Tag Archives: CRTC

| Radio

Quebec City still isn’t ready for its first English-language commercial radio station, CRTC finds

Evanov Radio’s controversial plan to launch Quebec City’s first English-language commercial radio station will have to wait some more after being denied again by the CRTC.

In a decision released Thursday, the commission said the Quebec City radio market “cannot sustain an additional radio station at this time” and that the two applications for new stations — the other by Gilles Lapointe and Nelson Sergerie is for a French station — would be returned.

Evanov had previously tried a decade ago to convince the CRTC to move forward with an English music station in the provincial capital, but the commission denied its application in 2010, in a controversial decision that included a dissenting opinion.

The application is controversial because the other stations in the market argue that Quebec City’s English-language population is far too small to sustain a commercial radio station, so Evanov would instead target the francophone population. By being an English station, it would not be subject to the 65% French-language music rule, which would give it an unfair competitive advantage by allowing it to play more American and U.K. hit songs that are very popular among francophone audiences.

Evanov, who wants to launch a Jewel brand station in Quebec City, argues it wants to serve the anglophone community as well as the anglophone tourist market (though Quebec City already has an English tourist information station), and that it has experience in running radio stations in small markets.

The 2010 decision includes a detailed analysis of the anglophone market in Quebec City. But today’s decision only analyzes the market conditions overall, without commenting specifically on the appropriateness of an English radio station in Quebec.

The current applications for Quebec City actually date from 2016, but were put on hold when the CRTC ran low on French-speaking commissioners.

Under CRTC rules, it won’t consider new applications for Quebec City for the next two years. In December 2020, they can try again.

The news was better in neighbouring communities. In Sainte-Marie-de-Beauce, an application by Attraction Radio for a second music station there will go ahead. And in Portneuf, which is technically still the home of CHXX-FM (Pop 100.9), the commission will proceed with an application by Michel Lambert. Both raised concerns from the commercial broadcasters in Quebec City for fear that they might eventually target the Quebec City market. The Beauce application was also opposed by Groupe Radio Simard, which owns stations in Saint-Georges-de-Beauce.

The applications themselves haven’t yet been published, but should be soon. a public hearing is scheduled for Feb. 20 (to hear an application for Leclerc Communication to buy CHOI Radio X and 91,9 Sports from RNC Media), but these items will not require any oral presentations.

| Radio

CRTC decision clears way for Kanesatake station to launch rebuild plan

CKHQ-FM Kanesatake in 2014.

There was a sigh of relief in Kanesatake on Monday that relations between the federal government and the Mohawk reserve wouldn’t be strained over a radio frequency coordination issue.

The Canadian Radio-television and Telecommunications Commission released a decision denying a licence application for a new Christian music radio station in Lachute. The application by LS Telecom proposed a 300-watt station at 101.7 MHz.

That same frequency is used by CKHQ-FM (Kanesatake United Voices Radio), a low-power (27W) community station serving the reserve about 25 kilometres away. And though the applicant’s engineers said (and the CRTC agreed) that the new station could co-exist with this existing one, because CKHQ is low-power it does not have a right to its frequency and could be forced to find a new one if a licensed station would receive interference. Because of Kanesatake’s proximity to Montreal, there aren’t other frequencies available that would be nearly as good, even for such a low-power station.

The Lachute station would also have limited CKHQ’s ability to seek an increase in power (though the CRTC says it “would not affect the ability of CKHQ-FM to serve its principal market” and “would not prevent CKHQ-FM from expanding to a regular power station”).

The Lachute application was denied, not because of concerns about CKHQ, but because of issues with the application itself. The commission seemed to think it was a bad application in general, that LS Telecom “did not provide a quality application and did not demonstrate an understanding of the regulations and policies for commercial radio and religious broadcasting.” But it particularly showed concern with the complete lack of news programming proposed, even after the CRTC reminded them that such a thing is expected of commercial FM radio stations, religious or not.

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| TV

CRTC says no to demanding English programming from Télé-Québec

It was a nice try from the English Language Arts Network, but the CRTC didn’t bite. In renewing Télé-Québec’s broadcasting licence for a five-year term on Tuesday, the commission turned down ELAN’s request that Quebec’s public broadcaster devote 10% of its programming budget to English-language programming (proportional to the number of anglophones in the province).

