Multichannel television in Canada

Multichannel television in Canada

Many Canadians now receive their television service through some sort of multichannel television platform, such as cable television or satellite television, as opposed to an antenna-based system providing only conventional stations[citation needed]. While the technical details of these platforms differ, the governing Canadian Radio-television and Telecommunications Commission (CRTC) regulations are similar for all providers.

Contents

Platforms

There are two main multichannel distribution platforms in Canada. The first, and by far the largest, is cable television, the other being satellite television. MMDS and low-power broadcast subscription channels are available in some markets.

Cable television

History

In 1949, Broadcast Relay Service began negotiations for the implementation of what was to be the first large scale cable TV system in North America. The development of the system relied on reaching agreement with Quebec Hydro-Electric Commission to utilise their existing network of power poles supplying power to the Montreal Metro area. Initial discussions began with a meeting with Montreal City Council on June 21, 1949. After many months of negotiation, agreement was reached between Hydro Quebec and Rediffusion Inc. on February 28, 1950 for an initial 5 year period. The Rediffusion cable system was operational in 1952 and eventually supplied 80,000 homes in Montreal Quebec.

Cable television in Canada began in 1952 with community antenna connections in Vancouver and London; which city is first is not clear. Initially, the systems brought American stations to viewers in Canada who had no Canadian stations to watch; broadcast television, though begun late in 1952 in Toronto and Montreal, did not reach a majority of cities until 1954.

In time, cable television was widely established to carry available Canadian stations as well as import American stations, which constituted the vast majority of signals on systems (usually only one or two Canadian stations, while some systems had duplicate or even triplicate coverage of American networks). During the 1970s, a growing number of Canadian stations pushed American channels off the systems, forcing several to expand beyond the original 12-channel system configurations. At the same time, the advent of fibre-optic technology enabled companies to extend their systems to nearby towns and villages that by themselves were not viable cable television markets. In 1977-78, regional cable services such Telecable and Cable Regina in Saskatchewan began to emerge, offering access to American networks for the first time, though a third system, CPN, which offered specialty channels such as HBO, failed after two years.

Specialty television channels available only on cable began to be established in 1983, and systems continued to expand and upgrade their channel capacity, notably by deploying fibre-optics to carry signals as far as neighbourhoods before converting to coaxial cable for the final run to the customer premises. The use of Fibre Optic cables as far back as the 1970s does not imply that Cable companies were using digital methods to transmit signals as is sometimes assumed by the modern viewer. This is a common misunderstanding very similar to the misunderstood belief that LaserDisc was a digital format, which it isn't. Methods were developed and deployed as far back as the 1970s to transmit analog video using frequency division multiplexing via fibre-optic cabling. Digital signaling is a much more modern practice which only began in the early 2000s. Two-way capabilities were introduced, and larger systems were able to use "addressable" descramblers to offer pay-TV and different tiers of channels.

Cable television began to face serious competition from DTH satellite services in the late 1990s. Telephone companies and cable television companies have since been permitted, in most parts of Canada, to compete to provide services originally provided by the other. Cable television services are not the prime providers of broadband Internet in Canada, but they are a very strong competitor for the service.

During the early 1970s, Canadian television stations obtained regulatory rulings that required cable television operators to substitute their signals for distant (usually American) stations carrying the same television program at the same time. This was to protect the stations' advertising sales.

Many systems were originally locally owned, and many large cities had several providers each covering specific sections of a city; a long series of consolidations and acquisitions rapidly brought most major cities' systems under the ownership of a small number of large companies.

Present day

Presently, cable is provided to most cities and towns, depending on the region, by companies such as Rogers Cable, Shaw Communications, Vidéotron, Cogeco, Persona, Cable Axion, Dery Telecom and EastLink. Most of these "first-generation" cable companies do not compete with each other, as the CRTC has traditionally licensed only one cable provider per market. Even in markets where more than one distributor has been licensed, each has an exclusive territory within the market. However, most telephone companies such as Bell Canada, Telus, Aliant, Manitoba Telecom Services (MTS) and SaskTel have recently secured IPTV distribution licences in their own territories, several of which are already in use.

