Spike TV contends it’s non-competitive with Canadian services, deserves carriage

Spike TV complements rather than competes with other Canadian specialty channels, the service tells the CRTC, despite assertions to the contrary by the Canadian Association of Broadcasters (CAB). In a May 17 submission to the regulator, Spike TV tells the CRTC that its controversial rebranding is simply to keep pace with the changing tastes of its target audience - the 18 to 49-year-old middle class, working male. Spike TV president Albie Hecht writes to the commission that removing the channel from the list of foreign services eligible for carriage in Canada or changing its carriage status is "entirely unwarranted and unfair." Spike TV argues that it is not competitive with the Category 1 Men TV because the diginet broadcasts "men’s lifestyle programming from an urbane, sophisticated, cultured and slightly older Canadian men’s perspective." The U.S. channel, it says, is "focused on more down-to-earth programming aimed at the middle class, working American male." Furthermore, it notes that the CRTC already ruled that gender cannot reasonably be regarded as a programming genre when it allowed the Oxygen network to be carried in Canada, over the objections of W, a channel licensed by the CRTC as a women’s channel. Hecht states that a careful analysis of the programming on Spike TV and Men TV reveals that the only instance of overlap appears in the automotive genre and only to a limited degree. But Spike TV contends that the automobile programming on Men TV is predominantly instructional in nature, urbane in attitude and style and Canadian in perspective while its auto shows are entertainment-based and delivered with a focus on contemporary American popular culture. But in their joint May 13 submission to the CRTC, Groupe TVA Inc. and Global Television Network Inc., the owners of Men TV, maintain that Spike TV "is totally competitive" with the diginet and should therefore not be authorized for distribution in Canada. A longstanding commission policy forbids foreign-owned services that compete with existing Canadian channels to be carried in the country. The Canadian owners also disagree with the commission’s suggestion that Spike TV be placed instead on section B of the Part II list for linkage exclusively with Canadian pay services. "The true victim, Men TV, would not benefit in any real way from such a placement, hence, the remedy is not a remedy at all," it tells the commission. "If the commission were to determine that Spike TV should remain authorized for distribution in Canada, we believe that a more appropriate remedy would be to link the offending non-Canadian satellite service to the Canadian service with which it directly competes; that is, in this case, if a consumer wishes to receive Spike TV, he/she must also receive Men TV in the same package - a digital package, even where Spike TV is offered on an à la carte basis. "There is simply no question that Spike TV is totally competitive with Men TV: It has the same mandate; it targets the same demographic; its programming competes directly with the programming categories authorized by the commission for Men TV; and there is a persisting concern that Spike TV will compete with Men TV for the acquisition of specific programming," Serge Bellerose, senior VP of network operations and specialty channels at TVA, and Charlotte Bell, VP of regulatory affairs at Global, write to the commission. But Spike TV responds that there is "no evidence that Spike TV is unduly or unfairly competing for programming rights in Canada to the detriment of Men TV or the other Canadian specialty services." It notes that when TSN sought to distribute WWE Raw, to which Spike TV held the rights, Spike TV waived its rights so that TSN would be the exclusive broadcaster of the programming in Canada. Spike TV further pledges to never acquire the exclusive Canadian rights to programming and notes that its risk of competing for acquired programming will decline as its goal is to increase its original programming to 50% by the end of 2005. Spike TV also contends that it is "unlikely" that its male-oriented programming competes with three Canadian sports channels, a business and financial channel, a travel channel, a science fiction channel and a health channel, along with Men TV, as the CAB alleges. The CAB contends that the rebranded Spike TV is also partially competitive with CTV Travel, ROBTv, Discovery Health Network, TSN, The Score and Sportsnet. But Spike TV points out that there is no overlap in programming aired by Spike TV and the other Canadian channels, with the exception of Star Trek: The Next Generation, which also airs on CHUM Ltd.’s Space: The Imagination Station. But in its May 17 submission to the CRTC, the CAB notes that Spike TV has started to place an increased emphasis on sports, with up to 40% of its schedule to be devoted to such programming. "The CAB submits that Spike TV, as a ‘repeat offender’ that has constantly changed formats over the past three or four years in search of increased audiences, should not be granted the privilege of distribution on BDUs, no matter what restrictions or limitations might be considered," writes Wayne Charman, CAB senior VP of television, specialty and pay services, and new technologies, to the CRTC. "A review of Spike TV’s track record over the past few years suggests that there is a strong likelihood of future format changes, leading to new challenges (to) the commission’s policies and serving to further undermine the Canadian broadcasting system." In what appears to be a form letter to the CRTC, a number of small cable operators urge the CRTC to "deny the CAB’s request in its entirety" as removal of Spike TV from the eligible satellite services list would "be bad for the broadcasting system, bad for the Canadian industry as a whole and in fact bad for CAB’s own members. Such action would set a precedent that would create significant uncertainty at the very core of our business." Amtelecom Cable Inc. Compton Cable TV Ltd., Cable Ronge Inc., Wood Lake Cable, Ucluelet Video Services Ltd., Rush Communications, Askivision Systems Inc., and New North Networks Ltd. are among the small cablecos that submitted such comments. The Campbell River TV Association (CRTV), which has carried Spike TV for the last 10 years, however, suggests offering the station on a digital basis. "Spike TV is not a key programming source in our community; but, at the same time it does have some viewership. As a digital service it is simply additional choice for our customers," writes CRTV general manager James Forsyth. The Canadian Cable Television Association (CCTA) states that "obvious harm to consumers and the system as a whole" would result from either the removal or relocation of Spike TV." The cable association further notes in its May 17 submission: "Removing Spike TV would send a message to Canadian viewers that a demographic representing 50% of the Canadian population is entitled to only one programming service targeted at that demographic. Arguably, every programming service is targeted either at men, women, or both." Hecht echoes those sentiments, telling the CRTC that "Spike TV strongly opposes any change to our channel’s placement and status on the lists. Such a change will require that Canadians suddenly pay more for a service they enjoyed as part of their standard analog service for 20 years." The CRTC is in the middle of a process to determine what should be done if Viacom International Inc.’s rebranded Spike TV is determined to be competitive with a number of existing Canadian specialty TV channels. The CRTC written proceeding was announced March 18, more than nine months after the CAB requested the commission initiate a public proceeding on the matter (CCR, March 25/04).

Spike TV contends it’s non-competitive with Canadian services, deserves carriage

Broadcast | May 21, 2004

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