CCR Update

Rogers sees strong digital cable growth in Q3Rogers Cable Inc. added a healthy 67,500 digital cable set-top boxes in 63,400 digital households during its fiscal third quarter ended September 30, according to financial results released October 16 by Rogers Communications Inc. The cableco attributed the strong growth to increased marketing aimed at creating greater awareness of the value and features of digital cable, the introduction of new bundled offerings of high-speed Internet and digital cable, and changes to its VIP customer loyalty program, which enabled some customers to trade certain price discounts for the use of a digital box. Rogers also noted that it commercially launched video-on-demand in the latter part of Q3 covering an area of 530,000 homes passed in central Toronto, complete with a library of over 200 titles. More details. Shaw Cable, Corus Entertainment to offer first subscription VOD service in CanadaShaw Cablesystems and affiliate Corus Entertainment Inc. have teamed up to offer Canada’s first subscription-based video-on-demand (SVOD) service. Movie Central EXPRESS, which will be launched in Calgary in November, will give Shaw’s digital cable customers unlimited access to the feature films and series available on Corus’ Movie Central premium pay TV service that month on-demand for a monthly subscription fee rather than a per-transaction fee. Customers who subscribe to Movie Central can add the SVOD service for $5.99/month. Shaw launched VOD in Calgary last month (CCR, Sept. 26/02). More details. Vidéotron intends to comply with mandatory order on inside wiring . . . Vidéotron ltée told the CRTC through its legal counsel in an October 10 letter that it intends to "comply with the terms of the decision and mandatory order" on inside wiring. However, it noted that it reserves the right "to apply to the commission to reconsider its decision, pursuant to subsection 12(3) of the Broadcasting Act, and subject to the reserve of their statutory rights of appeal of the decision to the Federal Court of Canada…" The CRTC issued a mandatory order on October 9 that Vidéotron and its subsidiaries could not use the inside wiring it owned in multi-unit dwellings unless it leased it to competitors for no more than 52 cents per subscriber per month (CCR, Oct. 10/02). … But must appear at CRTC hearing on possible second mandatory order regarding cut affiliation fees to RDSThe CRTC is holding a public hearing to determine whether it should issue a mandatory order against Vidéotron ltée after it has refused to comply with a CRTC order to reimburse Le Réseau des sports (RDS) Inc. for fees the cableco unilaterally cut. The mandatory order would compel Vidéotron to comply with the CRTC decision. Vidéotron must file no later than October 24 its arguments as to why a mandatory order should not be issued, and must appear at a public hearing on the matter on December 2, 2002 – Broadcasting Notice of Public Hearing 2002-12. NetStar Communications Inc. and its affiliate RDS filed a complaint with the commission alleging that the cableco was violating section 9 of the Broadcasting Distribution Regulations. The commission ruled that Vidéotron was guilty of undue preference by unilaterally cutting the affiliation fees it paid for RDS by 62 per cent, while leaving unchanged fees paid for LCN, which is owned by Vidéotron affiliate TVA Group – Broadcasting Decision 2002-255. The CRTC ordered Vidéotron to reimburse RDS from the date the new rate was imposed, but Vidéotron replied that it would not comply because of court action on the same matter. RDS asked the commission to issue a mandatory order (CCR, Sept. 26/02). CRTC releases new policy on community-based TV, radioThe CRTC has released a new policy on community-based media that will replace existing policies on community channels, low-power television and low-power radio, as well as setting out a new licensing policy for community-based television – Broadcasting Public Notice 2002-61. The policy is similar to the proposal for community-based media that the CRTC released for comment in December 2001 – Public Notice 2001-129 (CCR, Jan. 18/02). The CRTC notes that the new policy is aimed at ensuring a greater diversity of voices for Canadians and at offering new alternatives to conventional television in an age of media concentration and consolidation. Cable licensees will have to provide a minimum of 60 per cent locally produced programming per broadcast week, promote citizen access and provide training. Limited sponsorship messages will be allowed, but no advertising as a source of revenue. If a cable operator chooses not to run a community channel, then a not-for-profit organization could apply to run a similar channel, and the cable operator would be required to fund and carry the channel. The new policy also includes a new class of licence, called the community-based television programming undertaking. There are two sub-categories under this licence: the community-based low-power television channel and the community-based digital channel. Both for-profit and not-for-profit applicants may hold this new licence. The channels will be expected to broadcast 80 per cent Canadian content over the broadcast year, and devote 60 per cent of the broadcast year to local programming, and can broadcast up to 12 minutes of local advertising per hour. Cable systems offering digital would be required to carry these community-based television channels. More details. How To Web TV partners with Chaos Media to offer how-to tipsToronto-based How To Web TV Inc. and Chaos Media Networks are partnering