Information
January 30th, 2004
Signal substitution, protecting the Canadian broadcasting
industry
If I'm watching an American program (such as the Super Bowl) why don't I get
to see the American ads?
- A Canadian broadcaster has purchased the rights to air the programming in
Canada;
- U.S. advertisers may have opted not to purchase Canadian air time; and
- CRTC rules protect the rights purchased by a Canadian broadcaster to air a
particular program in the market, so that the broadcaster can maximize the
benefits associated with having these rights, without having to compete with
distant broadcasters who have not purchased the rights for that market.
What does this mean for me as a viewer?
It means that if the program that you are watching is scheduled to air at the
same time on both a local Canadian station and an American station, you will see
the Canadian signal on both of these channels. You will see the entire program,
with the Canadian advertisements that the Canadian broadcaster has sold.
In other words, the only distinction between the two signals is that you may
see different commercials than a viewer in the U.S.
This is known as signal substitution.
How is signal substitution done?
For substitution to take place, a local or regional Canadian TV station makes
a request to the cable company in advance to substitute its signal.
When the program airs, the cable company will play the local Canadian signal
on both the Canadian and the distant channel at the same time.
Signal substitution has been part of the CRTC's cable regulations for many
years and applies generally to larger cable systems with 6,000 or more
subscribers.
In the U.S., broadcasters have adopted a different approach for the same
reasons. In the U.S., the distant signal is blacked out or deleted.
What does this mean for the broadcaster?
When a broadcaster buys programming from an American (or Canadian) producer or
network, they pay substantial sums of money to have the exclusive right to air
the programming in their home markets.
The simultaneous substitution regulation is designed to protect the property
rights of both the broadcasters and the advertisers because it allows for the
full exploitation of program rights purchased by local broadcasters.
What does this mean for the Canadian broadcasting industry?
The use of simultaneous substitution means that more Canadians are watching
Canadian stations, thus strengthening our broadcasting system as a whole. Over
the years it has ensured that millions of dollars stay in the Canadian
broadcasting system because broadcasters are able to attract larger audiences and
thus justify increased rates for advertisements.
With these increased revenues, Canadian broadcasters have a greater ability to
make a financial contribution to the funding and production of Canadian
television and to purchase quality programming.
Why not include U.S. advertising as part of the signal?
Since private TV stations in Canada earn most of their revenue from
advertising, the amount of business they get and the rates they charge depend on
the size of their audiences. Without the protection given by the substitution
rule, the audiences for any particular program would be split among several
stations. With substitution, the local and regional Canadian stations maintain
their home audiences.
However in some cases, U.S. advertisers do choose to advertise in Canada, and
do purchase air time from Canadian stations.
Why would American companies not want to advertise in Canada?
There are a variety of reasons why a U.S. advertiser might not want to buy air
time in Canada. For example, the product for which they are advertising may not
be available in Canada, or it may not be profitable for them to have to produce
an ad that is designed for a Canadian market. They may also have a Canadian
sister company that has already negotiated exclusive rights to advertise in
Canada.
Why are there so many ads when I watch American programs?
In Canada broadcasters may air up to 12 minutes of advertisements per
broadcast hour. In the U.S., advertising minutes are unregulated. In general most
American broadcasters will air up to 16 minutes of advertising per broadcast
hour.
In order to fill the gap, Canadian broadcasters generally use this time to
promote Canadian productions or to air public service announcements.
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Media Relations:
MediaRelations@crtc.gc.ca,
Tel: (819) 997-9403, Fax: (819) 997-4245
General Inquiries:
Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
Toll-free # 1-877-249-CRTC (2782), eMail:
info@crtc.gc.ca
TDD - Toll-free # 1-877-909-2782
Date Modified: 2004-01-30 |
