Opinion
US Superbowl commercials or local news – what’s more important to you?
Do you know that prior to 2 years ago, you couldn’t watch the Superbowl complete with those amazing Superbowl commercials in Canada. Before that, you had to wait, maybe catch them online, or the next morning on a local newscast. I know, it seems like ancient history. In our thirst for entertainment and information that is widely available “on demand”, we are testing the limits of a terrestrial television system designed decades ago.
The Supreme Court of Canada has agreed to hear the case of Bell Media/CTV and the NFL as it relates to the CRTC’s decision to exempt the Superbowl broadcast from the rules of “simultaneous substitution”. Called ‘sim-sub’ for short, it is the practice of blocking of US commercials on Canadian TV channels and in their place substituting national and local Canadian commercials. It’s been around since the rise of cable delivery in our country as a way to protect the exclusive licenses that Canadian TV companies have when they purchase the rights to a US network program and air it in Canada. These revenues help offset the cost of local news operations which generally are resource-heavy, low-margin, and in some cases, heavily subsidized programs.
In 2016 the CRTC made an exception to the sim-sub rules, allowing cable & satellite companies to dispense with the practice for Superbowl. Only the Superbowl. Why? Because the CRTC received tons of complaints for years from people who wanted to watch the big budget US Superbowl ads but couldn’t because the Canadian broadcast was full of ads for Tim Horton’s. You know what I mean.
This is in the news now because the Supreme Court of Canada has agreed to hear the case being made by CTV and its parent company Bell Media, along with the NFL. They make very good points relative to policy and regulations around this long-standing practice. They negotiated a long term deal with the NFL based on buying the “exclusive rights” to the game and paid big money. And then the CRTC changed the rules.
Here’s some background. The Canadian TV system works, complete with its local newscasts and Cancon rules worked because for years, revenue was generated and profits derived largely by purchasing Canadian rights to first-run US network programs and broadcasting them, generally in primetime, in “simulcast” with the originating US station. You know… you think you’re watching Lucifer on FOX 28 KAYU only to realize you’re watching CTV when a commercial break comes on. You’re a bit confused, then the show ends and suddenly you’re watching FOX 28 again. No, it’s not you. It’s the system. This practice protects the Canadian TV station’s exclusive rights by blocking all other signals and inserting the Canadian channel over top of them.
Still with me? Ok… now in the case of the Superbowl, the system changed with no apparent warning.
The Superbowl is widely watched, but its for the commercials, as evidenced by the many complaints the CRTC received every year. In their zeal to satisfy the masses and quell the complaints, the Commission in effect sacrificed CTV’s exclusive right to broadcast the game in Canada, and killed their ability to recoup the massive rights fees they’ve paid.
What happened next? The Superbowl arrived on a variety of US cable channels, complete with the must-see commercials. And CTV, the only company that actually paid for the exclusive rights to broadcast the program in Canada, was out of luck. The Superbowl was featured on a number of channels and CTV’s audience took a beating. The value of their commercials went down considerably. Why? Because of the US channels with the high-budget US ads. The tsunami of production value, A-list talent and of course, those Budweiser horses proved irresistible.
So off they all go to the Supreme Court to sort it out. Bell Media will surely argue that the loss of revenue from a show like Superbowl directly impacts the funds available to create local newscasts, pay staff, and generate profit for shareholders.
Bell said in a statement it is pleased that the Supreme Court will hear the appeal:
“We look forward to advancing our argument that a broad range of Canadian creators, producers, advertisers and businesses have been negatively impacted by the original decision.”
So what do you think? Is watching US commercials in the Superbowl more important than preserving the regulatory framework that protects our local over-the-air TV system across the country? Because the two really are inextricably linked. By eroding the ability for a Canadian program rights-holder to recoup their investment, as the CRTC did by making an exemption of Simsub rules for Superbowl broadcasts, it strikes right to the heart of funds available to produce local news programming.
So now the greater question is just how important is local TV in today’s world of digital communication, on demand viewing, tablets, phones, PVR’s, and social media? Audiences and revenues for local Canadian TV stations have been under increasing pressure for years, and few cities realize this more than Red Deer.
While not related to Superbowl advertising, the one local TV station here closed its doors and quit broadcasting in 2009. When it closed, I’m told by a former Commissioner that not a squeak was heard at the CRTC from this local community- not a letter or comment. So was the station even missed? Many will remember (or not) when it was for a short period of time called E! Entertainment, all in an effort to find inexpensive programming. Ultimately it didn’t work. CKRD, RDTV, E!, CHCA- it had many aliases, but ultimately struggled to drive enough revenue to continue operating. That was 9 years ago, and many of the factors that led to its closure have only accelerated since then.
Do you watch local TV news from the remaining stations in Edmonton and Calgary? Are these institutions still important, or would we all rather just watch US commercials and US TV shows and say goodbye to the notion of local TV news programming here in Canada? How have your habits changed? Do you care? Because you really can’t have it both ways for very long.
Lloyd Lewis is President of Todayville, INC. He was VP/GM of CTV Edmonton from 2005-2015 and GM of RDTV Red Deer from 1997 to 2000. He worked in the local television industry for 35 years.
Daily Caller
Former FBI Asst Director Warns Terrorists Are ‘Well Embedded’ In US, Says Alert Should Be ‘Higher’
Chris Swecker on “Anderson Cooper 360” discussing terror threat
From the Daily Caller News Foundation
By Hailey Gomez
Former FBI Assistant Director Chris Swecker warned Friday on CNN that terrorists are “well embedded” within the United States, stating the threat level should be “higher” following an attack in Germany.
A 50-year-old Saudi doctor allegedly drove his car into a crowded Christmas market in Magdeburg, Germany on Friday leaving at least two people dead and nearly 70 injured so far. On “Anderson Cooper 360,” Swecker was asked if he believes there is a potential “threat” to the U.S. as concerns have risen since the “fall of Afghanistan.”
“I think so,” Swecker said. “I mean, we’ve heard FBI Director Chris Wray talk about this in conjunction with the relative ease of getting across the southern border. And, you know, there’s no question that terrorists have come across that border, whether they’re lone terrorists or terrorist cells. And they’re well embedded inside this country.”
WATCH:
“I’ve worked terrorist cases. Hezbollah has always had a presence here. They raise funds here, and they can always be called into action as an active terrorist cell,” Swecker added. “So I think the alert here, especially around Christmas time, is elevated. It probably ought to be higher than what it is right now, because I mentioned that complacency earlier. And I fear that complacency as someone who has a background in this field.”
Concerns over the Biden-Harris administration’s handling of the U.S. southern border have raised questions over the vetting process of illegal immigrants entering the country.
On Tuesday United States Border Patrol (USPB) Chief Jason Owens announced in a social post that an unidentified South African national who was “suspected of terror” was arrested in Brooklyn, N.Y. The illegal immigrant had originally been detained in Texas for criminal trespassing but was released due to the “information available at the time.”
In August an estimated 99 individuals on the U.S. terrorist watch list had been released into the country after crossing through the southern border, according to a congressional report. The report found that between fiscal years 2021 and 2023 USBP agents encountered more than 250 illegal migrants on the terrorist watchlist, with nearly 100 of those individuals being later released into the U.S. by the Department of Homeland Security.
Alberta
Ford and Trudeau are playing checkers. Trump and Smith are playing chess
By Dan McTeague
Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry.
There’s no doubt about it: Donald Trump’s threat of a blanket 25% tariff on Canadian goods (to be established if the Canadian government fails to take sufficient action to combat drug trafficking and illegal crossings over our southern border) would be catastrophic for our nation’s economy. More than $3 billion in goods move between the U.S. and Canada on a daily basis. If enacted, the Trump tariff would likely result in a full-blown recession.
It falls upon Canada’s leaders to prevent that from happening. That’s why Justin Trudeau flew to Florida two weeks ago to point out to the president-elect that the trade relationship between our countries is mutually beneficial.
This is true, but Trudeau isn’t the best person to make that case to Trump, since he has been trashing the once and future president, and his supporters, both in public and private, for years. He did so again at an appearance just the other day, in which he implied that American voters were sexist for once again failing to elect the nation’s first female president, and said that Trump’s election amounted to an assault on women’s rights.
Consequently, the meeting with Trump didn’t go well.
But Trudeau isn’t Canada’s only politician, and in recent days we’ve seen some contrasting approaches to this serious matter from our provincial leaders.
First up was Doug Ford, who followed up a phone call with Trudeau earlier this week by saying that Canadians have to prepare for a trade war. “Folks, this is coming, it’s not ‘if,’ it is — it’s coming… and we need to be prepared.”
Ford said that he’s working with Liberal Finance Minister Chrystia Freeland to put together a retaliatory tariff list. Spokesmen for his government floated the idea of banning the LCBO from buying American alcohol, and restricting the export of critical minerals needed for electric vehicle batteries (I’m sure Trump is terrified about that last one).
But Ford’s most dramatic threat was his announcement that Ontario is prepared to shut down energy exports to the U.S., specifically to Michigan, New York, Wisconsin, and Minnesota, if Trump follows through with his plan. “We’re sending a message to the U.S. You come and attack Ontario, you attack the livelihoods of Ontario and Canadians, we’re going to use every tool in our toolbox to defend Ontarians and Canadians across the border,” Ford said.
Now, unfortunately, all of this chest-thumping rings hollow. Ontario does almost $500 billion per year in trade with the U.S., and the province’s supply chains are highly integrated with America’s. The idea of just cutting off the power, as if you could just flip a switch, is actually impossible. It’s a bluff, and Trump has already called him on it. When told about Ford’s threat by a reporter this week, Trump replied “That’s okay if he does that. That’s fine.”
And Ford’s calls for national unity – “We need to stand united as Canadians!” – in context feels like an endorsement of fellow Electric Vehicle fanatic Trudeau. And you do wonder if that issue has something to do with it. After all, the two have worked together to pump billions in taxpayer dollars into the EV industry. Just over the past year Ford and Trudeau have been seen side by side announcing their $5 billion commitment to Honda, or their $28.2 billion in subsidies for new Stellantis and Volkswagen electric vehicle battery plants.
Their assumption was that the U.S. would be a major market for Canadian EVs. Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,”according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”
But Trump ran on abolishing the Biden administration’s de facto EV mandate. Now that he’s back in the White House, the market for those EVs that Trudeau and Ford invested in so heavily is going to be much softer. Perhaps they’d like to be able to blame Trump’s tariffs for the coming downturn rather than their own misjudgment.
In any event, Ford’s tactic stands in stark contrast to the response from Alberta, Canada’s true energy superpower. Premier Danielle Smith made it clear that her province “will not support cutting off our Alberta energy exports to the U.S., nor will we support a tariff war with our largest trading partner and closest ally.”
Smith spoke about this topic at length at an event announcing a new $29-million border patrol team charged with combatting drug trafficking, at which said that Trudeau’s criticisms of the president-elect were, “not helpful.” Her deputy premier Mike Ellis was quoted as saying, “The concerns that president-elect Trump has expressed regarding fentanyl are, quite frankly, the same concerns that I and the premier have had.” Smith and Ellis also criticized Ottawa’s progressively lenient approach to drug crimes.
(For what it’s worth, a recent Léger poll found that “Just 29 per cent of [Canadians] believe Trump’s concerns about illegal immigration and drug trafficking from Canada to the U.S. are unwarranted.” Perhaps that’s why some recent polls have found that Trudeau is currently less popular in Canada than Trump at the moment.)
Smith said that Trudeau’s criticisms of the president-elect were, “not helpful.” And on X/Twitter she said, “Now is the time to… reach out to our friends and allies in the U.S. to remind them just how much Americans and Canadians mutually benefit from our trade relationship – and what we can do to grow that partnership further,” adding, “Tariffs just hurt Americans and Canadians on both sides of the border. Let’s make sure they don’t happen.”
This is exactly the right approach. Smith knows there is a lot at stake in this fight, and is not willing to step into the ring in a fight that Canada simply can’t win, and will cause a great deal of hardship for all involved along the way.
While Trudeau indulges in virtue signaling and Ford in sabre rattling, Danielle Smith is engaging in true statesmanship. That’s something that is in short supply in our country these days.
As I’ve written before, Trump is playing chess while Justin Trudeau and Doug Ford are playing checkers. They should take note of Smith’s strategy. Honey will attract more than vinegar, and if the long history of our two countries tell us anything, it’s that diplomacy is more effective than idle threats.
Dan McTeague is President of Canadians for Affordable Energy.
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