ARCHIVED - Procedural Letter
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Sent via e-mail to oliver.jaakkola@siriusxm.ca
Mr. Oliver Jaakkola
General Counsel
SiriusXM Canada Inc.
135 Liberty Street, 4th Floor
Toronto, ON
M6K 1A7
Dear Mr. Jaakkola:
RE : Application 2012-0064-1 to renew the licences for Sirius Canada and XM Canada - Sirius/XM Canada Canadian Content Development Expenditures Eligibility
As identified in Notice of Consultation CRTC 2012-224, the Commission intends to discuss Canadian Content Development (CCD) [formerly Canadian Talent Development (CTD)] compliance with you at the upcoming hearing. In order to further evaluate the eligibility of some of the claimed expenditures and to facilitate this discussion, please provide the Commission with additional documentation supporting the eligibility of each listed expenditure (see appendices) for Sirius Canada for the 2010-2011 broadcasting year and XM Canada for the 2010-2011 broadcasting year.
In accordance with the requirements of your annual return and Broadcasting Information Bulletin CRTC 2011-795, Filing annual returns for radio programming undertakings, Ottawa 20 December 2011 and paragraphs 106 to 108 of Broadcasting Public Notice CRTC 2006-158, Commercial Radio Policy 2006, proof of eligibility must include one of the following:
- Proof of payment
- A letter from the national, provincial or territorial music industry association receiving the money to substantiate that the organization's mandate is for the development of Canadian musical talent and that it operates independently of the licensee.
- A letter from the independent party receiving the money to substantiate that it has produced new spoken word content that would otherwise not be produced or broadcast and that it operates independently of the licensee. Please also provide evidence that all money going to the independent party in question was directly connected to the development of new spoken word programming.
- A letter from the organization/individual receiving the funds that its mandate is for the development of Canadian music talent and that it operates independently of the licensee
- Scholarships for students engaged in music or journalism at accredited educational institutions are eligible. Generally, the licensee is expected to make payments directly to the educational institution which will allocate funds to the student. Where the payments are made directly to the recipients of scholarships, please provide a letter from the accredited educational institutions indicating that the contributions are used to pay tuition for journalism or music programs. Please note that in the event of payments made directly to schools these payments are limited to supporting the purchase of instruments and for performances or projects related to the development of Canadian musical or journalism talent.
- A letter from the Initiative receiving the funds detailing how the Canadian Content Development (CCD) monies were used towards the development of Canadian musical talent and stating that it operates independently of the licensee.
- A description of the specific manner in any other initiative not covered above qualifies as eligible for Canadian content development funding. Please also provide a letter from any independent party involved demonstrating that the funding contributed was expended in a manner consistent with Public Notice CRTC 2006-158
We require a direct linkage between each of the expenditures listed in Appendices 1 and 2 and the services/products purchased as well as information on how the funds were used to further the goals of the Canadian Content Development policies. The following example should help clarify the type of additional information we require in order to determine the eligibility of the listed expenditure.
The $140,493.53 paid to OMD Canada for advertising services was linked to the ‘Face the Music Summer Concert Series’ initiative in the eligible initiatives column as part of your March 29, 2012 response to staff’s clarification request. In addition to this information, we also require:
- a detailed explanation as to the purpose of the expenditures and their link to the specific initiatives (as listed in Appendices 1 and 2.)
- why the advertising was purchased,
- by which medium (TV, radio, internet, etc,) the information was broadcast
Ideally this supporting documentation should contain 3rd party/independent documentation to support the eligible uses of the funds.
It is incumbent upon the broadcaster to supply sufficient documentation to support the eligibility of its contribution(s). Failure to do so may result in the Commission finding a contribution ineligible and may affect compliance with regulatory obligations.
In addition to providing details on the initiatives in Appendices 1 and 2, please answer the following questions:
1. How were tickets distributed for 'Les Sessions Bande a Part' in 2011?
2. Were the 'Bande a Part' concerts recorded and then broadcast exclusively on Sirius stations?
We ask that you repeat each of the above questions in your reply.
