Rebalanced regulation:

Accountability.

Original domestic content.

Employment.

Remarks by the

Communications, Energy and Paperworkers Union of Canada

24 November 2009

Rush's Neil Peart to Record New Version of The Hockey Theme for TSN

TSN and Anthem Entertainment Group have confirmed that Neil Peart, renowned drummer of legendary rock band Rush, will record a special rendition of The Hockey Theme, the iconic theme song originally written by Delores Claman in 1968.

Peart is widely regarded as the world's most accomplished and most-respected drummer/percussionist. As the drummer and primary lyricist for the trio, Peart has recorded 18 studio albums with Rush which have sold over 40 million units worldwide. Along with his band mates, Peart has been inducted into the Canadian Music Hall of Fame and was made an Officer of the Order of Canada.

In addition to assembling a team of top recording engineers and musicians to assist on the recording, Peart has commissioned DW Drums to create a special hockey-themed drum kit specifically for his unique version of the song.

Peart's version of the theme song will be used during NHL broadcasts on both TSN and RDS throughout the remainder of the NHL season. Details on when the song will debut will be announced at a later date.

"To have a music legend and a member of Canada's rock royalty like Neil Peart record his version of The Hockey Theme speaks volumes about the song's place in psyche of hockey fans across the country and around the world," said Mark Milliere, Vice-President, Production, TSN. "It is an honour to have Neil put his rock spin on this iconic tune and we're extremely excited to add his interpretation to our NHL ON TSN broadcasts."

In June 2008 CTV Inc., acquired all rights to "The Hockey Theme" in perpetuity, preserving the song's legacy and ensuring it will be heard on national television for years to come. Created by Vancouver's Dolores Claman in 1968, "The Hockey Theme" is used during NHL broadcasts on CTV Inc.'s TSN and RDS. The song will also be used as part of CTV's hockey coverage during the upcoming Vancouver 2010 Olympic Winter Games. In September 2008, CTV Inc. carefully restored "The Hockey Theme" and recorded a classic rendition featuring 54 members of the Toronto Symphony Orchestra. Last year, Simple Plan and Barenaked Ladies recorded and performed their version of "The Hockey Theme" for TSN.

Posted by digitalhome on November 17, 2009 · Leave a Comment 

TSN HD offers free preview

Posted by digitalhome on November 20, 2009

In order to view the TSN HD free preview, cable and satellite customers will require an HDTV cable set top box or satellite receiver, a subscription to the standard definition version of TSN and a high definition television.

CRTC approves Corus deal to buy Sex TV

The CRTC this week approved a deal which would see Corus Entertainment purchase the specialty television channels Drive-In Classics and SexTV from CTVglobemedia.

The $40 million deal was first announced in Mid-July but took until this week for federal regulators to approve the deal.

SexTV , which sold for $16 million, is an English language digital specialty channel, dedicated to love, romance, marriage, relationships, sexuality and gender issues and is available across Canada via cable, satellite and telco distributors. In 2008, the station had operating income of $868,000 on $3.5 million in revenue.

Drive-In Classics, which sold for $24 million, is an English language digital specialty channel showing films from the B movie genre, focusing on films popular at the drive-in theatres in the 1950s to 1970s. In 2008, the station had operating income of $2.1 million on $4.3 million in revenue.

Both stations, which were launched in 2001, had been acquired by CTVglobemdia in 2006 during its takeover of CHUM.

The following is the complete text of the CRTC decision.

Broadcasting Decision CRTC 2009-706
Route reference: 2009-644
Ottawa, 19 November 2009
7202377 Canada Inc.
Across Canada

7202342 Canada Inc.
Across Canada
Applications 2009-1028-3 and 2009-1029-1, received 15 July 2009
Public Hearing in the National Capital Region
30 October 2009

SexTV: The Channel and Drive-In Classics Channel – Acquisition of assets
The Commission approves applications by 7202377 Canada Inc. and 7202342 Canada Inc. for authority to acquire from CTV Limited the assets of the English-language Category 2 specialty television programming undertakings known as SexTV: The Channel and Drive-In Classics Channel, respectively, and for new broadcasting licences to continue the operation of the undertakings under the same terms and conditions as those in effect under the current licences.

