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Public Notice
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See also: 1998-44-1,
1998-44-2, 1998-44-3
Ottawa, 6 May 1998 |
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Public Notice CRTC 1998-44 |
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Canadian Television Policy
Review - Call for Comments |
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Table of Contents |
Par. |
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PREFACE |
i |
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THE CURRENT REGULATORY FRAMEWORK |
1 |
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Use of Canadian resources |
2 |
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Canadian Content Regulations for Conventional
Television |
4 |
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Canadian Program Recognition |
11 |
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Expenditure and Exhibition Requirements |
12 |
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The Underrepresented Program Categories |
27 |
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Ensuring a Viable Private Broadcasting Sector
|
33 |
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The Role of Multi-station Ownership Groups |
43 |
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The Role of the National Public Broadcaster |
50 |
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Diversity |
54 |
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Independent Production |
67 |
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The Role of Canadian Pay and Specialty Services |
81 |
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The Impact of Digital Television Technology on
Program Production |
86 |
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PUBLIC PROCEEDING |
92 |
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APPENDIX |
|
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PREFACE |
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i. The attached public notice sets
out the issues and concerns the Commission wishes to discuss as part of a
broad and fundamental review of its policies relating to television at a
public hearing scheduled to begin on 23 September 1998. |
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ii. This important public process,
announced in the Commission's October 1997 Vision Action Calendar, recognizes
the restructuring taking place in the broadcasting environment and the
increasingly competitive domestic and global marketplace. Following its
examination of the need for additional national networks in November 1997,
the Commission noted the growth of large multi-station ownership groups, and
concluded that these groups have the capacity to provide support for Canadian
programming at a level comparable to that of traditional networks (see Public
Notice CRTC 1998-8). The upcoming review of Canadian
television policy provides an opportunity to explore, in detail, effective
strategies for realizing that support. It is an integral part of the
Commission's overall approach to Canadian broadcasting and its ongoing
assessment of the effectiveness of the regulatory framework in an evolving
communications environment. |
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iii. Canadians have reason to be
proud of their television system. In the years since the last major review of
the Commission's television policies, the quality and quantity of Canadian
programs has significantly increased. While viewers are offered an
extraordinary range of foreign choices, they are increasingly turning to
Canadian programs for information and entertainment. Private broadcasters and
independent producers have achieved many creative and business successes,
both at home and abroad. Our system is admired throughout the world for its
ability to provide Canadians with distinctive Canadian programs and services,
despite our proximity to the world's most prolific exporter of popular
culture. In the Commission's view, we must explore ways to build upon these
achievements by ensuring that our regulatory framework continues to be
effective in a rapidly changing communications environment. |
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iv. The Commission's goals for this
review of its regulatory and policy framework for television are
straightforward - further the development of a strong and viable programming
industry; ensure that Canadians receive a wide range of attractive and
distinctive Canadian program choices; facilitate the growth of strong
broadcasting undertakings; ensure that the Canadian broadcasting system meets
the needs of Canadian viewers and reflects their values; and, implement the
public interest objectives of the Broadcasting Act (the Act). In particular,
the Commission wishes to explore how all participants in the system can work
effectively to strengthen the Canadian presence on our television screens,
and to support a healthy broadcasting and production industry capable of
competing successfully at home and abroad. At the same time, the Commission
will wish to be assured that the public interest objectives of the Act are
well served. |
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v. The Commission recognizes that a
strong and competitive private sector is essential to fulfilling the goals of
the Act, as is the public broadcasting sector and an effective regulatory
framework. |
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vi. Programming that reflects the
views and values of Canadians, strengthens cultural sovereignty and national
identity, that is designed for a competitive Canadian marketplace and is
positioned for success in foreign markets, will depend upon a flexible
regulatory framework. A regulatory framework designed to ensure a dynamic
Canadian programming industry will acknowledge the roles and responsibilities
of conventional (over-the-air), specialty and pay television undertakings,
other broadcasters (both private and public), distributors, artists,
creators, producers, viewers and other participants in the Canadian
broadcasting system. The Act states that English- and French-language
broadcasting, while sharing common aspects, operate under different
conditions and may have different requirements. The regulatory framework for
the television system must take into account the linguistic duality of Canada
and the different realities under which English- and French-language
broadcasters operate. |
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vii. Success in achieving our goals
will require a cooperative approach on the part of all sectors of the
television system. For that reason, the Commission will take every step to
ensure that, in addition to its consideration of specific regulatory issues,
this public process will provide an opportunity for a broad and fundamental
evaluation of Canadian television in all its forms. |
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viii. In the time since the
Commission completed its last major review of its television policies and
regulations in the mid 1980s, the Canadian television environment has
undergone significant change. These changes, which continue at a rapid pace,
include ownership consolidation, the licensing of new Canadian pay and
specialty services, the availability of more non-Canadian television and
specialty services, the development of a strong independent production sector
and the increasing opportunities and challenges posed by the globalization of
television production and distribution. The forthcoming review will provide
an opportunity for the Commission and other participants to reassess the
existing framework in light of the changes identified, forecast the pressures
and possibilities that the evolving communications environment will bring,
and articulate challenging, but achievable goals for the system as a whole.
