APTN, TV5/UNIS TV and Weather Networks all renewed
GATINEAU – On the day before the expiry of their licences, the CRTC renewed the must-carry status of the Aboriginal People Television Network (APTN), TV5/UNIS TV and Pelmorex’s The Weather Network/MétéoMédia (TWN/MM) channels.
APTN had requested to lower the obligation of Canadian content from 75% to 70% to showcase more non-Canadian aboriginal content and lowering obligation to purchase less content from independent producers from 80% to 75%, in line with other broadcasters but was denied by the CRTC. However, the Commission granted it a four-cent monthly rate increase to bring it to $0.35 per subscriber per month not the $0.05 increase it had asked for. “Taking into account historical trends in BDU subscriber numbers and programming costs, the Commission has examined the applicant’s financial projections and assumptions and agrees that a rate increase of $0.04 is sufficient for APTN to maintain its current programming,” says the decision.
The weather channels’ request that their level of Canadian content be lowered from 100% to 90% was accepted by the CRTC but the Commission thought it also appropriate to lower the monthly rate it can charge BDUs by a penny from $0.23 to $0.22/sub/mo. Some at the hearing had questioned the logic of having a mandatory distribution status for a company that deals with commodity information available from many providers – and is also highly profitable, with an average PBIT greater than the industry average.
“Further, unlike other 9(1)(h) services which generally depend almost exclusively on subscriber revenues resulting from mandatory distribution for their viability, TWN/MM’s projections show that it expects to generate significant advertising revenues through its online digital services, which will allow it to mitigate risks associated with declining BDU subscribership of its broadcasting service,” reads the decision.
That said, Pelmorex did create and currently operates Canada’s only national public alerting system and its must-carry status hinges on the fact it was the only broadcaster or carrier to heed the CRTC’s call more than 10 years ago to build such a needed service – and it earned 9(1)(h) because of it.
Finally, the Commission denied Pelmorex’s requests to amend the mandatory distribution order for TWN/MM to require its distribution in both standard definition and high definition formats, to require BDUs to distribute both the English- and French-language feeds of TWN/MM on the basic service in bilingual markets and for genre protection for TWN/MM regarding weather news.
“Unfortunately, today’s rate reductions will make that more difficult.” – Maureen Rogers, Pelmorex
In an email statement, Maureen Rogers, CEO of Pelmorex Television Networks and managing director, editorial and public alerting, said: “Remaining on basic TV service is a rare distinction and an affirmation of the strong relationship between Pelmorex and Canadians as the provider of reliable weather and public safety service information.
“Pelmorex is always looking ahead for new and innovative ways to deliver our services to Canadians to provide them with the most accurate and reliable weather information and alerts to help them plan and keep them safe. Unfortunately, today’s rate reductions will make that more difficult. We are in the midst of understanding how these changes will affect our business.”
The TV5/UNIS TV decision is less dramatic – as was it appearance at the hearing. It was mostly renewed under the same conditions with a slight exception. The licensee will receive a 50% credit towards its Canadian Programming Expenditures (CPE) requirements for content produced by Indigenous producers, up to a maximum (expenses plus credit) of 10% of the licensee’s overall CPE requirement. It will have the same monthly wholesale rates per subscriber as those currently in effect, that is, $0.28 in French-language markets and $0.24 in English-language markets.
These decisions followed a process including a hearing held on 30 April 2018, in Gatineau.
This the end of a hectic few weeks for the decision writing as well as the radio and television people at the Commission. You can take the weekend off now! We almost forgot the Communications people…
