PlanetVu plans to bypass cable, satellite with Internet launch of ethnic TV channels

A broadcast industry veteran is finalizing plans to launch several new ethnic specialty channels into Canada, without CRTC approval and without cable or satellite TV carriage. Former Alliance Broadcasting president Juris Silkans believes his new company, PlanetVu Corp, will succeed where similar ventures have so far failed: by selling subscription TV services on the Internet. JumpTV parties agree on resolution processJumpTV and its broadcast rivals don’t see eye-to-eye on whether Internet retransmissions should be allowed in Canada, but they have agreed on a process to discuss the issue before the Copyright Board. McCarthy Tétrault lawyer Peter Grant, who’s representing broadcasters in the proceeding, says the parties have agreed to split the review of JumpTV’s application into two parts. "One, will be the initial question of whether an operation like JumpTV that is based on Internet retransmission, is entitled to the benefit of Section 31 (of the Copyright Act)," he explains. "If yes, then there will a second phase to determine what the tariff should be given the business economics of JumpTV’s business plans." JumpTV has applied for a tariff that would allow it to act like a cable operator, by picking up over-the-air TV signals and retransmitting them through its JumpTV.com portal (CCR, April 11/01, Feb. 14/01, Nov. 9/00 and Oct. 26/00). The Canadian Association of Broadcasters, the National Association of Broadcasters and copyright collectives are opposing the application. JumpTV counsel Sunny Handa says his client supports the process, as long as its application is dealt with quickly.Silkans has built his career on launching new specialty TV channels and more recently, interactive web sites during a stint as president of Alliance Atlantis New Media. As president of Alliance Broadcasting, he was responsible for the conception, development and growth of HGTV Canada and the Life Network. As president and CEO of PlanetVu, he hopes to replicate that niche market success in the Internet world. "I think you have to be nuts to launch a Category 2 (digital TV) channel," he says. "If you’ve got the content, put it on the Internet. I mean otherwise you have to spend $5 million to launch a television station – the satellite costs you half a million a year, you’ve got your master control, etc." Like most conventional specialty TV channels, profits will be generated from monthly subscriber fees. Silkans isn’t anticipating any advertising revenue. Company executives also believe they will fair better than new ethnic digital TV services scheduled for launch this fall. "There is no specialty channel, other than TSN and YTV, that breaks even with advertising," says Silkans. "My point is that people are paying $88 a month for cable packages that include digital channels already. Cable, I don’t think, has a clue how to launch (the new digital TV channels) because they can’t do it as an add-on. It’s going to break the back of the camel." PlanetVu plans a test launch next month by streaming non-English language programming, obtained with the consent of the originators, over the Internet into the North American market. The first channels to launch will likely include programming from India and China, with about one new channel being added every month. PlanetVu owner Arif Bhalwani of Pinnacle Merchant Capital says PlanetVu is aiming to launch commercially in June or July. The company has already signed multiyear letters of intent for the exclusive Internet rights with some channels broadcast in Asia. "I really believe we have to grow as slowly as possible so that we don’t burden the technology," says Silkans, who has also worked as a senior executive at CUC Cable and a director of cable technology at the former Department of Communications. "Once we find out that the technology can handle the traffic after five months or so, we’ll start marketing the service." Bhalwani says the service will differentiate itself from other upstarts, such as JumpTV which also plans to begin webcasting foreign channels in the next few months. He points out that PlanetVu isn’t looking at just retransmitting a broadcasting signal. For example, he says they could obtain the rights to programming from several different Chinese channels and pick up only those shows that they feel will do the best in the North American market. Silkans points out that most people regularly only watch a limited number of channels despite the possibility of a 500-channel universe, and that this model will allow them to buy only the channels they want or need, and perhaps access programming on an on-command basis. "I mean would you buy magazines in the way that people buy cable television. Cable is the only place, where you may only want two or three or four channels but you have to buy 30 or 40," he says, adding, "How long can the consumer pay the freight? The answer is as along as there is no alternative." PlanetVu is targeting three distinct groups: immigrants, expatriates, and enthusiasts of particular cultures or languages. The company will focus on specific market niches in North America although the Internet signals will be available to anyone with a computer, the proper software and a broadband connection. For example, it has obtained the U.S. and Canadian census data, and will market the Chinese channel in the four of five North American cities with the largest populations of Chinese. A pilot test of a Polish station beamed into Chicago has convinced the entrepreneurs that the model is viable. Bhalwani points out that they signed up about 1,000 subscribers to that station.

PlanetVu plans to bypass cable, satellite with Internet launch of ethnic TV channels

Broadcast | April 26, 2001

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