The request made headlines when it was published earlier this year, and an angry motion from independent MNA Martine Ouellet.

ELAN pointed to Ontario’s creation of TFO, a francophone equivalent of TVO, as precedent for having bilingual public broadcasters. But the commission was unconvinced.

“The creation and operation of TFO in Ontario is a decision of the Government of Ontario,” the commission wrote. “Provinces have the opportunity to put in place educational television stations in both official languages for their citizens if they wish.”

Télé-Québec argued its programming was reflective of all Quebecers, including anglophone Quebecers, in the topics discussed if not the language it is discussed in.

ELAN also asked for “a policy and an action plan relating to Quebec’s diversity”, a 20% quota on programming reflecting minorities, and an advisory committee. The CRTC said the demands were “beyond the scope of this licence renewal process” and should be dealt with at a policy hearing.

Other interest groups also sought quotas or commitments from Télé-Québec. Producers wanted more spending on scripted programming, children’s programming and original French-language programming, a Quebec City group wanted a 10% quota on programming from Quebec City, and ADISQ wanted an expectation related to music.

The commission turned those down, but did add a purposely vague expectation related to regional programming: “The Commission expects the licensee to make use of independent producers from all of Quebec’s regions in such a way that producers from the regions outside the Montréal Census Metropolitan Area, as well as producers from the Montréal CMA, are proportionally contributing to the production of programs broadcast on CIVM-DT Montréal.”

It also allowed Télé-Québec to extend its target audience for youth programming to include teenagers ages 12-17.

Télé-Québec has 17 over-the-air transmitters across the province, but even though they mostly carry different callsigns, they are all formally licensed as retransmitters of the Montreal station, and the programming carried on all of them is identical.

Its new licence expires Aug. 31, 2024.

| Radio

CRTC approves Cogeco acquisition of 10 RNC Media stations

The CRTC has approved the $18.5-million acquisition of 10 RNC Media radio stations by Cogeco, representing two thirds of RNC’s network of stations.

Affected stations are:

  • Planète 104.5 in Alma
  • Planète 93.5 in Chibougamau
  • Planète 99.5 in Roberval
  • Planète 100.3 in Dolbeau-Mistassini
  • Radio X 95.7 in Saguenay (repeater at 96.3 Alma)
  • Capitale Rock 104.3 in Val-d’Or
  • Capitale Rock 102.1 in La Sarre (repeater at 95.7 Rouyn-Noranda)
  • WOW 96.5 in Rouyn-Noranda (repeaters at 103.5 Val d’Or and 103.9 La Sarre)
  • Pop 104.9 in Lachute
  • Pop 102.1 in Hawkesbury

Of the remaining stations, two are being sold to Leclerc Communication:

  • CKLX-FM (91,9 Sports) in Montreal
  • CHOI-FM (Radio X) in Quebec City

The remaining three are presumably on the market with no sale announced yet (but I’m told there are talks with at least one potential buyer):

  • CHXX-FM (Pop 100.9) in Donnacona (serving Quebec City, repeater at 105.5 Lotbinière)
  • CFTX-FM (Pop 96.5) In Gatineau (repeater at 107.5 Buckingham)
  • CHLX-FM (Wow 97.1) in Gatineau

The acquisitions bring Cogeco’s radio network from 13 to 23 stations, and means Cogeco’s first expansion into the Saguenay and Abitibi regions. Of population centres over 15,000, the only ones that wouldn’t be within 100 kilometres of a Cogeco transmitter will be Rimouski and Sept-Îles.

A map of Quebec’s major commercial radio networks: Cogeco Media (purple), RNC Media (red, with approved sales in reddish purple), Bell Media (blue), Attraction Radio (black) and Groupe Radio Simard (gold). Retransmitters are in a lighter colour.

