CCR Update

August 27, 2003 Advertising revenues up at Alliance Atlantis, developing channels still in the redAdvertising sales increased 45% in the fiscal first quarter ended June 30, 2003 at Alliance Atlantis Communications Inc.’s broadcast properties over the same period a year earlier, Alliance Atlantis reported in financials released August 25. Revenue from the company’s developing digital specialty TV channels (Showcase Action, Showcase Diva, The Independent Film Channel Canada, Discovery Health Canada, BBC Canada, BBC Kids and National Geographic Channel) was $5.7 million in the quarter compared to $4.2 million in the same quarter a year earlier. The developing channels posted an EBITDA loss of $1.8 million compared to a corresponding loss of $3.3 million in the first quarter last year. Revenue from the company’s operating channels (Showcase, Life Network, History Television, HGTV Canada, Food Network Canada, Séries +, and Historia) was $46.7 million, a 20% increase from the $38.8 million generated in the quarter a year earlier. EBITDA for the operating channels was $21.5 million compared to $17.1 million in the prior year’s period. On a consolidated basis, the company had net earnings of $10.8 million in the quarter compared to $8.8 million in the same period a year earlier.Life Network rebranding aimed at younger female demographicsAlliance Atlantis Communications Inc.’s Life Network will introduce a new logo and revamped on-air branding elements aimed at better reflecting “the network’s line-up of compelling reality programming and appeal to its younger, female-skewing audience.” The new look hits the airwaves on September 1. “Over the past few years, Life Network has evolved from a soft, family-oriented channel to the home of compelling reality programming,” said Janet Eastwood, executive VP of marketing, communications and creative services at Alliance Atlantis Broadcasting. The channel airs such shows as Matchmaker, Temptation Island and the upcoming America’s Next Top Model. The new look will also be showcased in an extensive marketing campaign for America’s Next Top Model, which premieres October 7.CRTC licenses first Canadian low-power community TV stationThe CRTC issued its first Canadian low-power, for-profit community TV licence to Télé-Mag inc. on August 22 under a new licensing regime that was finalized last October (CCR, Oct. 17/02). Télé-Mag will broadcast over-the-air on channel 9 in Quebec City, and will have a daily eight-hour block of locally produced original programming. The CRTC says that by issuing the licence it is “reaffirming and strengthening its commitment to local programming.” As a condition of licence, at least 80% of Télé-Mag’s schedule must be Canadian programming and at least 60% must be local programming (Broadcasting Decision 2003-413). The CRTC heard Télé-Mag’s application at a public hearing in April in Quebec City (CCR Update, Feb. 5/03). In the United States, the Federal Communications Commission has also launched an initiative to increase “localism” in broadcasting (see International News brief below).Look introduces new digital TV packageStruggling wireless cable and Internet provider Look Communications Inc. has introduced a new digital TV package, the company announced August 15 in releasing its second-quarter financial results. Called Look Pop, the package is aimed at price-sensitive subscribers in selected multiple-unit dwellings. Look Pop contains about 60 of the most popular digital channels (TV and audio) for $27.95 per month. A set-top box on loan is included in the price. The new package was introduced in May.Nordicity contracted to study Singapore media industryCanadian consulting firm Nordicity Group has been hired by the Media Development Authority of Singapore to prepare a study on the country’s media industry. Working in conjunction with PricewaterhouseCoopers, Nordicity will prepare a study that compares Singapore’s media industries (film, motion picture and video, television and radio broadcasting, Internet, print and publishing, digital and new media, and advertising) to that of 14 other countries. The study is aimed at helping the Media Development Authority design government policies that attract investment to Singapore’s media industry, and position it to serve regional and global media markets. Nordicity principal Stuart Jack is the project manager who will be responsible for overseeing data collection and benchmarking analysis of the consulting teams based in Canada and Singapore.Six Feet Under a ratings winner for ShowcaseThe August 24 premiere of the first season of Six Feet Under broadcast on Alliance Atlantis Communications Inc.’s Showcase specialty TV channel brought in a total of 735,000 viewers (2+). That’s the highest single-play performance of any program in the history of Alliance Atlantis Broadcasting, the company reports. The premiere also drew the largest average minute audience for non-sports programming on a Canadian specialty network for the 2002-03 broadcast year to date, Alliance Atlantis stated.Academy announces Gemini documentary, news and sports nomineesThe Academy of Canadian Cinema and Television has announced the nominees for Gemini Awards in the categories of Canadian documentary, news and sports. The Gemini Documentary, News and Sports awards will be given out on October 18 at the Metro Toronto Convention Centre. “Canadian television is in constant evolution and the Gemini awards work each year to recognize and celebrate the growth and changes in the industry,” said Academy president and CEO Mario Topalovich. “This year marks the first year we will be presenting the Gemini Documentary, News and Sports Awards Gala evening, showcasing the awards that reflect the changes in Canada’s television community and highlighting the