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. Readers should let me know of any additional terms it would be useful to add to the collection. I am at barrett@barcodesdg.com. Enjoy. 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) 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 Viewing From 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 ondemand. Binge viewing is also possible on the website of some broadcasters Broadcasting Act Defines the structure and powers of both the CBC and sets out the government’s B Policy for Canada. As well, it covers the types of broadcasting undertakings, inclu and radio stations, and cable/satellite pro The Act was last amended in 1991 and th development of any of the key componen universe that so dominates our lives toda often described as being “woefully out of by those who would see us move to a zer universe. On the other hand, for those w Canadians should have access to a broad that retains Canadian elements, the Act h remarkably resilient and flexible. The CR place and continues to do its work. It rem follow the provisions of the Act. And, imp no ongoing plans by the government to in amendments to the current arrangements Broadcasting Originally limited to describing the distribu public, of program channels through radio airwaves to rooftop antennas. Hence “ov distribution. Now generically includes an the public of channels, whether received cable/satellite operators for re-distribution that are only distributed by cable/satellite Broadcasting Licence The renewable right given by the CRTC t radio broadcasters and cable/satellite dis operate a broadcasting undertaking, gene period of seven years and subject to vario tailored conditions of licence and other ge regulations Broadcasting Policy for Canada Section 3 of the Broadcasting Act has 20 which set out the underlying policy object Canadian broadcasting system and the ru engagement for its regulation by the CRT policy headlines: The system should be owned by C It’s a public asset and service esse cultural sovereignty Programming should reflect our ide Each element should contribute to presentation of Canadian program It should make predominant use of creative resources in the creation a of programs The CBC should be distinctively Ca It should reflect Canada and its reg Private operators should contribute presenting Canadian programming Distributors should give priority to t Canadian services CAVCO Canadian Audio-visual Certification Office within the Department of Canadian Herita the certifications of films and television pr “Canadian” under the provisions of the In and oversees the certification of Treaty C such Cabinet Appeal The right of broadcast licensees to appea decisions to the federal cabinet. (This rig with the usual rights that anyone has und law to appeal decision that affect them to on jurisdiction or legal error grounds). Ca essentially political. They are rarely succ because the Cabinet does not want to be guess independent tribunals and thus ope Having said that, there have been notable over-turned decisions over the years Canadian Content Rules For conventional television these are CRT that require a minimum level of certified C programming to be aired throughout the b particularly in prime time. For Specialty a licences the rules are imposed by individu conditions of licence contained in each lic Canadian Program Definition The rules that determine whether a progr for the purpose of subsidy, tax credits and licensed Canadian programming services administered by CAVCO Conventional TV Over–the-air broadcast networks such as Global, together with their local affiliates. services that are capable of being receive antenna. They are also carried on all cab IPTV distribution services Convergence A reference to the convergence of telecom broadcasting into a single world of comm offers services to consumers, delivers the new ways and disrupts current business m trend has a considerable impact on the C regulate in the sector. In August, 2011 th published Navigating Convergence II: C Canadian Communications Change an Implications, a report that examines tele broadcasting and the evolving converged communications in Canada Cord Cutting The practice of terminating one’s subscrib with a Canadian BDU and relying exclusiv the-air television received by antenna and for one’s entertainment needs Cord Shaving The practice of reducing one’s subscriptio programming packages in order to save c cases substituting a larger internet data p more services like Netflix Cord Nevers Those who have never subscribed to any distribution services, relying exclusively o program viewing Co-production A production in which there are two or mo from different jurisdictions, with aspects o being undertaken in each jurisdiction, and program or film deemed to be “local” in ea broadcast, subsidy or tax purposes. The can be domestic (between provinces) or i (made under international treaties) Co-production Treaty Canada is a party to bi-lateral co-product more than 50 countries, most recently Ind permit both countries to give a properly ce national treatment in each country. The C certifying body for this purpose is Telefilm CBSC Canadian Broadcast Standards Council, t non-governmental body that administers standards codes of Canada’s private