Introduction
1.
The Commission received applications by 7202377 Canada Inc. (7202377 Canada) and 7202342 Canada Inc. (7202342 Canada) (together, Corus Entertainment Inc., or Corus) for authority to acquire from CTV Limited (CTV) the assets of the English-language Category 2 specialty television programming undertakings known as SexTV: The Channel (SexTV) and Drive-In Classics Channel (Drive-In), respectively, and for new broadcasting licences to continue the operation of the undertakings under the same terms and conditions as those in effect under the current licences.
2.
CTV, the current licensee of the above-mentioned undertakings, is a corporation wholly owned and controlled by CTVglobemedia Inc. (CTVgm)
3.
7202377 Canada and 7202342 Canada are corporations wholly owned and controlled by Corus.
4.
The purchase price for the entire transaction (i.e., acquisition of the assets of both services), based on the terms of the Letter of Intent, is $40 million. In its applications, Corus attributed a definitive value of $16 million to the assets for SexTV and a definitive value of $24 million to the assets for Drive-In. Corus proposed a tangible benefits package representing 10% of the value of the transaction to be paid over a seven-year period.
5.
The Commission received several interventions in support of each application, as well as interventions offering general comments on each application from the Canadian Film and Television Production Association (CFTPA) and from the Writers Guild of Canada. The interventions and Corus’s reply to the interventions can be found on the Commission’s website at www.crtc.gc.ca under “Public Proceedings.”

