CCR Short Takes

Survey reveals need for crash course on what is DTVMore Canadians are subscribing to digital cable, satellite and wireless cable services – they just don’t realize it’s digital TV, according to a new study released by PricewaterhouseCoopers. Of the 802 people surveyed for the Canadian Consumer Technology Study 2000, only 5% said they know a lot about digital TV, while nearly three-quarters said they’ve never heard of it. Canadians also think digital TV is primarily about image and sound quality. Thirty per cent said they believed digital TV provided sharper pictures, while 15% said better sound. CRTC spearheads new regulatory forum for AmericasThe CRTC is working toward establishing a forum of regulators from the Americas, with the first meeting expected in May, according to CRTC chair Françoise Bertrand. Bertrand likened the initiative to the worldwide International Institute of Communication, but said the focus would be on a more specific part of the globe. The forum will provide regulators from the North, Central and South Americas with the opportunity to exchange information about regulatory developments in their respective territories. "It’s not about making decisions together," she says. "It’s about knowing more about other countries, since many of the industry players are operating on a north-south strategy in all of the Americas. It helps us get a better understanding of the (regulatory) conditions that prevail elsewhere," and "learn about one another’s best practices." Bertrand has already discussed the idea of a regulatory forum of the Americas with the Mexicans and U.S. officials from the Federal Communications Commission, while CRTC secretary general Ursula Menke and telecom executive director Shirley Soehn broached the idea with representatives from Latin America during a conference in Cancun, Mexico in October. "It is important that we know what are the conditions that prevail in other countries so that when these companies (operating in the Americas) talk to us, we know what kind of environment they are operating in elsewhere," says Bertrand. PPV coming to an Internet terminal near youLions Gate Entertainment’s subsidiary CinemaNow Inc launched a pay-per-view Internet service earlier this month, with the PPV premiere of Heaven’s Burning using secure streaming. CinemaNow said it was offering movies in the Windows Media Format to protect against piracy while ensuring the highest quality video and audio quality. Bell ExpressVu now serving apartment buildingsBell ExpressVu has inked an agreement with Canadian Apartment Properties Real Estate Investment Trust (CAP REIT) to deliver DTH services to as many as 8,370 residential units across Canada. As part of the deal, ExpressVu affiliate Sympatico will offer Internet service to some people living in CAP REIT properties. Earlier this year, Bell ExpressVu entered into similar agreements with the Metropolitan Toronto Housing Authority and Les Placements Supra Inc in Quebec. CRTC allows Pulse 24 to sell local advertisingChum Ltd’s news information specialty channel, Pulse 24 Inc, can now sell local advertising in the Toronto market. On Nov. 14, the CRTC approved an amendment to the specialty service’s licence to permit the practice. Pulse was originally authorized to distribute up to 12 minutes of advertising per hour of a national or regional nature, supplemented by subscriber revenues, which have been lower than expected. Chum argued that changes in the Toronto broadcasting market, combined with a demand for local advertising, justified the licence amendment. Rogers Cable offers Internet services via televisionRogers Cable Inc is launching Rogers Interactive TV on its cable systems, following a customer trial in Toronto. Using Microsoft WebTV Networks’ technology, customers will be able to surf the web, receive email, save favorite sites, and conduct online banking and shopping via their television sets. According to Rogers, customers will be able to switch from video channels to the Internet in a matter of seconds. The service costs $19.95 a month, and the start-up kit with wireless keyboard is priced at $79.95. CanWest Global completes acquisition of Hollinger assetsCanWest Global Communications completed its acquisition of the Canadian newspaper and Internet assets of Hollinger International Inc for about $3.2 billion. Payment included $1.8 billion in cash and about $630 million in shares, and a $770-million debenture. Hollinger’s parent company, Ravelston, will provide management services to the acquired publishing assets for at least 13 months. As previously announced, CanWest acquires a 50% interest in The National Post, its Internet properties, and several dailies, including The Ottawa Citizen, the Vancouver Sun, the Calgary Herald, the Edmonton Journal and the Montreal Gazette. Power subsidiary to pick up Hollinger’s French papersGesca Ltd, a subsidiary of Power Corp of Canada, is buying UniMedia Company. The newspapers being sold are French-language ones that currently form part of the Hollinger Canadian Newspapers Ltd Partnership and include the three dailies, Le Droit, Le Quotidien and Le Soleil, and 15 weeklies published in Ontario and Quebec. Regional restructures debt to finance expansionRegional Cablesystems Inc has increased its debt ratio from 3.5 to 4 times operating income, and doubled its allowable capital spending to $200 per subscriber per year, to help finance further expansion. "The higher leverage ratio is still amongst the most conservative in the cable television industry, yet it will provide Regional with the flexibility it needs to continue the successful implementation of its cable system acquisition program," said Regional VP of finance Jamie Roberts. Regional has been on an aggressive buying spree over the past two years, most recently picking up an additional 1,150 customers with the purchase of Cottager’s Cable Ltd and Village Cablesystems Ltd in Ontario. CBC, Chum commit to Canadian productionsThe Canadian Broadcasting Corp and Chum Television Ltd have pledged $2 million over the next three years on movies and feature films created by independent Canadian producers. They will alternate first and second runs on the productions, which will be broadcast on television. Government OKs Telesat bidfor another DBS satelliteIn a move to provide back up and restoration capacity to the Nimiq DBS satellite, Telesat Canada has been granted Industry Canada approval to build and launch another DBS satellite. The bird will go in the 82 degrees west orbital slot alongside the 91 degrees west orbital slot of Nimiq. With five DBS slots remaining, the slot was allocated on a first-come first-serve basis. Star Choice hits 500,000-mark for DTH subscribers Star Choice Communications Inc said earlier this week that it had reached half-a-million subscribers on its DTH service. "With enhanced services from the launch of our newest satellite these 500,000 customers will see even more channels, more start times, more local programming and pay-per-view movies and sports," said Star Choice senior VP Bruce Barr. Look wants to amend licencesLook Communications is asking the CRTC to amend its MDS licences so it doesn’t have to carry local radio in a number of communities in Ontario and Quebec. It is already exempt from carrying local radio signals in other regions, and wants the commission to maintain this exemption. It also wants authorization of carriage of audio signals to be on a discretionary basis, saying the carriage of TV services is a more effective use of its limited capacity. Old Canada approves reverse takeover of Headline SportsShareholders of Old Canada Investment Corp Ltd approved its reverse takeover of Sportscope Television, which owns Headline Sports. The transaction, which is scheduled to close Nov. 24, will result in treasury shares being issued to current owners, Hamilton businessman John Levy and Alliance Atlantis Communications Inc. Under the deal, Levy, Alliance Atlantis, Frank Mersch and Griffiths McBurney & Partners will invest about $27.5 million in the new firm. Old Canada will be owned 49% by Levy, 40% by Alliance Atlantis, 5% by Mersch and 3% by Griffiths McBurney & Partners. The new company, to be renamed Headline Media Group Inc, will create a new subsidiary to invest in firms that produce content for broadcast media and for broadband and wireless distribution over the Internet.

CCR Short Takes

Broadcast | November 23, 2000

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