Finally, with regard to Sirius’ expenditures, it appears that a number of expenditures were attributed to incorrect broadcast years. Please note that any expense made after 31 August of a given broadcast year must be attributed to the following broadcast year.
The expenses listed in Appendix 3 appear to be ineligible for inclusion in the 2011 broadcast year. Please acknowledge that the expenses listed in Appendix 3 are to be attributed to the 2012 broadcast year. If applicable and available, please provide documentation that may prove any or all the payments were made prior to the 31 August deadline. Please also provide the documentation required to demonstrate the eligibility of the initiatives, as applicable.
Given the foregoing, it appears that you may be found in non- compliance with your condition of licence 7 a) relating to CCD expenditures. Therefore, in addition to the issues noted above, you should be prepared to discuss why any non-compliance may have occurred and what measures you will take to ensure that non-compliance will not occur in the future.
Please refer to the CRTC Broadcasting Public Notice 2006-158 and to the examples of eligible Canadian Content Development (CCD) parties and initiatives (http://www.crtc.gc.ca/eng/general/ccdparties.htm).
The information requested herein should be received at the Commission by no later than 19 June 2012.
A copy of this letter and your reply should be added to your application to be made available for public examination.
You are reminded that applicants are required to file their applications, related documents and all correspondence with the CRTC electronically using Access Key found under the Application Forms at the following link https://crtc.gc.ca/eng/file.htm. You may also send your response by fax to (819) 994-0218.
Sincerely,
Original signed by Michael Craig for
Annie Laflamme
Director,
Radio Policy and Applications
Amount |
Initiative |
Reason Clarification Requested |
|---|---|---|
$8,000 |
Front Row Centre |
Event appears to be by invitation only, appears to be self-promotion |
$50,000 x 2 payments |
S'cool Life Fund |
Charity appears to be related to XM Canada, members of charity’s board are directors of XM Canada |
$20,000 |
Six Shooter -SXSW |
Portion of the expense appears to be for XM Canada staff expenses |
$4,425 |
Steven Major - Comedy Initiative |
Steven Major appears to be current or former XM Canada staff |
$44,248
|
Steven Major - Live Music Initiative
|
Steven Major appears to be current or former XM Canada staff |
$4,000
|
Bit of Ride Productions
|
Company appears to be owned by a person or persons who have a familial relationship with a member of XM Canada’s board of directors |
$142,965
|
English CCD Ambassador
|
No supporting information provided – unclear whether this is for one or two staff – appears to have been contracted to a 3rd party |
$1,065
|
French CCD coordinator for meals
|
Expenses for Turbo Media, a company that appears to be owned by a XM Canada Vice-President |
Amount |
Initiative |
Reason Clarification Requested |
|---|---|---|
$1,990 |
Woodlands |
Purchase of 200 Vintage shirts; appears to be self promotion |
$3,333 |
Fondation du Dr. Julien
|
Donation to Musical Charity - describe eligible activities & provide information |
$1,780 |
Woodlands
|
Purchase of gift bags & labels; appears to be self promotion |
$4,383 |
Woodlands |
Banners; appears to be self promotion |
$200 |
Melanie Gagne |
Co-animatrice from le Gala de L'AQISQ; appears to be Sirius staff |
$203 |
Patrick Crevier |
Sirius staff working at le Gala de L’ADISQ |
$200 |
Simon Coggins |
Sirius staff working at le Gala de L’ADISQ |
$150 |
Production Simonsays Inc. |
Production of ADISQ event - insufficient documentation to demonstrate eligibility |
$200 |
Cinik Productions |
Co-animatrice from le Gala de L'AQISQ; appears to be Sirius Canada staff |
$250 |
Production Simonsays Inc. |
Sirius Canada staff working at le Gala de L’ADISQ |
$36,077 |
CBC |
Premium for program integration – ADISQ - appears to be general programming expense |
$83,428 |
CBC |
Missing first 2 pages of invoice- appears to be general programming expense |
$1,065 |
Woodlands |
Purchase of Pop-Up Banner Logo; appears to be self promotion |
$1,084 |
Woodlands |
Purchase of Black Lanyards; appears to be self-promotion |
$3,193 |
Grey Cup 2010 Inc.
