ARCHIVED - Decisions CRTC 2000-733 to CRTC 2000-736

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Decisions CRTC 2000-733 to CRTC 2000-736

Ottawa, 14 December 2000

 

New video-on-demand services

 

On 24 November 2000, the Commission made a decision to issue licences for four new video-on-demand (VOD) services that were considered at the 14 August 2000 public hearing in the National Capital Region. The Commission noted at that time that reasons, terms and conditions of the new licences would follow at a later date.

 

The Commission's general approach to licensing the new VOD services is set out in Public Notice CRTC 2000-172 of today's date – Introductory statement to Decisions CRTC 2000-733 to 2000-738 – Licensing of new video-on-demand and pay per view services. The appendix to these decisions sets out the terms and conditions of the licences.

 

Decision CRTC 2000-733
Cogeco Cable Canada Inc.
199913760

 

The new regional VOD television service approved on 24 November will be owned by Cogeco Cable Inc. (Cogeco). The licensee is 100% controlled by Cogeco Inc., which is, in turn, controlled by Mr. Henri Audet. The service will be distributed on cable systems owned or controlled by Cogeco, which are located in Ontario and Quebec.

 

The licensee will offer programming in English and French that will consist primarily of feature films, but will also include some educational and sports programming. When questioned about the amount of French-language programming that would be included in its offering, the applicant indicated that a "significant" amount of French-language programming would be made available to its customers. Cogeco also indicated that it would ensure that all new films, as well as the majority of films already closed captioned, would be distributed in a captioned format. An expectation related to closed captioning is set out in the appendix to this decision.

 

The licence will be subject to the terms and conditions set out in the appendix, as well as those specified in the licence to be issued.

 

Decision CRTC 2000-734
Corus Entertainment/On-Demand Inc. (OBCI)
200007775

 

The new national VOD television service approved on 24 November will be wholly owned by Corus Entertainment Inc. (Corus). The service will be available to distribution systems that are technically compatible with Corus' system.

 

The licensee will provide programming in English and French. According to the applicant, most of the programming offered will consist of feature films, but up to 35% of the programming may come from other categories. With reference to French-language programming, the applicant indicated that it would offer films originally produced in English that have been dubbed into French, as well as the occasional original French-language film.

 

Corus indicated that it would close caption 90% of all feature film product by the end of the licence term. Older titles will be closed captioned wherever possible. An expectation related to closed captioning is set out in the appendix to this decision.

 

The licence will be subject to the terms and conditions set out in the appendix, as well as those specified in the licence to be issued. This authority will only be effective and the Commission will only issue the licence when the applicant has clearly demonstrated that it is a "qualified corporation" as defined in the Direction to the CRTC (Ineligibility of non-Canadians) and is eligible to hold a licence. Consequently, the applicant is required to file all relevant incorporation documents (certificate and articles, by-laws, etc.), copies of the programming supply agreement; unanimous Shareholders' Agreement, management agreement or any other pertinent agreement, for review and approval by the Commission.

 

Decision CRTC 2000-735
Rogers Cable Inc.
200008807

 

The new national VOD television service approved on 24 November will be wholly owned by Rogers Cable Inc. (Rogers). The service will be available for distribution by any Canadian terrestrial distributor and will be provided to distribution systems that are not affiliated with Rogers under the same terms and conditions as those that will apply to Rogers' own systems.

 

The licensee will provide service in English, French and other languages with programming that will include feature films, children's, educational and courseware programming, as well as multi-media material. Rogers indicated that about one-third of the programming offered to customers would be available in French. Rogers also indicated that it would acquire closed captioned versions of programs from program providers whenever possible. An expectation related to closed captioning is set out in the appendix to this decision.

 

The licence will be subject to the terms and conditions set out in the appendix, as well as to those specified in the licence to be issued.

 

Decision CRTC 2000-736
Videon CableSystems Inc.
200009044

 

The new regional VOD service approved on 24 November will be wholly owned by Moffat Communications, a public company with 51.9% of the shares controlled by R. Moffat. The service will be integrated with Videon's cable systems, which are all located in the Prairie provinces and Ontario. The VOD service will initially be offered in Edmonton and Winnipeg.

