Let Eastlink use local avails for non-broadcast services: CAB

As it did with an earlier plea by Rogers and Shaw (CCR, Jan. 12/06), the Canadian Association of Broadcasters (CAB) has lent conditional support to Eastlink Cable’s request to use the permitted 25% of local avails to promote its bundles and telecom services. Below is part of a submission by CAB VP of television and specialty and pay services Wayne Charman. ...The CAB is prepared to offer qualified support for the Eastlink application, provided that the following matters are satisfactorily addressed. The CAB submits that the language of the condition of licence authorizing the use of local avails should be crafted so as to authorize Eastlink to promote only its own Internet and telephony non-programming services… The CAB believes that the commission should ensure that reasonable opportunities continue to be available for the promotion of discretionary programming services and packages within the 25% portion of the local avails. Specifically, the CAB suggests that an equal split in the time devoted to the promotion of Eastlink’s Internet and telephony services on the one hand, and its programming related services on the other hand, would represent an appropriate balance... The CAB further suggests that the commission promote equitable scheduling of promotional messages for programming related and non-programming services in all time periods throughout the broadcast day. This is particularly important with respect to digital programming packages… with respect to promotional messages in the 75% portion of the local avails, so that BDUs do not reserve preferred prime time slots solely for promotion of their own services… In its 1999 TV Policy, the commission stated that "…BDUs may not charge Canadian programming services an amount in excess of their share of the direct costs associated with the insertion of promotional material in the local availabilities of foreign satellite services." This approach was confirmed most recently in the proceeding respecting the promotion of section 9(1)(h) services. The CAB submits that granting flexibility for Eastlink to advertise its Internet and telephony services within the 25% portion of the local avails provides an appropriate opportunity for the commission to clarify this policy, so that conditions pertaining to the use of the local avails are reasonable and consistent with its intentions….The CAB requests that the Commission clarify its policy relating to charges for the use of the local avails by confirming that:charges for the use of local avails should be based only on each user’s share of the direct costs associated with inserting promotional material and should not include any mark-up, overhead or other charge... programming services should have the right to access the local avails with a minimum purchase of no more than six complete broadcast weeks. Finally, the CAB understands that some BDUs charge a premium for the insertion of promotional material in the local avails during prime time....The CAB requests that the commission further confirm that a BDU’s rate card for the use of the local avails should be uniform throughout all day parts, with no premium for prime time insertion. Similarly, the CAB submits that a BDU’s rate card should also be uniform across the local avails of all non-Canadian programming services in which the BDU inserts promotional material, as the cost of doing the insertions should not vary from service to service.

Let Eastlink use local avails for non-broadcast services: CAB

News | 04/10/2006 4:00 am EDT

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