|
Festival Stage Production - Signage and banners; appears to be self promotion |
$1,770 |
The Taylor Manufacturing |
Purchase of a painted dog, appears to be self promotion |
$710 |
Woodlands |
Purchase of Pop-up Banner, appears to be self promotion |
$425 |
Woodlands |
Purchase of 4x6 Blue Vinyl Banner, appears to be self promotion |
$5,000 |
Bonsound Inc
|
Captation et rediffusion sur SIRIUS Francofolies 2011/ Recording and re-broadcast on SIRIUS – appears to be general programming expense |
$3,000 |
Preste Inc.
|
Captation et rediffusion sur SIRIUS du spectacle de Dany Picard au Francofolies / Recording and re-broadcast on SIRIUS – appears to be general programming expense |
$ 3,250.00 |
L'equipe Spectra Inc.
|
Captation et rediffusion sur SIRIUS Les Francofolies / Recording and re-broadcast on SIRIUS – appears to be general programming expense |
$250.00 |
Productions a Ciel Ouvert
|
Captation et rediffusion sur SIRIUS Les Francofolies / Recording and re-broadcast on SIRIUS – appears to be general programming expense |
$400 |
George Christie
|
Co-ordinate & produce broadcast of NXNE Live-to-air - appears to be general programming expense |
$31,353.82 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$140,493.53 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$309,960.47 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$1,749.00 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$ 22,905 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
-$9,214.95 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
-$66.75 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$ 11,000.00 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
-$74,839.72 |
OMD Canada
|
OMD Canada - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$5,545 |
Marcom Group
|
Marcom Group - Sirius XM Launch Materials - Banner, Logos - appears to be self promotion |
$4,645 |
Woodlands |
Purchase of 2 Mesh banners – appears to be self promotion |
$1,420 |
Woodlands |
Purchase of Mesh Banners - appears to be self promotion |
$4,250 |
Woodlands |
Purchase of Mesh Banners - appears to be self promotion |
$2,925 |
Woodlands
|
Purchase of Sirius XM Car Decals – appears to be self-promotion |
$4,979 |
Wunderman |
Wundermand - Face the Music – Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$248,831 |
Management Allocation |
No explanation or supporting documentation provided |
$10,180 |
OMD Canada |
Emershow - Ad on Facebook - Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$10,180 |
OMD Canada |
Emershow - Ad on Facebook - Details required regarding funds devoted advertising including the recipient of this contribution and the manner of advertising |
$7,500 |
Weiner Art inc |
Related to Sirius employee show |
$3,000 |
Vega Musique Inc. |
Related to Sirius employee show |
Date contribution paid |
Amount |
Initiative |
Eligibility issue (where applicable) |
|---|---|---|---|
20-Sep-11 |
$169.85 |
Woodlands |
Sirius/XM Pop-up banner – self promotion |
20-Sep-11 |
$710.00 |
Woodlands |
|
20-Sep-11 |
$4264.05 |
Woodlands |
Freight and shipping costs for unknown items |
20-Sep-11 |
$41820.00 |
Mischief Media |
|
20-Sep-11 |
$59850.00 |
Moment Communications Inc, |
Video & Photo Production – use of the photos/videos? Who owns the rights? |
20-Sep-11 |
$78,762.89 |
OMD Canada |
Face the Music – What purpose was the advertising for? |
20-Sep-11 |
$393,711.50 |
OMD Canada |
Face the Music – What purpose was the advertising for? |
20-Sep-11 |
$ 39,008.89 |
International Marketing Magic Inc. |
Purchase of T-Shirts – Self promotion |
20-Sep-11 |
$430.00 |
Tour Tech East |
Purchase of Plasma screens for logos- Self promotion |
30-Sep-11 |
$100,000.00 |
MusiCounts |
|
30-Sep-11 |
$100,000.00 |
Humber Institute of Technology and Advanced Learning |
No external supporting documentation showing what the funds were used for – appear to be for development of comedic programming but no external proof |
Total |
$818,726.29 |
|
|
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