CRTC clearance of 19 foreign channels expected to fuel digital take-up

Canada’s reluctance to let in more foreign channels was swept aside July 13 when the CRTC cleared the way for 19 new services to be distributed here – a move that could help drive consumer demand for digital TV and encourage more partnerships with Canadian programmers. But not everyone is happy with the decision (PN 2001-82). Companies like Astral Media Inc worry that the onslaught of several new foreign channels will hinder its ability to obtain exclusive programming rights for the Canadian market. The regulator attempted to deal with such concerns by ruling that foreign services cannot hold or obtain preferential or exclusive programming rights here. Other programmers and distributors are hopeful that with a popular cache of U.S. and other foreign services to draw from, they will be able to offer viewers more enticing programming choices in the digital world. Among those making the cut are Eternal Word Television Network, EuroNews, Eurosportnews, TV Land, and Oxygen Network. In its licensing framework for new digital pay and specialty services (PN 2000-6), the commission stated one of its goals was to "promote alliances between Canadian and foreign services". One such alliance is already taking place between Craig Media and TV Land, a U.S. channel that airs dramas, variety shows, westerns and sitcoms from the 1950s to 1990s. Wayne Sterloff, who is overseeing the launch of Craig’s digital channels, says a partnership is currently being finalized. Once finalized, Craig will brand its Category 2 retro TV channel TV Land. The plan is simple and not unprecedented in Canada. Similar deals have been done with such channels as HGTV Canada, The Food Network and Country Music Television. "We’re in the final stages of negotiating carriage, and we intend to deliver the channel Sept. 4," says Sterloff. "The channel will vary slightly from the one in the U.S. because we’ll comply with ... Canadian content requirements." The Canadian market has become so congested that it now makes economic sense for foreign channels to partner with an equivalent domestic service. "If TV Land were to come in on its own, there would be continuous blackouts because the programming rights wouldn’t have been cleared for Canada," Sterloff notes. "I don’t think that distributors want to deal with continuous calls from subscribers complaining over blackouts." Foreign services also cannot access advertising dollars here for their stations if they go solo." Alliance Atlantis Communications Inc has taken a similar partnership approach in the upcoming launch of such channels as National Geographic Canada, BBC Canada and BBC Kids. It was also the Canadian partner behind The Food Network (CCR, May 11/00). Planète ready Some digital services are reluctant to launch until digital subscriber numbers increase, but that isn’t deterring one new addition to the foreign services list. Foreign French documentary channel Planète has announced plans to enter the Canadian market before the end of this year. Spokesperson Claire Bourgeois said the France-based channel anticipates "being welcomed by Canadian cable distributors". The company is also bullish about helping to drive digital in Quebec. So low are digital penetration rates in the Quebec market that both Astral Media Inc and TVA Group have applied to the CRTC for at least a year’s delay to launch their Category 1s. Pierre Roy, president and CEO of Les Chaînes Télé Astral Inc, says Planète will not be able to match the programming lineup of Historia. But he is concerned about Astral’s ability to continue to obtain exclusive programming rights for the Canadian market. Astral operates such specialty channels as Canal D, Vrak TV and Historia, the latter having programming that overlaps with Planète. "The problem will be with acquisitions," says Roy. "Historia airs some of the same biographies and documentaries that appear on Planète’s schedule. But we will continue to try to secure exclusive Canadian rights for the programming we buy from overseas. That will mean that Planete will have to black out a lot of its programming." Programming was a major concern of CTV Inc when it contested Global Television’s bid to bring its overseas channels – Network Ten in Australia, TV3 Republic of Ireland, and TV3 and TV4 in New Zealand – to Canada. All four of these channels were placed on the eligibility list, although the CRTC placed restrictions on obtaining preferential or exclusive programming rights here (CCR, Feb. 28/01). Questions are being raised already about how much programming, both domestic and U.S., from Global’s overseas stations can be legally broadcast here. In its public notice, the CRTC notes, "Should a non-Canadian service be in breach of either of the two conditions (regarding programming), the commission may withdraw the foreign service from the list." But this may be easier said than done, especially if consumer loyalty develops for a channel. "I think our experiences in the past on that is pretty clear," notes Peter Miller, VP of business and regulatory affairs at Chum Ltd. A trade war loomed when the CRTC moved to have Nashville’s Country Music Television (CMT) removed from the foreign eligibility list to make room for a Canadian equivalent (CCR, June 28/95). At a conference in Toronto earlier this year, CRTC director of discretionary services and social policy Martine Vallée said the CRTC did not intend to remove services once they were put on the list given the CMT experience.

CRTC clearance of 19 foreign channels expected to fuel digital take-up

Broadcast | August 2, 2001

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CRTC clearance of 19 foreign channels expected to fuel digital take-up

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