How the CRTC spoiled my Super Bowl

Some hardcore NFL fans may believe the SuperBowl is all about the football game played out on the field. But if that was truly the case, the event wouldn`t be so highly rated. Its broader popularity is also traceable to two other factors. First, the pre-game and halftime entertainment. And second, the original ads that sponsors pay a fortune to unveil during the time-outs. If you doubt me, consider that everyone still remembers the Justin Timberlake - Janet Jackson half-time show wardrobe malfunction episode while few remember the teams that played (let alone the score) in that same game!

In recent years, Canadian viewers have been deprived of the opportunity to access the splashy bid budget TV ads that run on the US TV network broadcasting the game because of a draconian government regulator`s futile attempts to protect Canadian culture. Under regulations established by the CRTC, Canadian cable and satellite TV signal distributors are required to substitute the local Canadian TV stations signal for the US network`s signal when both channels offer the same programming. The theory behind this ``simultaneous substitution`` policy is to maximize Canadian broadcasters' audiences to boost advertising revenues. The hope is that increased broadcaster revenues will provide more funds to invest in production of Canadian programming. Our government believes Canadian artists and technicians would starve without this cultural policy advantage.

The irony is that CTV relegated the Grey Cup (Canada's national football championship) to its sister cabler (TSN )this year but carried the Super Bowl (the USA's national pro football championship) on its main network network (with greater audience reach). That hardly promotes Canadian culture!

In the days before cable and satellite transmission, the CRTC was largely powerless to promote this form of cultural protectionism since viewers could simply pull the US border station signals out of the air with their own antennae or set-top rabbit ears. Today, Canadians with illegal "grey market" satellite dishes can still evade the simultaneous substitution rule too. Ditto those who take off to points south of the border in order to watch. So a compelling argument might be made that this policy encourages signal theft and drives hospitality-tourism dollars out of Canada!

There was also some controversy this year about whether Quebec based cable systems operated by Quebecor Videotron (QV) would provide a US HD feed. QV had argued that because CTV does not usually provide a HD signal in those local markets, due to a loophole in the CRTC policy, they would not be required to signal substitute for the HD NBC signal they usually carry. CTV replied by issuing a press release indicating that they intended to make their HD signal available to cable companies in those Quebec markets. However, according to a report in today`s Gazette, the QV CATV in the Montreal area did not comply by substituting the CTV signal in place of the NBC feed. So Montrealers got what Torontonians were deprived. What a reversal of fortune!

Some may suggest that this is a big non-issue in the age of the internet since the original ads are available via the web. This ignores the fact that the ads are a vital and integral part of the Super Bowl telecast. Watching them outside of the context of the live game broadcast is a poor substitute for the real thing. Likewise, the quality of most streaming web video does not simulate the digital broadcast HD TV signal quality well.

Lets hoping this inequity (which penalizes Canadian viewers) gets resolved by this time next year. The CRTC politburo needs an exemption policy for live special events of foreign origin. The original ads cannot continue to be classified for American and Quebecers`eyes only!

The sad reality is that if CTV overpays for the rights to a US event and is unable to recover the costs in advertising revenues without the CRTC running interference, the additional red ink will just be a drop in the bucket of swirling interest charges servicing the debt they took on to pay an inflated price to acquire CITY TV. A CRTC policy that allows CTV to overpay for their M&A plays and the the Super Bowl rights, while relegating the Grey Cup to its B network and cancelling this Summer`s run of Canadian Idol, is clearly not working as intended.