ARCHIVED - Broadcasting Decision CRTC 2011-133
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Route reference: 2010-715
Ottawa, 28 February 2011
George Burger, on behalf of a corporation to be incorporated
Application 2010-0961-3, received 10 June 2010
Public Hearing in the National Capital Region
26 November 2010
CRUSH! – Category 2 specialty service
The Commission denies an application for a broadcasting licence to operate a new Category 2 specialty service.
1. George Burger, on behalf of a corporation to be incorporated (Burger), filed an application for a broadcasting licence to operate CRUSH!, a national, English-language Category 2 specialty programming undertaking that would consist primarily of theatrical feature films aired on television, comedy series and dramatic series, mini-series, movies-for-television, animation, and sports and music videos. The service would target a male audience from 18 to 34 years of age.
2. Burger will be wholly owned and controlled by Mr. George Burger.
3. The applicant proposed to draw programming for the service from the following program categories set out in Item 6 of Schedule I to the Specialty Services Regulations, 1990, as amended from time to time: 2(a), 2(b), 3, 6(a), 6(b), 7(a), 7(b), 7(c), 7(d), 7(e), 7(f), 7(g), 8(b), 8(c), 11, 12, 13 and 14.
4. The applicant indicated that it would accept conditions of licence relating to the following restrictions on the programming to be broadcast:
no more than 60% of all programming broadcast during the broadcast week would be comprised of theatrical feature films aired on television;
no more than 10% of all programming broadcast during the broadcast week would be comprised of independent films;
no more than 25% of all programming broadcast during the broadcast week would be comprised of programs based on science fiction or fantasy themes;
no more than 25% of all programming broadcast during the broadcast week would be comprised of programs based on mystery themes;
no more than 10% of all programming broadcast during the broadcast week would be comprised of music video clips or music video programs; and
no more than 10% of all programming broadcast during the broadcast week would be comprised of animated programs.
5. The applicant also proposed to offer not less than 75% of its programming in high definition format.
6. The Commission received a joint intervention in opposition to the application from Astral Media Inc. (Astral) and Corus Entertainment Inc. (Corus), to which the applicant replied. The public record for this proceeding can be found on the Commission’s website at www.crtc.gc.ca under “Public Proceedings.”
Commission’s analysis and determinations
7. After examining the application in light of applicable policies and regulations, and taking into account the intervention received and the applicant’s reply, the Commission considers that the issue to be determined relates to the potential competitiveness of the proposed service with Category 1 services and, specifically, general-interest pay television services.
8. In their intervention, Astral and Corus submitted that the proposed nature of service definition is too broad and not precise enough to ensure that the service will not be in direct competition with the existing pay movie services or with other existing analog or Category 1 services. Astral and Corus further submitted that the service would not be distinct from other drama or movie services. They argued that the age group to which most of the service’s programming from program category 7(d) would be directed (i.e., 18 to 34) is not a sufficiently distinctive criterion since most Hollywood movies are aimed at an audience of teenagers and adults.
9. In reply, Burger stated that the demographic referred to in the nature of service (i.e., males aged from 18 to 34 years) is itself a sufficiently distinctive criterion and, therefore, that the proposed service would not be directly competitive with Astral’s or Corus’s services.
10. The Commission considers that the proposed demographic limitation for CRUSH! is too broad and insufficient for the proposed service not to be in direct competition with existing analog or Category 1 services, specifically, general-interest pay television services. In this regard, and in the interest of being consistent with its genre exclusivity policy, which is set out in Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services – Regulatory policy, Broadcasting Public Notice CRTC 2008-100, 30 October 2008, the Commission does not consider that it would be appropriate to approve the service as proposed.
11. Based on the foregoing, the Commission denies the application by George Burger, on behalf of a corporation to be incorporated, for a broadcasting licence to operate the national, English-language Category 2 specialty programming undertaking CRUSH!
 The applicant cited the Independent Film Channel as its source for how it defines “independent films.”
 Astral owns and operates The Movie Network and MPix, the general-interest pay theatrical movie-based services in Eastern Canada. Corus owns Movie Central and Encore Avenue, the general-interest pay theatrical movie-based services in Western Canada.
 Theatrical feature films aired on TV
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