broa adjudicates complaints from viewers and the power to impose penalties CMF Canada Media Fund, formerly Canadian T the federal subsidy agency for television p CMPA Canadian Media Production Association, Canadian Film & Television Production A lobby and trade association for Canada’s language independent production compa CPE Requirements Canadian Program Expenditure Requirem the CRTC on certain licensees as a prima (coupled with Canadian Content Regulati that a minimum level of resources is com broadcasters to the production of Canadi CPM Cost per thousand viewers: the cost of ad on the number of viewers, among many o is the total cost of an advertising occasion number of viewers in the target audience. Men 18-34 viewing a given program will b than for Adults 18+, as there are many m any audience CRTC Canadian Radio-television and Telecomm Commission, the independent regulator o system in Canada operating under the pr Broadcasting Act. The CRTC has 13 Com appointed for fixed terms (generally five y Prime Minister’s office. It is led by its Cha Jean-Pierre Blais, who also the chief exe of about 450. It reports to Parliament thro of Canadian Heritage. Cross-platform A strategy for making similar content avai platforms (such as a book and an e-book differing versions of a core creative prope different platforms, or for having an online strategy as part of the marketing plan for television project DTH Direct-to-Home satellite distribution servic TV and Shaw Direct Digital Media Essentially anything created, viewed, dist and preserved on computers, and deliver Internet Department of Canadian Heritage The federal government department char the formation and administration of short term policy matters in the broadcasting, a television production arena, among other Traditionally the Department has reported Minister. Currently the Minister is Shelly Member of Parliament from Saint Bonifac Given the mandate, it is important that the completely fluent in English and French. predecessor, James Moore, meet that tes Digital Extension A digital project related to or developed in a traditional television property (see Web Digital Transition The requirement for over-the-air broadca CBC which was given an extension) to re existing analog transmitters (and there we hundreds across the country) with digital a deadline of September 1, 2011 Diversity of Voices Proceeding A 2007 CRTC proceeding to review its ap ownership consolidation and other issues diversity of voices in Canada. The procee policies with regard to cross-media owne common ownership of television services and specialty services; and the common o broadcasting distribution undertakings. DGC Directors Guild of Canada: the guild repre numerous categories of creative technica including Directors, in English across Can Equity Investment When an investor, whether a broadcaster or private individual, contributes to the bu program with the expectation of sharing in earned by that program (other than such already committed to fund product) the fin participation is called an equity investmen the contribution the investor generally rec copyright or ownership in the finished pro has “equity” in it. The share of revenue to the investor is negotiable and complex, b proportionately the same for all investors production. Investors are said to share p passu with other investors. This terms m and by equal proportion” in English - wh explains why people continue to use the L really know what it means, but it sounds g around! FFC Fee for Carriage is the term used to desc controversial dispute between over-the-a and cable/satellite operators whereby the have demanded to receive a fee for the c signals, hitherto rebroadcast by cable/sat without payment. Also know as VFS or V The CRTC agreed that broadcasters sho negotiate such a fee but referred the matt Court to confirm whether the CRTC has t powers. In March, 2011 the Federal Cou confirmed the CRTC’s jurisdiction to impo regime. In December, 2012 the Supreme reversed the decision of the Federal Cour narrowly held that the CRTC’s proposed V regime was invalid. The decision of the c puts to rest this long simmering dispute Friends of Canadian Broadcasting Otherwise known as the “FRIENDS”, this independent non-profit lobby and advoca primary goals are to support the productio programming, especially drama, and to “r and Public Broadcasting”. The group has represented by the same Spokesperson, over 25 years. The problem is that Mr. M sharply critical of the CBC and openly ho management. For example, a June 2014 release headlined CBC Plan Abandons C Morrison calling upon CBC President Hub resign. It quoted Mr. Morrison as saying and M. Lacroix’s “shameful statement are values of Canadian public broadcasting”. that ……….. Genre Protection A CRTC policy that protects certain categ specialty programming services by prohib by BDUs of competing foreign or Canadia same genre. The definition of the applica generally set out in the licensing decision licensed service. Certain genres, such as sports, are excluded from this policy Geo-blocking Also 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 IPTV A CRTC regulatory policy establishing a c based licensing approach (rather than a s approach as in the past) to large integrate language private television ownership