheres 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.

Interventions

The Commission acknowledges the many interventions received in support of this application. It also notes the opposing interventions submitted by the Canadian Cable Systems Alliance, The Canadian Association of the Deaf and le Regroupement Québécois pour le Sous-Titrage Inc.; it is satisfied with the licensee's replies thereto.

Allan J. Darling
Secretary General

APPENDIX / ANNEXE

CONDITIONS OF LICENCE FOR MÉTÉOMÉDIA/THE WEATHER NETWORK

1. The programming provided by the licensee shall be dedicated exclusively to video programming, text and graphics relating to meteorological, atmospheric and marine conditions for local, regional and national areas of Canada, and international areas as they may be of national interest to Canadians, as well as programming relating to the prevention and effects of these conditions.

2. The licensee shall devote not less than 100% of the broadcast year to the distribution of Canadian programs.

3. In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1993-93 and 1993-174,

 (a) the licensee shall, in each broadcast year of the licence term, expend not less than 37% of its gross revenue (Canadian subscription and advertising revenues) of the previous year on the investment in and/or acquisition of Canadian programs;

 (b) in each broadcast year of the licence term, excluding the final year, the licensee may expend an amount on Canadian programming 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 year of the license term, in addition to the minimum required expenditure for that year, the full amount of the previous year's underspending;

 (c) in any broadcast year of the licence term, including the final year, the licensee may expend an amount on Canadian programming that is greater than the minimum required expenditure for that year calculated in accordance with this condition; in such case, the licensee may deduct:

   (i) from the minimum required expenditure for the next year of the licence term, an amount not exceeding the amount of the previous year's overspending; and

   (ii) from the minimum required expenditure for any subsequent year of the licence term, an amount not exceeding the difference between the overspending and any amount deducted under paragraph (i) above;

 (d) notwithstanding the above, during the licence term, the licensee shall expend on Canadian programming, at a minimum, the total of the minimum required expenditures calculated in accordance with the licensee's condition of licence.

4. (a) Subject to (c) and (d), the licensee shall not distribute more than 12 minutes of advertising material during each clock hour;

 (b) The licensee shall not distribute any paid advertising material other than paid national advertising;

 (c) In addition to the maximum of 12 minutes of advertising material referred to in 4(a), the licensee may distribute, during each clock hour, a maximum of 30 seconds of additional advertising material that consists of unpaid public service announcements.

5. For the duration of the licence term, the licensee shall charge each exhibitor of this service a maximum wholesale rate of $0.23 per subscriber per month.

6. 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.

7. The licensee shall adhere to the provisions of the "Broadcast Code for Advertising to Children", published by the CAB, as amended from time to time and approved by the Commission.

8.  For the purpose of these conditions, all time periods shall be reckoned according to the eastern time zone.

9. For the purpose of these conditions, the terms "broadcast day", "broadcast month", "broadcast year", and "clock hour" shall have the same meanings as those set out in the Television Broadcasting Regulations, 1987; and "paid national advertising" shall mean advertising that is purchased at a national rate and receives national distribution on the service.