ARCHIVED - Broadcasting Decision CRTC 2003-77

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Broadcasting Decision CRTC 2003-77

Ottawa, 27 February 2003

Consortium de télévision Québec Canada inc.
Across Canada

Application 2002-0326-6
Broadcasting Public Notice CRTC 2002-36
12 July 2002

Renewal of the licence for TV5 Québec Canada

In this decision the Commission renews the licence for the French-language specialty television service TV5 Québec Canada (TV5). The Commission also approves the licensee's programming plans for the Canadian component of TV5 and amends TV5's nature of service condition of licence so that it more accurately reflects the service offered by the licensee and conforms to the definition proposed by the licensee in its application.

The Commission also makes determinations regarding the question of Canadian control over TV5 Monde programming that is broadcast in Canada, as well as on issues of a social nature and issues related to the distribution of TV5 in analog and digital modes by broadcasting distribution undertakings. The conditions attached to the licence of TV5 are set out in the appendix to the present decision.

1.

Consortium de télévision Québec Canada inc. (CTQC) is a not-for-profit corporation that is authorized to operate the national French-language international specialty television service known as TV5 Québec Canada (TV5). The programming offered by TV5 comes from various French-speaking countries, including Canada.

2.

In its licence renewal application, CTQC proposed to maintain a minimum level of Canadian content of 15% during the broadcast day (6:00 a.m. to midnight), as well as in the evening from 6:00 p.m. to midnight. The licensee also proposed to amend its conditions of licence by broadcasting at least 104 hours of first-run original Canadian programs and by expending on Canadian programming at least 40% of the gross revenues earned the previous year, during each year of the new licence term.

3.

The Commission has received 10 interventions regarding TV5's licence renewal application. All the interveners favoured the renewal of the licence, but some of them raised concerns, particularly about the licensee's commitments regarding Canadian programming. The Association des producteurs de films et de télévision du Québec (APFTQ) proposed increasing the licensee's commitments to acquire rights to broadcast Canadian programs from independent producers, while the Directors Guild of Canada (DGC) suggested increasing the proposed levels of original Canadian programs and expenditures on Canadian programming, as well as the minimum percentage of Canadian content. The National Film Board (NFB) argued that TV5 was an ideal platform for offering a wider range of French-language Canadian programs from various sources, thereby showcasing French-speaking Canada and helping it to advance in the French-speaking world, first in Canada and eventually on the international scene. For its part, the TV5 employees' union - le Syndicat des employé(e)s de TV5 (FNC-CSN) - considered it was essential for the licensee to make a commitment to protect and develop its programming role, in particular by setting objectives for broadcasting Canadian programs in other countries.

4.

Lastly, Quebecor Media Inc. (Quebecor Media), on behalf of its subsidiary, Vidéotron ltée (Vidéotron), submitted an intervention of general application, in which it has proposed that the regulatory framework for specialty services be amended, in particular to make the cost of services distributed in analog mode more affordable and competitive. Quebecor Media requested that the licences for specialty services no longer specify maximum wholesale rates or distribution statuses and that, until these amendments have been incorporated into the regulatory framework, the licences for specialty services, including the licence for TV5, be renewed only for a short term.

5.

On the basis of its review of the licence renewal application and having considered the interveners' comments, the Commission considers appropriate to grant TV5 a long-term licence renewal. Consequently, the Commission renews the licence of TV5 from 1 March 2003 to 31 August 2009.1 The licence will be subject to the conditions specified in the appendix to the present decision as well as those specified in the licence to be issued.

Programming plans

Canadian component of TV5

Interveners' concerns

6.

As indicated above, the concerns of the majority of the interveners focused on the Canadian component of the service offered by TV5. Of the five individuals who submitted interventions, four wanted to maintain the current level of Canadian content on TV5, with no increase, while the other argued that all of the programming on TV5 should be foreign.

7.

The APFTQ was satisfied with the licensee's proposal to maintain a minimum level of 15% Canadian content and to broadcast at least 104 hours per year of first-run original Canadian programs. The APFTQ also supported TV5's commitment to allocate $350 000 for development of Canadian programs during the licence term. However, on the basis of the expenditures on Canadian programming during the last licence term and the licensee's forecasts in this regard, the APFTQ considered that TV5 should devote at least 44% of its gross revenues to Canadian programming and production and allocate at least 90% of its Canadian programming expenditures to independent productions.

8.

The DGC argued that the proposed levels of 15% Canadian content and 104 hours per year of first-run original Canadian programs should be increased. The DGC considered that a level of 19.5% Canadian content over the first three years of the licence term, increasing gradually up to the seventh year, would be appropriate. It also was of the view that a level of 150 hours per year of first-run original Canadian programs over the first two years, increasing gradually to 200 hours in the seventh year, would be appropriate, and that these programs should be broadcast during evening prime-time hours. The DGC also recommended that TV5 devote at least 44% of its gross revenues to Canadian programming.

9.

The NFB submitted that, in the context of the recent restructuring of TV5 Monde, it is time to rethink the role of TV5 in order to take advantage of export opportunities, to support French-language Canadian programming as an equal partner with Francophone communities around the world, and to increase support for this programming. The NFB proposed that TV5's conditions of licence be designed to showcase French-speaking Canada and to offer a wider range of French-language Canadian programs from various sources, including the NFB and the private sector.

The licensee's response

10.

TV5 considered that the proposed 15% level of Canadian content was still appropriate, given the special nature and role of TV5. TV5 submitted that by devoting 85% of its programming to international French-language programs, most of them not previously seen in Canada, it was making a substantial contribution to the diversity of programming choices available to Francophone and Francophile television viewers in Canada and offering unique access to international Francophone culture.

11.

TV5 pointed out that two other French-language specialty services, Vrak.tv (formerly Canal Famille) and Canal Z, must also distribute, as a condition of licence, 104 hours of first-run original Canadian programs each year.2 TV5 noted that these two services broadcast 60% and 50% Canadian content, respectively, compared with TV5's 15%. TV5 therefore considered that, under its proposal, TV5's ratio of first-run original Canadian programs to rebroadcast programs would be three to four times higher than that of Vrak.tv and Canal Z.

12.

TV5 also submitted that its proposal to devote at least 40% of its gross annual revenues to Canadian programming was not only in line with the average for the other French-language specialty services, but was also by far the highest of all the French-language specialty services as regards the percentage of Canadian programming expenditures relative to the percentage of Canadian content.

13.

Regarding its contribution to the independent production industry, TV5 reminded the Commission that since 1994, TV5 has been committed not to produce any programs itself but rather to acquire all its original programs from the independent sector. Since it has met this commitment, TV5 considered that it was not necessary to specify a commitment in terms of percentages. Moreover, TV5 argued that since it acquires a portion of its programming from the public broadcasters who belong to its consortium, it is hard to determine in advance the exact ratio of in-house productions to independent productions that will be in the programming that it acquires from these broadcasters.

14.

In response to the NFB's intervention, TV5 stated that it remains very interested in acquiring NFB productions that meet its programming needs. TV5 added that it plans to intensify its efforts to reflect all the cultural, social, ethnic, and even linguistic diversity of French-speaking communities in Canada and around the world.

The Commission's analysis and determination

15.

The Commission has examined TV5's programming proposals in light of the special nature of its international service and its role of reflecting the French-speaking communities of the world, including French-speaking communities across Canada. As is its usual practice when considering licence renewals, the Commission has also reviewed the conditions of licence of TV5 to determine if they remain appropriate, in particular the conditions addressing TV5's nature of service and its authorized programming categories.

16.

The Commission finds that TV5's programming commitments are satisfactory under the circumstances and compare favourably with those that have been made by other specialty services. The Commission notes that TV5's proposal to express its expenditures on Canadian programming in the form of a percentage of its gross revenues from the preceding year, instead of predetermined amounts for each year as has been the case until now, is consistent with the Commission's current practices.

17.

Consequently, the Commission is imposing conditions of licence that will require TV5 to devote at least 15% of its programming schedule to the distribution of Canadian programs during the broadcast day as well as during the evening broadcast period, to broadcast at least 104 hours of first-run original Canadian programs during each year of its new licence term, and to spend on Canadian programming at least 40% of its gross revenues earned the previous year, during each year of the new licence term.

Nature of TV5 service

18.