gro was followed in _____ recent license rene the stations owned by Shaw Media, Bell M Broadcasting Internet Protocol television is a system through which television services are delivered using the Internet instead of traditional satellite and cable television formats ISP Internet Service Provider LPIF Local Program Improvement Fund, a fund CRTC in 2008 to support local programm conventional over-the-air television statio metropolitan markets. The intention of th support the weakest part of the system: th originated programming of conventional b resources for the fund come from a levy o gross revenues of cable/satellite distributi The CRTC announced in August, 2012 th recovery in the advertising sector and the transition to digital television, it was satisf fulfilled its purpose and would be phased years. Let’s Talk TV This is the possibly the largest, most part comprehensive policy review process eve CRTC. Originally launched in October 20 “Conversation with Canadians” that involv discussion forum, Flash Conferences, an questionnaire or “Choicebook” based on w heard. In April 2014, the CRTC issued a Consultation asking for formal submission multi-week hearing in Ottawa commencin 8, 2014. In the Notice of Consultation, th essentially put every major traditional elem broadcasting policy on the table for review questions of those wishing to participate i While the Notice comments that the CRT within the provisions of the Broadcasting how the Act would give it the authority to the changes it says it is considering. And economic consequences for many establ some of the ideas being floated, there is b round of jurisdictional appeals following th new policies expected early in 2015 Licence Fee The amount paid by a broadcaster to rent television program. The licensing agreem what the broadcaster gets in return for the number of runs, on which channels, perio which it can be run, renewal rights in the series, priority and exclusivity rights wher so on Local Station A station licensed to serve a specific geog Local Station can be independent or an a national network. The station generally o programming in prime time, and local new programming the rest of the time. See al Television Multi-Channel Networks Multi-Channel Networks (MCNs) are busi affiliate with multiple YouTube Channels, assistance in areas such as product, prog funding, cross-promotion, partner manage rights management, monetization/sales, a development” (YouTube) Net Neutrality Net neutrality is the principle that Internet should treat all data on the Internet equal discriminating or charging differentially by site, platform or application. Proponents neutrality as an important component of a In Canada the matter has been reviewed it has adopted a set of principles for a tran approach. However, in April, 2014 In the however, the Federal Communications C is reported to be considering a new rule th Internet service providers to commercially providers a faster track to send content. which is still ongoing, is highly controvers major impact on how content is priced on Network A television program service that is distrib Local Stations and is distributed by these of their service, usually in prime time. CB Global are Networks. In Canada, Networ Stations are licensed separately Network vs. Spot Market Television advertising can be bought on a the entire country at one time. It can also the Spot market on individual TV stations coast Numeris The newly branded name of BBM Canada Canada) OTA Television Over-the-air television. Every geographic Canada has a number of licensed local O Toronto’s include CBC Toronto, a CBC n CTV Toronto, a CTV affiliate, Global TV, affiliate, Citytv, a Rogers Media unit, and independent received from Hamilton. The licensed before cable/satellite distribution television possible. While relatively few v television exclusively via over-the-air ante channels are all carried by cable/satellite services continue to operate transmitters See also Local Station, Network, Digital T Cord Cutting. OTT Over-the-Top, an acronym used to descri subscription services like Netflix that are r Internet and are currently exempted from content, carriage or ownership requireme Paid vs Earned A term used in relation to online advertisin what happens when an ad that has been specific site (paid) is attractive enough to many additional targeted viewers through networks at no further cost to the advertis effectiveness of the advertising message greater because it comes from a friend or opposed to the advertiser itself Pay TV Channels delivered exclusively by cable/s to subscribers on a fee per service basis Pick and Pay A term that refers to the theoretical ability distribution service subscriber to select an individual channels as opposed to the mu packages that are currently on offer. The controversial because it is easy to unders consumer (and therefore attractive) and e complex to implement (because in order t flows the per channel subscriber cost cou considerably more than at present). As a implementation, subscribers might well re channels for more dollars, exactly the opp what is intended. An additional complexit current structure of most packages is par requirements of the Broadcasting Act for carry Canadian channels and programmin introduction of some form of Pick and Pay the CRTC Let’s Talk TV proceeding Pre-sale A term used to describe the contractually agreement of a broadcaster, made during phase and before the program is produce and air that program PNI Programs of National Interest. In its polic of large English-language private televisio groups (See Group Based Licensing) the announced that the current exhibition req “priority programming” would be replaced expenditure requirement for “programs of interest”.