Notable aspects of this transaction:

  • Cogeco plans no immediate change to the “vocation” of the radio stations, which will remain local.
  • Cogeco plans to introduce local newscasts to the Lachute station. For other stations, the benefits come mainly through access to the infrastructure of Cogeco Nouvelles.
  • The commission has accepted Cogeco’s proposed tangible benefits of $1,184,217, based on a total transaction value of $19,736,958. The breakdown uses the standard formula for radio, with:
    • $592,109 (3%) to Radio Starmaker Fund or Fonds Radiostar
    • $296,054 (1.5%) to FACTOR or Musicaction
    • $98,684 (0.5%) to the Community Radio Fund of Canada
    • $197,370 (1%) to discretionary initiatives
  • The nature of the discretionary initiatives isn’t specified, but Cogeco said it would include six-week paid internships at its radio stations. The commission pushed back on this (tangible benefits are not allowed to be self-serving), and Cogeco responded by saying it would use $10,000 a year for bursaries instead. The rest of the discretionary money would go to local initiatives, broken down as follows:
    • $10,000 a year in the Saguenay region
    • $5,000 a year in the Abitibi region
    • $3,196 a year in the Lachute-Hawkesbury region
  • The contract includes a 36-month service contract for RNC Media to continue providing local news, office space, outdoor advertising, transmitters and technical support for the stations in the Abitibi region after the deal closes. Following that, Cogeco will rent space for three transmitters at two sites from RNC for $5,000 a year each for 10 years (indexed to the consumer price index), and two transmitters at a third site for five-year renewable leases for a price to be negotiated.
  • The radio stations (bought by Cogeco) and TV stations (retained by RNC Media) in the Abitibi region will continue to cross-promote for a period of 24 months after the acquisition. The exact value of these ads is confidential, but will be the same for both sides. A similar ad exchange deal is in place for Cogeco’s CKOF-FM (104,7) and RNC Media’s TV stations in Gatineau, even though those stations aren’t part of this transaction.
  • Cogeco acquires the WOW brand (used by CHOA-FM in Val-d’Or) and gives RNC Media a licence to continue to use the brand for its Gatineau station. Cogeco also acquires the Planète and Capitale Rock trademarks.
  • RNC Media holds on to the POP brand (used by CFTX-FM in Gatineau and CHXX-FM in Donnacona) but gives Cogeco licence to use it for the Rouyn-Noranda station.
  • RNC also keeps the Radio X brand, which is used by CKYK-FM in Saguenay. Cogeco can use the KYK logo, but without any mention of Radio X. There does not appear to be transition allowance here, which means it would have to change the branding as soon as the deal closes.
  • Cogeco says of the 220 on-air employees it will have if the transaction is approved, 92 (42%) are women, 4 (2%) people with disabilities, 2 (1%) visible minorities and 1 (0.5%) Indigenous person. (In the application, Cogeco gets the math wrong by two decimal places on the last three percentages there, making it look even worse.)
  • About 55 employees will move with the stations — 10 in Abitibi, 44 in Saguenay and one in Lachute. Three of those employees are currently on leave.
  • The deal will close on the first of the month after CRTC approval. This is listed as the only remaining condition for closing.
  • The deal includes a non-compete agreement for Val d’Or, La Sarre, Rouyn-Noranda, Lachute, Hawkesbury, Amos, Dolbeau, Roberval, Alma, Chibougamau and Saguenay, for a confidential period.
| TV

No more U.S. Super Bowl ads, but access to U.S. stations remains under USMCA trade deal

I was a bit busy yesterday in the middle of a Quebec newsplosion, but fortunately people in the rest of Canada (Globe and Mail, Financial Post, CBC, BNN, Michael Geist, Cartt.ca) had time to read the new U.S.-Mexico-Canada Agreement and notice an annex that directly impacts the CRTC and Canadian TV viewers.

Annex 15-D of the agreement is very specific: “Canada shall rescind Broadcasting Regulatory Policy CRTC 2016-334 and Broadcasting Order CRTC 2016-335.”

It doesn’t use the words, but that policy is about ad substitution during the Super Bowl. It’s the policy (originally announced in 2015) that said Bell could not require TV providers in Canada substitute its signal over those of U.S. border stations during the game because of Canadians’ strong demand for those high-profile U.S. commercials.

Bell has been trying hard since 2015 to get that decision overturned, going all the way up to the Supreme Court of Canada. The NFL has been on their side, because without simsub, the value of the Super Bowl rights in Canada plummets.

Now, thanks to the NFL’s lobbying of U.S. trade negotiators, the Canadian government will step in and solve the problem for them. The annex doesn’t specify a timeframe, but presumably it would happen when the treaty is ratified, which may or may not come before the next Super Bowl in February.

Putting this in the trade deal gives the Canadian government and the CRTC some cover. The Canadian government can say they were forced into this by the U.S. government, and the CRTC can blame the Canadian government when people go back to complaining to it that U.S. ads are blocked.

