It’s been a multi-year dispute over advertising rights that goes back to 2013.
The telecom giant Bell Canada (BCE) secured exclusive Canadian rights to broadcast the Superbowl of the National Football League (NFL) in 2013. Although an American event, it also enjoys high popularity in Canada, both the game and the commercials which can cost a company USD $5 million for a 30 second advert.
The adverts are highly anticipated as they are usually among the most innovative of the year. But BCE inserted Canadian adverts to replace the American ones until 2017, a practice which earned it a great deal of money. Then due to some complaints from Canadian viewers who felt deprived of the American adverts, the Canadian Radio-television and Telecommunications Commission ruled that Bell could not substitute adverts from domestic companies to replace American ones. They ruled that replacing American commercials with Canadian ones was not in the public interest, and ordered an end to the substitution practice.
Bell Canada Enterprises (BCE) has the exclusive rights to broadcast the NFL Superbowl in Canada, and now also to substitute Canadian ads in the place of the American ones. BCE will now collect millions in commercial sales from Canadian companies, while the NFL can now charge more for the broadcast rights in Canada. (Kevin Lamarque-Reuters)
Backed by the NFL, Bell said the ruling cost it millions in lost revenue and so took the case to the Federal Court of Appeal, which later rejected the challenge.
Bell then asked the Supreme Court of Canada for a hearing which was granted and which yesterday ruled in their favour.
In a split decision 7-2 the SCoC overturned the Appeal Court decision and said the CRTC had misinterpreted the scope of its authority.
This means that during the Superbowl, Canadians will see adverts from domestic companies, and that American advertisers who want to keep their commercials in the Canadian market will now have to pay.
This is a profitable benefit to BCE, and to Canadian companies previously shut out of a very widely viewed broadcast. Some also regard it as a blow for Canadian sovereignty albeit on an American event which is popular in this country. Some others will surely be upset however that they can no longer watch the highly touted American commercials.
additional information-sources
- SCoC ruling:
- Canadian Press (via CBC): Dec 19/19: Supreme Court overturns decision that allowed U.S. Super Bowl ads in Canadian broadcast
- Reuters ( via Financial Post) Dec 19/19: Canada broadcaster BCE wins top court ruling over Super Bowl adverts
- Globe and Mail: P. Miller: May 16/18: OpEd: CRTC’s ruling on Canadian ads during the Super Bowl is a fumble
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