Vol. 149, No. 24 — December 2, 2015

Registration

SOR/2015-239 November 19, 2015

BROADCASTING ACT

Regulations Amending the Broadcasting Distribution Regulations

Whereas, pursuant to subsection 10(3) of the Broadcasting Act (see footnote a), a copy of the proposed Regulations Amending the Broadcasting Distribution Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on July 18, 2015 and a reasonable opportunity was given to licensees and other interested persons to make representations to the Canadian Radio-television and Telecommunications Commission with respect to the proposed Regulations;

Therefore, the Canadian Radio-television and Telecommunications Commission, pursuant to subsection 10(1) of the Broadcasting Act (see footnote b), makes the annexed Regulations Amending the Broadcasting Distribution Regulations.

Gatineau, November 17, 2015

DANIELLE MAY-CUCONATO
Secretary General
Canadian Radio-television and
Telecommunications Commission

REGULATIONS AMENDING THE BROADCASTING DISTRIBUTION REGULATIONS

AMENDMENTS

1. (1) The definitions “Category B service”, “ethnic Category A service”, “exempt Category B service”, “exempt third-language service” and “Local Programming Improvement Fund” in section 1 of the Broadcasting Distribution Regulations (see footnote 1) are repealed.

(2) The definitions “basic service”, “Category A service”, “discretionary service” and “licence” in section 1 of the Regulations are replaced by the following:

“basic service” means a package of programming services that is distributed by a licensee in a licensed area for a single fee and that consists of

“Category A service” means

“discretionary service” means a programming service that is not included in basic service, other than

“licence” means

(3) Paragraph (b) of the definition “Category C service” in section 1 of the Regulations is replaced by the following:

(4) Paragraph (a) of the definition “high definition version” in section 1 of the Regulations is replaced by the following:

(5) Section 1 of the Regulations is amended by adding the following in alphabetical order:

“discretionary basis” means, in respect of the distribution of a programming service, its distribution as other than part of the basic service or the first-tier offering for a fee that is in addition to that charged for the basic service or the first-tier offering. (base facultative)

“exempt discretionary service” means a discretionary service that is offered by an exempt programming undertaking that meets the criteria set out in the appendix to Broadcasting Order CRTC 2015-88, dated March 12, 2015 and entitled Exemption order respecting discretionary television programming undertakings serving fewer than 200,000 subscribers, as amended from time to time. (service facultatif exempté)

“exempt programming service” means a programming service that is offered by an exempt programming undertaking. (service de programmation exempté)

“first-tier offering” means a package of programming services that is distributed by a licensee in a licensed area for a single fee and that consists of

“on-demand service” means a pay-per-view service, a video-on-demand service or any other programming service that provides programs that are accessed individually at the request of a subscriber. (service sur demande)

2. The Regulations are amended by adding the following after section 4:

OFFER OF BASIC SERVICE

4.1 Except as otherwise provided under a condition of its licence, a licensee shall offer its basic service to its subscribers and to prospective subscribers.

3. Section 5 of the Regulations is replaced by the following:

5. Except as otherwise provided under a condition of its licence or these Regulations, a licensee shall provide a subscriber with its basic service or, if offered, its first-tier offering, if it provides the subscriber with a programming service other than

4. (1) Subsection 6(1) of the Regulations is replaced by the following:

6. (1) Except as otherwise provided under a condition of its licence, a licensee shall ensure, in respect of each of analog and digital technology, that a majority of each of the video and audio programming services that are offered to a subscriber are devoted to the distribution of Canadian programming services.

(2) Subsection 6(2) of the Regulations is amended by adding “and” at the end of paragraph (a) and by replacing paragraphs (b) to (d) with the following:

(3) Paragraphs 6(3)(b) and (c) of the Regulations are replaced by the following:

5. The Regulations are amended by adding the following after section 7.2:

ACCESSIBILITY OF PROGRAMMING

7.3 Except as otherwise provided under a condition of its licence, a licensee shall make available to its subscribers such equipment, software or other technology that will allow any individual who is blind, visually impaired or who has fine motor skills disabilities to identify and have access to its programming services — including programs with described video — if that equipment, software or other technology is available for purchase by the licensee and is compatible with its distribution system.

6. The portion of subsection 9.1(2) of the Regulations before paragraph (a) is replaced by the following:

(2) A licensee that is distributing an exempt discretionary service of an exempt programming undertaking or that is negotiating terms of carriage with an exempt programming undertaking for an exempt discretionary service, including any new programming service that is an exempt discretionary service, shall sign and provide to the operator of the exempt programming undertaking an agreement that

7. The heading before section 17 of the Regulations is replaced by the following:

BASIC SERVICE

16.1 Except as otherwise provided under a condition of its licence, a licensee shall not distribute as part of its basic service any programming services other than those referred to in section 17.

