CCR Update

Look focuses on reducing customer churn Look Communications Inc. experienced a further decline in its digital television subscriber base in its 2002 fiscal second quarter ended June 30, ending the period with 51,000 subscribers, down from the 55,000 at the end of March. According to financials released August 16, Look managed a stronger EBITDA in its second quarter despite the decline in subscribers by migrating both Internet and digital television subscribers to higher value packages. "During the second quarter, we focused on developing and implementing initiatives that should enable Look to reduce the rate of customer attrition and to increase the rate of customer acquisition in both the residential and business markets in the second half of 2002," Look president and CEO Paul Lamontagne said in a media release. Look has already shown a slight increase in subscriber numbers, according to Decima Publishing research. According to the latest Digital Domain report, Look had about 50,500 subscribers at mid-June, which means it grew slightly in the latter part of the month. More details. CRTC examining placement of must-carry channelsThe CRTC has initiated a process to examine the channel placement of such must-carry television services as TVA and the Aboriginal Peoples Television Network (APTN) – Broadcasting Public Notice 2002-49. The idea would be that the channels would have to be placed lower on the dial so that they are more visible and available to viewers. "The commission is aware that many cable distribution undertakings have placed the signals of APTN and TVA on these top-end analog channels. Some older television sets may not be able to display the top-end analog channels and subscribers who ‘surf’ channels may be less likely to look beyond the scrambled pay television and PPV channels," the CRTC stated. In its notice, it also ruled that the foundation tier proposed by VisionTV CEO Bill Roberts "would be disruptive for consumers and would have major technical and operational implications for distributors and programming service providers." (CCR, Feb. 01/02). The deadline for comments is October 16. CRTC reviewing dual status on fully digital cablecosThe CRTC has issued a call for comments on questions relating to the distribution of existing analog specialty channels currently carried on basic by fully digital distributors, such as satellite TV operators – Broadcasting Public Notice 2002-48. "At this time, the commission considers it appropriate to reassess the rules governing the distribution of specialty services on the basic service of fully digital cable undertakings, i.e. those cable distribution undertakings that distribute programming to subscribers exclusively via digital technology…," the commission states in issuing the notice. Dual status means the channels must be part of basic cable unless the programmer has agreed to be on a tier. The CRTC questions whether the dual status should remain once cablecos become fully digital. The deadline for comments is November 15. Persona buys Quinte Cable, Sudbury ISPPersona Communications Inc. continues its acquisition spree, announcing August 19 that it had acquired Quinte Cablevision Ltd. in Picton ON for $2.53 million. It will be purchased through $1.265 million in cash and the remaining in Persona shares. Quinte Cablevision serves about 2,300 customers. The acquisition follows an earlier announcement that Persona would buy Cyberbeach Communications and ISYS Technologies, an ISP based in Sudbury where Persona operates a Class 1 cable system. Broadcast Standards Council chides Talentvision over murder scenesThe Canadian Broadcast Standards Council ruled that a Chinese Central Television (CCTV) report on an alleged multiple murderer who practiced Falun Gong that was rebroadcast on Talentvision TV breached industry codes on violence and ethics. In a decision released August 16, the council objected to scenes of a blood-soaked apartment where the alleged murders took place that were shown in a December 16 rebroadcast of the CCTV news report. It also found that the report was "unfair and improper" and in breach of industry codes in characterizing the Falun Gong as an "evil cult" and in persistently tying the defendant to the Falun Gong and its activities. Talentvision, the Chinese-language Canadian specialty television channel, responded that its mandate was to supply news from mainland China to its Mandarin-speaking Canadian audience, and although the CCTA was state-owned, it was still a "legitimate news source." Talentvision must announce the CBSC decision on air during primetime within 30 days. More details. CRTC denies Bluewater request to reorganize into Class 3 systemsThe CRTC has denied a request by Bluewater TV Cable Ltd. in Ontario to reorganize two Class 2 systems into three Class 3 systems, which would make them exempt from licensing – Broadcasting Decision 2002-234. The commission noted that the two cable systems in question "are fully interconnected and use the same head end." Rock reaffirms government commitment to broadband planIndustry minister Allan Rock announced that the federal government will spend some of its $2-billion