August 18th , 2010 Scott Hutton Via Epass Executive Director, Broadcasting Canadian Radio-television and Telecommunications Commission Ottawa, Ontario K1A 0N2 Re: Review of Programming on G4 (Case # 496398) Dear Mr. Hutton: Rogers Broadcasting Limited (RBL) is pleased to respond to your letter of July 27 th , 2010 regarding programming aired on our specialty service G4TechTV (G4) that CRTC staff believes may not respect its nature of service. The following information is intended to respond to CRTC staff’s request to explain our programming strategies for G4 as well as how programs such as Mantracker, Which Way To… and The Office are consistent with G4’s nature of service. The Commission licensed G4 as “…a national English-language Category 1 specialty television service consisting exclusively of programming related to computing, technology and the Internet” (Decision CRTC 2000-454). Our service was conceptualized in the late 1990s, the era of the technology boom. It was the time of the dot-com millionaires, and audiences were very interested in learning more about the impact and potential of the Internet. At that time, our programming strategy was focused on business and financial news in the technology industry. Unfortunately, while the Internet’s financial potential seemed limitless, it was not. The technology boom quickly became the Internet bubble, and then ultimately the Internet bust. That now seems like a long time ago. Many things have changed since then particularly in the world of technology. People are a lot more “tech-savvy” and the Internet has lost its original allure. As a result, audiences are less interested in programming niches like technology business news or “tech-ed” segments. Instead, their interest has shifted to digital content, culture and lifestyle issues. They are less interested in Apple’s quarterly financial results, or how-to segments on the new iPad, and more interested in news and information about the latest and greatest applications, video games, music downloads, etc. We strongly believe that G4 has effectively adapted to this new reality, and that our programming strategy reflects the emerging interests of our viewers. G4’s core strategy can best be seen in the prime time block of Monday to Friday from 6:00pm to 12:00am. This period features programs such as The Electric Playground Daily, Reviews on the Run, and Attack of the Show. These are all magazine-style shows that bring you the very latest information on technology, video games and new media, and fit directly and squarely within G4’s nature of service. The Electric Playground and Reviews on the Run are daily half-hour programs, both from an independent producer in Vancouver. These programs are our Canadian production focus, and represent almost all of our Canadian programming investments for G4. Attack of the Show is the signature show from our US programming partner. Together, these shows deliver 2 hours of original content, 5 days of week. That is a significant amount of content for a digital service like G4. Our schedule is also full of other interesting, entertaining and informative programs including: Gadgets and Gizmos - a half-hour show designed to help viewers, from the savvy to the newbie, make the most of their technology. Whether for work or play, the program’s no-nonsense approach lets audiences find out how to get the best in personal technology. X-Play - a magazine-style program that gives gamers tips, tricks, and previews for the latest games while also offering comprehensive reviews of the hottest (and not-so-hot) new videogames on the market. G4 also features a number of program specials focused on technology and gaming, including in-depth coverage of annual industry events such as the Consumer Electronics Show, ComicCon, FanExpo Canada and the first annual Canadian Videogame awards earlier this year. In G4tech TV- Licence amendment Broadcasting Decision CRTC 2006-532 (Decision 2006-532) the Commission approved our request to add category 7 to the list of categories from which G4 could draw programming. In that Decision the Commission recognized that the market for programming related to G4's nature of service has evolved since it was originally licensed. The Commission considers that the main issue to be determined in its consideration of this application is whether the addition of a limited amount of programming drawn from category 7 would be consistent with 2 G4techTV's nature of service, considering its mandate to provide a service "consisting exclusively of programming related to computing, technology and the Internet". In the Commission's view, in order for the proposed amendment to be consistent with G4techTV's nature of service, it must allow G4techTV to meet its target audience's demands, while still ensuring that the service provides a prominent place for programming with computing, technology and the Internet as its central theme. [emphasis added] As noted by G4tech Inc. the market for programming related to G4techTV's nature of service has evolved in recent years. Given the rapid changes to the computing and technology industry, and the changing demographics of the population typically interested in such programming, expanding the categories from which G4techTV may draw its programming may be appropriate, in order to allow the service to remain relevant and of interest to its viewers…. 1 RBL respectfully submits that it has done just that since it was given its licence amendment in 2006. As was stated in our initial licensing decision, G4 is a service that focuses on the “e-generation”. We have built our service with the objective of being a destination for Canadians interested in our emerging digital culture. Naturally, our programming targets younger, technology-savvy viewers, mostly in the demographic segment of 18 to 34 years of age. Viewers in that demographic segment have varied interests, and we have built our schedule to try and meet their expectations and demands. As a result, our schedule now includes a wider variety of programs we think are of particular interest to our viewers. However, in building our schedule we recognize that there are certain shows that fall directly and squarely within G4’s nature of service and that other programs such as The Office only do so in a more indirect way. The Office is a U.S. sitcom/parody about modern American office life. While its subject matter does not deal directly with issues related to technology, computing or the Internet, the show has always performed best with younger demographic groups and is one of the most downloaded, streamed and tweeted shows on- line 2. As such, it falls squarely within the type of programming that appeals to 1 Paragraphs 9 and 10 2 The Office is one of the most followed shows on Twitter: http://trackingtwitter.com/television One of the most popular programs on Hulu: http://www.hulu.com/browse/popular/tv?timeframe=all_time Ranked Top 10 Online Broadcast TV Entertainment Programs: http://www.marketingcharts.com/wp/wp-content/uploads/2009/02/nielsen- 3 G4’s “e-generation” target demographic and in that context fits squarely within its nature of service. Programs like The Office also help increase audiences to G4 which positively impacts both advertising and subscription revenue streams (a portion of which must be re-invested in Canadian programming) and provides greater exposure to G4’s core programming including original Canadian series such as Electric Playground and Reviews on the Run . With respect to programs such as Mantracker and Which Way To… these original Canadian series help round out the programming options for our viewers who have come to G4 because of its core mandate. These and other programs are scheduled in “non-peak” periods and provide our viewers with a little variety so as not to limit G4 to only one or two particular types of programs. It also provides another exhibition window to showcase these original Canadian series and expand their audience. Our programming strategy is aimed at giving our viewers the types of digital lifestyle and information shows they want to see while also offering other types of programs they enjoy. However, as evidenced by our program schedule, G4 continues to provide “…a prominent place for programming with computing, technology and the Internet as its central theme”3. From a policy perspective, we believe that any assessment of a service’s adherence to its nature of service can not and should not be done on a program by program basis. No one show defines a programming service. The Commission must assess the overall programming orientation of the service to determine whether, overall, it is in keeping with its nature of service. The Commission’s policy regarding the Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services (Broadcasting Public Notice CRTC 2008-100 4) and its decisions regarding requests for program flexibility support such an approach. We are very confident that G4’s viewers would agree that the majority of its programming is focused on computing, technology and Internet related themes. We would not be able to retain and grow these audiences if we had abandoned our core mandate and provided the same programming offered on other specialty services. In our view, we have been successful in increasing the diversity of programming offered on G4 while continuing to adhere to our nature of service. We believe this strategy will have a positive impact on the future health and stability of this service and its ability to continue to invest in unique and original Canadian programming. online-top-10-broadcast-tv-network-entertainment-programs-december- 2008.jpg 3 Decision 2006-532 4 Paragraph 277-278 4 We would be pleased to answer any additional questions CRTC staff may have regarding G4 and our programming.