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Public Notice
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Ottawa, 23 July 1998 |
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Public Notice CRTC 1998-73 |
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Amendments to the Commission's Policy concerning the distribution of free
previews of Pay Television and Specialty Programming during major national
broadcasting rating periods
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1. In Public Notice
CRTC 1998-11 dated 11 February
1998, the Commission called for comments on its policy prohibiting the
distribution of free previews of pay television and specialty programming
during major national broadcasting rating periods. |
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BACKGROUND |
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2. The original policy, set out in Public
Notice CRTC 1987-203, includes
the following principal restrictions on the distribution of unscrambled
previews of pay and specialty programming network services: |
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· the previews may not be exhibited during
major national broadcasting rating periods such as those conducted by BBM and
Nielsen; |
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· programming distributed during these periods
may only consist of programs that are part of the pay television or specialty
programming services actually offered to subscribers; |
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· the scheduling and content of such
programming must meet the same standards that currently apply to conventional
broadcasters; |
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· the distribution of such previews may not
cause the removal of any Canadian service that is currently being offered;
and |
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· the previews may be distributed on the
channels normally used to distribute the Canadian pay television or specialty
programming services or on any other special programming or currently unused
channel, other than the community channel or the special programming channel
used for the distribution of promotional material (more commonly known as the
Barker channel). |
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3. The Commission issued Public Notice
CRTC 1998-11 in response to a
complaint to the effect that, contrary to the policy, free previews were
being distributed during a major rating period during the launch of new
services in the Fall of 1997. The notice recognized the concern expressed by
the complainant about the impact of free previews on viewing behaviour, and,
ultimately, on the purchasing decisions of television advertisers. |
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4. In that notice, the Commission also noted
that the policy had been in place for 10 years without benefit of review, and
recognized the importance placed on the infrequent use of free previews by
the licensees of new specialty services as well as by the operators of
broadcasting distribution undertakings (BDUs). |
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5. Finally, it noted both the common practice
in the television industry of scheduling popular movies and specials during
rating periods, as well as the significant recent changes within the Canadian
broadcasting system. |
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Comments Received |
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6. In response to the public notice, the
Commission received ten submissions from cable operators, private
broadcasters, industry associations and other interested parties. |
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7. Some parties preferred to amend the policy
by allowing previews to be exhibited during major national broadcasting
rating periods. In general, these parties stressed the importance of free
previews in the marketing of new services, and noted that such previews occur
infrequently. In addition, several parties commented that methods of
surveying have changed since the policy was introduced and the prohibition is
no longer appropriate. |
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8. Other comments favoured the retention of the
policy, either in its current form, or with a specific exception for the
launch of pay and specialty services. |
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9. Those favouring retention of the current
policy generally noted the potential for distortions in audience data as a
result of free previews distributed during major rating periods and the
importance of this data to advertising buying decisions. Parties in favour of
retaining the policy argued that these distortions affect the ability to
attract advertising revenue, and are not corrected in markets lacking
continuous measurement. The result is that broadcasters and buyers alike must
use anomalous data until the next survey is published. |
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Conclusion |
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10. The original policy was developed in
response to concern for the impact on television licensees' ratings that even
the infrequent distribution of free previews could have. However, the
Commission also has a long-standing practice of providing, to the extent
possible, support for the successful launch of new pay and specialty services
it has licensed. |
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11. The Commission recognizes that television
stations need an accurate measurement of their audiences, and that previews
broadcast during national rating periods tend to distort such measurement. At
the same time, however, the Commission recognizes the importance of allowing
BDUs to market new services in a manner that will ensure that potential
subscribers are exposed to them. |
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12. The Commission's conclusion reflects a
balance of these competing concerns. After careful consideration of the
issues raised by all parties, the Commission: |
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a) In general reiterates its policy prohibiting
the distribution of free previews of pay television and specialty programming
during major national broadcasting rating periods contained in Public Notice
CRTC 1987-203. |
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b) However, free previews of pay television and
specialty programming during major national rating periods will be permitted,
but only in respect of the initial launch of newly-licensed pay television or
specialty services. |
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Laura M. Talbot-Allan
Secretary General |
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This document is available in alternative
format upon request. |