Commission’s analysis and determinations
6.
After examining the application in light of applicable regulations and policies and taking into account the interventions and Corus’s reply, the Commission considers the issues to be addressed in its determinations are the following:
the sale of SexTV and Drive-In two years after effective control of these services was transferred to CTVgm;
the assessment of the value of the transaction; and
the assessment of the proposed tangible benefits.
Sale of SexTV and Drive-In two years after effective control of these services was transferred to CTVgm
7.
The Commission is generally concerned when broadcasting undertakings are put up for sale within their first licence term, when an application is made to change control or ownership before a broadcasting undertaking commences operations, when it receives an application to change effective control of a broadcasting undertaking that has recently been the subject of a transaction, or when an application involves a change in effective control of a broadcasting undertaking that will be immediately sold. In the Commission’s view, such transactions raise issues relating to the integrity of the licensing process and the potential gain to the vendor.
8.
In Broadcasting Decision 2007-165, the Commission approved an application by CTVgm, on behalf of CHUM Limited (CHUM), for authority to transfer to CTVgm the effective control of CHUM, which included the assets of both SexTV and Drive-In. Given the short period of time between that decision and the present applications, the Commission considers it appropriate to examine the circumstances that led to its approval of the CTVgm/CHUM transaction as well as the circumstances surrounding the present applications.
9.
The Commission notes that the transaction approved in Broadcasting Decision 2007-165 was initiated following the death of one of the founders of what would become a leading media company and content provider in Canada, namely, CHUM, which was active in conventional television, specialty television services and radio. In that context, the Commission determined that the proposed transaction involving CTVgm was the best possible means to help both the brands and employees of CHUM going forward.
10.
In regard to the present applications, Corus submitted that Commission approval would allow SexTV and Drive-In to be folded into their specialty television group and that these services would fit well with their other specialty services, complementing in particular those that target women and movie service customers. Corus further submitted that SexTV and Drive-In, as part of the Corus corporate group, would be able to access management and creative expertise, significant capital for future growth and programming enhancements, and operational synergies available through the operation of multiple specialty services.
11.
The Commission notes, as explained by Corus, that the previous change in effective control of SexTV and Drive-In was part of a much larger transaction in which CTVgm acquired all of the broadcasting assets previously held by CHUM (13 conventional television stations, 20 specialty services and 33 radio stations). Further, not all of the services for which the assets were acquired, including SexTV and Drive-In, were relevant to the core operations of CTVgm as a broadcaster.
12.
In light of all of the above, the Commission is satisfied that the integrity of its licensing process would not be compromised by approval of the proposed transaction.
13.
The Commission notes that, in regard to its above-noted concern relating to broadcasting undertakings that are put up for sale shortly following a previous transaction involving a change in control, it will continue to examine such transactions carefully to ensure that there is no potential for licence trafficking.
Value of the transaction
14. The Commission notes that the value of the proposed transaction amounts solely to the price paid, that is, $40 million, and that Corus will not be assuming any liabilities or lease commitments.
Tangible benefits
15.
As set out in Public Notice 1999-97, the Commission generally expects applicants to make clear and unequivocal commitments to provide tangible benefits representing 10% of the value of a transaction, as accepted by the Commission. Such benefits should be directed to the communities served and to the broadcasting system as a whole.
16.
Corus proposed a tangible benefits package totalling $4 million, allocated as follows:
$2,735,000 – Canadian programming
$500,000 – Research and Development
$50,000 – Stratford Institute
$85,000 – Banff World Television Festival
$125,000 – Canadian Film Centre
$150,000 – Concerned Children’s Advertisers
$125,000 – YMCA
$75,000 – Foundation for Women in Film and Television
$155,000 – Canadian Women in Communications
Details relating to each of the above are set out in the appendix to this decision.
17.
As a general matter, the Commission reminds Corus that expenditures on tangible benefits must be incremental to program expenditures. Consistent with the Commission’s approach to establishing baselines to ensure incrementality of self-directed programming tangible benefit initiatives, a three-year baseline will be calculated using the average of the licensee’s past three years of expenditures on Canadian programming.
18.
Corus confirmed that none of the benefits expenditures would be directed to administration fees.
19.
Corus, in its proposed initiative for Canadian programming, proposed to allocate the amount of $2,735,000 to exhibition rights for Canadian programming from the following program categories: 2(a) Analysis and interpretation, 2(b) Long-form documentary, 5(a) Formal education and pre-school, 5(b) Informal education/Recreation and leisure, 7 Drama and comedy, 9 Variety, 11 General entertainment and human interest, and 12 Interstitials.1 The Commission accepts the proposed allocation of tangible benefit funds, with the exception of Corus’s proposal to include programming from program categories 11 and 12. It is the Commission’s determination that the inclusion of these two program categories does not represent the best possible use of the tangible benefits funds. Accordingly, for the purpose of this initiative, the Commission will only deem eligible expenses relating to program categories 2(a), 2(b), 5(a), 5(b), 7 and 9. The Commission is satisfied that the proposed tangible benefits as amended above are clear, unequivocal and commensurate with the size of the transaction.
20.
The Commission notes the applicant’s agreement to file annual reports containing a clear identification of the annual expenditures associated with the tangible benefits, as well as reporting the expenditures related to tangible benefits as a separate line item in its annual returns for the acquired Category 2 services.

Conclusion
21.
In light of all of the above, the Commission approves the applications by 7202377 Canada Inc. and 7202342 Canada Inc. for authority to acquire from CTV Limited the assets of the English-language Category 2 specialty television programming undertakings known as SexTV: The Channel and Drive-In Classics Channel, respectively, and for new broadcasting licences to continue the operation of the undertakings. Upon surrender of the current licence issued to CTV for SexTV: The Channel, the Commission will issue a new licence to 7202377 Canada Inc.; upon surrender of the current licence issued to CTV for Drive-In Classics Channel, the Commission will issue a new licence to 7202342 Canada Inc. The licences will expire on 31 August 2010, the current expiry date, and will be subject to the same terms and conditions as those in effect under the current licences for these services.