[1] The Commission determined t programs would consist of long-form docu drama and comedy, which are primary ve communicating Canadian stories and valu specific Canadian award shows that celeb creative talent. PPM or Portable People Meter A pager sized audience measurement de sample of 8,000 Canadians. It records a in the audio signal of radio and TV station electronically reports the statistical viewin night. Because the device goes everywh wearer, it picks up viewing in bars and oth the home PPV Pay Per View services where the subscrib each program viewing Predominance The Broadcasting Act requires that both p distributors, such as cable systems, and i channels shall make “ … no less than pre Canadian creative and other resources in presentation of programming”. To date, t taken to mean that each subscriber shoul preponderance of licensed Canadian tele and this has of course driven the compos packages that are made available. Simila taken to mean that television broadcaster circumstances carry a majority of Canadia programming. Under the CRTC’s Let’s T both of these concepts, and the whole co predominance, have been put to issue. T ironic since the CRTC is bound by the ap provisions of the Act, and there appear to its amendment. See Let’s Talk TV Programming Undertaking While it may seem odd to define somethin clear to most of us, this one is important. Broadcasting Act the CRTC is authorized Programming Undertaking. A Programm anything that distributes “Programs” to the technical manner (including the internet). broadly defined as “a combination of soun that are intended to inform, enlighten and the CRTC has the clear jurisdiction to req Netflix (and YouTube) to obtain a broadca operate in Canada. It also has the jurisdi certain categories of operators from the n licence and, in fact, has issued an Exemp Digital Media Broadcasting Undertakings concerning whether to continue with this b in its current form will be an important par TV proceeding. See Let’s Talk TV. Pre-roll The name of a commercial appearing prio video (as opposed to a mid-roll or post-ro looks like a TV commercial. Online adver effective because: 1) you are forced to wa a more engaged user and 3) you can take regarding the ad if you're interested. Som you skip over the commercial spot, but m Rating The audience to a program, expressed as total population. It is usually based on a s demographic and market. For example, a of 8.6 for women 18-49 in Vancouver me demographic were watching the average program Reach or Unique Visitors The number of different people who watc minute of a program. For example, the C in Calgary could have an average daily au 100,000 viewers and a weekly reach of 4 digital world, TSN.ca attracts 2 million un month Real-time Bidding or RTB An online marketing method which allows place ads immediately based on what the viewing. It used to be that advertisers boo advance and could not make on-the-fly d what ads to show based on what people w Web. Now, advertisers can buy ads in the between the time someone enters a site’s and the moment the page appears. The t advertisers to examine site visitors one by serve them ads almost instantly Recoupment This term refers to the manner in which a television program is returned back to the financiers. Since not all investors are trea is often a chart of recoupment arrangeme describe how revenue will be allocated as Roll-up An acquisition strategy whereby a compa businesses in the same segment in order costs of management and provide more s customers, thus creating operating synerg ultimately, investor value Share The audience to a program, expressed as those watching television at the time. Fo Breakfast Television has a 25 share this m attracts 25% of the audience of adults 18 average weekday morning in Toronto Second Screen Viewing The practice of using a computer device, tablet or smart phone, while watching a te While many or most second screen viewe focussed digitally on matters other than th program, some broadcasters and program attempting to develop strategies for luring connected with the television program. In era, the second “screen” was a newspape Significant (or Tangible) Benefits Test A rule imposed by the CRTC when appro of one programming undertaking by anoth 10% of the purchase price of the transact by the acquiring party (during the term of granted) on incremental benefits to the C broadcasting system, generally in the form commitments and service improvements, special endowments (such as the CTV Pr Schulich School of Business) Simultaneous Substitution, simulcasting, or “Simsub” If a Canadian station has bought the right in Canada, Canadian cable/satellite opera obligated by the CRTC to substitute the C over the US channel when that program i simultaneously. For example, when you w Idol on the ABC station in your market, yo watching the