infrastructure fund on expanding broadband. The announcement reaffirms the federal government’s commitment to bringing broadband to rural Canadians by 2005, a goal that was questioned when it didn’t make it into the government’s budget last year when Brian Tobin was Industry minister (CCR, Jan. 18/01). The plan for rural broadband deployment is expected to be unveiled in a few weeks. More details. Vandalism continues to plague VidéotronBetween August 12 and August 19, Vidéotron ltée was hit by 53 acts of vandalism, or a total of 246 since May 8, according to the cable operator. Cable has been cut since members of the Canadian Union of Public Employees began a strike-lockout on that date. The union is upset that Vidéotron has transferred 650 installation and maintenance workers to another company, Entourage Solutions Inc., which is now privately held. In its latest contract offer, Vidéotron has offered the remaining 1,550 workers a pay raise of 3.7 per cent, a 37.5-hour work week (up from 35 hours), and no layoffs as a result of contracting out work. The union has rejected that offer. CRTC upholds Internet winback rules for cablecosThe CRTC has denied Quebec cable operator Vidéotron ltée’s application to review and vary the portion of telecom Order 2001-92 that prohibits major cablecos from attempting to win back high-speed Internet customers who have switched to another ISP using the cablecos’ facilities – Telecom Decision 2002-47. Vidéotron had asked in the March 2001 filing that the rules be dropped, or in the alternative, that they apply to all facilities-based retail high-speed ISPs in its operating territory. (See the March 12/01 issue of CCR affiliate publication Network Letter for background details). Corus to sell Oshawa radio stationsCorus Entertainment Inc. has agreed to sell its two Oshawa radio stations (CKDO AM and CKGE FM) to Durham Radio Inc., which operates country stations in the area. The sale for an undisclosed amount is subject to the approval of the CRTC. Corus said it was going to concentrate on other parts of its radio business. "Strategically, this acquisition will make us a stronger operation overall," said Doug Kirk, president of Durham Radio. More details. Baddeck New Media Festival moving to Prince Edward IslandThe Baddeck International New Media Festival is relocating from Nova Scotia to Prince Edward Island because Cape Breton’s economic development agency decided to cease funding the event. TechPEI has apparently picked up the ball with a multi-year commitment to organizers to sponsor the event on Prince Edward Island. For more details, see today’s issue of CCR affiliate publication Canadian NEW MEDIA. INTERNATIONAL NEWS U.S. court rules ReplayTV owners to be heardA U.S. federal court judge has ruled that Sonicblue, maker of the ReplayTV digital video recorder, and the Electronic Frontier Foundation, on behalf of owners of the device, can combine their copyright lawsuits. Sonicblue and the EFF have joined together to defend themselves against a suit filed by several major television networks and movie studios that allege that the ReplayTV device infringes on copyright by allowing viewers to skip commercials. More details. CanWest's Network TEN buys remaining shares in EyeCanWest Global Communication Corp.’s Australian television operation, Network TEN, has purchased the remaining 40 per cent of out-of-home advertising company Eye Corp. for Australian $10 million. More details. FCC mandates digital tuners in new TV setsThe Federal Communications Commission on August 8 mandated that new television sets that are at least 35 inches wide must contain digital tuners from 2004. Smaller screen televisions will be exempt until 2007. The move is seen as a step toward accelerating conversion from analog to digital. More details. Tri-Vision wants U.S. to make mandatory V-chip inclusion in digital broadcastsToronto-based Tri-Vision International Ltd., which has the patent protected technology to implement advance V-chip capabilities, says the U.S. government should make "program and system information protocol" mandatory in digital television broadcasts. Law in the United States already mandates inclusion of the V-chip in analog and digital television receivers. Najmul Siddiqui, of Tri-Vision, complained to Canadian Communications Reports last February that few Canadians were aware that a Canadian classification system that was introduced March 1, 2001 could operate with the V-chip to filter programming for children (CCR, Feb. 1/01). More details. Copps wants radio station investigated quickly over sex contestFederal Communications Commission (FCC) member Michael Copps wants a New York-based radio station investigated over a phoned-in account of a couple having sex in a vestibule of St. Patrick’s Cathedral. The account, which was part of a contest in which six couples were given a list of 54 different high-risk locations at which to have sex in New York, was broadcast on WNEW-FM on August 16. Copps said that if the complaints were true, the FCC should consider revoking the station’s licence. More details.

CCR Update

News | 08/21/2002 4:00 am EDT

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