Other matters
22.
In Broadcasting and Telecom Regulatory Policy 2009-430, the Commission stated its intention to impose on television broadcasters and broadcasting distribution undertakings, at the time of their licence renewals, conditions of licence relating to accessibility provisions. Accordingly, the Commission will consider imposing such conditions of licence on SexTV and Drive-In at the time of the licence renewal for these services. In the meantime, the Commission expects SexTV and Drive-In to adhere, as soon as possible, to the applicable accessibility requirements specified in Broadcasting and Telecom Regulatory Policy 2009-430.
Secretary General

Related documents

Accessibility of telecommunications and broadcasting services, Broadcasting and Telecom Regulatory Policy CRTC 2009-430, 21 July 2009

Transfer of effective control of CHUM Limited to CTVglobemedia Inc., Broadcasting Decision CRTC 2007-165, 8 June 2007

Building on success – A policy framework for Canadian Television, Public Notice CRTC 1999-97, 11 June 1999
This decision is to be appended to each licence. It is available in alternative format upon request and may also be examined in PDF format or in HTML at the following Internet site: http://www.crtc.gc.ca.

Appendix to Broadcasting Decision CRTC 2009-706

Allocation of tangible benefits associated with the acquisition by 7202377 Canada Inc. and 7202342 Canada Inc. of the assets of the English-language Category 2 specialty television programming undertakings known as SexTV: The Channel and Drive-In Classics Channel, respectively

Benefit
Amount
Description

Programming / On Screen

Canadian programming
$2,735,000
The benefit funds will be used to support Corus’s commitment to exhibition rights for Canadian programming. Corus anticipates that 75% of the funds for exhibition of Canadian programming will be spent with independent Canadian producers on content from program categories 2(a) Analysis and interpretation, 2(b) Long-form documentary, 5(a) Formal education and pre-school, 5(b) Informal education/Recreation and leisure, 7 Drama and comedy, and 9 Variety, as set out in Item 6 of Schedule I to the Specialty Services Regulations, 1990.

Research and Development
$500,000
The benefit funds will support research and development projects concerning digital rights management technology and related elements such as rights taxonomy and training.

Social Benefits

Stratford Institute
$50,000
The research and development initiatives relate to the traditional media, and its activities seek to find opportunities and develop content delivered on multiple platforms. The lessons learned from this project will be shared with the industry at large, including other broadcasters, independent producers and the regulatory community.

Banff World Television Festival (Banff TV)
$85,000
The benefit funds will help fund one to two panel sessions each year at the Banff World Television Festival, with a particular focus on children’s and women’s programming. The session will take the form of panel discussions, master class sessions or workshop sessions.

Canadian Film Center (CFC)
$125,000
The contribution will support key CFC fundraising events, which will help fund CFC’s training programs in film, television and new media.

Concerned Children’s Advertisers
$150,000
The contribution will support initiatives such as “TV & Me” and “Long Live Kids.” These programs focus on helping parents and children develop healthy media habits and media literacy.

YMCA
$125,000
The contribution will help fund the YMCA’s Youth Leader Corps “Toronto’s Mosaic” project. The “Toronto’s Mosaic” project brings together a group of students from across the city of Toronto to learn how to gather information, take pictures, film, and locally broadcast stories based on their views on their lives, their communities and their world.
The benefit funds will allow youth in three Toronto communities to broaden their knowledge, understanding and competence in broadcast media.

Foundation for Women in Film and Television (WIFT Foundation)
$75,000
The contribution will fund bursaries for approximately five women each year (for five years) from an under-represented group to attend either the WIFT-T Business Management for Media Professionals Program presented in partnership with Humber School of Media Studies and Information Technology or the WIFT-T Convergent Media Program.

Canadian Women in Communications (CWC)
$155,000
The benefit funds will be directed towards the New Media Career Accelerator and Radio Career Accelerator programs. The New Media Career Accelerator program teaches the fundamentals of how technology is affecting media content development and distribution. The Radio Career Accelerator program is focused on programming, administration and sales.