The Commission encourages participants to bring to the hearing imaginative
and effective strategies for achieving such goals and for ensuring that the
system continues to fulfil the objectives of the Act. |
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ix. In the Commission's view, an
effective framework will ensure that conventional, specialty and pay
television broadcasters (collectively referred to as broadcasters through the
remainder of this document) have the capacity to make an equitable
contribution to Canadian programming. The Commission considers that this
could well be accomplished by ensuring that broadcasters have more
flexibility to pursue unique programming strategies. |
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x. The current regulatory framework
for Canadian television is based on principles derived from the Act. The
principles most relevant to this proceeding may be summarized as follows:
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· Television undertakings
shall make maximum, and in no case less than predominant, use of Canadian
resources and contribute equitably to the production and exhibition of
Canadian programs. |
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· The television sector
should provide a wide range of programming reflecting the linguistic duality,
and multicultural and multiracial nature of Canadian society, including the
special place of Aboriginal peoples within that society. |
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· The television sector
should encourage the production of quality Canadian programs and include a
significant contribution from the Canadian independent production sector.
|
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xiv. Attached as an appendix to
this notice is selected information collected by the Commission which may
serve as useful indicators of major industry trends between 1993 and 1997 and
of the characteristics of the system as it exists today. The Commission will
place on the public file, at a later date, additional information of use to
parties in the preparation of their submissions. Interested parties are,
therefore, encouraged and expected to monitor the content of the public
examination file. |
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xii. This policy review provides an
important opportunity for all interested parties to set out their views with
respect to the key characteristics of the environment in which the Canadian
television industry can expect to operate in the early years of the next
century. The Commission encourages viewers, creators, program distributors,
distribution undertakings, broadcasters, independent producers and other
interested parties to describe the regulatory and policy framework that they
consider will be necessary if all elements of the Canadian broadcasting
system are to maintain strong, healthy and successful businesses into the
future, while meeting the policy objectives set out in the Act. The
Commission calls on all interested parties to assist in providing it with a
detailed understanding of the new forces at work in domestic and
international communications, and to suggest imaginative means by which these
forces can be harnessed to serve the interest of all Canadians. In
particular, the Commission wishes to discuss appropriate strategic responses
to the following challenges: |
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· In a world of expanding
communications choices, what types of programming content will Canadians need
and demand? |
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· In an environment of
increasingly fragmented audiences, what economic model would best ensure the
creation, acquisition and exhibition of high quality Canadian programs?
|
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· What domestic and
international alliances could be fostered to ensure that high quality
Canadian programs are produced, exhibited, promoted and marketed, both in
Canada and abroad? |
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· In a globalized
communications environment, how can Canadians ensure that the broadcasting
system meets national public policy objectives? |
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· What framework is necessary
to allow for different, but equitable contributions by all broadcasters?
|
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· What framework would best
encourage the production, acquisition and exhibition of commercially viable
Canadian programs? |
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· What is the appropriate
contribution of the independent production sector to the evolution of the
broadcasting system, and what is that sector's role in achieving public
policy objectives? |
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xiii. Broadcasters, independent
producers and other interested parties are requested to place on the record
of this proceeding detailed information concerning the economic models they
envisage as most effectively serving the objectives of the Act. In the
Commission's view, any such model should give recognition to the expanding
importance of independent producers, the complementary roles played by public
and private broadcasters, and the important role of broadcasting
distributors. |
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THE CURRENT REGULATORY FRAMEWORK
|
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1. In order to facilitate the
discussion at the hearing, the following sections of this notice describe the
regulatory mechanisms currently employed by the Commission to ensure that the
Canadian television industry serves the objectives of the Act, set out some
of the issues related to these mechanisms, and identify some questions that
interested parties may wish to address during the review process. The
questions raised in this notice are not intended to preclude discussion of
any other relevant issues that interested parties may wish to raise, nor are
they intended to detract from the broad and fundamental scope of the current
review proceeding. |
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Use of Canadian Resources
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2. The Act calls upon television
undertakings to make maximum, and no less than predominant, use of Canadian
resources and contribute equitably to the production and exhibition of
Canadian programs. |
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3. The Commission seeks to achieve
this objective, in part, through its Television Broadcasting Regulations,
1987 (the regulations), through the definition of a Canadian program found in
Public Notices CRTC 1984-94, 1987-28 and
1988-105, and through specific conditions of licence or expectations relating
either to expenditures by certain private television broadcasters on Canadian
programs, or to the exhibition of Canadian programs in underrepresented
categories. |
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Canadian Content Regulations
for Conventional Television |
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4. Section 4 (6) of the regulations
requires all over-the-air licensees to devote not less than 60% of the
broadcast year to the broadcasting of Canadian programs. Private licensees
must devote not less than 50% of the evening broadcast period (6:00 p.m. to
midnight) to the broadcast of Canadian programs. Public broadcastersmust
devote not less than 60% of that period to the broadcast of Canadian
programs. |
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5. The Commission offers an
incentive to broadcast distinctively Canadian dramatic programming in peak
viewing periods by, in some instances, awarding licensees who broadcast
qualifying drama programs a 150% time credit towards meeting their Canadian
content requirements. |
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6. Over the years, there has been
general agreement that the Canadian content regulations for conventional
television have been an effective mechanism to ensure a predominance of
Canadian programming in the schedules of Canadian broadcasters. Generally,
all conventional television broadcasters meet the regulated minimum levels of
Canadian content, and the CBC and French-language private broadcasters
frequently exceed them. Conventional broadcasters can meet the 50% evening
broadcast requirement by scheduling news programming in the 6:00 p.m. to 7:00
p.m., and 11:00 p.m. to midnight time periods, and by broadcasting an average
of one additional hour of Canadian programming during the peak viewing hours
of from 7:00 to 11:00 p.m. |
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Questions for consideration
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7. Do the Canadian content
requirements for conventional broadcasters, as contained in the existing
regulations, remain an effective mechanism for achieving the objectives of
the Act? Are there any changes to the current regulatory requirements that
would make these requirements more effective in achieving these objectives.