This also could have ended much worse for Canadian TV viewers. This trade deal could have ended the entire practice of allowing U.S. over-the-air stations to be rebroadcast in Canada without their consent. There was lobbying from a coalition of U.S. border stations in favour of requiring retransmission consent. Instead, the existing simsub regime will be maintained, and rebroadcasting through TV distributors allowed (but only when the signal is unaltered and simultaneous).

Assuming this deal is ratified, it could be decades before the simsub regime changes. And by then it could be completely irrelevant.

UPDATE (Oct. 6): Donald Trump amazingly brought up this clause in a campaign rally on Thursday night, saying a “big big problem” with Super Bowl ads was fixed when he told his negotiators to fix it. He said he got a phone call thanking him from NFL commissioner Roger Goodell.

And let QVC in, too

The annex also includes a provision related specifically to QVC: “Canada shall ensure that U.S. programming services specializing in home shopping, including modified versions of these U.S. programming services for the Canadian market, are authorized for distribution in Canada and may negotiate affiliation agreements with Canadian cable, satellite, and IPTV distributors.”

In 2016, the CRTC denied an application by TV provider VMedia to allow it to distribute the American shopping channel in Canada. It argued that since QVC would be doing business with Canadians, and that’s the very basis for that channel, “QVC would be carrying on a broadcasting undertaking in whole or in part in Canada” and for that it needed a licence (which it couldn’t get because it’s not Canadian-owned).

VMedia filed a request in court to overturn that decision, and the federal court sent it back to the CRTC. The commission opened a proceeding about its reconsideration, but has not published a decision.

| TV

CRTC renews all mandatory TV subscription orders

If the CRTC is trying to wean the broadcasting system off of free money, it hasn’t been showing it in the past couple of weeks as it has renewed mandatory distribution orders for most services that have that special status requiring all cable, satellite and IPTV subscribers to subscribe to those services.

Every service whose status was up for renewal on Aug. 31 was renewed, with three getting an increase in their per-subscriber fee and one getting a decrease. Overall, the total goes up by seven cents a month per subscriber.

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| TV

Major cable TV companies’ licences renewed: What the CRTC decided

On Aug. 2, the CRTC renewed the broadcasting licences of most of Canada’s major cable TV companies, including Videotron, Cogeco, Rogers, Shaw, SaskTel, Eastlink, Telus, VMedia and Bell MTS.

Though it wasn’t technically a policy proceeding, the omnibus licence renewals allowed the commission to impose a bunch of de facto policies, or clarify existing ones, on everyone at the same time. (Licenses for Bell’s Fibe TV operations, Bell satellite TV, Shaw Direct and some other distributors weren’t part of this proceeding, and smaller distributors who are exempt from licensing aren’t affected.)

Here’s what was decided:

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| Radio

Atikamekw communities have no use for CBC North’s Cree programming

CBC and Radio-Canada have radio transmitters across the country, but most of them don’t have original programming. So often the question has to be asked: which local station should they retransmit? In some cases it’s easy — just pick the closest one — but in others it’s more complicated.

In the Atikamekw communities of central Quebec — roughly halfway between Lac Saint-Jean and Val-d’Or — there isn’t a Radio-Canada Première originating station anywhere close. Between Saguenay, Rouyn-Noranda, Trois-Rivières and Quebec City, the distance is about the same.

But these stations aren’t serving francophone Québécois audiences, they’re serving First Nations communities. So it made sense that the station it would retransmit would be none of these. Instead, Wemotaci (Weymontachie), Manouane (Manawan) and Obedjiwan retransmit CBFG-FM in Chisasibi, a community along James Bay that is the base for stations in northern Quebec. That station mainly rebroadcasts CBF-FM Montreal, but broadcasts three one-hour shows a day in the Cree language, produced by CBC North.

A recent consultation with the Atikamekw communities showed that there’s little interest from their members in that programming. In an application to the CRTC, Radio-Canada says it’s because there is a negligible number of Cree-language speakers in those communities. Atikamekw (which is well spoken in the region) is considered a Cree language, but is a different dialect from the James Bay Cree spoken in Chisasibi.

A letter from Constant Awashish, Grand Chief of the Atikamekw council, says only that the communities felt that the Mauricie station would be a more appropriate source of programming, without explaining why.