 

The licensee will provide a service in English and French that will include first-run feature films, classic films, children's programming, documentaries, situation comedies, movies of the week, specials, taped concerts and educational programming. Videon indicated that it would offer French-language programming in accordance with audience demand. The licensee also stated that it would acquire closed captioned versions of programming from program providers wherever possible. An expectation with respect to closed captioning is set out in the appendix to this decision.

 

The licence will be subject to the terms and conditions set out in the appendix, as well as to those specified in the licence to be issued.

 

Related CRTC document

 

  • Public Notice CRTC 2000-172: Introductory statement to Decisions CRTC 2000-733 to CRTC 2000-738 – Licensing of new video-on-demand and pay-per-view services

 

Secretary General

 

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca

 

 

Appendix to Decisions CRTC 2000-733 to 2000-736

 

Terms, conditions and expectations for the VOD services licensed to: Cogeco Cable Canada Inc., Corus Entertainment/On-Demand Inc. (OBCI), Rogers Cable Inc., and Videon Cablesystems Inc.

 

Terms of licence

 

A licence will be issued and effective when the licensee confirms in writing that it is ready to begin operation. This must take place within 12 months of today's date. Any request for an extension to that deadline requires Commission approval and must be made in writing within that period.

 

The licence will expire on 31 August 2007.

 

The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996, and therefore files reports concerning employment equity with Human Resources Development Canada.

 

Conditions of licence

 

1. The licensee shall adhere to the Pay Television Regulations, 1990, with the exception of section 4 (logs and records).

 

2. The licensee shall maintain for a period of one year, and submit to the Commission upon request, a detailed list of the inventory available on each file server, identifying each program by programming category and by country of origin, and indicating the period of time that each program was on the server and available to subscribers.

 

3. Except as authorized by the Commission, the broadcasting undertaking licensed herein shall be operated in fact by the licensee itself.

 

4. The licensee shall ensure that, at all times:

 

  1. not less than 5% of the English-language feature films and not less than 8% of the French-language feature films in the inventory available to subscribers are Canadian;

 

  • the feature film inventory includes all new Canadian feature films that are suitable for VOD exhibition and which meet the approved Pay television standards and practices code.

 

  • not less than 20% of all programming other than feature films in the inventory available to subscribers is Canadian.

 

5. The licensee shall contribute 5% of its gross annual revenues to an existing Canadian program production fund administered independently of its undertaking.

 

For the purpose of this condition:

 

a) "gross annual revenues" shall be 50% of the total revenues received from customers of the broadcasting distribution undertaking distributing the video-on-demand service, when the video-on-demand service is a "related service";

 

b) a "related service" is one in which the broadcasting distribution undertaking distributing the video-on-demand service, or any of its shareholders owns, directly or indirectly, 30% or more of the equity of the video-on-demand service;

 

c) "gross annual revenues" shall be the total amount received from the broadcasting distribution undertaking distributing the video-on-demand service, when the video-on-demand service is not a "related service".

 

6. The licensee shall ensure that not less than 25% of the titles promoted each month on its barker channel are Canadian titles.

 

7. The licensee shall remit to the rights holders of all Canadian films 100% of revenues earned from the exhibition of these films.

 

8. The licensee shall not enter into an affiliation agreement with the licensee of a distribution undertaking unless the agreement incorporates a prohibition against linkage of its service with any non-Canadian discretionary service.

 

9. The licensee shall adhere to the guidelines on gender portrayal set out in the Canadian Association of Broadcasters' 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 is a member in good standing of the Canadian Broadcast Standards Council.

 

10. The licensee shall adhere to the Pay television and pay-per-view programming code regarding violence, as amended from time to time and approved by the Commission.

 

Expectations

 

The Commission expects the licensee to make, to the maximum extent possible, its on-demand program offering available to customers in both official languages, and to fulfil the commitments it has made with respect to French-language programming.

 

The Commission expects the licensee to adhere to its commitments with respect to closed captioning and encourages it to caption 90% of its on-demand program offering by the end of the licence term.

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