remarkable achievements made in these areas.” Click here for a list of nominees.Devine going with BaileyDevine Entertainment Corp. announced August 21 that it has commitments for over $10 million in financing for its first feature film, Bailey. The company will receive funding from Corus Entertainment Inc.’s Family Feature Film Fund, Astral Media Inc.’s The Harold Greenberg Fund, Telefilm Canada, Movision, Odeon, Arclight Films and U.K. co-producer Spice Factory. Principal photography is scheduled to begin on September 8.CCSA annual general meeting in Toronto celebrates a decade of serviceThe annual general meeting (AGM) of the Canadian Cable Systems Alliance Inc. (CCSA) will include sessions on high-definition television, video-on-demand (VOD) and the future of telephony services. The keynote speaker is Brian Tobin. The AGM is set for September 25-26 in Toronto.Government spending on culture rises in 2000-01Government spending on cultural activities and institutions rose for the third straight year in 2000-01, with all three levels of governments contributing $6.3 billion on everything from operating departments related to culture to financial assistance to artists, Statistics Canada reported this month. The figure represents a 6% increase over 1999-2000. Industries such as broadcasting, film and video production, book and periodical publishing and the sound recording industry consumed $2 billion, or two-thirds of the federal cultural budget. Broadcasting has taken the lion’s share, averaging three-quarters of federal spending on these industries over the last decade, according to StatsCan. “Broadcasting contributed significantly to spending growth on these industries in Quebec. The film and video sector was wholly responsible for increased industry spending in Newfoundland and Labrador,” StatsCan reported. Spending on cultural activities and institutions grew the fastest among Canada’s municipalities, which in total contributed $1.7 billion on culture in 2000-01. Much of the money went to libraries. The federal government spent $3 billion and the provinces and territories $2.1 billion on culture. The data are based on a census of all 29 federal and 180 provincial/territorial departments and agencies with culture-related expenses.Bowie concert to be broadcast live in Famous Players’ theatresDavid Bowie’s concert to promote his new album Reality will be transmitted from Europe via satellite to theatres in Canada, across Europe, Asia and Australia. The concert will be shown in select Famous Players theatres across Canada on September 15 and tickets will be priced at $15 each. There will be a live question and answer following the concert. The show will be shot in digital widescreen and recorded in DTS digital 5.1 surround sounds for delivery to cinemas. Theatre owners are increasingly turning to TV-style content to generate alternative revenue streams, particularly during non-peak movie viewing times (CCR, May 8/03).INTERNATIONAL NEWSDSL preferred over cable modem: JD Power and Associates studyDial-up Internet subscribers considering switching to high-speed service prefer DSL to cable modem, according to the JD Power and Associates 2003 Internet Service Provider Residential Customer Satisfaction Study released August 5. About 52% of respondents said they would choose DSL, and 38% said they would pick cable. Nonetheless, cable-modem providers have almost twice as many subscribers as DSL. The survey is based on responses from 7,700 residential customers of Internet service providers in the United States.More cablecos offering VOD, but uncertainty remains about business caseMore and more cablecos are increasing the availability of video-on-demand (VOD) services, but even as the cost of providing VOD decreases, there is still a concern about the best way to monetize the new technology, according to In-Stat/MDR. According to the research firm, about 40% of all U.S. cable TV systems are offering VOD and almost four million cable TV subscribers are regularly using the service to watch movies, packaged premium programming and even free shows. “However, the majority of cable operators are less concerned about the short-term economics of VOD, and are treating the service as a key differentiator in the continuing battle between digital cable TV services and satellite TV services,” said Mike Paxton, an In-Stat/MDR senior analyst (CCR, March 1/02).FCC eyes enhancing localism in broadcastingFederal Communications Commission (FCC) chair Michael Powell announced August 20 that a task force has been established to advise the commission on steps that could be taken to enhance localism in radio and television broadcasting. If warranted, Powell said the FCC would make legislative recommendations to Congress aimed at strengthening localism in broadcasting. Among the initiatives that the FCC is looking at is speeding up the activation of low-power FM stations. The task force will organize a series of public hearings on localism across the United States. Tying localism to media ownership issues, Powell noted, “It is important to understand that ownership rules have always been, at best, imprecise tools for achieving policy goals like localism. That is why the FCC has historically sought more direct ways of promoting localism in broadcasting. These include things such as public interest obligations, license renewals, and protecting the rights of local stations to make programming decisions for their communities.” FCC commissioner Kathleen Abernathy issued a statement praising Powell “for taking positive and substantive steps to ensure that broadcasters continue to further the goal of localism in their communities.”

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Broadcast | August 27, 2003

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