Commission adopts modified U.S. test to define program-related ITV content

Cablecos are cheering a CRTC decision that limits the amount of interactive television content that broadcast distribution undertakings (BDUs) must carry from broadcasters. On November 4, the commission issued Broadcasting Public Notice 2004-82, which sets out a regime for ITV that forces cablecos and satellite DTH carriers to pass through any content that fits within a normal 6 MHz channel or the bandwidth assigned to a particular channel, so long as it is program-related, but no more. Additional ITV content would be passed through on the basis of negotiation between the distributors and broadcasters, and the commission will keep a careful watch to ensure cablecos and satellite DTH companies don’t give an unfair advantage to the TV channels they also own. The decision is a victory of sorts for BDUs, since the commission ruled in favour of a U.S. test for defining programming-related ITV content. Both the Canadian Cable Telecommunications Association (CCTA) and Bell ExpressVu LLP had argued during the CRTC process leading up to the decision that the broadcasters’ request for a liberal definition of program-related content would be too expensive and require too much capacity. Instead, cable companies argued in favour of adopting the U.S. WGN test that restrictively defines what is and what is not program-related (CNM, February 20/03; April 3/03). According to the recent decision, to be program-related, first, the ITV content must be intended for viewing by those watching the main program, and not just by a general audience. An example would be biographic information about principal actors or the background to a story in the case of a drama. Second, the ITV content must be available during the same interval time as the video signal. In the case of programming that is not long-form, such as news or weather, the interval of time will be considered a typical wheel. "This interpretation would allow Pelmorex, for example, to make available (interactive) weather reports on the main video signal," notes the commission. Third, the iTV information must have a substantial connection to the main program being broadcast. Interactive advertising can only be offered during the commercial to which it is related, and not during the main program. CCTA head Michael Hennessy says the decision fits with what the cable companies had been asking for. "I think it struck the right balance. It recognized the legal limitations on what you can define as broadcasting, and it worked from there. So, we thought that was pretty good. It was pretty much what we had argued in the proceeding," he tells CNM. "If it’s part of the program, then it’s very hard to argue that it should take up capacity in excess of the program. Really, it makes sense. And, if you think of an interactive element, most of them are really data-based – whether it’s polling or some kind of viewer response. So, I don’t think that’s an issue at all. I think the bigger question remains as we look at the development of the Internet, the personalization that you’re seeing with video-on-demand, subscription video-on-demand, PVRs (personal video recorders), whether there is much of a distinct market as we try to define ITV from the earlier days of 1999, 2000. This proceeding’s really dealing with an environment, probably fairly different just in the last couple of years… "I think if somebody can come up with some of those good ideas and can find a demand, then the actual ability to offer it probably becomes pretty easy." Broadcasters, however, say outstanding questions remain in hammering down what the impact of the commission’s decision will be. Paul Temple, senior VP of corporate development at Pelmorex – which started the CRTC process by applying for a licence amendment in 2001 that would make interactivity an integral part of its The Weather Network and MétéoMédia channels– says the uncertainty centres not around the definition of what is program-related but rather defining what iTV content distributors must carry. "My understanding is if (the ITV content) is not taking up more (than the allocated channel), then the distributor has to pass it through, but how do you measure what more is? The distributor could compress it a little more and use up less bandwidth," says Temple. "It’s not an easy thing to sort out. If I send you a digital signal, it’s a certain number of bits per second. So if I add data and you’re a distributor and you compress it and do all sorts of things to it, you match it up with other channels, and put it up on a transponder. So who knows whether it took more? It’s going through so many different processes and manipulations and compressions and uncompressions. I might say it didn’t take any more, but the distributor might say it took more." He adds, "In analog, it’s a little more straightforward…When you go to digital, it’s more complicated because, first of all, you are talking about speed. It’s a different measurement." The CRTC has also ruled that distributors with installed platforms for ITV must provide a copy of all specifications of the set-top box, middleware, and any other equipment or facilities necessary to any programmers requesting it. If a distributor decides to change its technological requirements, then it must provide at least six months notice of the change.

Commission adopts modified U.S. test to define program-related ITV content

Broadcast | December 6, 2004

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