to offer a service that will allow digital television subscribers to use their remote control to "ask" their television questions and get short video "how-to" answers. The video-on-demand service will provide help and advice on a variety of household and everyday topics. "VOD is an exciting new medium for home improvement/remodeling, health, and gaming communities, and Chaos’ VOD programming will provide convenient access to our concise informational programs for this audience," said Robert Essery, How To Web TV CEO, in an October 10 media release. The enhanced VOD service will be available to U.S. cable subscribers via Chaos VOD channels in late 2002. More details. Jim Pattison to receive Gold Ribbon Award at CAB conventionB.C. billionaire Jim Pattison will receive the 2002 Gold Ribbon for broadcast excellence at the Canadian Association of Broadcasters annual convention, running October 20-22 in Vancouver. Pattison’s business empire includes the Jim Pattison Broadcast Group, which consists of three TV stations and more than 20 radio stations. The Golden Ribbon Award is the CAB’s most prestigious award. This year’s convention program features 80 speakers on subjects ranging from the future of Canadian programming to direct-to-home satellite television piracy. More details. CFTPA argues CTF only means to ensure distinct programmingThe Canadian Television Fund (CTF) is purported to be the only means to ensure the creation of distinctly Canadian programming in the wake of findings by the Canadian Film and Television Production Association (CFTPA). An update of the CFTPA’s survey released last fall estimates that $456 million in foreign financing would be required if the CTF were ever eliminated. The update was compiled by PwC Consulting. The report also finds that any elimination of the CTF would result in a 26% to 31% decline in the largest sector of independent production, and an estimated $520- to $622-million loss in production activity. Between 13,700 and 16,500 direct and indirect jobs would also disappear. View the CFTPA’s release of its findings on the impact of the CTF at: http://www.cftpa.ca/newsroom/press/10_08_02.html. CanWest’s Australian operations post record revenuesCanWest Global Communications Corp. announced October 9 that EBITDA was up 12 per cent to A$173 million for the year ended Aug. 31, 2002 over fiscal 2001 at its Australian operation, Network TEN. The improved results were attributed to TEN’s successful programming strategy, it’s expanded lead in the 16-39 age category, and broadened appeal among 25- to 54-year-old viewers. TEN’s schedule includes the No. 1 program in Australia, Big Brother, and is building momentum with Australian Football League (Australian Rules) games through fiscal 2003. More details. CHUM Television acquires rights to Lions Gate’s "The Dead Zone"CHUM Television has acquired the rights to 26 episodes of The Dead Zone, a series produced by Lions Gate Television and Paramount International Television. The series premiered on the USA Network in June 2002. The series will air on CHUM’s over-the-air TV stations nationwide, and will be rebroadcast on its specialty channel Space: The Imagination Station. More details. Cogeco gets regulatory approval to carry second set of U.S. 4+1 signalsCogeco Cable Canada Inc. has received regulatory approval to carry a second set of U.S. 4+1 signals as well as WNYO-49 (Warner Brothers) from Buffalo NY on a discretionary digital basis as long as it adheres to requirements on non-simultaneous program deletion – Broadcasting Decision 2002-300. Cogeco also sought and received approval to carry any of the Canadian television signals provided for in the List of Part 3 eligible satellite services. CBC gets regulatory permission to operate transmittersThe CRTC has approved an application by the Canadian Broadcasting Corp. to amend the broadcasting licence of CBKST Saskatoon to operate transmitters in Big River, Greenwater Lake, North Battleford, Prince Albert, Spiritwood and Tisdale – Broadcasting Decision 2002-302. The transmitters are currently owned and operated by CTV Television Inc. as CBC affiliated stations. The CBC has agreed to purchase the transmitters from CTV to offer the full CBC service to those communities. As well, the commission approved a separate request by the CBC to amend the broadcasting licence for CBLT Toronto to operate transmitters in Kapuskasing, Kearns, North Bay, Sault Ste. Marie, Sudbury and Timmins – Broadcasting Decision 2002-303. The transmitters in those cities are also owned and operated by CTV Television Inc. as CBC affiliated stations, but the CBC has agreed to buy the transmitters. A similar change was approved by the regulator for CBKT Regina to operate transmitters the public broadcaster will acquire from CTV in Warmley, Wynyard and Yorkton – Broadcasting Decision 2002-301. More details. Look Communications, Unique Broadband extend time frame for finalizing partnershipLook Communications Inc. and Unique Broadband Systems Inc. (UBS) have extended the time frame for finalizing their strategic partnership. No date was set for finalization but both companies said more time was needed "in order to allow sufficient time to complete the specification design for UBS equipment intended to be supplied to Look pursuant to the product and services agreement." UBS agreed to invest $5 million in Look, and Look agreed to a $2.4 million equipment supply deal with UBS (CCR, Aug. 15/02). The transaction was originally expected to close in September. More details. Bell ExpressVu adds French-language European channelsSatellite TV operator