| What is Program Substitution?
Program substitution is a regulatory means of protecting the economic well-being of local and regional television broadcasters from competitive broadcasters not
licensed to serve the area. This protection is extended to the broadcaster based on a ranking of priority set out in the regulations. Except for rare instances, US over-the-air broadcasters do not
own the programming rights in Canadian markets and do not enjoy any protection under the substitution regulations. In limited conditions, this protection also extends to Canadian Specialty Programming
services, as a result of changes to the regulations effective 1 January 1998.
In simple terms, program substitution is the removal and replacement of programming from a lower priority programming service (television station), by a
broadcast distribution undertaking (BDU) operator, for the programming of a higher priority station on its system. A BDU includes cable or wireline distribution systems, Direct-to-home (DTH) satellite
systems, and Radio communication distribution undertakings licensed as a BDU operating MMDS, MDS, and LMCS systems.
How is it done?
For substitution to occur, the higher priority station or service must request that its programming replace the programming of the lower ranking service.
The BDU operator does the substitution after the programming service has advised it in writing, in advance or by mutual agreement where the programming service performs the switch from its facilities.
The electronic method of performing simulcasts is mostly limited to use in the province of Quebec and the city of Winnipeg. It does not serve a significant number of systems. The majority of
systems doing program substitution receive their instructions in writing.
The requesting services identify the programming that can be substituted. In turn, a list of programs to be substituted is generated for each BDU system
that is obligated to substitute on request. The list for each system is sent out to the respective BDU operator.
The BDU system, based on the information received from each of the requesting services, will either enter the information into a computer that will carry out
the switches, or prepare a master list for a switching operator. The switching operator will activate the switches or supervise/monitor the progress of the automated switching equipment. If an operator
is monitoring automated equipment or actually activates the switch the operator is in a position to make changes where needed. An unattended operation often cannot accommodate last minute changes or
correct faulty notices.
With respect to the notice sent by the programming service to the BDU system, the service provider seldom prepares the list of substitution requests but rather
contracts out that work to a firm such as Mediastats. Mediastats, on behalf of the service, prepares a list of substitutions for that service provider. In addition, Mediastats, when preparing a
list of substitutions for the BDU company, combines the requests of all other requesting services into one master chronological list or log. This effort saves the operator significant time and
resources. In return, the BDU company indicates on the log the substitutions that were completed, or any problems that may have arisen in the course of carrying out the switching process.
The typical substitution request list contains the date, time and duration of the substitution, the name of the program, and the station which is requesting the
substitution (and is therefore to be used as the source of the programming). The data also clearly identifies which stations or services must be deleted or substituted over, and is specific to the
stations and services carried by that individual BDU. The list generally covers a seven-day period commencing Saturday.
A final merged and sorted list of simulcasts is prepared by Mediastats and distributed to applicable BDU+IBk-s.
Mediastats in preparing its compiled simulcast information, receives initial station +IBw-request+IB0- data which is then cross-tabbed with television-listing
source material (such as TV Guide, TV Data or Tribune Media Services). This cross-checking of material is done to ensure that the final lists of requested programs do in fact +IBw-line-up+IB0- (same
program, same episode, same date, same time and same commentator where applicable). Several automated checkers are run on the data and the final request list is verified for accuracy by the requesting
station, before it is released to the BDU operators. The resultant list is at the time of production, as accurate as is possible, given the nature of broadcast scheduling. Every effort is made by
Mediastats to apprise BDU operators of late changes or corrections to the lists, as they become known.
What are the Benefits of Substitution?
With the returns, or log, from the BDU company, Mediastats is able to provide information to the broadcast rating firms that allows them to correct information
provided in viewers+IBk- diaries to establish correct broadcast ratings. The corrected rating information generally allows the broadcaster to derive additional revenue from commercial spots sold during
periods of substitution.
The BDU operator is not under any "regulatory obligation" to provide substitution completion information to Mediastats. Since there is no obligation to
return the completed substitution lists, Mediastats has agreed not to pass any individual BDU information on to parties other than the rating firms or to the Canadian Radio Television and Telecommunications
Commission. The information remains confidential, in order that broadcasters may not know which companies did or did not complete the requested substitutions. Armed with this information, it would
be relatively easy for a broadcaster to seek redress for any missed substitutions. The cable industry was not prepared to make it easy for a broadcaster to monitor its activity. Yet without the
returned information, the broadcaster would not receive the benefit of the substitution from the rating firms.
The importance of this function carried out by Mediastats, was not lost on the CRTC. The CRTC jointly with others, provided funding to help start the
process. The CRTC did not intervene in the agreement worked out between the broadcast and cable trade associations that established the protocol for the exchange of information. The Commission
felt at the time this was a private matter between the concerned parties, but was pleased that an agreement was reached allowing the benefits to flow to the Canadian broadcasting system.
What is Permissible?
Substitution requests can be generated from television stations that are local or regional, whose carriage is defined as priority on a BDU, and that BDU is
defined as class 1 (6000 or more subscribers). In the case of a privately owned local television station, that has a main studio located in a class 2 (2000 to 5999 subscribers) BDU service area, they
may also make requests for substitution. In addition, a class 1 BDU operator may delete the programming of a television station for that of a specialty service provider subject to a mutual agreement and
the priority and simultaneous requirements of the Regulations.
There is an obligation on the part of the program service provider to deliver the substitution request to the BDU system at least four days in advance of the
request, either directly or through their agent. The BDU operator is obligated to perform the requested substitutions in accordance with the request. The BDU service provider is in a position to
terminate a substitution when the program is no longer simultaneous and comparable. The television station is under no obligation to notify or otherwise advise the BDU operator of any changes to its
schedule that may or may not have an impact on the substitution process. In such cases, monitored substitution operations can usually minimise the disruption to their subscribers by directly intervening
in the switching process. In unattended operations or fully automated operations, intervention may be impractical or impossible. As a result, the subscriber's viewing is disrupted and the cable
operator is often seen as the one at fault for disrupting the television viewing.
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