Canada’s new trade deal with the United States has an unexpected casualty – Super Bowl advertisements.
A year ago, a new rule came into effect from the Canadian Radio-television and Telecommunications Commission (CRTC) that forced Canadian TV networks to broadcast the original U.S. advertisements that went along with the Super Bowl rather then replace them with Canadian ads. This meant that, for the first time, Canadians who watched the Super Bowl got to enjoy the popular, often humorous, advertisements that are produced for the world’s most watched sporting event.
However, the new trade pact between Canada, the U.S. and Mexico reverses that CRTC decision, meaning that come February, Canadians watching the Super Bowl will again be deprived of enjoying the American ads that are broadcast with the big game.
In a section of the agreement governing the trade in services, Canadian officials agreed to abandon the recent CRTC rule that required TV networks in Canada to show the American Super Bowl ads.
"Canada shall rescind Broadcasting Regulatory Policy CRTC 2016-334 and Broadcasting Order CRTC 2016-335," a section of the agreement reads, referring to the original CRTC decision. "With respect to simultaneous substitution of commercials during the re-transmission in Canada, Canada may not accord the program treatment less favourable than the treatment accorded to other programs originating in the United States re-transmitted in Canada."
Through a practice known as simultaneous substitution, Canadian broadcasters pay for the rights to broadcast high-profile content such as the Super Bowl, the Oscars and other major events, and then make money by selling advertisements to Canadian companies and organizations.
Canadian Super Bowl watchers have complained vocally for years about the practice, because it forces them to miss out on U.S. ads made specifically for the football championship game, most of which are innovative and well-done, and cost millions of dollars to produce.
Canadian broadcasters have long defended their practice, noting that the only way to justify the exorbitant costs of the broadcast rights is to sell ad space. None of the money raised by U.S. broadcasters from American ads goes to the Canadian rights holders.
This past February, Bell said it lost $11 million in ad revenue as more than three million Canadians decided to watch the Super Bowl on an American network to enjoy the U.S. advertisements.
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