If so, how should any such changes be brought into force? |
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8. What incentives would be
effective to ensure that a greater quantity of high quality Canadian programs
is scheduled during peak evening viewing hours? |
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9. Should the regulations be
amended to include minimum requirements for Canadian content within peak
viewing hours? How should peak viewing hours be defined, and should this
definition be applied to all broadcasters? |
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10. Is the 150% time credit
currently available to conventional broadcasters who schedule distinctively
Canadian dramatic programs in peak viewing hours an effective incentive for
the broadcast of quality Canadian drama? Are there alternative incentives
that should be considered? |
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Canadian Program Recognition
|
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11. The criteria used in defining a
Canadian program are set out in Public Notices
CRTC 1984-94, 1987-28 and
1988-105. In Public Notice
CRTC 1984-94, the Commission indicated that
it would conduct periodic reviews of the criteria in order to evaluate their
continuing effectiveness. While the definition of a Canadian program is
clearly central to a regulatory framework focussing on Canadian content, the
Commission considers that a detailed examination of the current approach
would be best undertaken in a separate, but parallel, proceeding.
Accordingly, in a public notice to be issued in early June 1998, the
Commission will seek written comment with respect to various aspects of its
existing approach to providing recognition and certification for Canadian
television programs. |
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Expenditure and Exhibition
Requirements |
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12. In addition to the regulations'
Canadian content requirements, the Commission has imposed requirements on
many private, conventional English-language television broadcasters with
respect to spending on Canadian programs and the exhibition of Canadian
programs in the entertainment categories. Most private, conventional
English-language broadcasters earning more than $10 million dollars per year
in advertising revenues may choose between a condition of licence requiring a
minimum level of expenditure on Canadian programs tied to their advertising
revenues, or a condition requiring a minimum level of exhibition of Canadian
entertainment programs in the evening broadcast period. This option reflects
a view that the regulatory emphasis should be on Canadian entertainment
programming, as broadcasters already have a business incentive to provide
high quality news and other programs in non-entertainment categories. Certain
conventional broadcasters, such as the CTV Television Network Ltd. and Global
Communications Limited (CIII-TV), have conditions of licence relating to both
Canadian expenditures and the exhibition of underrepresented Canadian program
categories. Private, conventional English-language television broadcasters
whose annual revenues are below the $10 million threshold are generally
expected to adhere to a revenue-based formula for Canadian program
expenditures. |
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13. The Commission is aware of
concerns expressed by conventional broadcasters that the existing expenditure
and exhibition requirements are complex and may not provide them with the
increased flexibility they will need to adapt their programming strategies to
the demands of a highly competitive marketplace. Conventional broadcasters
have also stated publicly that the key to their future success lies in their
ability to provide audiences with high quality and distinctive Canadian
programming, and that they are seeking ways to make Canadian programming of
all genres a viable business opportunity. |
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14. Independent producers point out
that the demand for Canadian programs generated under the existing CRTC
regulations, combined with the funding provided by government support
programs, has helped to create a vibrant independent production sector
capable of producing high quality television programming and marketing it
throughout the world. Producers have expressed concerns that, without
specific requirements for the scheduling of Canadian drama programs,
conventional broadcasters may resort to meeting their Canadian content
obligations through less expensive, and hence more profitable, information
and sports programming. Most would appear to agree that the regulatory
framework should ensure that the contributions of private conventional
broadcasters to Canadian programs are equitable. |
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15. The Commission wishes to
explore with all interested parties the best ways to ensure the availability
of Canadian programs that serve the needs and interests of Canadian viewers,
that succeed in international markets and that are profitable for
broadcasters and independent producers alike. |
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16. The Commission also wishes to
address the appropriate accountability structures and responsibilities of the
various players in the continuing evolution of Canadian programming. |
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Questions for consideration
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17. In the future broadcasting
environment, what approaches are most likely to result in the increased
availability of, and the largest audiences for, high quality Canadian
programming? |
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18. What regulatory mechanisms
would be most effective in ensuring that broadcasters contribute equitably to
the exhibition of Canadian programs in category 7 (drama), category 8
(music and dance) and category 9 (variety)? |
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19. Are there additional
incentives or alternative mechanisms that would be effective in ensuring that
these categories of programs are both made available to Canadians and viewed
by them? |
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20. Should large, multi-station
ownership groups and networks be required to schedule on conventional
television a minimum amount of Canadian drama during peak viewing periods? If
so, how should these peak viewing periods be defined and what might be an
appropriate minimum requirement? |
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21. Current spending
requirements are generally linked to a conventional broadcaster's advertising
revenues. Do these requirements provide an effective mechanism for ensuring
equitable contributions by all players? |
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22. Are there other elements
within the broadcasting system that, while unlicensed, should contribute,
either directly or indirectly, to the development, exhibition and promotion
of Canadian programs? |
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23. Are there incentives or
alternative mechanisms that would ensure that expenditures by all
broadcasters on Canadian programs, particularly on entertainment programming
(categories 7, 8 and 9), are appropriate and equitable? |
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24. If spending requirements
remain a part of the regulatory framework, should they apply only to Canadian
entertainment programming? |
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25. Where spending requirements
exist, should promotion expenditures related to Canadian programming count as
Canadian spending for the purpose of meeting those requirements? If so, what
criteria should be used to determine qualifying promotion expenditures?