CTV version along with the commercials sold by CTV. Under the CR TV process the Simsub policy has been m with the CRTC asking whether it is still ne Broadcasters (backed by consultant studi the annual cost of its abolition would be n million SOCAN The Society of Composers, Authors and M of Canada, a collective that administers th rights of more than 100,000 composer, au publisher members by licensing the use o television and radio broadcasters in Cana Social Media Marketing From Wikipedia: Social media marketing center on efforts to create content that att and encourages readers to share it with t networks. The resulting electronic word o any statement consumers share via the In sites, social networks, instant messages, about an event, product, service, brand o underlying message spreads from user to presumably resonates because it appear trusted, third-party source, as opposed to company itself. Specialty TV Channels delivered exclusively by cable/s over-the-air) and sold to subscribers in pa There are three types of Canadian specia Category A – these services must be carr which pay the service a fee Category B – these services do not have carriage by BDUs and carriage terms are between the service and individual BDUs Category C – these services are licensed (currently mainstream news and sports) t considers to be able to be supported by m Spectrum Auction From Wikipedia: “A spectrum auction is a whereby a government uses an auction s rights to transmit signals over specific ban electromagnetic spectrum and to assign s resources. Depending on the specific au a spectrum auction can last from a single months from the opening bid to the final w Spectrum auctions are a step toward mar spectrum management and privatization o airwaves.” In Canada, recent auctions ha controversially used by the federal govern greater degree of competition in the wirel government has notoriously criticized the Rogers, Shaw and Telus, and taken num unsuccessful steps to promote the establ fourth national carrier Sweeps In the past, the ratings company conducte mail over a 4 week period in the fall and s networks scheduled their programming to audiences during these periods. The res ad rates for the ensuing 6 months. This s in about 38 smaller markets. In the 5 ma portable people meters provide daily ratin Syndicated Programming Television programming that is sold mark aired in each market at a time chosen by (Wheel of Fortune, Oprah etc.). The inde scheduling feature differentiates this type from network programming. If the show i days per week in the same time slot, it is Tax Credits A form of subsidy developed in Canada, a other jurisdictions, made in the form of tax calculated on the value of the Canadian l the production of a film or television produ credits are now offered by both the federa and, separately, by most provincial gover both Canadian and foreign producers to m and films in their jurisdictions. Unique to that they are “refundable” in that they are to the production company if there is no o income Telefilm Canada A federal government independent crown roles as (i) the principal federal subsidy a films (ii) the application and file administra the Canada Media Fund (iii) the administr support for festivals, trade events etc. (iv) certification agency under Canada’s num production treaties with other countries Terms of Trade Agreement An agreement that came into effect on Ju between Astral Television, Bell Media, Co Entertainment, Rogers Broadcasting and one side, and the Canadian Media Produ on the other. The agreement establishes and binding business terms for all dealing broadcasters and independent producers cycle of any show made for the broadcas Tiering and Linkage Requirements A series of CRTC rules that ensure a min Canadian specialty and pay services is in package of programming services sold to Some tiering and linkage rules will be elim Digital Transition is complete 3 + 1 Rule A CRTC rule from the 70s that permitted services to deliver three US network serv ABC) plus PBS to their subscribers. Ope access to US services and drove the rapi penetration of cable in the 80s. With the it became the 4 +1 rule Transmedia A way of telling stories using multiple plat participatory elements Triple Dub The World Wide Web Upfront vs. Scatter Markets The Upfront is a largely US event where a a commitment in June of each year for ad fixed cost over the next 12 months. The r inventory is sold on the Scatter Market, w any time until a program goes to air. Scat higher for high demand programs and tim lower when the ad market is soft. Value for Signal See Fee for Carriage Vertical Integration Primarily as a result of the acquisition by the Canwest Global television services an the CTVglobemedia services, the CRTC l of its regulatory framework for “vertical int referring to the ownership, by one entity, programming and distribution undertaking programming undertakings and productio public hearing was held in June, 2011. S course, Bell has acquired Astral Media an deepened vertical integration in Canada. integrated company is also called a VI. VOD Video on Demand services such as Roge Webisode An episode of a program series intending distribution, and usually available for dow streaming. Where the intention is mobile sometimes referred to as a mobisode