CCR Update

September 10, 2003 Public review of drama coming, says CRTC chairCRTC chair Charles Dalfen tells Canadian Communications Reports that the commission will undertake a public review of Canadian television drama. He says a public notice calling for comments on TV drama is due out in the next few weeks. He adds that it has not yet been decided whether there will be a public hearing following the written comment phase. The public notice will encompass a broad look at drama. “We are the only jurisdiction in the western world that doesn’t seem to have more of an interest in stories about ourselves. Quebec has it, Germany has it, Australia has it,” Dalfen tells CCR. In a wide-ranging interview this week, Dalfen talked about everything from why he views indigenous TV drama as being important to TV signal piracy to specialty channel wholesale rates. See the upcoming issue of CCR for a full report.Friends of Canadian Broadcasting to launch TV spots promoting Canadian storiesThe lobby group Friends of Canadian Broadcasting plans to launch TV spots that promote the telling of Canadian stories. The public service announcement campaign, entitled “Let’s Tell Our Own Stories,” is sponsored by Friends with the support of 30 companies and organizations. The goal is to raise public awareness of the need to tell Canadian stories on television. The TV spots will be unveiled to industry players on September 17.CASST praises government’s resolve to change Radiocomm Act in TV piracy fightThe Coalition Against Satellite Signal Theft (CASST) is welcoming the federal government’s plan to clamp down on TV signal theft by introducing tighter provisions and harsher penalties in the Radiocommunication Act. “The measures the government plans to introduce will provide law enforcement authorities and the broadcasting industry with important new tools to deal with this very serious problem,” says Janet Yale, CASST chair and president and CEO of the Canadian Cable Television Association. “They will also send a clear signal to those who engage in this illegal activity that their actions will not be tolerated and that the consequences of their offences will be serious.” Industry Canada minister Allan Rock and Canadian Heritage minister Sheila Copps announced September 5 that they hoped to amend the Act to better control the import of illegal radiocommunication equipment into Canada, to increase penalties as a more effective deterrent to satellite piracy, and to strengthen the existing right of the Canadian broadcasting industry to take civil action against sellers of illegal equipment and services. CASST estimates that there could be more than 750,000 Canadian households illegally accessing satellite TV services, either by purchasing unauthorized equipment to obtain U.S. satellite services or by hacking into Canadian services. The use of illegal satellite decoders can also interfere with existing authorized wireless networks, including those used by police and search and rescue authorities. In some cases, radio signals emitted by the illegal decoders can resemble the locator beacon of a downed airplane (CCR, July 4/02, June 21/02).Craig Media partners with Toronto Star for new Toronto TV stationThe Toronto Star and Craig Media Inc. have formed a programming, advertising and marketing partnership for Toronto One, Craig Media’s new conventional television station that is scheduled to launch September 19 in Ontario’s capital (CCR, Aug. 22/03). Under the deal, journalists from the Star newsroom will contribute to the station’s morning show and evening current affairs program. The two organizations announced September 3 that they will work together on coverage of the upcoming Toronto mayoral race, each others’ web sites and documentaries, as well as collaborating on advertising, marketing and promotional campaigns. It was Torstar Corp., the parent company of the Toronto Star, that started the TV licensing process in Toronto. After Torstar applied for a broadcast licence for the Toronto market, the CRTC opened up the process to any contenders. Craig Media was awarded the licence. Torstar appealed the decision to Cabinet, but Craig Media’s licence stood (CCR, June 7/02).LeafsTV partners with MOJO RadioDigital regional sports TV channel LeafsTV announced September 4 a “new multimedia partnership” with MOJO Radio, The All New AM640 radio station to simulcast programming during the upcoming Toronto Maple Leafs season. Leafs Lunch, which airs weekdays from noon to 2 p.m. on LeafsTV, will be broadcast on MOJO beginning on