Satellite television

In Canada, the two legal DBS services available are Bell TV and Shaw Direct. The CRTC has refused to license American satellite services, but nonetheless hundreds of thousands (up to a million by some estimates) of Canadians access or have accessed American services[1] — usually these services have to be billed to an American address and are paid for in U.S. dollars, although many viewers receive American signals through pirate decryption. Whether such activity is grey market or black market is the source of often heated debate between those who would like greater choice and those who argue that the protection of Canadian firms and Canadian culture is more important.

In October 2004, Quebec judge Danièle Côté ruled Canada's Radiocommunication Act to be in direct violation of the Canadian Charter of Rights and Freedoms, insofar as it bans reception of unlicensed foreign television services. The judgment gave the federal government a one-year deadline to remedy this breach of the Constitution. However, this contradicts prior Supreme Court of Canada decisions and, at last word in late 2004, was expected to be appealed.[citation needed]

In addition, Canadian satellite providers continue to be plagued by the unquestionably black market devices which "pirate" or "steal" their signals as well as by a number of otherwise completely lawful devices which can be reprogrammed to receive pirate TV.

One cable TV CEO (Karl Péladeau of Québecor, which owns Vidéotron) is on public record as demanding conditions be placed on the CRTC license issued to Bell TV, due to Bell TV’s reputation for vastly inferior security compared to its cable rivals and Shaw Cable–owned Shaw Direct.

Although there are no official statistics, the use of American satellite services in Canada appears to be declining as of 2004.

Some would claim that this is probably due to a combination of increasingly aggressive police enforcement and an unfavourable exchange rate between the Canadian and U.S. currencies. As the U.S. dollar has been declining as of 2005 versus other international currencies, the decline in DirecTV viewership in Canada may well be related not to a cost difference as much as to the series of smart card swaps which have rendered the first three generations of DirecTV access cards (F, H and HU) all obsolete.

Other platforms

In some areas, an additional option is a form of over-the-air broadcasting, either via MMDS, also known as "wireless cable", or via encrypted low-power transmissions in the NTSC format. This type of distribution is most commonly used in the territories (Yukon, Northwest Territories and Nunavut), which are too sparsely populated to make conventional cable a financially viable operation. The fate of such capacity-limited services, heading into the era of digital television, is uncertain.

Programming

Specialty channels

Specialty channels, unlike their counterparts in the U.S., must be licensed by the CRTC. They cannot include general-interest services of the likes of USA Network or TNT - most of their original series are carried instead on broadcast stations, perhaps an indication of why there are now so many broadcast "systems" in the Canadian industry - but do include such categories as sports (TSN), news (CBC News Network and CTV News Channel), music (MuchMusic), arts (Bravo!), kids (YTV and Nickelodeon) and drama (Showcase).

As a general rule, specialty channels cannot be directly competitive. However the commission has given leeway in certain broader categories. For instance, in theory CBC News Network and CTV News Channel are the Canadian equivalents of CNN and CNN Headline News respectively, although in practice they are directly competitive in most respects. Similarly, TSN, Rogers Sportsnet and The Score are licensed as national sports, regional sports, and sports news services respectively, but they compete for the rights to several key national broadcast properties, including Major League Baseball and the National Hockey League. However, The Score has specific restrictions due to its status as a sports news service, such as a requirement a ticker with sports news and scores running at all times, and restrictions on the amount of live programming it can air weekly. In a public notice published by the CRTC, Broadcasting Public Notice 2008-100 (Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services), it was revealed that the competition rules would be removed entirely for news and sports services.[2]

Specialty services can generally be divided into four types. To the end user, there is little if any distinction between the first two ("analog") and last two ("digital") categories:

  • Dual-status - analog channels intended for the basic package of a cable/satellite provider, unless the two parties agree in writing otherwise. These include first-generation services such as CBC News Network, VisionTV, YTV, MuchMusic, TSN, CMT, The Weather Network, RDI, TV5, VRAK.TV, MusiquePlus, RDS and MétéoMédia. Although other Canadian speciality services can also be distributed on the basic package as well.
  • Modified dual-status - analog channels intended for discretionary packages of a cable/satellite provider, unless the parties agree otherwise. These include second- and third-generation services such as Showcase, Bravo!, Discovery Channel, W Network, Canal Vie, MusiMax, Canal D and more. Several dual-status services, such as TSN, have changed to or are considering a change to this type due to limits on the rates they can charge on the basic service.
  • Category A digital - channels with mandatory carriage in one or more discretionary packages of the digital service of a cable/satellite provider. These include OUTtv, MTV2, ichannel, FashionTelevisionChannel, documentary, Mystère and more.
  • Category B digital - channels with no mandatory carriage in digital-service discretionary packages. Unlike the other types described above, these channels have no protection from other Category B channels within the same niche but have lighter Canadian content regulations. Certain ones have become more popular than any of the Category 1 services. Category B services include BBC Canada, CourtTV Canada, NHL Network, Movieola, National Geographic Channel, Prise 2 and more.

Foreign channels

In addition to these specialty channels, certain foreign channels, most commonly American cable networks such as CNN and Spike TV, are permitted. The current list of "eligible satellite services" is maintained on the CRTC's website.

In general, foreign channels are permitted provided that they are deemed not to directly compete with Canadian channels at the time of their introduction. In rejecting a 2003 application proposing the addition of several U.S.-based channels, the CRTC stated that by allowing Canadian channels to maintain control over these types of programming, they are able to fully access the available advertising and subscription revenues, which would otherwise flow outside the country, in order to fund Canadian programming.[3] Examples of well-known U.S. channels not permitted in Canada include Nickelodeon, ESPN, HBO, Showtime, USA Network, and TNT (although As of 2009, there are Canadian versions of HBO and Nickelodeon, which license their names and logos from Time Warner and Viacom, respectively but are operated by different owners than their American counterparts); nonetheless some Canadians choose to subscribe to these channels via the grey market, as outlined above.

The commission is also permitted to revoke a foreign channel's status should another channel launch within the same genre. However, the only time the CRTC has unilaterally removed an American channel from the eligible services list – that is, without the consent of the American broadcaster – was at the launch of New Country Network, when the American channel CMT was removed. This led to a protracted dispute eventually resolved by the sale of a stake in NCN (now CMT Canada) to CMT. Since then, the CRTC has been more lenient on existing eligible channels; Spike TV and Comedy Central have retained their eligibility despite the launch of mentv and The Comedy Network. Even if a channel is approved, other issues such as programming rights may prevent their carriage, as in the cases of Comedy Central and, until late 2006, AMC and TCM.

U.S. cable networks are not subject to the same simulcast rules as American broadcast stations. However, unlike the broadcast stations, cable networks must own all applicable programming rights, and may be forced to provide alternate programming if they do not. For example, even though NBC's Olympic coverage or its broadcasts of Deal or No Deal are available in Canada (assuming they aren't being simsubbed), CNBC broadcasts of these programs are normally blacked out and replaced with CNBC World, in deference to the rights of CBC and Global respectively. An exception to both rules is TBS, as the superstation WTBS Atlanta, a broadcast station, is approved for carriage in Canada, not the national feed. As of October 2007, this reason prevents TBS from being carried in Canada any longer, as WTBS was separated from TBS and rebranded as WPCH, Peachtree TV - and carrying the TBS cable feed would require regulatory approval.

Some U.S. channels, such as TBS or CNBC, are passive entrants with little Canadian promotion. Others, such as A&E Network, are more proactive; that service has frequently advertised in Canada with the help of its cable partners (such as in the Rogers-owned Maclean's or in the "ad avails" of U.S. cable networks, usually used in Canada to promote domestic channels).

Premium services

"Pay television" services were launched in Canada in the early 1980s but were largely unsuccessful in their original form. Many shut down, and two (TSN and MuchMusic) converted to specialty services as that format became more successful. However, movie-oriented premium services, including The Movie Network, serving Ontario and east, and Movie Central, serving Manitoba and west, and French-language Super Écran, all successors to the original general-interest pay services, have become very successful and very profitable, more so in recent years thanks to the shift towards digital terminals and the success of original series from sources such as HBO. These services presently operate in a virtual monopoly in their respective markets, although Allarco Entertainment has recently received a licence to compete nationally with the two English services.