The current wording of the nature of service condition of licence for TV5 indicates that "the programming provided by TV5 shall consist predominantly of French-language programming." In its renewal application, TV5 described the nature of its service as follows:

[translation] The licensee offers a Canada-wide French-language specialty television service for which at least 90% of the programming consists of original French-language programs that come from various French-speaking countries and that may fall into any of the program categories authorized under the Specialty Services Regulations 1990.

19.

The Commission has decided to amend the wording of the condition of licence describing the nature of TV5 service so that it more accurately reflects the service offered by the licensee and conforms to the definition proposed in the renewal application. The Commission notes that the new wording establishes a distinction between the language of broadcasting and original French-language productions, which is more in keeping with TV5's mandate and the Commission's expectations. The Commission believes that this more precise wording will allow TV5's performance to be measured more effectively and its service to be distinguished more readily from the other Canadian French-language specialty services. The Commission has also amended the proposed wording of this condition of licence so that it takes account of TV5's commitments to reflect the realities of Francophones throughout Canada in its programming from Canadian sources.

20.

The Commission notes that the categories of programming broadcast by TV5 are not currently the subject of a condition of licence. In light of the small number of French-language specialty services and the international element of TV5's service, the Commission does not consider it necessary to make any changes in this regard.

21.

Consequently, the condition of licence regarding the nature of service of TV5 will henceforth read as follows:

The licensee shall offer a national French-language specialty television service that focuses on French-speaking communities around the world. At least 90% of the programming shall consist of original French-language programs from various French-speaking countries, and programs from Canadian sources shall reflect the diversity of French-speaking communities in Canada.

22.

The Commission considers it important that TV5 retain all the latitude and flexibility necessary for its programming schedule, and its prime-time schedule in particular, to reflect all French-speaking communities, both Canadian and international. The Commission therefore expects that TV5 shall carry out documentary series based on those described in its application.

23.

The Commission also encourages TV5 to work with the NFB and the private sector, and especially with independent Francophone producers outside of Quebec, in order to offer a wider range of French-language Canadian programs from a variety of sources.

Canadian control over TV5 Monde programming broadcast in Canada

24.

The licensee has indicated in its application that a process of restructuring the TV5 Monde international network was begun at a Conference of Ministers in October 2000, approved on 22 June 2001 by the governments that provide funding to this organization, and implemented in August of that same year. In March 2002, the membership of CTQC was reorganized so that it centres on Canadian public broadcasters and Canadian independent producers. CTQC is currently structured as follows:

  • one representative from Société Radio-Canada;
  • one representative from the Société de télédiffusion du Québec (Télé-Québec);
  • one representative from TFO, the French network of the Ontario Educational Communications Authority;
  • one representative from the APFTQ;
  • two representatives appointed by the minister of Canadian Heritage;
  • two representatives appointed by Quebec's minister responsible for culture and communications and its minister responsible for international relations.

25.

The board of directors of CTQC is composed of the eight representatives listed above and the President and CEO of CTQC.

26.

The licensee stated in its application that the restructuring has created a new entity, TV5 onde, operating out of Paris, France, from where it supervises the distribution of signals to all continents, except to Canada. CTQC, for its part, continues to have full and complete responsibility for managing, programming and distributing TV5's signal in Canada. The licensee added that its programming schedule and strategy remain resolutely distinct from those of TV5 Monde, but that it continues to benefit from co-operation with TV5 Monde and its partner television services to procure international French-language programming. According to CTQC, the role that it plays within the Canadian broadcasting system has therefore not been altered.

27.

The Commission had asked the licensee to provide it with a copy of the agreement signed between CTQC and TV5 Monde following this restructuring. After examining this agreement, the Commission has determined that CTQC does retain effective control over its programming schedule and the procurement of international French-language programming.

Other programming issues

Cultural diversity

28.

The Commission expects CTQC and all other specialty and pay television licensees to contribute to a broadcasting system that accurately reflects the presence in Canada of cultural and racial minorities and Aboriginal peoples. The Commission further expects licensees to ensure that their on-screen portrayal of all such groups is accurate, fair and free of stereotypes. These expectations are in keeping with section 3 (1)(d)(iii) of the Broadcasting Act, which states that the Canadian broadcasting system should, "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society."