So the CRTC has approved the application (without a public comment period) and transferred the retransmitters to the Mauricie station CBF-FM-8 Trois-Rivières — between 200 and 315km away. The change reduces the network of CBFG-FM from ten stations to seven, the furthest south being Waswanipi, 135 kilometres northwest of Obedjiwan.

UPDATE: The three transmitters switched their source on Oct. 17.

| Radio

Should the CRTC allow an English-language commercial radio station in Quebec City?

For at least the third time, the CRTC is about to make a call on whether Quebec City should be allowed to have an English-language commercial radio station.

An application by Evanov Radio subsidiary Dufferin Communications, which also owns stations running the Jewel format (including 106.7 in Hudson), plus CFMB 1280 and CHRF 980 in Montreal, prompted a request for comment by the commission in 2016 about whether a general call for applications should be issued. So far two applications (the other one for a French station) have been filed for the use of 105.7 MHz, considered one of the last available usable frequencies in the city.

On Wednesday, the CRTC issued another notice of consultation, effectively reopening the file. It never came to a decision in the case, ironically because of a lack of francophone commissioners. With recent appointments that problem has been solved.

This is Evanov’s second attempt to do this. In 2010, the CRTC denied a previous application by the company, ruling by majority vote that because the English-speaking population of Quebec is so small (1.1% speak it most often at home), “for all practical purposes there is virtually no advertising market in Québec for an English-language station” and “its service is almost entirely dependent on Québec’s French-language audience.”

In 2006, the CRTC similarly denied an application by Standard Radio (which at the time owned Mix 96, CHOM and CJAD, before it was bought by Astral Media the next year).

Why does it matter that an English station would attract a francophone audience? (After all, Montreal’s English-language music stations have larger francophone audiences than anglophone ones.)

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| Radio

TTP Media’s CFNV 940 plans to change format as it seeks licence renewal

CFNV 940 logo

The process to launch TTP Media’s talk radio stations in Montreal has taken so long that they’re now in the process of getting their licences renewed after the end of their initial seven-year term. And the publication of the application for the first of those stations suggests that the company may be moving away from its proposed news-talk format and toward health and wellness, which sounds like the kind of thing that has been tried on other AM stations in the market.

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| TV

Télé Inter-Rives proposes bringing over-the-air TV back to Îles-de-la-Madeleine

There’s not much clearer evidence of the declining industry of over-the-air television than the lack of demand for new TV stations in the country. With some exceptions (ICI in Montreal, for example), there haven’t been applications for new over-the-air stations in about 20 years. Instead, major networks like CBC, TVO and CTV have been shutting down transmitters en masse to save money.

So it’s a bit surprising that someone has submitted an application for a new transmitter, in one of the most remote places in the country: the Magdalen Islands (Îles-de-la-Madeleine), the archipelago in the Gulf of St. Lawrence that belongs to Quebec but is actually closer to all four Atlantic provinces than it is to the Quebec mainland.

The application comes from CHAU, the TVA affiliate in Carleton on the Gaspé peninsula. It’s owned by Télé Inter-Rives, which also operates affiliates of the three major French-language networks (Radio-Canada, TVA and V) in Rivière-du-Loup. In addition to its main transmitter in Carleton, CHAU operates 11 digital retransmitters in the Gaspé peninsula and northern New Brunswick. This would be the 12th transmitter, CHAU-DT-12.

(CHAU, like other independent broadcasters, made the investment to convert their over-the-air transmitters to digital even though they were not required to do so by the government’s digital transition plan because they served small communities.)

Proposed transmission pattern of CHAU-DT-12 in Îles-de-la-Madeleine

CHAU-DT-12 would be a 100-watt station, with a transmitter on Channel 12 in Cap-aux-Meules on the local transmission tower operated by GAD E?lectronique. CHAU puts the cost of the new transmission facility at $37,572. That’s about $3 for each of the region’s 12,000 or so residents.

Because it’s a retransmitter, CHAU-DT-12 wouldn’t be a local station for the islands, but CHAU says it wants to provide local programming, working with independent producers on the islands and doing reporting using technologies like Skype and FaceTime. CHAU says in its application that the residents of the islands have a lot in common with those of the Gaspé peninsula and Acadian communities in New Brunswick, including an interest in fishing.