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26. Independent producers,
broadcasters and other interested parties are requested to place on the
record of this proceeding detailed information on the various models for
funding, financing and equity structures available for the production,
promotion and export of Canadian programming, divided by category of
programming. |
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The Underrepresented Program
Categories |
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27. The Commission has focused
attention on those categories of Canadian programming that tend to be
underrepresented in the schedules of Canadian broadcasters. These program
categories are primarily drama, music, variety, children's and documentary.
Currently, the Commission expects all conventional broadcasters to have
appropriate strategies in place to develop programming in these
underrepresented categories. In recent years, however, regulatory mechanisms
have tended to concentrate more specifically on the entertainment categories
of drama, music and variety. |
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28. The Commission wishes to
discuss with interested parties whether a regulatory focus on
underrepresented program categories is necessary in the future broadcasting
environment and, if so, how it might be adapted to provide broadcasters with
greater scheduling flexibility, while ensuring equitable contributions in
these areas and increasing Canadian viewership. |
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29. In addition, the Commission
will wish to explore what role television broadcasters should play in
supporting the production and exhibition of Canadian feature films, as a
complement to other kinds of television drama programming. |
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Questions for consideration
|
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30. Currently, the Commission
generally considers Canadian drama, variety, children's and documentary
programs to be underrepresented on Canadian conventional television. Is it
necessary for the regulatory framework to continue to focus on increasing the
availability of programs in these categories? Should the Commission place a
greater emphasis on the scheduling of Canadian documentary programs?
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31. Should all broadcasters and
independent producers be expected to contribute to the development,
production and exhibition of Canadian programs in these categories? If so,
can this be done in a manner that permits the flexibility necessary to react
to changing audience demands and to develop unique programming strategies?
|
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32. Given the presence of
Canadian pay, pay-per-view and specialty services, is there a need for a
regulatory requirement that conventional television broadcasters present
Canadian theatrical feature films? |
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Ensuring a Viable Private
Broadcasting Sector |
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33. The Commission recognizes that
a strong commercial broadcasting sector is essential to ensure that the
Canadian broadcasting system continues to make predominant use of Canadian
resources. Over the years, the Commission has developed mechanisms designed
to strengthen the ability of the private television sector to fulfil its
regulatory obligations. These mechanisms include market protection for
existing over-the-air broadcasters; non-competitive licence renewals and
transfers of ownership; priority carriage on distribution systems; and,
protection of program rights through simultaneous program substitution
requirements. |
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34. In addition, the Commission's
regulations and policies impose certain restraints on broadcasters. These
restraints include a regulatory maximum of 12 minutes per hour of advertising
material; the Commission's policy of limiting a person to ownership of no
more than one conventional television station in one language in a given
market; and, its policy of requiring significant benefits when the ownership
or control of a television undertaking is transferred from one party to
another. |
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35. This review provides an
opportunity to review these policies and to assess their relevance and
effectiveness for the future. |
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Questions for consideration
|
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36. In assessing applications
for new, over-the-air television licences, is it necessary for the Commission
to continue to consider the impact that new services may have on existing
services? If so, what weight should such analysis carry in deciding whether
or not to licence a new service? |
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37. Do the Commission's
existing policies with respect to the authorization of foreign television
services respond to the public's desire for choice and meet the need for a
strong Canadian broadcasting system? If not, what other approaches might be
more effective? |
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38. Do the existing
simultaneous program substitution rules effectively protect the program
rights purchased by Canadian broadcasters? If not, what changes should be
made? |
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39. Are there regulatory
policies that would be effective to address concerns with respect to the
trend by non-Canadian entertainment companies towards purchasing or retaining
North American rights to certain programs, thus limiting the access of
Canadian broadcasters to distinct Canadian rights. |
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40. In a highly competitive
broadcasting environment, is it necessary to retain the limitation of 12
minutes per hour on advertising material? What impact would the relaxation or
elimination of this regulation have on broadcasting revenues and on the
viewing public? How would such a change affect the on-air promotion of
Canadian programs which is generally exempted from the advertising
restriction? What would be the impact of such a change on the Commission's
policy regarding the scheduling of infomercials? |
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41. In the future broadcasting
environment, is it necessary for the Commission to maintain its policy of
limiting a person to ownership of no more than one over-the-air television
station in one language in a given market? Would a relaxation of this policy
raise significant concerns with respect to concentration of ownership or the
diversity of voices in a market? |
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42. In considering applications
for authority to transfer ownership or control of a television undertaking,
the Commission generally expects significant tangible and intangible
benefits, commensurate with the size and nature of the transaction, to be
offered to the communities served and to the Canadian broadcasting system.