October 6, and the two outlets will partner on the expanded post-game show After the Horn, beginning on October 11. “For the first time in the Toronto market fans will be able to listen to After the Horn on the radio and directly interact with the most extensive and in-depth coverage available,” said John Shannon, Leafs TV executive producer and VP of programming.Vidéotron records net growth in client base in July and AugustVidéotron ltée announced September 8 that it had recorded a net growth in the number of cable customers in July and August of this year. The Quebec cableco added that it was maintaining steady weekly net growth of about 1,500 clients to its digital TV service and 1,700 new clients to its high-speed Internet service. Vidéotron noted that it had net growth of 13,430 digital TV subscribers in the two months. It attributed the growth to a targeted promotion and marketing campaign. At an investors’ conference on September 8, Vidéotron president Robert Dépatie said that the recent upward trend in subscribers could indicate a halt in subscriber losses experienced over the past few years. He noted that the Canadian satellite TV distributors’ subscriber growth slowed to 1% in the first quarter of this year. For a more detailed update on Vidéotron, see the upcoming issue of Canadian Communications Reports.Péladeau considering public stock offering for Quebecor MediaQuebecor Inc. president and CEO Pierre Karl Péladeau said September 8 that the printing and multimedia company is considering an initial public stock offering within a few months for its Quebecor Media subsidiary. “We’re certainly in a situation today that is appropriate to consider an IPO,” Péladeau told reporters during a break in an investors’ and analysts’ conference in Montreal. “It’s up to the board, but we expect it to be a few months from now. The question will likely be discussed at the next board meeting.” He said a public offering would allow the Caisse de dépôt et placement du Québec pension fund manager to reduce its 45% ownership of Quebecor Media. Quebecor Media lost $214 million last year, but the printing company Quebecor World continued to make money. A second investors’ presentation will be held in Toronto on September 11.Bell ExpressVu adds more channels to programming lineupBell ExpressVu LP announced September 4 that it added 16 new specialty TV channels to its channel lineup, including 12 new music and cultural services, two European French-language networks, and two news channels. The channels will be on free preview until Dec. 31, 2003. The channels include EuroNews, Paris Première, and the Green Channel. Other channels added are Silver Screen Classics, a Canadian channel specializing in movies from the 1930s-1950s; Stampede; MTV2; MuchLOUD; MuchMoreRetro; CoolTV; the French regional station Radio-Canada Manitoba; and Tamil Vision. The 16 channels are part of a year long programming expansion announced earlier this year that will see a total of 76 new channels added to Bell ExpressVu’s TV lineup in 2003 (CCR, March 13/03).Shaw to buy part of Monarch Cablesystems for $90 millionShaw Communications Inc. announced September 8 that it had reached a deal to purchase some of Monarch Cablesystems Ltd.’s cable systems in Alberta and southern British Columbia for $90 million. The cable systems being acquired by Shaw serve about 35,000 basic subscribers in Medicine Hat/Redcliff/Dunmore, Banff/Canmore, Bentley, Bow Island, Brooks, Caroline, Carstairs, Champion, Cremona, Elkwater, Exshaw, Foremost, Irvine, Lake Louise, Magrath, Nobleford, Ralston/CFB Suffield, Rocky Mountain House, Stavely, Sundre, Taber, Tilley, Vauxhall, Warner in Alberta, and Fernie, Kimberley, Elkford, Sparwood and Hope in southern B.C. Monarch will retain the remaining 20,000 customers and ownership of a fibre network in Alberta. Monarch said it would retain the cable systems in Terrace, Kitimat, Prince Rupert, Houston, Hazelton and Stewart in northern B.C. Shaw said it intended to pay for the assets with $25 million in cash or through the assumption of Monarch debt and the issuance of Class B non-voting shares in Shaw at $17.39 per share. ”The cable systems that we will be purchasing from Monarch dovetail nicely with Shaw’s existing systems and network in Alberta and B.C.,” Shaw CEO Jim Shaw said in a media release. “This transaction allows Shaw to further consolidate its position as the dominant cable television and Internet provider in Western Canada.”Star Choice introduces fully integrated HD satellite receiverStar Choice