It promises to devote at least 20 minutes a week to local news relevant to the islands.

The islands haven’t had an over-the-air television transmitter since CBC/Radio-Canada shut down its extensive network of analog TV rebroadcasters in 2012. Before they were shut down, they had two retransmitters of the Radio-Canada station in Montreal (CBIMT and CBIMT-1) and one retransmitter of CBC Montreal (CBMYT).

“In today’s difficult environment for over-the-air television in Canada, the project to extend CHAU’s signal to the Îles-de-la-Madeleine represents an investment that is unexpected but achievable thanks to technical possibilities that reduce installation and operational costs,” the application reads.

The CRTC is accepting comments about CHAU’s application until July 5. Comments can be filed here. Note that all information submitted, including contact information, becomes part of the public record.

| Opinion, Radio, TV

CRTC report has fundamental but very vague suggestions to change our broadcasting system

One day before the deadline set by Heritage Minister Mélanie Joly, the CRTC on Thursday released a report into the broadcasting system that proposes major, fundamental changes to how broadcasting is regulated in this country. (The condensed backgrounder is here.)

Unfortunately, that report is also quite vague, even on the parts that should be specific.

It’s not the CRTC’s fault, really, because that’s not really its purpose. The original order issued back in September by Joly is just as vague, seeking a report on “the distribution model or models of programming that are likely to exist in the future; how and through whom Canadians will access that programming; the extent to which these models will ensure a vibrant domestic market that is capable of supporting the continued creation, production and distribution of Canadian programming, in both official languages, including original entertainment and information programming.”

In terms of assessing programming distribution models, the report is pretty clear, but is also repeating a lot of stuff we already know: conventional television and radio are mature industries and have no way to go but down, online audio and video streaming services are catching on with the population, and Internet delivery of content means more Canadians are getting that content directly from foreign sources who don’t have to contribute to Canadian content or answer to the CRTC.

What’s new is what the commission proposes to do about it, but that’s where the data and charts go out the window and we’re left with vague, obvious suggestions and what often sounds like one unnamed person’s opinion.

But let’s go through them and look at the issues in a bit more detail:

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| Radio

CPAM, CJMS given one more (last?) lifeline with two-year CRTC licence renewal

Montreal’s Haitian radio station, and the AM country station it bought after its previous owner had extensive licence compliance issues, are trying the patience of the CRTC. But the commission is giving each of them another chance to get their administration in order.

On Friday, the commission renewed each of their licences for two years, with requirements that they broadcast messages on air acknowledging their non-compliance, and with three mandatory court orders each requiring them to be in compliance with their licence conditions.

“The Commission is concerned with the licensee’s ability and commitment to operate the station in a compliant manner,” it wrote in each of the decisions.

CJWI 1410 (CPAM Radio Union) was found in non-compliance with licence conditions related to:

  • Timely filing of annual financial reports
  • Timely response to CRTC requests for audio recordings and information
  • Keeping and producing proper records of music played on air (one request for information was never answered)
  • Timely filing of proof of financial contributions to Canadian content development
  • On-air announcements about previous non-compliance (the broadcasts did not use the exact wording laid out by the CRTC)

This is the third consecutive licence term in which CJWI has been in non-compliance. In other words, the station has never fully complied with its licence conditions since it launched in 2002. In 2008, the commission found the 2007 annual return was filed late and gave a four-year licence renewal. In 2015, the commission found once again annual returns were filed late (four years’ worth were filed simultaneously, and the fifth three months later), as well as proof of Canadian content contributions. It imposed a $2,500 de facto fine and broadcast of shame messages noting their non-compliance.

The excuses given by CPAM for the failure to comply are also getting repetitive, usually blaming some nameless employee or accountant for not knowing the rules. (Though the excuse that records were destroyed in a firebombing is a pretty good one.) Its promise that someone will take charge of ensuring paperwork is filed rings hollow in light of its repeated failures.

CJMS 1040 was found in non-compliance with conditions of licence related to:

  • Timely filing of annual reports (one year’s was never filed)
  • Responses to requests for information (a request was never answered despite several reminders)
  • Production of audio recordings on demand (a request was not fulfilled)

The latter to contradict mandatory orders issued by the CRTC in 2014. Failure to comply with such an order could result in a contempt of court proceeding. But here the commission seems content to simply issue new mandatory orders that may or may not be followed.