The Commission no longer requires such benefits in the case of transfers of
ownership or control relating to broadcasting distribution undertakings.
Should the Commission consider changing its policy with respect to benefits
in the case of television programming undertakings? |
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The Role of Multi-station
Ownership Groups |
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43. In its report to the government
on the establishment of new national television networks (Public Notice
CRTC 1998-8 dated 6 February 1998), the Commission
concluded that, at this time, it would not serve the objectives of the
broadcasting policy for Canada, or the priorities set out in Order in Council
P.C. 1997-592, to call for applications for additional national television
networks. |
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44. The Commission noted, however,
that there was general support from all parties for a licensing approach that
would allow large multi-station ownership groups to present a corporate
strategy at a single licence hearing for all elements within the ownership
structure. Such an approach could provide such groups with an opportunity to
present their strategies for serving both local and national audiences. It
would also permit the Commission to ensure that each group made an equitable
contribution towards increasing the quality and quantity of Canadian programs
and towards the promotion of these programs, while encouraging diversity
among the players. Finally, a group approach should result in regulatory and
administrative efficiencies. |
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45. On 4 March 1998, Commission
staff consulted on these matters with representatives of private and public
broadcasters and the independent production sector. At the consultation,
broadcasters proposed that, rather than through issuing new group licences,
the Commission's objectives could be met by requiring all conventional
television stations under common ownership to appear for their licence
renewal at the same time. At such a group renewal hearing the Commission
could evaluate the local programming commitments made in respect of each
station, as well as the corporate commitments for programming that would
appear on all the stations in the group. As a result, the Commission would be
able to continue to issue individual licences for each station in the group,
and to vary local programming requirements as appropriate. Common conditions
of licence or expectations reflecting the corporate programming commitments
could be reproduced in each licence. The correspondence relating to the above
consultation and the transcripts of the meeting of 4 March 1998 have been
placed on the public record of this proceeding. |
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46. A corporate approach to licence
renewals might permit the Commission to assess both local and national
programming commitments, and to ensure thereby that the contributions of the
large multi-station ownership groups are both appropriate and equitable. |
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47. The current proceeding provides
an opportunity for interested parties to comment on the most effective
licensing approach for large multi-station ownership groups. |
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Questions for consideration
|
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48. Would a corporate approach
to the licence renewals of large multi-station ownership groups be an
effective means for the Commission to ensure that such groups contribute
appropriately and equitably to Canadian programming? |
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49. What are the advantages and
disadvantages of such a corporate renewal approach compared to issuance of a
new group licence? |
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The Role of the National
Public Broadcaster |
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50. In the spring of 1999, the
Commission intends to hear applications for renewal of the network television
licences issued to the CBC. At that time, the Commission expects to conduct a
comprehensive review of the role of the national public broadcaster. |
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51. Nevertheless, in the context of
the upcoming review of its television policies, it is important that the
Commission consider, in general terms, the role of CBC television and how it
can best complement the private sector in fulfilling the objectives of the
Act. |
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Questions for consideration
|
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52. What strategies would be
most effective in encouraging private and public broadcasters to cooperate
more effectively to provide Canadians with the best possible Canadian
programming? |
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53. How can the CBC best work
with, and complement the role of, private broadcasters, particularly in the
development of talent and the promotion of Canadian programs? |
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Diversity |
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54. The television sector, under
the Act, should provide a wide range of programming reflecting the linguistic
duality, and multicultural and multiracial nature of Canadian society,
including the special place of Aboriginal peoples within that society. |
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55. The Commission has developed a
number of policies to ensure that television programming fulfils the
objectives of the Act with regard to diversity. In the past, when Canadians
had access to relatively few conventional television services, the
obligations to provide a varied and diverse programming service were placed
on all local stations and networks. Given the introduction of a large number
of pay and specialty services in English, French and other languages, most of
which are designed to appeal to a comparatively narrow range of interests and
tastes, the role and obligations of general interest conventional services
may need to be reassessed. |
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56. The Commission wishes to
explore with interested parties the most effective mechanisms to ensure that
Canadians continue to have access to programming reflective of their local,
regional and national concerns in the official language of their choice; and
that television programming is of a high standard and balanced with regard to
matters of public concern. |
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57. Canadian society is becoming
increasingly culturally diverse. Consistent with the objectives of the Act,
the Commission will wish to explore the role of mainstream conventional
broadcasters (both public and private) in meeting the needs of cultural and
racial minorities and Aboriginal peoples, and reflecting Canada's cultural
diversity. |
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58. Further, the Commission wishes
to examine the appropriate framework within which television programming can
be made reasonably reflective of, and accessible to, persons with
disabilities. |
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Questions for consideration
|
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59. In an increasingly
competitive environment, will it be necessary to continue to ensure the
provision of high quality local services by requiring local television
stations to broadcast minimum quantities of local news and information?
