CCR Short Takes

Copyright collective appealing pay audio tariff decisionThe Neighbouring Rights Collective of Canada (NRCC) has applied for judicial review of the Copyright Board of Canada’s first-ever tariff decision for pay audio services (CCR, Mar. 28/02). NRCC is not challenging the rate set by the board, but the proportion of royalties shared by NRCC and the Society of Composers, Authors and Music Publishers of Canada (SOCAN). Parties must file a notice of appearance with the Federal Court of Appeal by April 26 if they wish to intervene on the appeal.Meanwhile, NRCC and SOCAN have filed their statements of proposed royalties for pay audio services for 2003. NRCC is seeking a rate of 7.8% of the monthly affiliation payments made by broadcast distributors to pay audio providers, up from the existing rate of 5.265%. SOCAN is seeking a rate of 12.35%, up from 11.115%.As usual, discounted rates are proposed for small distributors. The proposed royalties are expected to be published in the Canada Gazette on April 27. Alliance Atlantis cuts 35 positions at broadcast groupAlliance Atlantis Communications Inc. announced April 24 that it was immediately cutting 35 positions from its broadcast group. "It is never an easy decision to reduce staffing levels, however, it is critical we ensure that our operations reflect and support our business plan," Phyllis Yaffe, CEO of Alliance Atlantis’ broadcast group, stated in a media release. While making the cuts, the company reaffirmed its commitment to the digital channels it launched in September. The cuts are expected to result in $3 million in savings annually, while resulting in a one-time cost of $1 million. CRTC approves radio sales The CRTC approved the acquisition by Standard Radio Inc. of 64 radio stations and two television stations belonging to Telemedia Radio Inc. in Ontario, Alberta and British Columbia – Broadcasting Decision 2002-91. Standard then turned around and sold 14 of those stations in Ontario to Rogers Broadcasting Ltd. and 15 in Alberta to NewCap Inc. The sale to Rogers received regulatory approval the same day – Broadcasting Decision 2002-92 – as did the NewCap deal – Broadcasting Decision 2002-93. The remaining 21 radio stations belonging to Telemedia Radio in Quebec, New Brunswick and Nova Scotia were sold to Astral Media Inc. – Broadcasting Decision 2002-90. Craig counters that it received Toronto licence on meritJennifer Stain, Craig Broadcast Systems Inc.’s VP of corporate and regulatory affairs, wonders why there’s been little mention of the reasons why three commissioners approved the Craig application (CCR, April 12/02). "That it is completely legitimate and newsworthy to report on the controversy here, I don’t dispute. However, it seems to me, the other side needs to be reported as well," she tells CCR. "I was present for every moment of the Hamilton hearings and there was no question that there were big problems with Torstar’s application. It was a high-volume, low-budget model," she notes. "It was heavy on news in a market already very well served with traditional newscasts." She adds that Craig’s proposal for an English-language station tilted toward ethnic programming was appropriate given that Toronto is one of the most culturally diverse cities in the world. Quebecor, Bell Globemedia exchange regulatory barbsBell Globemedia filed a complaint with the CRTC on April 22 alleging that Quebecor Media’s subsidiary Groupe Vidéotron ltée had unfairly and unilaterally stopped making licence fee payments for its sports programming. Bell Globemedia owns the sports specialty channel Le Réseau des Sports (RDS). "They (Groupe Vidéotron) are abusing their dominant position in the Quebec market and they are not living up to their contractual obligations. By doing so they are pocketing a substantial amount of money without passing it on to their subscribers," Alain Gourd, Bell Globemedia’s group executive VP, stated in a letter to the CRTC. Quebecor had previously charged that phone giant BCE Inc., the parent company of Bell Globemedia, was unfairly cross subsidizing its satellite TV distribution company, Bell ExpressVu LP, with funds from its telephony division. Quebecor also filed a complaint against Bell ExpressVu for selling mutliple decoders to new customers, thus depriving Le Canal Nouvelles (LCN), which is owned by Quebecor subsidiary TVA Group, of revenues. In an April 23 letter to the CRTC, Bell ExpressVu called Quebecor’s charges of cross-subsidization "frivolous" and "designed more as a publicity stunt than a serious request". DirecTV suggests measures to combat satellite TV theftCopyright regulations that allow the quick takedown of infringing web sites are critical to combating black market satellite TV theft, says U.S. satellite TV giant DirecTV Inc. At a copyright reform consultation hearing in Ottawa on April 11, DirecTV assistant general counsel Chris Murphy said the company has found that a notice-and-takedown regime is its most effective tool in removing web sites selling, for example, devices intended to receive unlicensed satellite TV. For more on this story, see the April 19/02 edition of CCR affiliate publication Canadian NEW MEDIA.Platt to get Crystal AwardBroadcasting executive Phyllis Platt is to get an outstanding achievement award at the 2002 Crystal Awards in Toronto on April 29. Norm Bolen, executive VP of programming at Alliance Atlantis Broadcasting, is to receive the Friend of the Women and Television – Toronto award for fostering and mentoring women in the industry. SOCAN seeking increased royalties for musical worksThe Society of Composers, Authors and Music Publishers of Canada (SOCAN) is seeking a maximum royalty for the communication of musical works by cable operators (those with more than 6,001 subscribers) of 42 cents for the year 2003, according to the copyright collective’s statement of proposed royalties filed with the Copyright Board of Canada. The current maximum rate stands at 15.5 cents (for the years 1996-2000). The copyright board has yet to approve a rate for 2001 and 2002. SOCAN had applied for a maximum rate of 18.60 cents for 2001 and 35 cents for 2002. It had asked for an amendment to increase its 2001 proposed rate, but the board rejected that request when it agreed to consolidate hearings to consider tariffs for conventional TV and pay and specialty services (CCR, Dec. 6/01). For pay and non-Canadian specialty services, SOCAN is seeking a royalty of 2.4% of the monthly affiliation payments made by broadcast distributors to these services. The current tariff stands at 1.8% (for the years 1996-2000). SOCAN had asked for a rate of 2.1% for 2002 and 2003. The above proposed royalties, as well as those for conventional TV, are expected to be published in the Canada Gazette on April 27. Higher churn impacts Rogers digital cable totals Rogers Cable Inc. lost 11,700 net digital cable set-top boxes and 12,600 digital cable households in its 2002 fiscal first quarter ended March 31, 2002, according to financial results released by parent Rogers Communications Inc. on April 18. The cableco ended the quarter with 302,400 digital boxes deployed in 259,400 digital households. Rogers blamed the decline on higher churn early in the quarter following the end of the free preview period for the new digital specialty TV channels. Rogers executives told analysts during a conference call that digital subscriptions improved steadily during the latter part of the quarter, resulting in net additions in the month of March and April to date. Executives also noted that Rogers will soon begin selling digital boxes in its Ontario cable systems, that packaging changes will be announced shortly, and that it will launch two new multi-product bundles focusing on digital cable. Decima Publishing’s Digital Domain report is your most complete source of digital TV market information. Contact Mario Mota at (613) 230-1984 for details.

CCR Short Takes

News | 04/25/2002 4:00 am EDT

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