29.

In Representation of cultural diversity on television - Creation of an industry/community task force, Public Notice CRTC 2001-88, 2 August 2001, the Commission called upon the Canadian Association of Broadcasters (CAB) to develop an action plan for a joint industry/community task force. The role of this task force is to sponsor research, identify "best practices," and help define issues and present practical solutions to ensure that the Canadian broadcasting system reflects all Canadians. In its notice, the Commission emphasized the importance of securing the participation of all sectors of the broadcasting industry, including specialty services. The Commission expects CTQC to participate in the work of this task force.

30.

The licensee stated in its application that TV5's programming policy contains many provisions designed to ensure that its on-screen portrayal of minority groups is accurate, fair, and free of stereotypes, as well as to properly reflect and promote the cultural, social, racial, and linguistic diversity of French-speaking communities in Canada and around the world. The licensee added that its entire programming schedule contributes to the achievement of these objectives and that it intends to continue with this approach, citing as examples some of the documentary series mentioned in its application.

31.

The Commission further expects the licensee to develop and implement a comprehensive corporate plan that explains how CTQC intends to continue to improve its representation of Canada's cultural diversity, and to file this plan with the Commission within three months of the date of this decision. This plan should include specific commitments to corporate accountability and to the reflection of diversity in programming, and should make provision for the gathering of feedback on the effectiveness of these commitments. The plan should also set goals for achieving the full, fair and consistent reflection of diversity in Canada.

32.

With respect to corporate accountability, the plan should address how CTQC will create an environment that supports the cultural diversity objectives outlined above, by:

  • creating a corporate culture that recognizes and supports Canada's cultural diversity;
  • assigning accountability to a senior executive for corporate practices related to cultural diversity, and for ensuring that management becomes more reflective of Canada's multicultural reality;
  • ensuring that managers receive proper training;
  • ensuring that regular opportunities are provided for assessing progress towards attaining these objectives and for identifying future opportunities and challenges; and
  • setting out plans for the hiring, retention and ongoing training of visible minorities and Aboriginal peoples.

33.

With respect to the reflection of diversity in programming, the plan should focus on how the licensee will ensure the presence and the fair, accurate and non-stereotypical portrayal of cultural minorities and Aboriginal peoples in the programming it produces or acquires. Specifically, the plan should include provisions for making certain that:

  • on-air personalities reflect Canada's diversity;
  • those responsible for casting, in particular for casting leading and recurring roles, make a concerted effort to hire visible minority and Aboriginal actors;
  • those responsible for script development ensure that minorities and Aboriginal peoples are not portrayed stereotypically; and
  • programming obtained from independent producers reflects the presence of visible minorities and Aboriginal peoples in Canadian society and provides for their accurate portrayal.

34.

As for feedback, the corporate plan should describe the specific mechanisms that the licensee will put in place to ensure that it receives effective input from community groups concerning its progress in reflecting cultural diversity in programming.

On-air presence

35.

The Commission reminds the licensee that the expectations set out above with respect to cultural diversity are over and above the longstanding and more general expectations concerning employment equity in on-air presence. Specifically, the Commission expects the licensee to continue to ensure that the on-air presence of members of the four designated groups (women, Aboriginal persons, disabled persons and members of visible minorities) is reflective of Canadian society, and that members of these groups are presented fairly and accurately.

Closed captioning

36.

The Commission is committed to improving service to television viewers who are deaf or hearing impaired. Over the period since the Commission announced its policy on closed captioning in Introduction to decisions renewing the licences of privately-owned English-language television stations, Public Notice CRTC 1995-48, 24 March 1995, it has consistently encouraged broadcasters to increase the amount of captioned programming they provide. The Commission now requires the licensees of television, specialty and pay television undertakings to achieve a minimum level of captioned programming appropriate to the nature of the service that each provides. Generally, the specified minimum requirement for English-language specialty services is 90% of all programming.

37.

The closed captioning requirement imposed on TV5 and other French-language specialty services is less than the 90% generally required of English-language services. This is in recognition of the particular challenges involved in captioning French-language programming.

38.

In the case of TV5, the Commission notes the licensee's commitment to close caption 40% of all programming broadcast during the broadcast day, by the end of the licence term.