|
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60. What incentives would be
effective in encouraging conventional broadcasters to invest more heavily in
local and regional programming? |
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61. Should all large
multi-station ownership groups be required to broadcast both local and
national news and information programming? If so, should these groups be
encouraged to extend over-the-air coverage throughout the areas they serve?
|
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62. Is it necessary for the
Commission to define more precisely the nature of a local news program in
order to ensure that broadcasters allocate appropriate news gathering
resources to the communities they are licensed to serve and from which they
draw revenue? |
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63. Are Canadian cultural and
racial minorities and Aboriginal peoples well served by mainstream
conventional television broadcasters (both public and private)? What are the
most effective means to ensure that Canadian television appropriately
reflects Canada's cultural diversity? |
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64. Has the Commission's
approach to violence on television been effective in addressing the concerns
of viewers? |
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65. Are the Commission's
policies dealing with other social concerns, such as gender portrayal and
employment equity, effective? |
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66. Commission policies are
designed to ensure that broadcasters provide certain minimum amounts of
closed captioning for the benefit of viewers who are deaf or hearing
impaired. Is there a need for more to be done to assist these and other
groups, for example, through the provision of descriptive video services for
the blind or those who have low vision? |
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Independent Production |
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67. The television sector, under
the Act, should encourage the production of quality Canadian programs and
include a significant contribution from the Canadian independent production
sector. |
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68. Canadian independent producers
are responsible for the creation of the majority of Canadian drama,
entertainment and documentary programs scheduled by private broadcasters. In
recent years this sector has significantly increased in strength throughout
the country, due in part to incentives and funding programs instituted by
federal and provincial governments and to indirect support from the
Commission through its policies. |
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69. Those policies include
requirements that conventional television broadcasters schedule Canadian
drama and other entertainment programs in peak viewing hours, and the further
requirement that broadcasting distribution undertakings contribute to
production funds accessed by Canadian independent producers. In addition, the
Commission's policy of requiring significant public benefits when the
ownership or control of a television programming undertaking is transferred
has resulted in additional contributions to production funds. Finally, some
Canadian independent producers either own or have interests in companies that
have been granted licences for specialty programming services. |
| |
70. As the Canadian broadcasting
system prepares for a more competitive global environment, it will be
necessary to marshal resources from all elements of the Canadian broadcasting
system to produce more high-quality programming that attracts Canadian
audiences and is exportable to world markets. Achieving this will require,
among other things, cooperation between broadcasters and independent
producers. |
| |
71. Private and public production
funds offer financial assistance to independent producers wishing to create
distinctively Canadian programs. These funds also make it possible for
Canadian broadcasters to acquire rights to such programs at a relatively low
cost. |
| |
72. Canadian broadcasters have
expressed the view that they are disadvantaged by not having direct access to
production funds. In addition, they consider that, if the production of
Canadian entertainment programming is to become an attractive business
opportunity, rather than just a regulatory obligation, broadcasters must be
able to share in the ownership of these programs and benefit from their sales
in foreign markets. |
| |
73. The production of quality
Canadian programming involves both significant risk and potentially
significant rewards. A successful policy framework for television programming
should enable those who take the risk to reap the rewards in fair proportion.
|
| |
74. At the forthcoming policy
review, the Commission expects broadcasters, independent producers and other
interested parties to propose ways by which the Commission's policies can
encourage the creation of Canadian programs (produced for domestic and
international markets) that serve to further the cultural objectives of the
Act, while supporting vibrant and profitable businesses in both sectors. |
| |
Questions for consideration
|
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75. How might the regulatory
framework better support the export of Canadian programs? |
| |
76. Public and private
production funds are currently a key element in the financing of independent
Canadian entertainment and documentary programs. Is it appropriate for the
regulatory framework to continue to rely on this source of funding as we move
into the next century? |
| |
77. Production funds are
currently available, for the most part, only to independent producers. What
would be the impact if broadcasters, or broadcaster-controlled production
companies were provided with direct access to these funds? |
| |
78. Should broadcasters be
encouraged to make equity investments in Canadian programs? What impact might
this have on the independent production sector? |
| |
79. What role should
independent producers, program distributors and broadcasters play,
respectively, in the promotion of Canadian programs? How can these sectors
work together to ensure that Canadian programs are well-promoted at home and
abroad? |
| |
80. How might the Commission's
regulatory framework serve to support the Canadian independent production