Family is also licensed as a pay service and airs commercial-free, but is now treated by most providers as a specialty channel and packaged with other specialty channels.

Many third-language or "ethnic" services licensed for analog distribution are mostly treated as pay television services by cable and satellite operators.

Cable/satellite packaging

Under CRTC regulations,[4] a basic cable or satellite package in Canada must include:

  • all national CRTC-licensed networks, specifically CBC Television, Radio-Canada, TVA and APTN;
  • all local or regional broadcasters, usually including stations / affiliates of CTV and Global, and (where applicable) Citytv, CTV two and V. Satellite providers carry most but not all local stations, and, unlike their U.S. equivalents, out-of-market stations may be carried nationally;
  • the provincial educational broadcasting service(s) (if one is available, as not all provinces have one);
  • CPAC, which broadcasts parliamentary sessions and committee meetings, along with some political public affairs programming;
  • a similar channel broadcasting the proceedings of the provincial legislature (if one exists); and
  • Voiceprint (usually carried on the SAP service of CBC News Network).
  • Cable providers are also required to carry at least one CBC Radio station in each language, as well as any local campus, community, or native radio stations. The requirement to carry all stations was removed by the CRTC in 2006.[5] At the same time the commission stated that this requirement did not, and would not, force cable companies to provide these stations via cable FM receivers, provided they were available on digital cable (i.e. via set-top boxes).[6]

Traditionally the package also includes

  • selected specialty channels, at a minimum including CBC News Network, RDI, The Weather Network and/or MétéoMédia, CTV News Channel and/or LCN, and VisionTV;
  • a community channel (locally-produced public affairs and information programming and community events listings);
  • American broadcast network affiliates. These are carried under a "4 + 1" rule, meaning that a cable company may offer any four American commercial networks and PBS on a basic tier. In most markets, the four commercial networks provided are ABC, CBS, NBC and Fox, although in many markets FOX is carried on a modified dual-status rather than a basic tier. Other networks, such as The CW and MyNetworkTV, can only be offered on a discretionary tier; generally they are offered through the packaging of American superstations, such as KTLA, WPIX and WGN, with pay TV services. However, cable providers in border markets within the broadcast range of a major American television market, such as Windsor, may be granted an exemption to the 4 + 1 rule to improve the marketability of their service - Cogeco Cable systems in Windsor carry Detroit's WKBD and WMYD.
  • "exempt" services such as The Shopping Channel, program guides, and real estate / classifieds channels.

Other "discretionary tiers" or packages include other Canadian specialty or premium services and foreign services, as noted above. The distribution of these services is covered by various regulations, including one that states that a package cannot consist exclusively of foreign services and must maintain a certain ratio of Canadian to foreign services.

Digital and satellite services

Digital cable and satellite television platforms in Canada typically offer the same range of services as analog providers, with several additional services beginning at channel 100 and above.

In addition to the category 1 and category 2 services noted above, digital and satellite services also offer a range of timeshift channels, which may be either network affiliates from a different time zone, in the case of broadcast networks, or a time-delayed retransmission of the original programming feed for cable-only channels. In addition, all four regional feeds of Rogers Sportsnet can be offered on a digital or satellite cable service; only the local feed can be offered on an analog tier.

Digital and satellite providers also run a package of audio services, commonly called "digital television radio", from providers such as Galaxie and Max Trax.

Footnotes

  1. ^ "CTV.ca | Lawsuit targets grey market satellite dealers". Ctv.ca. Updated Mon. Oct. 21 2002 8:46 PM ET. http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1035231116797_30640316//. Retrieved 2008-09-06. 
  2. ^ ""Broadcasting Public Notice 2008-100 (Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services)". DigitalHome.ca. http://www.digitalhome.ca/content/view/3039/279/1/1/. Retrieved 2008-11-05. 
  3. ^ Letter to the Canadian Cable Television Association, CRTC website, November 7, 2003
  4. ^ Broadcasting Distribution Regulations, CRTC website, accessed August 15, 2006
  5. ^ Broadcasting Public Notice CRTC 2006-119, 8 September 2006
  6. ^ Broadcasting Public Notice CRTC 2006-51, 19 April 2006; see para. 26

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