39.

As regards the Canadian component of its service, the licensee has committed to acquire all its Canadian programming from the independent sector and to continue to work with other broadcasters (both members and non-members of the CTQC) to co-finance independent programs. The Commission notes that the vast majority of these programs are already closed captioned for the deaf and hearing impaired.

40.

The licensee has also reported that only a small percentage of its programming from international sources is closed captioned and that, in the current state of technology, captioning done in Europe cannot be converted for use in North America. The licensee has committed to explore, with its partners in TV5 Monde, the feasibility of developing software for converting European closed captioning, so that its European programs that have already been captioned can be accessible to deaf and hearing impaired viewers in Canada. The licensee has also committed to work with other French-language Canadian broadcasters and with the Regroupement québécois pour le sous-titrage (RQST) to support the development of affordable, effective, French-language live captioning software.

41.

Consistent with CTQC's commitment and with the Commission's general approach to French-language services, the Commission expects the licensee to gradually increase the level of captioning it provides and requires it, by condition of licence, to achieve a minimum captioning level of 50% for its programming during the broadcast day, beginning no later than 1 September 2007 and continuing throughout the remainder of the licence term.

42.

The Commission further advises the licensee that, at the time of its next licence term, the Commission intends to require this service to provide captioning for a minimum of 90% of all programming. Accordingly, the Commission encourages the licensee to caption 90% of all programming aired during the broadcast day by the time of the next licence renewal.

43.

In the meantime, the Commission expects the licensee to focus on improving the quality, reliability and accuracy of closed captioning, and to work with representatives of the deaf and hard of hearing community to ensure that captioning continues to meet their needs. The Commission further expects the licensee to support and participate in any industry/community initiatives designed to improve the quality and quantity of captioning in French, and particularly of live captioning.

Service to persons with a visual impairment

44.

In other recent licence renewal decisions, the Commission has encouraged television broadcasters to expand the amount of video description or described video3 programming that they include in their schedules. In its application, CTQC has stated that European broadcasters do not currently produce programs with described video and have no plans to do so in the near future.

45.

However, the licensee has made the following commitments:

  • as regards the French-language Canadian programs produced for TV5, independent producers will be encouraged to make use of audio description4 whenever possible and appropriate;
  • as regards the technical side, TV5 will monitor the development of described video in the industry and will participate in any task force or committee established by French-language broadcasters to hasten the development of a technical solution to these problems; and
  • if French-language foreign programs adapted for persons who are visually impaired or blind do become available on the market, TV5 will give priority attention to acquiring them.

46.

The Commission expects CTQC to fulfil its commitments by continuing to provide audio description wherever appropriate. It further expects the licensee to take steps to ensure that its customer service responds to the needs of persons who are blind or visually impaired. With respect to its proposed documentary programming, the Commission expects CTQC to ensure that, through the use of creative narration, such programming is produced with the needs and interests of visually impaired members of its audience in mind.

47.

The Commission also encourages the licensee to provide at least one hour per month of programming with audio description starting on 1 September 2003, and to increase this monthly minimum by at least one hour in each subsequent broadcast year of its new licence term.

Distribution of the TV5 service

Intervention by Quebecor Media

48.

Quebecor Media, in its intervention, asked the Commission to take advantage of the licence renewal cycle for specialty services to make a correction in the regulatory framework in order to integrate these services into the competitive environment in which all other parts of the broadcasting industry operate. To achieve this goal, Quebecor Media is asking the Commission to take the following steps to make the cost of services distributed in analog-mode more affordable:

  • no longer set or renew conditions of licence that specify the maximum monthly wholesale rate;
  • no longer assign or renew dual and modified-dual distribution statuses; and
  • from now until the requested amendments to the regulatory framework take effect, renew the licences of specialty services, including TV5, for terms of one year only.

Licensee's reply

49.

In its reply to Quebecor Media's intervention, the licensee submitted that the primary cable distributor in Quebec is seeking to relieve itself of any regulatory obligations with regard to TV5 and the other Canadian specialty services, so as to be able to determine their subscriber bases, their modes of distribution and their monthly wholesale rates as it sees fit. In CTQC's opinion, this would have the predictable result of reducing these services' subscription revenues considerably, which could in turn only reduce their overall programming quality, their spending on Canadian programming and the number of hours of original Canadian programming that they air.

