CRTC changes ad rules for discretionary services

The CRTC said Tuesday that it was altering the rules for commercials on discretionary services. The matter was instigated by a filing from Quebecor Inc.’s TVA Group. The commission is removing the limit of 12 minutes of advertising per hour but is keeping the requirement that only national advertising be broadcast by most outlets. It would be inappropriate for services that only show national programming to solicit local ads, the CRTC stated. Third-language services which include local programming will see the limit of six minutes per clock hour eliminated. TVA noted that only discretionary services are subject to a time limit, since conventional stations saw their limits eliminated in 2009. Getting rid of those limits will ultimately help the broadcasting ecosystem, the company argued, adding that revenues have been affected by COVID-19. The commission agreed with TVA’s position, saying that discretionary services are now in a similar financial position as the conventional stations were 14 years ago. The Public Interest Advocacy Centre had advocated delaying the proceeding until the implications of the changes to the Broadcasting Act undertaken by the Online Streaming Act were better understood. The regulator rejected that argument. “In fact, the commission deems that it is more appropriate to consider the issue of the advertising time limit as part of this proceeding, as it allows for a global assessment of the impact of the potential removal of the advertising time limit on all broadcasters (whether independent or not), rather than waiting for a proceeding to be held for independent services only,” the CRTC wrote. The commission noted that the Canadian advertising market had grown from an annual total of $13.6 billion in 2017 to $17.3 billion in 2021. Removing the time limits should help the discretionary services to stop the flow of advertising revenues to the internet. Removing the limits will give the services more discretion in broadcasting live events without interruption, the regulator said. Companies should be careful how they use this approach, the CRTC warned, as too much disruption could lead to an increase in cord-cutting by consumers. TVA was backed in its fight by other owners of discretionary services, including BCE Inc. Corus Entertainment Inc. TV5 Québec Canada, Anthem Sports and Entertainment and Pelmorex Weather Networks (Television) Inc. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

CRTC changes ad rules for discretionary services

News | September 5, 2023

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CRTC changes ad rules for discretionary services

News | September 5, 2023

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