8. (1) Paragraph 17(2)(b) of the Regulations is replaced by the following:

(2) Section 17 of the Regulations is amended by adding the following after subsection (5):

(6) Except as otherwise provided under a condition of its licence, a licensee may, in addition to the programming services required under subsections (1) to (5), distribute the following services as part of its basic service in the licensed area:

(7) A licensee that distributes a programming service under this section may also distribute the high definition version of that programming service.

9. The Regulations are amended by adding the following after section 17:

17.1 Except as otherwise provided under a condition of its licence, a licensee shall not charge a customer more than $25 per month for the distribution of its basic service.

FIRST-TIER OFFERING

17.2 Except as otherwise provided under a condition of its licence, a licensee may offer its first-tier offering to its subscribers and prospective subscribers.

17.3 (1) Except as otherwise provided under a condition of its licence, if a licensee offers a first-tier offering it shall distribute the following services in each licensed area as part of that offering:

(2) Except as otherwise provided under a condition of its licence, a licensee may, in addition to the programming services required under subsection (1), distribute as part of the first-tier offering in the licensed area any non-Canadian programming service that may be distributed under subsection 17(6).

10. (1) Subsection 18(1) of the Regulations is replaced by the following:

18. (1) The following definitions apply in this section.

“ethnic Category A service” means, in respect of a licence that was issued before March 12, 2015, a programming service that is designated as an ethnic Category A service by the Commission or named in paragraph 138 of Broadcasting Public Notice CRTC 2008-100, dated October 30, 2008 and entitled Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services. (service ethnique de catégorie A)

“general interest television pay-per-view service” means a television pay-per-view service whose programming is selected — unrestricted by any condition of licence — from any of the categories set out in item 6, column I, of Schedule I to the Pay Television Regulations, 1990 (service de télévision à la carte d’intérêt général)

(2) Subparagraph 18(2)(a)(iii) of the Regulations is replaced by the following:

(3) Subparagraph 18(2)(b)(iii) of the Regulations is replaced by the following:

(4) Paragraph 18(3)(a) of the Regulations is replaced by the following:

11. (1) The definition “exempt distribution undertaking” in subsection 19(1) of the Regulations is replaced by the following:

“exempt distribution undertaking” means a distribution undertaking the operator of which is exempt under Broadcasting Order CRTC 2014-445, dated August 29, 2014 and entitled Terms and conditions of the exemption order for terrestrial broadcasting distribution undertakings serving fewer than 20,000 subscribers, as amended from time to time. (entreprise de distribution exemptée)

(2) Subsections 19(2) to (4) of the Regulations are replaced by the following:

(2) For the purposes of subsection (3), the definition “discretionary service” in section 1 does not include any of the following:

(3) Except as otherwise provided under a condition of its licence, a licensee shall distribute in its licensed area

(3) Subsection 19(6) of the Regulations is replaced by the following:

(6) Subsection (5) does not apply to the distribution of an exempt discretionary service of a related exempt programming undertaking.

12. (1) The portion of subsection 20(1) of the Regulations before paragraph (a) is replaced by the following:

20. (1) Except as otherwise provided under a condition of its licence, a licensee may, in addition to the programming services required under sections 17 to 19, distribute in its licensed area

(2) Paragraphs 20(1)(b) and (c) of the Regulations are replaced by the following:

(3) Paragraph 20(1)(i) of the Regulations is replaced by the following:

13. Sections 23 to 27 of the Regulations are replaced by the following:

23. (1) Except as otherwise provided under a condition of its licence, all discretionary services offered by a licensee in a licensed area shall be offered as follows:

(2) In addition to the packages required under subsection (1), a licensee may offer any programming services that are not distributed as part of its basic service in packages of more than 10 programming services.

(3) For the purposes of subsections (1) and (2), the licensee may offer either or both of the following:

(4) Except as otherwise provided under a condition of its licence or these Regulations, a licensee shall not, on or after December 1, 2016, distribute a programming service or package of programming services such that, in order to obtain that service or package, a subscriber is required to subscribe to an additional programming service or package of programming services.

24. Except as otherwise provided under a condition of its licence or these Regulations, a licensee may only distribute an authorized non-Canadian programming service on a discretionary basis.

25. (1) Except as otherwise provided under a condition of its licence, a licensee shall not distribute an adult programming service in a package such that a subscriber is required to subscribe to that service in order to obtain any other programming service.

(2) A licensee that distributes an adult programming service shall fully block the reception of both the audio and video portions of the service to subscribers who request that they not receive the service in either unscrambled or scrambled mode.

26. (1) Except as otherwise provided under a condition of its licence, a licensee may only distribute the following programming services on a discretionary basis:

(2) Except as otherwise provided under a condition of its licence, a licensee shall not distribute a programming service referred to in subsection (1) in a package of programming services that is chosen by the licensee unless all of the services in the package are those referred to in that subsection and they are distributed on a discretionary basis.

27. (1) In this section, “principal language” means a language in which 40% or more of the programming of a programming service is provided over the course of a broadcast week.