50.

CTQC also submitted that Quebecor Media's proposals would require substantial changes to the Commission's policies and regulatory framework, and that the renewal of its licence does not constitute an appropriate setting to deliberate over these issues. CTQC also considered that it was totally unacceptable to impose a one-year only renewal term on TV5.

The Commission's analysis and determination

51.

The Commission considers that the intervention by Quebecor Media is of a policy and regulatory nature and that the issues that it raises refer to policies and regulations that apply to all broadcasting programming and distribution undertakings. The Commission therefore determines that the renewal of the licence for the TV5 specialty service is not the appropriate setting to deliberate over these kinds of issues. In this context, the Commission finds that there is no valid reason not to grant TV5 a long-term licence renewal.

52.

The Commission also notes that certain of the issues raised in the intervention by Quebecor Media will be considered in the context of the Call for comments on the establishment of the rules to govern the distribution of specialty services on the basic service of fully digital cable undertakings, Broadcasting Public Notice CRTC 2002-48, 16 August 2002.

Distribution of TV5 in analog and digital modes

53.

In its application and in the context of its reply to the intervention by Quebecor Media, CTQC indicated that the two main terrestrial BDUs in Quebec, Vidéotron and Cogeco Cable Canada Inc. (Cogeco), do not honour the dual status currently enjoyed by the TV5 service, inasmuch as they do not distribute it in digital mode on the basic service in the Francophone markets of Quebec but have not requested TV5's consent not to do so. Instead, these two undertakings offer the TV5 service in digital mode as part of various discretionary tiers. As the transition from analog to digital proceeds, CTQC expects a reduction in its total number of subscribers in Quebec because of the lower penetration of the discretionary tiers. Consequently, CTQC requests that the Commission clarify the question of the application of its distribution status in digital mode by terrestrial BDUs.

The Commission's analysis and determination

54.

The distribution and linkage requirements for Class 1 and Class 2 BDUs are set out in Broadcasting Distribution and linkage requirements for Class 1 and Class 2 licensees, Public Notice CRTC 2001-90, 3 August 2001, and are incorporated by reference into section 20(1) of the Broadcasting Distribution Regulations. These requirements establish how these services must be carried by Class 1 and Class 2 licensees in an analog environment, depending on the status of the specific service in question. The Commission notes that dual status means that, where carried, the service must be included as part of the basic service, unless the operator of the programming service agrees in writing to be carried on a discretionary tier.

55.

The Commission considers it important to clarify the question of compliance with the requirement to distribute in accordance with the provisions for dual status to subscribers of terrestrial BDUs who receive all their services in digital mode, as is currently the case for certain Vidéotron and Cogeco subscribers. The Commission determines that these cable distribution undertakings are required to distribute specialty services that have dual status, such as TV5, as part of the basic service, regardless of whether the subscriber receives the service in analog or digital mode, unless the programming service has signed an agreement to the contrary. Consequently, and as is currently the case for certain Vidéotron and Cogeco subscribers, those who decide to subscribe to the BDU's digital service only must receive TV5 as part of their digital basic service.

Secretary General

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: www.crtc.gc.ca

1The Commission has issued two administrative renewals of TV5's licence: one from 1 September 2001 to 31 August 2002 (Decision CRTC 2000-408, 5 October 2000), and the other from 1 September 2002 to 28 February 2003 (Broadcasting Decision CRTC 2002-197, 19 July 2002).

2See decisions CRTC 2000-139, 4 May 2000 and CRTC 2001-706, 20 November 2001.

3Described video, or video description as it is also known, consists of narrative descriptions of a program's key visual elements that enable those who are blind or visually impaired to form a better mental picture of what is occurring on the screen. Broadcasters generally deliver described video programming to viewers using a secondary audio programming (SAP) channel.

4Audio description involves the provision of basic voice-overs of textual or graphical information displayed on the screen. A broadcaster providing audio description for example, will not simply display sports scores on the screen, but will also read them aloud so that people who are visually impaired can receive the information. 