Communications Inc. introduced a fully integrated, high-definition (HD) satellite receiver, the Motorola DSR500 HD, last month at a convention in Toronto. The DSR500 HD is supposed to deliver nine times better picture quality than any standard TV signal. Star Choice also announced that it would be adding three HD channels in September, including Sportsnet HD (CCR, Aug. 22/03). Sportsnet HD launched on September 1. “We are increasing the number of dedicated HD channels from three to six and will continue to expand our programming to meet the needs of our customers,” said Brad Shaw, senior VP of operations at Star Choice. “We are not planning on charging any additional fees for this amazing HDTV content.” Last month, Star Choice also officially announced that it had added CourtTV Canada to its national channel lineup in the Your Life theme package (CCR, July 17/03).Shaw Communications realigns senior managementShaw Communications Inc. has made some management changes that will see Mike Abram, currently president of the investment arm Shaw Ventures, become president of Star Choice Communications Inc. As well, Brad Shaw, currently VP of operations at Star Choice, will move to the cable side of the business in the position of senior VP of operations. Bill MacDonald, currently in the position of senior VP of operations at Shaw Cablesystems, will retire Nov. 30, 2003.Rogers makes cable TV lineup changesRogers Cable Inc. is making a number of changes to its TV lineups in numerous Ontario communities. The changes were to come into effect on September 9 or September 16, depending on the area. In an email to subscribers, Rogers said the changes were intended “to prepare for the launch of new cable TV channels.” But some long-time Ottawa residents, used to the U.S. feed coming from Rochester NY, were upset to learn that ABC, CBS, NBC and Fox channels were being switched and would be sourced from Detroit. For a list of the changes, click here. Rogers has not yet received the regulator’s approval for all of the announced changes. Rogers’ application to the CRTC to switch the sourcing of the U.S. signals on its Ottawa system to Detroit to replace the current WHEC-TV (NBC), WROC-TV (CBS), WORK-TV (ABC) signals from Rochester NY and the WUTV (FOX) signal from Buffalo NY, and changes to other Rogers cable systems was made public on September 4 (Broadcasting Notice of Public Hearing 2003-46). Comments on the changes are due September 19.Supreme Court to rule September 11 on Vidéotron’s leave to appeal inside wiring rulingThe Supreme Court of Canada will rule September 11 on Vidéotron ltée’s leave to appeal the Federal Court of Appeal’s decision to refuse to hear an appeal of a CRTC decision on inside wiring. The Federal Court of Appeal turned down Vidéotron’s leave to appeal a CRTC decision relating to its sale of inside wiring to subsidiary Câblage QMI Inc. (CQMI). Vidéotron parent company Quebecor Media Inc. contends that CQMI falls outside the jurisdiction of the CRTC (CCR Update, June 11/03; CCR Update, Feb. 19/03). Unhappy with the Federal Court of Appeal’s denial, Vidéotron turned to the Supreme Court.Westman, Telus, SaskTel get regulatory approval for VODThe CRTC has approved applications by Westman Media Cooperative Ltd., Telus Communications Inc., and Saskatchewan Telecommunications (SaskTel) for licences to operate video-on-demand (VOD) services. Westman received a licence to operate a regional, Manitoba-based, general interest VOD service in Broadcasting Decision 2003-452. The VOD service will contain predominantly feature films. Westman was the first small cable operator in Canada to apply for a VOD licence, but other small cablecos are following suit (CCR, April 25/03). The CRTC approved a licence request by Telus Communications Inc. for a national VOD service in Broadcasting Decision 2003-453. Telus hopes to provide VOD when it launches its TV service later this year (CCR, April 25/03). SaskTel won CRTC approval for a licence for a regional VOD service in Broadcasting Decision 2003-451.ACTRA signs new deals with CBCMembers of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) have voted to ratify the terms of settlement for the new Radio and Television agreements negotiated with the Canadian Broadcasting Corp. The two-year deals will be retroactive to July 1 and will expire on June 30, 2005. The deals include general increases in performers’ minimum fees of 1.5% for 2003 and 2.5% in 2004 as well as an additional 1% contribution by the CBC to performers’ insurance, effective on July 1, 2003.CHUM