Total
$4,000,000

Footnote
1 Program categories for Category 2 specialty services are set out in Item 6 of Schedule I to the Specialty Services Regulations, 1990.

CBC wants new Canadian only basic cable packages

In a submission filed with the CRTC on Monday and received by Digital Home Canada, CBC/Radio-Canada is recommending that basic cable and satellite television distributors be required to offer Canadian consumers a pared-down package of basic TV programming.

The public broadcaster is also recommending that a percentage of the price paid by consumers go towards subsidizing local television broadcasters.

In what is essentially a modified Fee-For-Carriage proposal, CBC’s all-Canadian cable or satellite package would only include local Canadian television stations and government mandated stations with a maximum price to be determined by the CRTC.

Currently cable and satellite distributors require Canadian consumers purchase a basic cable or satellite programming package which contains aboriginal, government funded, parliamentary and weather channels mandated by the CRTC, local Canadian and U.S. television stations and shopping channels. According to the CBC, these basic packages range in price from $18 to $38 and carry from 20 to 46 channels.

In its submission, CBC/Radio-Canada is suggesting a smaller “Canadian only” basic cable and satellite package whose content and price is fixed by the CRTC. The CBC does not specifically say which channels would be in the revised basic package except to say that it would exclude U.S. stations and digital specialty channels.

Although not spelled out in the CBC document, the proposed CBC package would likely include CRTC mandated channels such as APTN, the legislature channel, public broadcasting channels, the Weather network along with all local over-the-air French and English stations.

For a city like Toronto, that would likely include about 15 channels including: the cable community channel, CTV, Global, CBC, CityTV, Legislature, APTN, CPAC, Star, Weather Network, SunTV, Omni1, Omni 2, CP24, TVO, RDI and CTS. The CBC is proposing the price be between 78 cents and $1.28 per channel in the package which would make such a package come in at between $12 and $20 per month, a potential savings of $6 to $18 a month over existing packages.

Channels, often found in cable and satellite basic packages that would be eliminated under the CBC proposal would include all American networks (ABC, CBS, NBC, FOX, PBS, and WB), all digital channels (TSN, SportsNet) and any timeshifted Canadian stations.

The CBC says that by eliminating these extra stations and using a portion of the proceeds to fund local broadcasters, both consumers and broadcasters will be better off. Consumers pay less for basic cable and local broadcasters will get more funding.

The problem with the CBC’s logic is that most, if not all Canadian cable subscribers want those U.S. television stations and want stations like TSN. Under the CBC proposal, Canadians would then be required to pay for a second add-on cable package for the local U.S. stations and perhaps a third add-on Sports package to get all the stations originally in their original “basic” package.

Add all those essential U.S. local stations and Sports channels back in mix, add in the new amounts being funneled back to broadcasters, and the cost to consumers under the new CBC plan would likely be even higher to consumers.

Broadcaster,  10/29/2009

Commissioner Says CRTC Will Not Return to Set-Fee Debate

A high-level commissioner for the Canadian Radio-television and Telecommunications Commission says the regulator will hold steady on a distanced approach to the carriage fees debate between local television stations and cable and satellite companies.

"I want to emphasize that we are not about to go back to the question of a set fee imposed by the commission for the carriage of local conventional television stations - what's known as 'fee-for-carriage,"' Rita Cugini, Ontario's regional commissioner, said during a speech at a media luncheon on Wednesday.

"Our main reason for doing so is that broadcasters did not give us solid commitments on how the fees would be used to improve the Canadian broadcasting system."

Cugini said that the regulator will focus on whether local TV broadcasters should be allowed to negotiate fees with cable and satellite providers for payment for their signals.

Cugini also said the regulator is concerned that some broadcasters aren't planning to convert all of their over-the-air analog transmitters to digital in 2011, which would leave some rural parts of the country without local TV signals.

She noted that Bell TV has offered to make a small number of local and regional TV stations available through its satellite service at no monthly charge to customers.