sector? How might this framework serve to encourage independent producers,
program distributors and broadcasters to work together to ensure that the
greatest possible resources are devoted to the production, marketing and
export of Canadian programs? |
| |
The Role of Canadian Pay and
Specialty Services |
| |
81. Over the past ten years, the
Commission has licensed over 40 Canadian pay and specialty services. These
services, available to Canadians through cable and other distribution
undertakings, contribute significantly to the Canadian programming available
to viewers. Some specialty services are effectively controlled by the
licensees of conventional television services or otherwise form part of the
same corporate groups. These specialty services provide an additional window
for conventional services to exhibit Canadian and foreign programs. The
Specialty Service Regulations, 1990 do not specify a minimum required amount
of Canadian programming for specialty licensees. Rather, the Commission
imposes requirements for the exhibition of, and for contributions to,
Canadian programming as a condition of licence of each service, taking into
account the nature of the service in question and the fact that specialty
services, unlike conventional television, have access to subscriber revenues
as well as to revenues from the sale of advertising. |
| |
82. In reviewing its policies for
television, the Commission intends to explore the role of Canadian pay and
specialty services with a view to assessing their contributions to Canadian
programming, and their impact on the broadcasting system as a whole and on
conventional broadcasters in particular. |
| |
Questions for consideration
|
| |
83. As a maturing segment of
the broadcasting system, is the contribution of pay and specialty services to
the production and exhibition of Canadian programs appropriate to the size
and nature of the revenues they receive? |
| |
84. What has been the impact of
pay and specialty services on conventional broadcasters with respect to
fragmentation of audiences, competition for program rights and access to
programming supported by production funds? |
| |
85. In the context of a broad
review of television policies, should the Commission adjust its regulatory
framework for pay and specialty services in order to increase their
contribution to Canadian programming? |
| |
The Impact of Digital
Television Technology on Program Production |
| |
86. It is clear that a major
characteristic of the new broadcasting environment will be the increasing use
of new digital technology in program production and service delivery. |
| |
87. In the United States, the major
television networks are expected to begin digital transmission in selected
markets at the end of this year. The U.S. Federal Communications Commission
has proposed that all broadcasters complete the transition to digital
transmission by 2006. In Canada, the government's Task Force on the
Implementation of Digital Television has recommended that Canadian
broadcasters begin digital transmission by no later than 2004, and that all
analog over-the-air transmission cease at the end of 2007. |
| |
88. Making the transition to
digital television will entail major expenditures by broadcasters and
producers. It is not clear at this time what additional revenues will be
available to assist in defraying these costs. The Commission intends to begin
a public process, at a later date, for the purpose of developing a regulatory
framework to accommodate the transition to digital television. In the context
of the forthcoming review of television policies, however, the Commission
will wish to begin to explore issues relating to the impact that the
transition to digital television will have on the ability of broadcasters and
producers to create, fund and schedule Canadian programs. |
| |
Questions for consideration
|
| |
89. How will the transition to
digital television affect the ability of broadcasters to fulfil their
Canadian programming obligations? |
| |
90. What should be the
Commission's role in supporting the production of Canadian programs in
digital formats? |
| |
91. What new revenue streams,
if any, might be available to broadcasters once the transition to digital
television is completed? |
| |
PUBLIC PROCEEDING |
| |
92. The Commission will hold an
oral public hearing to consider the matters addressed in this notice
commencing at 9:00 a.m. on Wednesday, 23 September 1998. The Public Hearing
will take place at The Conference Centre, Phase IV, 140 Promenade du Portage,
Hull, Quebec. Interested parties are advised that the Commission may consider
sitting as well on Saturday, 26 September 1998. |
| |
93. The Commission invites written
comments on the matters for consideration set out above. The deadline for
filing written comments is Tuesday, 30 June 1998. |
| |
94. Following the oral public
hearing, interested parties will have an opportunity to file brief final
written comments. These final comments must be filed no later than two weeks
following the adjournment of the public hearing. The Commission expects that
the hearing will be completed by no later than Friday, 2 October 1998. |
| |
95. The Commission will only accept
submissions that it receives on or before the prescribed dates noted above.
|
| |
96. In order to encourage
participation by a broad cross-section of the Canadian public, the Commission
will allocate time during the public hearing to hear individuals and groups
representing various elements of Canadian society. Teleconferencing
facilities may be available to accommodate those unable to travel to the
National Capital Region. |
| |
97. Parties wishing to appear at
the public hearing or to participate through teleconferencing arrangements
must state their request on the first page of their written
submissions. Parties requesting appearance or teleconference arrangements
must provide clear reasons, on the first page of their submissions, as to why
the written submission is not sufficient and why an appearance or
teleconference arrangement is necessary. The Commission will subsequently
inform parties whether their request to appear has been granted. While
submissions will not otherwise be acknowledged, they will be considered by
the Commission and will form part of the public record of the proceeding,
provided the procedures set out herein have been followed. |
| |
98. Parties filing submissions that
are over five pages in length are asked to include a short executive summary.