This is the fifth consecutive licence term that CJMS has been found in non-compliance, but the first under this owner. Like CJWI, CJMS has never fully complied with its licence. CJMS’s licence had already seen short-term renewals since its launch in 1999:

Both licence renewal decisions make clear that the commission is losing patience, and that a further failure to meet licence conditions could result in the stations losing their licences entirely.

In the meantime, mandatory orders have been issued requiring each station provide:

  • Program logs and audio recordings on request of the CRTC
  • Reponses to requests for information from the CRTC
  • Full annual returns by the deadline

I’m pessimistic that either station will be fully in compliance two years from now. But hopefully they’ll be close enough that the commission decides to give them yet another chance.

| TV

Eight proposals to replace OMNI

Updated April 20 with a clarification from Rogers, and Nov. 4 with clarifications based on feedback from Ethnic Channels Group.

The Canadian Radio-television and Telecommunications Commission has released eight applications for national ethnic television services, and set a hearing for Oct. 15 Nov. 26 to discuss which of them would be the best candidate to replace OMNI.

Last year, the commission caved to OMNI’s demand that it be given mandatory subscription fees from all television subscribers, under the threat of surrendering the licence and leaving the country without a multilingual TV service offering newscasts. But in giving in, the CRTC also set a limit of three years (until Aug. 31, 2020) and said that it would ask other broadcasters if they had better proposals for such a mandatory ethnic service, and consider them at a future hearing.

On Tuesday, the CRTC released eight applications, seven for TV services (including OMNI’s proposal for renewing its status) and one for an ethnic described video guide. Each makes proposals for multilingual programming including national newscasts and proposes a mandatory monthly fee.

I analyzed the nearly 200 documents submitted for the eight applications and below present an analysis of the applicants, proposals and programming:

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| TV

How a simple change to NAFTA could dramatically change how Canadians view television

One of the consequences of Donald Trump becoming president of the United States is that now Canada, the U.S. and Mexico are meeting to discuss amendments to the North American Free Trade Agreement, which Trump has threatened to pull out of entirely if he doesn’t get his way.

Canada has made clear that it plans to keep cultural exceptions to the free trade agreement, allowing it to continue to protect its cultural institutions from its much larger neighbour. So it might be tempting to think there won’t be any change here.

But there is one change being proposed that could make a huge difference to the Canadian television industry, and its one that proponents on both sides of the border would argue strengthens rather than weakens cultural protection.

It’s called retransmission consent.

CUSFTA, NAFTA and copyright law

When it comes to broadcasting law, NAFTA defers to the earlier Canada-U.S. Free Trade Agreement, whose text is posted online in a PDF. Article 2006 of the CUSFTA lays out requirements and exceptions to copyright law when it comes to retransmission of distant television signals. Under its rules, each country must prohibit non-simultaneous retransmission, or altered retransmission, of signals that aren’t meant for over-the-air broadcast, without the consent of the copyright owner.

But the rules intentionally leave a big hole for simultaneous transmission of over-the-air stations without that consent. As a result, Canadian television distributors can distribute U.S. over-the-air stations (CBS, ABC, NBC, Fox and PBS) without those stations’ consent or compensation to them, following only the rules set by the CRTC.

This exception to copyright law dates back to the early days of cable TV, when providers picked up the cross-border stations over the air and distributed them to their customers. The rules have been codified since then (generally, providers can distribute two sets of what are called 4+1 stations — PBS is the +1 — and choose to take a group of Eastern time zone stations and a group in the Western time zone) but the essence remains in place to this day, enshrined as section 31 of the Copyright Act.

Some people want to change that, on both sides of the border.

Cross-border unity

On the Canadian side is Bell, which owns CTV stations. Appearing before a parliamentary committee hearing on Sept. 20, Rob Malcolmson, Senior Vice-President, Regulatory Affairs, suggested eliminating section 31 of the Copyright Act entirely, which would mean television providers would need to negotiate carriage of distant signals both Canadian and American. CTV and CTV Two stations being carried outside their markets would get some compensation as a result. (Current copyright law requires TV providers distributing distant stations to compensate rights holders, both Canadian and American, through a fund that taxes them at about $1 per subscriber per month, but that compensates the creators of the programming, not the stations broadcasting them, and it’s not optional.)

Requiring retransmission consent would change a lot for U.S. border stations. Giving them negotiation power would mean they too could get compensated, and just as important, they could set conditions on carriage, which could include things like blackouts for programs they don’t have the Canadian rights to. A content provider (like, say, the NFL) could make this a condition for being broadcast on border stations, and those border stations could make it a requirement for being rebroadcast in Canada.

Or the U.S. stations could simply decide not to be carried in Canada. And that’s exactly what some of them want.

Some U.S. border stations carried in Canada have formed the U.S. TV Coalition, a group that has been actively lobbying the Canadian government to change its laws so those stations have bargaining power or can take themselves out of Canada entirely. Its members include WXYZ-TV and WDIV-TV in Detroit, WIVB-TV and WNLO-TV in Buffalo, and KSTP-TV in Minneapolis.

KSTP in 2015 tried to ask the CRTC to remove its station from the list of those authorized for rebroadcast in Canada. The CRTC refused, saying their consent isn’t needed.

Making simsub moot

So what would happen if this simple but substantial change went through? It’s hard to say exactly, because the Canadian television system has been so reliant on the current scheme. But here are some things that could happen.

First, some U.S. stations could refuse to be carried in Canada, either because they don’t want to deal with getting Canadian rights to programming or because they don’t think they’re being compensated enough. Canadian TV providers would probably find others that would be game for replacing them, since for many U.S. markets (like Burlington/Plattsburgh or Buffalo), the Canadian market is a big source of their audience.

Then, U.S. rights-holders, probably starting with major sports leagues, could start demanding that signals be blacked out in Canada during their programming to protect the rights of their Canadian broadcast partners. The U.S. stations, which now have bargaining power, could impose this requirement on cable companies carrying their stations.

As new carriage agreements are signed with U.S. stations, they could demand direct fees for carriage (which would undoubtedly depend on whether their programming is subject to blackouts). Those fees would be passed on to the consumer, and the days of TV providers including U.S. stations for free in basic cable packages would be gone.

This doesn’t get much attention in Canada, but as Cartt.ca points out, there are also U.S. border communities where Canadian stations are carried on cable TV. Canadian stations could start making similar demands of U.S. cable providers.

If blackouts take hold during primetime series and sporting events, Canada’s simultaneous substitution system becomes moot. (Though an alternative would be to expand simsub so Canadian ads are seen on U.S. stations regardless of when the program airs or where.) If simsub is no longer a major factor in Canadian TV stations’ revenue, they suddenly get a lot more programming flexibility. Rather than CTV, CTV Two, Global and City building their schedules around having as many simultaneously broadcast U.S. network shows as possible, they could schedule their shows whenever they want.

Original Canadian series would no longer get bounced around the schedule. Programs that follow live sports (like NFL games) would no longer have to be delayed so they sync up with the U.S. network’s delay. Sports programming carried on U.S. network stations (particularly NFL games) could be moved to TSN or Sportsnet so local stations could continue to carry local news. Conversely, Canadian sports like the CFL’s Grey Cup could be moved to local stations because the Canadian over-the-air networks would no longer be reserved for simsubbable programming.

It could be a seismic shift in how English Canadians watch television, giving a lot more power and flexibility to Canadian TV networks.

Don’t hold your breath

Or maybe it won’t. Neither government has indicated it wants to press this as an issue, and though the U.S. TV coalition is pushing it, there isn’t much public support.

The reality is that Canadians like being able to watch ABC, CBS, NBC, Fox and PBS, and any move that would risk taking those channels away (or subjecting them to blackouts) would be deeply unpopular, no matter how much it might benefit the Canadian system. And it’s not like Canadians are desperate to make the lives and bottom lines of Bell, Corus and Rogers any better.

So this is more of an academic exercise than anything else. Realistically, the system will mostly stay the same until the point where Internet-based video consumption takes over from regulated TV distribution as the main source for popular video content. And the Internet has a separate scheme for ensuring that video doesn’t cross the border when a producer or broadcaster wants to protect their rights.

UPDATE (Sept. 4, 2018): A report by the Globe and Mail suggests that U.S. NAFTA negotiators are indeed pushing for changes to simultaneous substitution. It’s not clear if they’re seeking to mandate consent or just allow the U.S. ads into Canada.