Directions to the CRTC (Direct-to-Home (DTH) Pay-Per-View Television Programming Undertakings) Order

SOR/95-320

BROADCASTING ACT

Registration 1995-07-06

Order Issuing Directions to the Canadian Radio-Television and Telecommunications Commission Respecting Policy for the Licensing of Pay-Per-View Television Programming Undertakings that Provide Services Through Direct-To-Home (DTH) Satellite Distribution Undertakings

P.C. 1995-1106 1995-07-06

Whereas pay-per-view services will become an increasingly important vehicle for the exhibition of feature films and other television programming and an increasingly important source of financial contribution to the development of independently-produced Canadian programming;

Whereas pay-per-view television programming undertakings should operate through licensing in a dynamically competitive market, subject to appropriate requirements, including their contribution to the development of programming, in order to provide to their subscribers, in competition with each other, the widest range of Canadian and foreign feature films and other programming;

Whereas the Canadian Radio-television and Telecommunications Commission should not refuse to issue a DTH pay-per-view television programming undertaking licence on the basis of a concern for economic viability;

Whereas the contribution of DTH pay-per-view television programming undertakings should include a financial contribution of more than five per cent of gross annual revenues to the production of Canadian programming;

Whereas the Canadian Radio-television and Telecommunications Commission should ensure the continuing integrity of the Canadian broadcasting system through implementation of the broadcasting policy set out in subsection 3(1) of the Broadcasting ActFootnote *;

Whereas, in accordance with subsection 7(6) of the Broadcasting ActFootnote *, the Minister of Communications has consulted with the Canadian Radio-television and Telecommunications Commission;

Whereas, in accordance with paragraph 8(1)(a) of the Broadcasting ActFootnote *, notice of the proposed Order issuing directions to the Canadian Radio-television and Telecommunications Commission respecting policy for the licensing of pay-per-view television programming undertakings that provide services through Direct-to-Home (DTH) Satellite Distribution Undertakings, substantially in the form annexed hereto, was published in the Canada Gazette Part I on April 29, 1995 and interested persons were invited to make representations to the Minister of Communications with respect to the proposed Order;

And Whereas, in accordance with paragraph 8(1)(b) of the Broadcasting ActFootnote *, a copy of the proposed Order was laid before each House of Parliament and forty sitting days of Parliament have since expired;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Communications, pursuant to section 7 and subsection 8(3) of the Broadcasting ActFootnote *, is pleased hereby to make the annexed Order issuing directions to the Canadian Radio-television and Telecommunications Commission respecting policy for the licensing of pay-per-view television programming undertakings that provide services through Direct-to-Home (DTH) Satellite Distribution Undertakings.

Short Title

 This Order may be cited as the Directions to the CRTC (Direct-to-Home (DTH) Pay-Per-View Television Programming Undertakings) Order.

Interpretation

 In this Order,

CRTC

CRTC means the Canadian Radio-television and Telecommunications Commission; (CRTC)

DTH distribution undertaking

DTH distribution undertaking means a Direct-to-Home (DTH) Satellite Distribution Undertaking; (entreprise de distribution par SRD)

DTH pay-per-view television programming undertaking

DTH pay-per-view television programming undertaking means a pay-per-view television programming undertaking licensed to provide pay-per-view services for distribution to subscribers through a licensed DTH distribution undertaking; (entreprise de programmation de télévision à la carte par SRD)

other pay-per-view television programming undertakings

other pay-per-view television programming undertakings means pay-per-view television programming undertakings that provide pay-per-view television programming via satellite to cable affiliates; (autres entreprises de programmation de télévision à la carte)

pay-per-view television programming undertaking

pay-per-view television programming undertaking means a pay television programming undertaking that provides a pay-per-view service. (entreprise de programmation de télévision à la carte)

Directions

 The CRTC is directed to promote, through licensing, a dynamically competitive market for DTH pay-per-view television programming undertakings.

 The CRTC is directed to establish a class of licences in respect of the carrying on of DTH pay-per-view television programming undertakings.

 The CRTC is directed, in the exercise of its powers in respect of the carrying on of a DTH pay-per-view television programming undertaking,

  • (a) to prohibit, by appropriate means, the undertaking from acquiring exclusive or other preferential rights to pay-per-view distribution of feature films and other programming within Canada;

  • (b) to ensure that the undertaking is subject to equitable obligations and makes maximum contributions to Canadian programming, including a significant financial contribution derived from a percentage of gross annual revenues to the production of Canadian programming, and that the financial contribution is administered independently of the undertaking;

  • (c) taking into consideration the total number of channels over which the undertaking’s service is offered, to apply rules that are comparable or equivalent to those rules in effect in respect of other pay-per-view television programming undertakings and that pertain to the annual exhibition ratios of Canadian to foreign films and events, the annual minimum numbers of Canadian films and events to be exhibited and the remittances to be paid by the undertaking to rights holders for the Canadian films and events it exhibits;

  • (d) to require the undertaking to be subject to the same generally applicable Canadian policy as other broadcasting undertakings in respect of the use of Canadian and foreign satellite facilities;

  • (e) not to refuse to issue a licence to an applicant for the sole reason that the applicant proposes to use foreign satellites for the distribution of non-Canadian programming to subscribers through a DTH distribution undertaking, provided that such use is consistent with generally applicable Canadian satellite policy; and

  • (f) not to refuse to issue a licence to an applicant for the sole reason that the applicant holds a licence to carry on a DTH distribution undertaking.

 The CRTC is directed

  • (a) not to authorize any person or class of persons to carry on a DTH pay-per-view television programming undertaking other than by means of a licence issued by the CRTC for that purpose; and

  • (b) to call, immediately on the coming into force of this Order, for licence applications to carry on English-language DTH pay-per-view television programming undertakings and for licence applications to carry on French-language DTH pay-per-view television programming undertakings and, thereafter, to complete the licensing processes in respect of those applications concurrently with the licensing process for DTH distribution undertakings referred to in section 7 of the Directions to the CRTC (Direct-to-Home (DTH) Satellite Distribution Undertakings) Order.

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