ARCHIVED - Broadcasting Commission Letter addressed to Stephen Waddell (Alliance of Canadian Cinema, Television and Radio Artists)
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Ottawa, 25 March 2015
Our Reference: 698111
By email
Stephen Waddell
National Executive Director
Alliance of Canadian Cinema, Television and Radio Artists
national@actra.ca
Re: Simultaneous substitution decision
Dear Mr. Waddell,
This is in response to your correspondence of 26 February 2015, wherein you recommended the Commission reverse its decision on simultaneous substitution and restore Canada’s simultaneous substitution regime in full.
I note that the decision in question was reached following an extensive public proceeding that examined many options with respect to simultaneous substitution including its elimination during live events or its complete elimination. The Commission heard from many stakeholders including artists, who are an important component of, and contributor to, the broadcasting system.
The Commission did hear testimony during the proceeding regarding the value and importance of simultaneous substitution to broadcasting undertakings, program producers and actors, including from the Alliance of Canadian Cinema, Television and Radio Artists. For the most part, the Commission agreed with your perspective that simultaneous substitution should be maintained, despite it being a major exception to the fundamental rule that broadcasting distribution undertakings, as common carriers, should not alter the content of a programming service.
It also heard, however, many Canadians express their frustrations triggered by improperly executed substitutions that caused them to miss portions of programs. Canadians also complained of missing the American ads during the Super Bowl, which they consider to be an integral part of the event.
I note that in a study submitted by Armstrong Consulting for the Let’s Talk TV proceeding entitled, The Economic Value of Simultaneous Signal Substitution for English-Language Private Television Broadcasters, it is estimated that for the 2012/2013 broadcasting year, simultaneous substitution accounted for 9.7 million average weekly viewing hours. With regard to specialty channels, no evidence was provided demonstrating the importance of simultaneous substitution.
The Super Bowl, which is approximately three hours in length, represents an extremely small fraction of the total substitution hours available during the year. As submitted by several parties during the Let’s Talk TV proceeding, the importation of non-Canadian programming to our system is one of the reasons why some consumers subscribe to broadcasting distribution undertakings (BDUs). In this regard, during the 2013-2014 broadcasting year, BDUs contributed over $230 million out of approximately $350 million received by the CMF, which resulted in over $1.2 billion in production activity. Enticing Canadians to continue to subscribe to BDU services is conducive to the achievement of the objectives of the broadcasting policy of the Broadcasting Act: it serves the needs and interests of Canadians; and serves to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada.
The Commission considered all of the evidence and submissions put before it, in that public proceeding. The decisions taken represent a balanced approach to addressing all issues and views presented.
Sincerely,
Original signed by
Scott Hutton
Executive director, Broadcasting
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