 

 

Appendix to Broadcasting Decision CRTC 2003-77

 

Conditions of licence for TV5

  1. The licensee shall offer a national French-language specialty television service that focuses on French-speaking communities around the world. At least 90% of the programming shall consist of original French-language programs from various French-speaking countries, and programs from Canadian sources shall reflect the diversity of French-speaking communities in Canada.
  2. Over the broadcast year, the licensee shall:
 

a) devote at least 15% of its programming to the distribution of Canadian programs during the broadcast day as well as during the evening broadcast period; and

 

b) broadcast at least 104 hours of first-run original Canadian programs during each year of the new licence term.

 

For the purpose of this condition, "programming" shall not include the audio programming service broadcast prior to the commencement of the regular program schedule.

  3.a) In accordance with the Commission's position on Canadian programming expenditures as set out in Public Notices CRTC 1993-93 and 1993-174, the licensee shall expend on the acquisition of and/or investment in Canadian programs, in each broadcast year, not less than 40% of the gross revenues derived from the operation of this service during the previous year;
  b) In any 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 following year of the licence 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 following 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 present condition of licence.
  4. The licensee shall not distribute any advertising material other than a maximum of 3 minutes during each clock hour of national sponsorship or institutional advertising, and material promoting the service or one of its programs.
 

Sponsorship advertising is not permitted in newscasts. Sponsorship messages shall only be placed at the beginning and/or end of programs. All sponsored programs must clearly identify the name of the sponsor.

 

Institutional advertising messages shall have no connection in terms of content with sponsored programs. Institutional advertising messages shall be permitted to interrupt only those programs that last at least two hours and have one or more natural breaks, such as an intermission in a play or concert. Institutional advertising is not permitted on behalf of companies whose primary products are drugs, alcoholic beverages or tobacco products.

 

For the purpose of this condition, the following definitions apply:

 

(i) Sponsorship advertising: Sponsorship advertising consists in the visual presentation, in exchange for a direct or indirect financial contribution to the program, of the name and distinctive signs or symbols of a firm, along with a sound accompaniment of the following type:

 

"This program has been made (was made) possible through the co-operation of (name of company)"; or "This program has been made (was made) possible through the co-operation of (name of company), maker of (product)"; or "This program has been (was) presented to you by (name of product)."

 

Sponsorship advertising does not include the promotion of the features of the goods and services produced and/or offered by the sponsoring firm.

 

(ii) Institutional advertising: Institutional advertising consists of an identification of the advertiser by name, corporate logo or distinguishing visual or sound symbol. While the accompanying text may include a musical background or an institutional slogan, institutional advertising does not include promotion of the range of products or services offered or the use of such products or services.

  5. No later than the start of the broadcast year commencing on 1 September 2007 and until the end of the licence term, the licensee shall caption at least 50% of its programs during the broadcast day.
  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 CAB's "Broadcast Code for Advertising to Children," as amended from time to time and approved by the Commission.
  8. (1) 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, until such time as the Commission approves the licensee's own guidelines on the depiction of violence in programming;
  (2) Once submitted by the licensee and approved by the Commission, the licensee shall adhere to its own guidelines on the depiction of violence in programming, as amended from time to time and approved by the Commission.
  9. (1) The licensee shall charge each exhibitor of this service in Francophone markets a maximum wholesale rate of $0.28 per subscriber per month for distribution on the basic service;
  (2) The licensee shall charge each exhibitor of this service in non-Francophone markets the following wholesale rates for distribution on the basic service:

Percentage of Francophone and other French-speaking persons in the service area

Monthly cost per subscriber

between 15% and 49.99%
between 5% and 14.99%
between 2% and 4.99%
between 0% and 1.99%
 

(3) For the purposes of this condition, an exhibitor will be considered to be operating in a Francophone market where the population having French as its mother tongue represents more than 50% of the total population of all cities, towns and municipalities encompassed in whole or in part within the licensed area of the exhibitor, according to the most recent population figures published by Statistics Canada.

  10. For the purposes of these conditions:
 

(1) All time periods shall be calculated according to the Eastern time zone.

 

(2) The terms "broadcast day," "broadcast month," "broadcast year," "clock hour" and "evening broadcast period" shall have the same meanings as those set out in the Television Broadcasting Regulations, 1987.

Date Modified: 2003-02-27

Date modified: