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Cutting Through The Clutter A Lexicon for Broadcast and Online Management Douglas Barrett CTV Professor in Broadcast Management, Schulich School of Business August, 2014 In every business there is a myriad of jargon and terms of art used by insiders. To industry neophytes these terms are often an intimidation. If you don’t know them, you are not ready to be in the club! On the positive side, behind each of these expressions is something both substantive and unique to the industry, something worth learning about if this is to be your professional world. Over a number of years, I have built a collection of useful terms for managing in the Canadian broadcasting and online industries. I’d really rather not use the word “glossary” because I try to expand on the basic definition where appropriate. So I use the word Lexicon. I make no pretense that this document is fully comprehensive. A true Lexicon would have many, many times the number of terms. Mine has about 100. And I have nothing for the technical geek squad. This more of a bluffer’s tool for managers along with those working in a section of the media industries who have an ambition to get a sense of how the whole business fits together. Finally, as the online universe is now so all encompassing, I focus there on terms relating to the media and creative industry side of things. This edition is alphabetical, and for the moment without any sub- groupings.

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Page 1: paradigm.schulich.yorku.caparadigm.schulich.yorku.ca/.../Cutting+Through+The+Clut…  · Web viewCTV Professor in Broadcast Management, Schulich. ... So I use the word Lexicon. I

Cutting Through The ClutterA Lexicon for Broadcast and Online Management

Douglas BarrettCTV Professor in Broadcast Management, Schulich School of Business

August, 2014

In every business there is a myriad of jargon and terms of art used by insiders. To industry neophytes these terms are often an intimidation. If you don’t know them, you are not ready to be in the club!

On the positive side, behind each of these expressions is something both substantive and unique to the industry, something worth learning about if this is to be your professional world.

Over a number of years, I have built a collection of useful terms for managing in the Canadian broadcasting and online industries. I’d really rather not use the word “glossary” because I try to expand on the basic definition where appropriate. So I use the word Lexicon.

I make no pretense that this document is fully comprehensive. A true Lexicon would have many, many times the number of terms. Mine has about 100. And I have nothing for the technical geek squad. This more of a bluffer’s tool for managers along with those working in a section of the media industries who have an ambition to get a sense of how the whole business fits together.

Finally, as the online universe is now so all encompassing, I focus there on terms relating to the media and creative industry side of things.

This edition is alphabetical, and for the moment without any sub-groupings.

Readers should let me know of any additional terms it would be useful to add to the collection. I am at [email protected].

Enjoy.

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ACTRA The Alliance of Canadian Radio & Television Artists, the English language actors union. ACTRA covers all of Canada except BC. French language unions in Quebec are separate. While its’ principal task is to negotiate and administer collective agreements between producers and performers (for the services of performers), it is also heavily committed to representing the policy views of the creative community to government and its agencies, most notably the CRTC. The general thrust of these interventions is to protect and enhance all of the policies, laws and regulations that support the production of Canadian programs

Academy of Canadian Cinema & Television

The organization that operates the Canadian Screen Awards (formerly called the Geminis for television and Genies for feature films). The Quebec branch of the organization, Academie Canadienne du Cinema et de la Television continues to offer a televised French-language award system for television and digital media called Prix Gemeaux

Accretive Accretive acquisitions of assets or businesses will add more value than the cost of the acquisition, either immediately or over time. The amount of consolidation in the media industries is a signal that the aggregation of media assets will have more value that the individual assets on their own

Aereo Aereo was a US based service launched in 2012 that permitted subscribers to watch over-the-air television through internet connected devices without obtaining the permission of the broadcasters. Several broadcast networks launched a copyright infringement action and on June 24, 2014, the Supreme Court of the US ruled against Aereo, stating in a 6-3 decision that Aereo’s business was no different than that of a cable television provider, despite the differences in technology. Four days later Aereo “suspended” its services

BBM Canada The Canadian non-profit organization that provides audience measurement and consumer behaviour data for television and radio broadcasters and advertising agencies. It has recently announced a name change to Numeris. In the major markets of Toronto, Calgary and Vancouver it has introduced Portable People Meter (PPM)

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technology, creating significant improvements and accuracy in managing ratings data

BDU Broadcasting Distribution Undertakings, distributors of packaged bundles of television services: cable distributors, such as Rogers, Shaw and Cogeco, satellite distributors such as Shaw Direct and Bell TV and Internet Protocol (IP) distributors such as Bell Fibe and Telus Optik, all regulated by the CRTC. With convergence, most major BDUs (notably except Telus) now own both programming services and BDUs

Bill C-58 The colloquial term given to a provision of the Income Tax Act introduced in the 70s that eliminated the deductibility of advertising costs paid by Canadian companies to US broadcasting stations being received in Canada. This made advertising by Canadian companies on US border stations prohibitively expensive and therefore shored up the advertising market for Canadian broadcasters

Binge ViewingFrom Wikipedia: “The practice of watching television for longer time spans than usual, usually of a single television show. In a survey conducted by Netflix in February 2014, 73% of people define binge-watching as “watching between 2-6 episodes of the same TV show in one sitting.” Binge-watching as an observed cultural phenomenon has become popular with the rise of online media services such as Netflix, Hulu and Amazon Prime with which the viewer can watch television shows and movies on-demand. Binge viewing is also possible on the website of some broadcasters

Broadcasting Act Defines the structure and powers of both the CRTC and the CBC and sets out the government’s Broadcasting Policy for Canada. As well, it covers the licensing of all types of broadcasting undertakings, including television and radio stations, and cable/satellite program distributors. The Act was last amended in 1991 and thus before the development of any of the key components of the digital universe that so dominates our lives today. The Act is often described as being “woefully out of date”, most often by those who would see us move to a zero regulation universe. On the other hand, for those who believe that Canadians should have access to a broadcasting system that retains Canadian elements, the Act has proven to be remarkably resilient and flexible. The CRTC remains in place and continues to do its work. It remains bound to follow the provisions of the Act. And, importantly, there are no ongoing plans by the government to introduce any

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amendments to the current arrangements

Broadcasting Originally limited to describing the distribution, to the public, of program channels through radio frequency airwaves to rooftop antennas. Hence “over-the-air” distribution. Now generically includes any distribution to the public of channels, whether received by antenna or by cable/satellite operators for re-distribution, and all channels that are only distributed by cable/satellite

Broadcasting Licence The renewable right given by the CRTC to television and radio broadcasters and cable/satellite distributors to operate a broadcasting undertaking, generally given for a period of seven years and subject to various individually tailored conditions of licence and other generally applicable regulations

Broadcasting Policy for Canada

Section 3 of the Broadcasting Act has 20 sub-sections which set out the underlying policy objectives of the Canadian broadcasting system and the rules of engagement for its regulation by the CRTC. Among the policy headlines:

The system should be owned by CanadiansIt’s a public asset and service essential for our

cultural sovereigntyProgramming should reflect our ideas and valuesEach element should contribute to the creation

and presentation of Canadian programsIt should make predominant use of Canadian

creative resources in the creation and presentation of programs

The CBC should be distinctively CanadianIt should reflect Canada and its regionsPrivate operators should contribute to creating

and presenting Canadian programmingDistributors should give priority to the carriage of

Canadian services

CAVCO Canadian Audio-visual Certification Office, the bureau within the Department of Canadian Heritage that oversees the certifications of films and television programs as “Canadian” under the provisions of the Income Tax Act, and oversees the certification of Treaty Co-productions as such

Cabinet Appeal The right of broadcast licensees to appeal certain CRTC

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decisions to the federal cabinet. (This right is in addition with the usual rights that anyone has under administrative law to appeal decision that affect them to the Federal Court on jurisdiction or legal error grounds). Cabinet appeals are essentially political. They are rarely successful primarily because the Cabinet does not want to be seen to second guess independent tribunals and thus open the flood gates. Having said that, there have been notable instances of over-turned decisions over the years

Canadian Content Rules

For conventional television these are CRTC regulations that require a minimum level of certified Canadian programming to be aired throughout the broadcast day and particularly in prime time. For Specialty and Pay Television licences the rules are imposed by individually tailored conditions of licence contained in each licensing decision

Canadian Program Definition

The rules that determine whether a program is Canadian for the purpose of subsidy, tax credits and airing on licensed Canadian programming services, principally administered by CAVCO

Conventional TV Over–the-air broadcast networks such as CBC, CTC and Global, together with their local affiliates. These are services that are capable of being received by a home antenna. They are also carried on all cable, satellite and IPTV distribution services

Convergence A reference to the convergence of telecommunications and broadcasting into a single world of communications that offers services to consumers, delivers these services in new ways and disrupts current business models. The trend has a considerable impact on the CRTC’s ability to regulate in the sector. In August, 2011 the CRTC published Navigating Convergence II: Charting Canadian Communications Change and Regulatory Implications, a report that examines telecommunications, broadcasting and the evolving converged world of communications in Canada

Cord Cutting The practice of terminating one’s subscriber relationship with a Canadian BDU and relying exclusively on free, over-the-air television received by antenna and/or the Internet for one’s entertainment needs

Cord Shaving The practice of reducing one’s subscription to

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programming packages in order to save costs, and in many cases substituting a larger internet data package to watch more services like Netflix

Cord Nevers Those who have never subscribed to any program distribution services, relying exclusively on the internet for program viewing

Co-production A production in which there are two or more producers from different jurisdictions, with aspects of the production being undertaken in each jurisdiction, and the resulting program or film deemed to be “local” in each jurisdiction for broadcast, subsidy or tax purposes. These arrangements can be domestic (between provinces) or international (made under international treaties)

Co-production Treaty Canada is a party to bi-lateral co-production treaties with more than 50 countries, most recently India. The treaties permit both countries to give a properly certified programs national treatment in each country. The Canadian certifying body for this purpose is Telefilm Canada

CBSC Canadian Broadcast Standards Council, the independent, non-governmental body that administers the broadcasting standards codes of Canada’s private broadcasters and adjudicates complaints from viewers and listeners without the power to impose penalties

CMF Canada Media Fund, formerly Canadian Television Fund, the federal subsidy agency for television programs

CMPA Canadian Media Production Association, formerly the Canadian Film & Television Production Association, the lobby and trade association for Canada’s 300 odd English language independent production companies

CPE Requirements Canadian Program Expenditure Requirements imposed by the CRTC on certain licensees as a primary regulatory tool (coupled with Canadian Content Regulations) to ensure that a minimum level of resources is committed by broadcasters to the production of Canadian programs

CPM Cost per thousand viewers: the cost of advertising based on the number of viewers, among many other factors. CPM is the total cost of an advertising occasion, divided by the number of viewers in the target audience. The CPM for

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Men 18-34 viewing a given program will be vastly higher than for Adults 18+, as there are many more Adults 18+ in any audience

CRTC Canadian Radio-television and Telecommunications Commission, the independent regulator of the broadcasting system in Canada operating under the provisions of the Broadcasting Act. The CRTC has 13 Commissioners all appointed for fixed terms (generally five years) by the Prime Minister’s office. It is led by its Chairman, currently Jean-Pierre Blais, who also the chief executive for its staff of about 450. It reports to Parliament through the Minister of Canadian Heritage.

Cross-platform A strategy for making similar content available on multiple platforms (such as a book and an e-book), or for making differing versions of a core creative property available on different platforms, or for having an online and mobile strategy as part of the marketing plan for a traditional television project

DTH Direct-to-Home satellite distribution services such as Bell TV and Shaw Direct

Digital Media Essentially anything created, viewed, distributed, modified and preserved on computers, and delivered over the Internet

Department of Canadian Heritage

The federal government department charged with handling the formation and administration of short term and long term policy matters in the broadcasting, and film and television production arena, among other duties. Traditionally the Department has reported to a Cabinet Minister. Currently the Minister is Shelly Glover, the Member of Parliament from Saint Boniface in Winnipeg. Given the mandate, it is important that the Minister is completely fluent in English and French. Both she and her predecessor, James Moore, meet that test.

Digital Extension A digital project related to or developed in connection with a traditional television property (see Webisode)

Digital Transition The requirement for over-the-air broadcasters (except the CBC which was given an extension) to replace their existing analog transmitters (and there were many hundreds across the country) with digital transmitters with

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a deadline of September 1, 2011

Diversity of Voices Proceeding

A 2007 CRTC proceeding to review its approach to ownership consolidation and other issues related to the diversity of voices in Canada. The proceeding led to new policies with regard to cross-media ownership; the common ownership of television services, including pay and specialty services; and the common ownership of broadcasting distribution undertakings.

DGC Directors Guild of Canada: the guild representing numerous categories of creative technical workers, including Directors, in English across Canada

Equity Investment When an investor, whether a broadcaster, funding agency or private individual, contributes to the budgeted cost of a program with the expectation of sharing in revenues earned by that program (other than such revenues that are already committed to fund product) the financial participation is called an equity investment. In return for the contribution the investor generally receives a share of copyright or ownership in the finished product and hence has “equity” in it. The share of revenue to be received by the investor is negotiable and complex, but is generally proportionately the same for all investors in the applicable production. Investors are said to share pro rata and pari passu with other investors. This terms means “rateably and by equal proportion” in English - which partially explains why people continue to use the Latin. They don’t really know what it means, but it sounds great to throw it around!

FFC Fee for Carriage is the term used to describe a controversial dispute between over-the-air broadcasters and cable/satellite operators whereby the broadcasters have demanded to receive a fee for the carriage of their signals, hitherto rebroadcast by cable/satellite systems without payment. Also know as VFS or Value for Signal. The CRTC agreed that broadcasters should be able to negotiate such a fee but referred the matter to the Federal Court to confirm whether the CRTC has the appropriate powers. In March, 2011 the Federal Court of Appeal confirmed the CRTC’s jurisdiction to impose an FFC regime. In December, 2012 the Supreme Court of Canada reversed the decision of the Federal Court of Appeal and narrowly held that the CRTC’s proposed Value for Signal

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regime was invalid. The decision of the court seemingly puts to rest this long simmering dispute

Friends of Canadian Broadcasting

Otherwise known as the “FRIENDS”, this is an independent non-profit lobby and advocacy group whose primary goals are to support the production of Canadian programming, especially drama, and to “re-build the CBC and Public Broadcasting”. The group has been represented by the same Spokesperson, Ian Morrison, for over 25 years. The problem is that Mr. Morrison is often sharply critical of the CBC and openly hostile to its management. For example, a June 2014 FRIENDS press release headlined CBC Plan Abandons Canadians had Mr. Morrison calling upon CBC President Hubert Lacroix to resign. It quoted Mr. Morrison as saying that the CBC plan and M. Lacroix’s “shameful statement are a betrayal of the values of Canadian public broadcasting”. With friends like that ………..

Genre Protection A CRTC policy that protects certain categories of Canadian specialty programming services by prohibiting the carriage by BDUs of competing foreign or Canadian services in the same genre. The definition of the applicable genre is generally set out in the licensing decision of the originally licensed service. Certain genres, such as news and sports, are excluded from this policy

Geo-blockingAlso known as geo-fencing and geo-filtering, geo-blocking is a practice of permitting users to view sites and download applications and media based on location. It is used by film and television studios in rights management to ensure that viewers in a specific region are authorized. Geo-blocking is accomplished by excluding targeted Internet addresses

Group Based Licensing

A CRTC regulatory policy establishing a corporate group based licensing approach (rather than a service-by-service approach as in the past) to large integrated English-language private television ownership groups,. The policy was followed in _____ recent license renewal hearings for the stations owned by Shaw Media, Bell Media and Rogers Broadcasting

IPTV

Internet Protocol television is a system through which television services are delivered using the Internet instead of traditional satellite and cable television formats

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ISP Internet Service Provider

LPIF Local Program Improvement Fund, a fund created by the CRTC in 2008 to support local programming produced by conventional over-the-air television stations in non-metropolitan markets. The intention of the CRTC was to support the weakest part of the system: the locally originated programming of conventional broadcasters. The resources for the fund come from a levy of 1.5% on the gross revenues of cable/satellite distribution companies. The CRTC announced in August, 2012 that given the recovery in the advertising sector and the successful transition to digital television, it was satisfied that LPIF had fulfilled its purpose and would be phased out over two years.

Let’s Talk TV This is the possibly the largest, most participatory and most comprehensive policy review process ever held by the CRTC. Originally launched in October 2013, it began as a “Conversation with Canadians” that involved an online discussion forum, Flash Conferences, and an interactive questionnaire or “Choicebook” based on what had been heard. In April 2014, the CRTC issued a Notice of Consultation asking for formal submissions leading up to a multi-week hearing in Ottawa commencing on September 8, 2014. In the Notice of Consultation, the CRTC essentially put every major traditional element of broadcasting policy on the table for review and asked 80 questions of those wishing to participate in this process. While the Notice comments that the CRTC must work within the provisions of the Broadcasting Act, it is not clear how the Act would give it the authority to carry out many of the changes it says it is considering. And given the economic consequences for many established operators of some of the ideas being floated, there is bound to be a round of jurisdictional appeals following the release of the new policies expected early in 2015

Licence Fee The amount paid by a broadcaster to rent or use a television program. The licensing agreement contemplates what the broadcaster gets in return for the fee, including number of runs, on which channels, period of time during which it can be run, renewal rights in the event it is a series, priority and exclusivity rights where applicable, and so on

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Local Station A station licensed to serve a specific geographic area. A Local Station can be independent or an affiliate of a national network. The station generally offers network programming in prime time, and local news and syndicated programming the rest of the time. See also OTA Television

Multi-Channel Networks

Multi-Channel Networks (MCNs) are businesses that affiliate with multiple YouTube Channels, “to offer assistance in areas such as product, programming, funding, cross-promotion, partner management, digital rights management, monetization/sales, and/or audience development” (YouTube)

Net Neutrality Net neutrality is the principle that Internet service providers should treat all data on the Internet equally, not discriminating or charging differentially by user, content, site, platform or application. Proponents often see net neutrality as an important component of an open Internet. In Canada the matter has been reviewed by the CRTC and it has adopted a set of principles for a transparent approach. However, in April, 2014 In the United States, however, the Federal Communications Commission (FCC) is reported to be considering a new rule that will permit Internet service providers to commercially offer content providers a faster track to send content. This proceeding, which is still ongoing, is highly controversial and will have a major impact on how content is priced on the Internet

Network A television program service that is distributed to many Local Stations and is distributed by these stations as part of their service, usually in prime time. CBC, CTV and Global are Networks. In Canada, Networks and Local Stations are licensed separately

Network vs. Spot Market

Television advertising can be bought on a network to reach the entire country at one time. It can also be purchased on the Spot market on individual TV stations from coast to coast

Numeris The newly branded name of BBM Canada (See BBM Canada)

OTA Television Over-the-air television. Every geographic market in Canada has a number of licensed local OTA stations.

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Toronto’s include CBC Toronto, a CBC network affiliate, CTV Toronto, a CTV affiliate, Global TV, a Shaw Media affiliate, Citytv, a Rogers Media unit, and also CHCH, an independent received from Hamilton. These stations were licensed before cable/satellite distribution made specialty television possible. While relatively few viewers watch television exclusively via over-the-air antennas (since the channels are all carried by cable/satellite distributors), the services continue to operate transmitters for this purpose. See also Local Station, Network, Digital Transition and Cord Cutting.

OTT Over-the-Top, an acronym used to describe paid subscription services like Netflix that are received via the Internet and are currently exempted from any Canadian content, carriage or ownership requirements

Paid vs Earned A term used in relation to online advertising that reflects what happens when an ad that has been placed on a specific site (paid) is attractive enough to be shared among many additional targeted viewers through various social networks at no further cost to the advertiser (earned). The effectiveness of the advertising message is considered greater because it comes from a friend or colleague as opposed to the advertiser itself

Pay TV Channels delivered exclusively by cable/satellite and sold to subscribers on a fee per service basis

Pick and Pay A term that refers to the theoretical ability of a program distribution service subscriber to select and pay for individual channels as opposed to the multiple channel packages that are currently on offer. The term is controversial because it is easy to understand for a consumer (and therefore attractive) and economically complex to implement (because in order to sustain revenue flows the per channel subscriber cost could be considerably more than at present). As a result of its implementation, subscribers might well receive fewer channels for more dollars, exactly the opposite result of what is intended. An additional complexity is that the current structure of most packages is partly driven by the requirements of the Broadcasting Act for distributors to carry Canadian channels and programming. The introduction of some form of Pick and Pay is a key part of the CRTC Let’s Talk TV proceeding

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Pre-sale A term used to describe the contractually secure agreement of a broadcaster, made during the development phase and before the program is produced, to purchase and air that program

PNI Programs of National Interest. In its policy on the licensing of large English-language private television ownership groups (See Group Based Licensing) the CRTC announced that the current exhibition requirements for “priority programming” would be replaced by an expenditure requirement for “programs of national interest”.[1] The Commission determined that such programs would consist of long-form documentaries, drama and comedy, which are primary vehicles for communicating Canadian stories and values, as well as specific Canadian award shows that celebrate Canadian creative talent.

PPM or Portable People Meter

A pager sized audience measurement device carried by a sample of 8,000 Canadians. It records a code embedded in the audio signal of radio and TV stations, and electronically reports the statistical viewing results each night. Because the device goes everywhere with the wearer, it picks up viewing in bars and other places outside the home

PPV Pay Per View services where the subscriber pays a fee for each program viewing

Predominance The Broadcasting Act requires that both program distributors, such as cable systems, and individual channels shall make “ … no less than predominant use, of Canadian creative and other resources in the creation and presentation of programming”. To date, this has been taken to mean that each subscriber should receive a preponderance of licensed Canadian television services, and this has of course driven the composition of channel packages that are made available. Similarly it has been taken to mean that television broadcasters should in most circumstances carry a majority of Canadian content programming. Under the CRTC’s Let’s Talk TV process, both of these concepts, and the whole concept of predominance, have been put to issue. This is somewhat ironic since the CRTC is bound by the apparently clear provisions of the Act, and there appear to be no plans for its amendment. See Let’s Talk TV

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Programming Undertaking

While it may seem odd to define something that’s pretty clear to most of us, this one is important. Under the Broadcasting Act the CRTC is authorized to licence any Programming Undertaking. A Programming Undertaking is anything that distributes “Programs” to the public in any technical manner (including the internet). Programs are broadly defined as “a combination of sounds and images that are intended to inform, enlighten and entertain”. So, the CRTC has the clear jurisdiction to require services like Netflix (and YouTube) to obtain a broadcasting licence to operate in Canada. It also has the jurisdiction to exempt certain categories of operators from the need to obtain a licence and, in fact, has issued an Exemption Order for Digital Media Broadcasting Undertakings. A discussion concerning whether to continue with this blanket exemption in its current form will be an important part of the Let’s Talk TV proceeding. See Let’s Talk TV.

Pre-roll The name of a commercial appearing prior to an online video (as opposed to a mid-roll or post-roll). A pre-roll looks like a TV commercial. Online advertisers claim it is effective because: 1) you are forced to watch it; 2) it targets a more engaged user and 3) you can take an action regarding the ad if you're interested. Some websites let you skip over the commercial spot, but most do not

Rating The audience to a program, expressed as a percent of the total population. It is usually based on a specific demographic and market. For example, an average rating of 8.6 for women 18-49 in Vancouver means 8.6% of that demographic were watching the average minute of the program

Reach or Unique Visitors

The number of different people who watch for at least one minute of a program. For example, the CTV Evening News in Calgary could have an average daily audience of 100,000 viewers and a weekly reach of 400,000. In the digital world, TSN.ca attracts 2 million unique visitors each month

Real-time Bidding or RTB

An online marketing method which allows advertisers to place ads immediately based on what the user is currently viewing. It used to be that advertisers booked slots in advance and could not make on-the-fly decisions about what ads to show based on what people were doing on the

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Web. Now, advertisers can buy ads in the milliseconds between the time someone enters a site’s Web address and the moment the page appears. The technology, allows advertisers to examine site visitors one by one and bid to serve them ads almost instantly

Recoupment This term refers to the manner in which a investment in a television program is returned back to the various financiers. Since not all investors are treated equally, there is often a chart of recoupment arrangements or “tiers” that describe how revenue will be allocated as it comes in

Roll-up An acquisition strategy whereby a company acquires other businesses in the same segment in order to share the costs of management and provide more services to similar customers, thus creating operating synergies, growth and ultimately, investor value

Share The audience to a program, expressed as a percent of those watching television at the time. For example if Breakfast Television has a 25 share this means that it attracts 25% of the audience of adults 18-49 on the average weekday morning in Toronto

Second Screen Viewing

The practice of using a computer device, such as a laptop, tablet or smart phone, while watching a television program. While many or most second screen viewers will be focussed digitally on matters other than the television program, some broadcasters and programmers are attempting to develop strategies for luring viewers to sites connected with the television program. In the pre-digital era, the second “screen” was a newspaper or homework

Significant (or Tangible) Benefits Test

A rule imposed by the CRTC when approving the takeover of one programming undertaking by another that roughly 10% of the purchase price of the transaction must be spent by the acquiring party (during the term of the licence granted) on incremental benefits to the Canadian broadcasting system, generally in the form of programming commitments and service improvements, and infrequently special endowments (such as the CTV Professorship at the Schulich School of Business)

Simultaneous Substitution, simulcasting, or

If a Canadian station has bought the rights to air a program in Canada, Canadian cable/satellite operators are obligated by the CRTC to substitute the Canadian channel

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“Simsub” over the US channel when that program is aired simultaneously. For example, when you watch American Idol on the ABC station in your market, you are actually watching the CTV version along with the Canadian commercials sold by CTV. Under the CRTC’s Let’s Talk TV process the Simsub policy has been made an issue with the CRTC asking whether it is still necessary. Broadcasters (backed by consultant studies) estimate that the annual cost of its abolition would be north of $500 million

SOCAN The Society of Composers, Authors and Music Publishers of Canada, a collective that administers the performing rights of more than 100,000 composer, author and music publisher members by licensing the use of music to television and radio broadcasters in Canada

Social Media Marketing

From Wikipedia: Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. The resulting electronic word of mouth refers to any statement consumers share via the Internet (e.g., web sites, social networks, instant messages, news feeds) about an event, product, service, brand or company. The underlying message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself.

Specialty TV Channels delivered exclusively by cable/satellite (ie: not over-the-air) and sold to subscribers in packages for a fee. There are three types of Canadian specialty TV services:Category A – these services must be carried by BDUs which pay the service a feeCategory B – these services do not have guaranteed carriage by BDUs and carriage terms are negotiated between the service and individual BDUsCategory C – these services are licensed in specific genres (currently mainstream news and sports) that the CRTC considers to be able to be supported by market demand

Spectrum Auction From Wikipedia: “A spectrum auction is a process whereby a government uses an auction system to sell the rights to transmit signals over specific bands of the electromagnetic spectrum and to assign scarce spectrum resources. Depending on the specific auction format used,

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a spectrum auction can last from a single day to several months from the opening bid to the final winning bid …. Spectrum auctions are a step toward market-based spectrum management and privatization of public airwaves.” In Canada, recent auctions have been controversially used by the federal government to favour a greater degree of competition in the wireless space. The government has notoriously criticized the market power of Rogers, Shaw and Telus, and taken numerous and as yet unsuccessful steps to promote the establishment of a fourth national carrier

Sweeps In the past, the ratings company conducted surveys by mail over a 4 week period in the fall and spring, and networks scheduled their programming to maximize audiences during these periods. The results established ad rates for the ensuing 6 months. This system is still used in about 38 smaller markets. In the 5 major markets, portable people meters provide daily ratings year round.

Syndicated Programming

Television programming that is sold market by market and aired in each market at a time chosen by the local station (Wheel of Fortune, Oprah etc.). The independent scheduling feature differentiates this type of programming from network programming. If the show is a series run five days per week in the same time slot, it is called “stripping”

Tax Credits A form of subsidy developed in Canada, and now copied in other jurisdictions, made in the form of tax credits calculated on the value of the Canadian labour engaged in the production of a film or television production. These credits are now offered by both the federal government and, separately, by most provincial governments, to induce both Canadian and foreign producers to make programs and films in their jurisdictions. Unique to these credits is that they are “refundable” in that they are directly payable to the production company if there is no offsetting taxable income

Telefilm Canada A federal government independent crown corporation with roles as (i) the principal federal subsidy agency for feature films (ii) the application and file administrator on behalf of the Canada Media Fund (iii) the administrator of industrial support for festivals, trade events etc. (iv) the program certification agency under Canada’s numerous co-production treaties with other countries

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Terms of Trade Agreement

An agreement that came into effect on June 1, 2011 between Astral Television, Bell Media, Corus Entertainment, Rogers Broadcasting and Shaw Media on one side, and the Canadian Media Production Association on the other. The agreement establishes comprehensive and binding business terms for all dealings between broadcasters and independent producers for the entire life cycle of any show made for the broadcasters

Tiering and LinkageRequirements

A series of CRTC rules that ensure a minimum number of Canadian specialty and pay services is included in each package of programming services sold to subscribers. Some tiering and linkage rules will be eliminated once the Digital Transition is complete

3 + 1 Rule A CRTC rule from the 70s that permitted cable/satellite services to deliver three US network services (CBS, NBC, ABC) plus PBS to their subscribers. Opened Canadian access to US services and drove the rapid and deep penetration of cable in the 80s. With the advent of Fox TV it became the 4 +1 rule

Transmedia A way of telling stories using multiple platforms with participatory elements

Triple Dub The World Wide Web

Upfront vs. Scatter Markets

The Upfront is a largely US event where advertisers make a commitment in June of each year for advertising at a fixed cost over the next 12 months. The remaining inventory is sold on the Scatter Market, which can occur at any time until a program goes to air. Scatter rates are higher for high demand programs and times – but can be lower when the ad market is soft.

Value for Signal See Fee for Carriage

Vertical Integration Primarily as a result of the acquisition by Shaw Media of the Canwest Global television services and by BCE Inc. of the CTVglobemedia services, the CRTC launched a review of its regulatory framework for “vertical integration” referring to the ownership, by one entity, of both programming and distribution undertakings, or, both programming undertakings and production companies. A public hearing was held in June, 2011. Since that time, of

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course, Bell has acquired Astral Media and further deepened vertical integration in Canada. A vertically integrated company is also called a VI.

VOD Video on Demand services such as Rogers on Demand

Webisode An episode of a program series intending for online distribution, and usually available for downloading or streaming. Where the intention is mobile distribution it is sometimes referred to as a mobisode