Bell ExpressVu LP announced October 16th that it has added new French-language channels from Europe to its digital programming lineup – the TV channel Planète and radio station Radio France Internationale. It is offering the channels as part of a free preview for four months. Cable operators Vidéotron ltée and Cogeco Cable Inc. launched three French-language European TV channels on digital in Quebec in June – EuroNews, Paris Première and Planète (CCR, June 21/02) – as well as two audio channels, Radio France Internationale and Musique Monde (CCR, June 21/02). More details. INTERNATIONAL NEWS FCC unanimously denies EchoStar-Hughes merger The Federal Communications Commission (FCC) has unanimously rejected the proposed merger of EchoStar Communications Corp. and Hughes Electronics Corp. that would have combined EchoStar’s Dish Network and Hughes’ DirecTV satellite TV services into one dominant satellite TV service in the United States. Combined, both companies offer service to approximately 18 million subscribers. The proposed merger was estimated at approximately US$26 billion. The two companies tried to save the deal last week in a last-ditch attempt. While they wouldn’t reveal specifics of the newest proposals, it was believed new provisions included selling enough transmission capacity to create a new competitor. They indicated the new proposals would be submitted by October 28. However, the FCC wasn’t swayed in rendering its decision. It voted 4-0 against approving the merger. The FCC ruled that it wasn’t in the public’s interest for the merger to go ahead. Opponents argued that the combined entity would have gained a monopoly in certain areas of the country where access to cable TV wasn’t available. In defending the proposed merger, the two companies touted a nation-wide uniform pricing plan to ease concerns over price gouging. They also indicated that they would offer high-speed Internet access in areas where it currently isn’t available. More details: http://www.fcc.gov/Daily_Releases/Daily_Business/2002/db1010/DOC-227263A1.doc http://www.fcc.gov/Daily_Releases/Daily_Business/2002/db1010/DOC-227263A2.doc http://www.fcc.gov/Daily_Releases/Daily_Business/2002/db1010/DOC-227263A3.doc http://www.fcc.gov/Daily_Releases/Daily_Business/2002/db1010/DOC-227263A4.doc http://www.fcc.gov/Daily_Releases/Daily_Business/2002/db1010/DOC-227263A5.doc FCC approves plan to modernize digital radioThe Federal Communications Commission (FCC) approved on October 10 a plan that will enable radio to begin immediately broadcasting digital signals to ensure better sound, and also that will allow stations to introduce new features, such as personalized programming. More details: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-227261A1.doc Copps statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-227261A3.doc Abernathy and Martin statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-227261A2.doc http://www.wired.com/news/mp3/0,1285,55706,00.html?twwn_ascii http://www.wired.com/news/technology/0,1282,55698,00.html OpenTV cuts staff again; 315 positions will be axedOpenTV Corp. will lay off 315 employees, or 47 per cent of its total work force, in global restructuring aimed at reaching profitability. The cuts will be completed by the first quarter of 2003 and save the interactive television company $60 million annually. Earlier this month, Open TV announced it would cut 60 positions. More details. EC approves one-stop licence for TV and radio music via the InternetThe European Commission (EC) has approved a "one-stop shop" licence for broadcasters that would allow them to broadcast music over the Web. The licence covers all 15 EC countries and neighbouring Norway, Iceland and Liechenstein. It means that broadcasters will no longer need to secure separate licenses from the copyright administration and collecting societies in each European nation to broadcast over the Internet. With the licence, broadcasters will be able to simulcast music shows via the Internet and traditional terrestrial or cable transmission. "Consumers will be able to access their favourite radio and TV music programs from virtually anywhere in the world," said EU Competition Commissioner Mario Monti in a statement. More details. National spot advertising rises at National Cable CommunicationsNational Cable Communications’ national spot advertising on cable rose 16 per cent for the first nine months of 2002 over the same period a year earlier, with a 19 per cent gain projected for the full year, it was announced October 14. The New York-based spot-cable advertising rep firm expects a 28 per cent increase in spot sales for the final quarter, bolstered by political advertising. "Our sales gains reflect advertiser’s recognition of cable’s ever-increasing audience base, and importantly, the value of cable viewers as above average consumers and opinion leaders," said Tom Olson, CEO of National Cable Communications. More details. Diginet launches announced at CannesAs Canadian broadcasters struggle to have their digital television channels find audiences, cable networks around the world announced various channel launches at MIPCOM in Cannes, France. Brazil’s TV Globo Internacional will launch in Europe in November, The Soundtrack Channel is slated to start up on DirecTV Latin America in November, a new Disney Channel is set for Scandinavia in 2003, and Zone Vision will bring Reality TV to British Sky Broadcasting plc. in November, according to Multichannel News. More details.

CCR Update

Broadcast | October 17, 2002

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