(2) For the purposes of this section, the definition “thirdlanguage service” in section 1 includes a programming service that is named in paragraph 138 of Broadcasting Public Notice CRTC 2008-100, dated October 30, 2008 and entitled Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services.

(3) Except as otherwise provided under a condition of its licence, a licensee shall, for each non-Canadian third-language service that it offers to its subscribers, offer — to the extent that such a service is available — at least one Canadian third-language service in the same principal language.

(4) Except as otherwise provided under a condition of its licence, a licensee shall, for each non-Canadian third-language service that it distributes to its subscribers as part of a package of programming services that is chosen by the licensee, distribute in that package — to the extent that such a service is available — at least one Canadian third-language service in the same principal language.

14. Subsection 30(3) of the Regulations is replaced by the following:

(3) A maximum of 25% of the time for promotional announcements broadcast in each broadcast week under paragraph (1)(b) may be made available for the promotion of the services of related programming undertakings, services distributed on a discretionary basis, packages of programming services, FM services and additional outlets and for the distribution of information on customer services and channel realignments.

15. Section 35 of the Regulations is repealed.

16. Subsections 36(1) and (2) of the Regulations are replaced by the following:

36. (1) A licensee shall calculate the contribution that it is required to make under section 34 on the basis of its gross revenues derived from broadcasting activities in the previous broadcast year.

(2) The contribution shall be made by the licensee in 12 equal monthly instalments during the broadcast year, with an instalment being made on or before the last day of each month.

17. Section 37 of the Regulations is replaced by the following:

37. If, as a result of the calculation performed under subsection 36(1), the contribution made by a licensee for a broadcast year is greater than the amount required under section 34, the licensee may deduct the excess from the amount of the contribution that is required for the subsequent broadcast year; however, if it is less than the amount required, the licensee shall make the balance of the contribution by December 31 of the subsequent broadcast year.

18. The portion of subsection 41(1) of the Regulations before paragraph (a) is replaced by the following:

41. (1) Except as otherwise provided under a condition of its licence or in subsections 17(3) and (4), a licensee that distributes programming services on an analog basis in a licensed area shall distribute the following as part of its analog basic service in the licensed area in the following order of priority:

19. Section 45 of the Regulations is replaced by the following:

45. Except as otherwise provided under a condition of licence, this Part and sections 19 and 23 to 29 apply to licensees that hold a licence to operate a DTH distribution undertaking.

20. The heading before section 46 of the Regulations is replaced by the following:

BASIC SERVICE

45.1 Except as otherwise provided under a condition of its licence, a licensee shall not distribute as part of its basic service any programming services other than those that are referred to in section 46.

21. Section 46 of the Regulations is amended by adding the following after subsection (7):

(8) Except as otherwise provided under a condition of its licence, a licensee may, in addition to the programming services required under subsections (2) to (7), distribute to a subscriber as part of its basic service

(9) A licensee that distributes a programming service under this section may also distribute the high definition version of that programming service.

22. The Regulations are amended by adding the following after section 46:

46.1 Except as otherwise provided under a condition of its licence, a licensee shall not charge a customer more than $25 per month for the distribution of its basic service.

FIRST-TIER OFFERING

46.2 Except as otherwise provided under a condition of its licence, a licensee may offer its first-tier offering to its subscribers and prospective subscribers.

46.3 (1) Except as otherwise provided under a condition of its licence, if a licensee offers a first-tier offering it shall distribute the following services as part of that offering:

(2) Except as otherwise provided under a condition of its licence, a licensee may, in addition to the programming services required under subsection (1), distribute as part of the first-tier offering in the licensed area any non-Canadian programming service that may be distributed under subsection 46(8).

23. Subsection 47(2) of the Regulations is amended by adding the following after paragraph (a):

24. (1) Subsection 52(1) of the Regulations is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c).

(2) Subsection 52(2) of the Regulations is repealed.

25. Subsection 54(2) of the Regulations is repealed.

26. The schedule to the Regulations is replaced by the schedule set out in the schedule to these Regulations.

COMING INTO FORCE

27. (1) These Regulations, except for section 5, come into force on March 1, 2016.

(2) Section 5 comes into force on December 1, 2015.

SCHEDULE
(Section 26)

SCHEDULE
(Section 1)

MAJOR OWNERSHIP GROUPS
Item Group
1. Shaw Media Inc.
2. Bell Media Inc.
3. Quebecor Media Inc.
4. Remstar Broadcasting Inc.
5. Rogers Media Inc.

EXPLANATORY NOTE

(This note is not part of the Regulations.)

These amendments to the Broadcasting Distribution Regulations implement several policy determinations of the Canadian Radio-television and Telecommunications Commission (the Commission) arising from the “Let’s Talk TV” process and as set out in Broadcasting Regulatory Policy 2015-86, Broadcasting Regulatory Policy 2015-96 and Broadcasting Regulatory Policy 2015-104. These include the Commission’s policy determinations regarding basic service and packaging requirements, genre protection and access rights, accessibility and streamlining of the licensing process.