CRTC opens door to partial channel carriage by satellite TV distributors

The CRTC has opened the door to satellite TV distributors using omnibus or partial channels and A/B switches to ensure the delivery of more local programming to subscribers, an approach that broadcasters oppose. It’s a development favoured by direct-to-home (DTH) satellite TV distributors Star Choice Television Network Inc. and Bell ExpressVu LP because it will allow them to provide access to more local news and other shows, while conserving satellite capacity and preventing redundant programming over numerous channels. The CRTC states in its introductory statement to the licence renewals of Star Choice and Bell ExpressVu that it "encourages the DTH licensees and broadcasters to explore the use of omnibus and partial channels to ensure distribution of the widest range of local programming without increasing program duplication. The commission reminds the DTH licensees that omnibus or partial channels would require approval by the commission before they could be distributed." The regulator also notes, "While not an ideal solution, the commission considers that the A/B switch can facilitate access by subscribers to local television signals not distributed by the DTH licensees." For example, Canadian Broadcasting Corp. TV stations across the country generally run the same network programming but have different local news. A partial channel would enable the DTH operator to use the Toronto CBC signal for the network programming across the country, while substituting in the regional news signals in the appropriate parts of the country. An omnibus channel would consist of compilations of the local programming of different stations. Installing an A/B switch would allow a subscriber to switch from the DTH satellite-delivered signal to a home antenna to pick up the local over-the-air stations. "We think there are some significant benefits (of this approach) in light of things like capacity constraints and redundancy of programming. It will allow our customers to have access to local news and we won’t necessarily have to repeat all the programming that they get on other feeds," says Bell ExpressVu president Tim McGee. He indicates that Bell ExpressVu would likely go with partial channels rather than pooling local news of various regional stations onto one omnibus channel. He would not say when ExpressVu might begin offering partial channels, nor did he have any thoughts on the possible use of A/B switches. "I don’t really have any comment on that at this stage," he tells Canadian Communications Reports. "But I would say that the principle is one that has a lot of merit in terms of addressing local market needs without having to carry a channel in its entirety." During licence renewal hearings for Star Choice and Bell ExpressVu, broadcasters opposed the A/B switch option on the grounds that they believed that subscribers would find switching between two sets of signals confusing and unsatisfactory, and would require them to purchase and install additional equipment. As well, broadcasters contend that the use of omnibus or partial channels limit their ability to market their channels and might exclude some local program inserts and announcements. Both Star Choice and Bell ExpressVu came under intense pressure to carry more channels, including all of the CBC channels (CCR Update, April 1/04), from broadcasters during their licence renewal hearings. The private broadcasters also pushed for equitable distribution of the signals of all the networks on a market-by-market basis, or a "carry one, carry all" rule in individual markets. In other words, if a DTH operator carried the Global TV signal from Victoria, it would have to carry the Victoria signals of all the other broadcasters operating in that market. The CRTC rejected this approach, noting that it "would reduce the ability of the DTH licensees to provide a suitable range and diversity of programming services, while managing the demands on their capacity." In favouring the partial channel approach, the CRTC notes, "While digital compression allows the DTH licensees to make efficient use of the capacity available to them, their current capacity is insufficient to distribute all programming undertakings that might seek distribution. Further, the commission considers that demands on DTH capacity are likely to increase over the next licence term with the licensing of high-definition services, which currently use approximately five times as much capacity as standard definition services. In this environment, the commission anticipates that the DTH licensees will find it difficult to increase the number of signals of conventional television stations that they distribute and may, in fact, be obliged to decrease that number."

CRTC opens door to partial channel carriage by satellite TV distributors

Broadcast | April 8, 2004

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