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The Canadian Broadcasting Corporation has a long tradition of providing quality educational programming to Canadian children. Producing classics like Mr. Dressup and the Friendly Giant, the crown corporation ran into a bit of a problem in the 1960s when PBS introduced the blockbuster Sesame Street. Because almost 80% of the Canadian urban population lives within 200 kilometers of the American border, PBS broadcasting easily reached into their homes. The Federal government, always concerned about the Americanization of Canadian youths, approached the CBC for solution to the problem.

Localization of the Sesame Street program was nothing new to Children's Television Workshop, who had molded various international versions of the program for different languages and countries. In order to accommodate Canadian educational aims, the bulk of Sesame Street's content was licensed the CBC, who then added segments teaching about Canadian culture and French bilingualism. For instance, instead of the Spanish number pronunciations, the CBC would edit in a French segment. For the most part it was seamless, and the main characters and story lines remained intact. The government was satisfied that children would pronounce the letter Z properly and they let the issue rest.

Enter the CRTC. The Canadian Radio-television and Telecommunications Commission (CRTC) was established by Parliament in 1968. It functioned as an equivalent of the American Federal Communications Commission, controlling commercial broadcasting rights in Canada. In 1985, Canadian Radio-television and Telecommunications Commission Act expanded the mandate of the CRTC in a controversial way. It became responsible for ensuring that Canadian broadcasters used a minimum of 30% of their air time broadcasting programs labeled as "Canadian content". This move was made in order to subsidize the Canadian music and television industries, as well as curbing the growing influence of American entertainment on the Canadian market.

Thus, in 1991, came the end of the American produced, CBC licensed Sesame Street. Not willing to completely abandon a hit concept, the CBC went the internationalized version route, producing the new "Sesame Park" show. Canadian Muppets were introduced, such as Basil the polar bear, Louis the Otter, who spoke fluent French, Dodi the bush pilot, Katie, disabled child, Barbara Plum (a parody of CBC broadcasting legend Barbara Frum), Beau Beaver and many others.

In 1998, in order to fully own a successful production, and some say to distance themselves from the growing commercialization of characters like Elmo, the CBC dropped Sesame Street's street scenes and many American segments, instead airing all Canadian content. Added to the cast Chaos the kitten and a human character named Ray. Guest appearances by minor Canadian celebrities were also added. This move did not work out well, as ratings dropped off after the major revamp. The show struggled along until it was quietly canceled in 2002.

Ironically, PBS stations carrying the original Sesame Street noted increased pledges from Canada after Sesame Park went off the air.

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