|
| |
99. To ensure effective use of time
at the public hearing, the Commission may use a written question process,
prior to the commencement of the oral hearing, to obtain additional
information from those who have filed written submissions. The questions and
answers will form part of the public record and may be consulted by other
interested parties. Interested parties are therefore encouraged and expected
to monitor the content of the public examination files. |
| |
100. Submissions filed in response
to this notice must be addressed to the Secretary General, CRTC, Ottawa, K1A
0N2. |
| |
101. All submissions must be filed
in hard copy format. The Commission, however, also encourages parties to file
electronic versions of their submissions. Such submissions should be in the
HTML format; as an alternate choice, "Microsoft Word" may be used for text
and "Microsoft Excel" for spreadsheets. Each paragraph of the document should
be numbered. In addition, as an indication that the document has not been
damaged during electronic transmission, the line ***End of Document***
should be entered following the last paragraph of each document. The
Commission's Internet e-mail address for electronically filed documents is
pol.tv@crtc.gc.ca. In order to facilitate access by the public,
submissions filed in electronic form will be available, in the language and
format in which they are submitted, on the Commission's web site at
www.crtc.gc.ca. |
| |
EXAMINATION OF PUBLIC COMMENTS
AND RELATED DOCUMENTS AT THE FOLLOWING COMMISSION OFFICES DURING NORMAL
BUSINESS HOURS |
| |
Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room 201
Hull, Quebec K1A ON2
Tel: (819) 997-2429 - TDD: 994-0423
Telecopier: (819) 994-0218 |
| |
Bank of Commerce Building
Suite 1007
1809 Barrington Street
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD 426-6997
Telecopier: (902) 426-2721 |
| |
Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec H3A 3J6
Tel: (514) 283-6607 - TDD 283-8316
Telecopier: (514) 283-3689 |
| |
Kensington Building
Suite 1810
275 Portage Avenue
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD 983-8274
Telecopier: (204) 983-6317 |
| |
530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD 666-0778
Telecopier: (604) 666-8322 |
| |
Laura M. Talbot-Allan
Secretary General |
| |
This document is available in
alternative format upon request. |
| |
Appendix to Public Notice CRTC 1998-44
CANADIAN TELEVISION SELECTED PERFORMANCE INDICATORS |
| |
In $ millions 1993
1994 1995 1996 1997 |
| |
Private Conventional Television
*
Revenues
Advertising 1,315 1,342 1,418 1,463 1,562
Other 119 115 122 85 107
Total 1,434 1,457 1,540 1,548 1,669
Profit before interest and taxes
(PBIT) 174 162 234 211 264 |
| |
Canadian program expenditures
Categories 1 to 5
(Information) 254 268 281 278 283
Category 6
(Sports) 43 76 42 55 43
Categories 7 to 9
(Entertainment) 80 78 85 81 81
Categories 10 & 11
(Games, Human Interest) 51 42 55 57 55
Total Telecast 428 464 463 471 462
Other Canadian 5 5 5 6 4
Total Canadian 433 469 468 477 466
Foreign program expenditures 253 253 276 297 330 |
| |
Specialty and Pay Television *
Revenues
Advertising 185 205 286 341 358
Subscription 229 241 255 284 313
Other 15 15 18 20 22
Total 429 461 559 645 693
PBIT 78 96 96 97 122 |
| |
Canadian program expenditures 136
152 200 256 257
Foreign program expenditures 47 53 64 72 77 |
| |
Educational Television
Canadian program expenditures n.a. 67 42 77 64
Foreign program expenditures n.a. 3 6 8 8 |
| |
CBC/Radio-Canada
Canadian program expenditures 278 276 247 341 353
Foreign program expenditures 33 39 66 29 26
Indirect costs (Canadian programs) 538 581 560 544 414
Total 849 896 873 914 793
*excludes ethnic licensees
Source: Commission's financial database |
| |
SHARE (%) OF TOTAL VIEWING HOURS
FALL 1993 TO FALL 1997
All Persons 2+ -- ALL CANADA |
| |
1993 1994 1995 1996 1997 |
| |
CANADIAN STATIONS -
ENGLISH-LANGUAGE
CONVENTIONAL 43.4 42.6 41.5 40.2 38.7
EDUCATIONAL 0.8 0.9 0.9 1.0 1.1
PAY & SPECIALTY 4.7 4.5 6.8 7.3 10.0 |
| |
U.S. STATIONS -
ENGLISH-LANGUAGE
CONVENTIONAL 16.9 16.6 15.5 15.2 12.8
PAY & SPECIALTY 4.0 4.7 4.4 5.1 5.6 |
| |
CANADIAN STATIONS -
FRENCH-LANGUAGE
CONVENTIONAL 20.6 20.1 19.8 19.4 19.2
EDUCATIONAL 0.8 1.0 0.7 0.4 0.3
PAY & SPECIALTY 1.6 1.7 2.4 2.9 3.0 |
| |
CANADIAN STATIONS -
OTHER LANGUAGES
CONVENTIONAL 0.9 1.1 0.9 0.8 0.7
PAY & SPECIALTY 0.1 0.2 0.3 0.3 0.3 |
| |
VCR 5.1 5.5 5.5 5.8 5.5
|
| |
OTHER* 1.1 1.1 1.3 1.6 2.8 |
| |
TOTAL VIEWING 100.0 100.0 100.0
100.0 100.0 |
| |
*Viewing to 'OTHER' includes
viewing to community channels, CPAC and other unidentifiable tuning |
| |
Source: MicroBBM Fall 1993-Fall
1997
Marketing Research, Broadcast Analysis, CRTC |