starts principal photography on first feature filmCHUM Television announced September 3 that it had started principal photography on the first theatrical feature film of which it will own 100%. The film, entitled The Road Movie, is a youth-oriented comedy that began shooting in Newfoundland in late August. “Film production is an important and exciting new direction for CHUM. From development and financing, to promotion and exhibition, we have a proven track record in providing pivotal support for Canadian films in all phases of the process,” Stephen Tapp, executive VP of television at CHUM Ltd., said in a statement.CRTC approves 11 Category 2 digital ethnic channelsThe CRTC licensed 11 new Category 2 digital ethnic specialty television channels on September 4. They are Arabic TV (Broadcasting Decision 2003-440), Croatian TV (Broadcasting Decision 2003-441), Dutch TV (Broadcasting Decision 2003-442), Filipino TV (Broadcasting Decision 2003-443), Hungarian TV (Broadcasting Decision 2003-444), Polish TV (Broadcasting Decision 2003-445), Russian TV One (Broadcasting Decision 2003-446), Russian TV Two (Broadcasting Decision 2003-447), Ukrainian TV One (Broadcasting Decision 2003-448), Ukrainian TV Two (Broadcasting Decision 2003-449) and Vietnamese TV (Broadcasting Decision 2003-450).Mainframe in on Popeye animated network TV and home video specialVancouver-based Mainframe Entertainment has been hired to work on a new Popeye 3-D computer-animated TV and home video special due to air during prime time during the holiday season on FOX. Artisan Home Entertainment, through its Family Home Entertainment label, will be releasing an hour-long version of the Popeye special featuring never-before-seen footage on DVD and VHS during the fourth quarter of 2004. “We are thrilled to continue the Mainframe tradition of bringing classic characters like Popeye to life in CGI animation. Being a co-distributor also fits with our goal of controlling distribution rights of the best in branded characters,” Mainframe CEO Rick Mischel said in a statement.18th Annual Gemini Award nominees announcedThe Academy of Canadian Cinema and Television announced the nominees for the 18th Annual Gemini Awards on September 9. The award ceremonies celebrating the best in Canadian English-language television will be held October 20 in Toronto. For a list of nominees, click here.INTERNATIONAL NEWS Cable penetration falls to seven-year low in U.S. as DTH growsCable penetration in the United States has reached a seven-year low as direct-to-home (DTH) satellite TV distributors took a bigger chunk of the market, a study by the Television Bureau of Advertising (TVB) states. Research based on Nielsen Media Research data shows that cable penetration fell to 67.9% in July from 70.3% a year earlier. At the same time, alternate delivery systems, of which satellite TV distribution accounts for the largest group in this category, climbed to 15.8% from 13.8% a year earlier. In markets such as Springfield MO DTH penetration is even higher at 46.3%. “Advertisers who buy cable locally need to know that local wired cable systems’ ability to deliver commercials continues to erode. In fact, 58 markets now have ADS penetration of 25% or more,” said Susan Cuccinello, senior VP of research at TVB. “For while a local broadcast commercial is seen by a viewer whether he or she is watching that station over wired cable or satellite, local cable commercials are not seen in ADS homes. Local advertisers need to deduct the ADS percentage of the audience if they are included in the cable systems’ submissions.”NABA has concerns about proposed licensing plans for MPEG4-AVCThe technical committee of the North American Broadcasters Associations (NABA-TC) said September 4 that it is concerned about licensing plans for MPEG4-AVC because they are based on usage rather than equipment fees. NABA-TC believes that a usage-fee model will be a deterrent for its use. MPEG-2 licensing is based on equipment fees, which NABA-TC says has helped it achieve widespread acceptance. NABA-TC chair Joseph Flaherty said in a statement that North American broadcasters welcome and encourage open standards, but urged licence holders to recognize that broadcasters will only adopt standards that offer cost effective solutions. NABA has also endorsed a May 21 statement by the technical committee of the World Broadcasting Unions that expressed similar concerns about MPEG4 licensing proposals.

CCR Update

Broadcast | September 10, 2003

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