ARCHIVED - Broadcasting Decision CRTC 2004-54

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Broadcasting Decision CRTC 2004-54

  Ottawa, 28 January 2004
  Novus Entertainment Inc.
Vancouver, British Columbia
  Application 2003-0695-3
Broadcasting Public Notice CRTC 2003-45
28 August 2003
 

Reception of KSTW Tacoma/Seattle

  The Commission approves the application by Novus Entertainment Inc. to acquire the signal of KSTW Tacoma/Seattle from a non-Canadian source.
 

Background

1.

Section 20(1) of the Broadcasting Distribution Regulations (the Regulations) requires the licensees of Class 1 and Class 2 broadcasting distribution undertakings (BDUs), except as otherwise provided under a condition of licence, to distribute certain Canadian and non-Canadian services in accordance with the Distribution and Linkage Requirements for Class 1 and Class 2 Licensees, Broadcasting Public Notice CRTC 2003-42, 29 July 2003.

2.

These requirements establish certain obligations with respect to the distribution and packaging of Canadian and non-Canadian services, including those that appear on the Part 2 and Part 3 lists of satellite services eligible for distribution in Canada, currently set out in Appendix A to Revised list of eligible satellite services, Broadcasting Public Notice CRTC 2003-43, 5 August 2003 (Public Notice 2003-43).

3.

The signal of KSTW Tacoma/Seattle is one of the non-Canadian programming services listed in Appendix A, and thus is authorized for distribution in Canada, subject to the additional requirement that it must be received from a licensed Satellite Relay Distribution Undertaking (SRDU).
 

The application

4.

The Commission received an application by Novus Entertainment Inc. (Novus), licensee of a cable BDU serving Vancouver, to amend the licence for that BDU to include an exception to section 20(1) of the Regulations so as to permit Novus to receive the signal of KSTW (IND) Tacoma/Seattle from a non-Canadian satellite service. In its application, Novus sated that the signal of KSTW is not carried by a Canadian SRDU.

5.

Novus submitted that its chief competitor, Shaw Cablesystems LLP (Shaw), carries KSTW, and that Shaw obtains the signal by way of a microwave system. Novus stated that it had made application for membership in the consortium that operates the microwave system, but that it had been denied. Accordingly, Novus had made arrangements with TELUS for the transport of the signal. Novus stated that, under this arrangement, the signal was received at Haney, near the Canada/U.S. border, and transmitted by fibre to Novus' head-end. Novus stated that TELUS charges it about $4,100 per month for this service. Novus argued that this is a considerable expense, given its customer base of about 4,000 basic cable subscribers, and not one that can be recouped from subscribers.

6.

Novus added that, because the signal is taken off-air by an antenna, it is decidedly inferior, fluctuating with the weather and susceptible to interference. Novus argued that allowing it to obtain the signal from a satellite service that is not a licensed Canadian SRDU would allow it to receive a more reliable and robust signal at a far more reasonable cost.

7.

No interventions were received in connection with this application.
 

The Commission's analysis and determination

8.

The Commission notes that KSTW is authorized for distribution by Novus, but that the signal is not offered by a licensed Canadian SRDU. In addition, the signal is available to Novus' competitors via microwave, and is currently distributed by those competitors. Further, the Commission notes the licensee's submission that, upon being refused membership in the microwave consortium bringing in the signal, it had been obliged to enter into an arrangement with TELUS to transport the signal to its head-end at a cost of about $4,100 per month.

9.

The Commission is satisfied that approval of this application would not be detrimental to Canadian SRDUs because the authority for Novus to obtain KSTW from a non-Canadian source would terminate if a Canadian SRDU commenced distribution of the signal.

10.

In light of the above, the Commission approves the licensee's request, and amends Novus' licence for the cable broadcasting distribution undertaking serving Vancouver by adding the following condition of licence:
 

The licensee is authorized to receive the KSTW (IND) Tacoma/Seattle service from a satellite service that is not a licensed Canadian satellite relay distribution undertaking (SRDU) until such time as the licensee is in a position to obtain the KSTW service from a Canadian source.

  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 

Date Modified: 2004-01-28

Date modified: