CCR Short Takes

Canadian Heritage earmarks $350,000 for diversityCanadian Heritage is giving $350,000 to United Nations Educational, Scientific and Cultural Organization (UNESCO) to help finance intergovernmental meetings on the development of the Convention on the Protection of the Diversity of Cultural Contents and Artistic Expression. "The government of Canada continues to play a leadership role in the development of a Convention on Cultural Diversity," said Canadian Heritage minister Hélène Chalifour Scherrer on May 20 when she made the funding announcement. "We recognize how important it is to actively support UNESCO in its efforts. I believe that artists, creators and cultural entrepreneurs must have the means to express themselves, both here and at home and on the world stage. We hope that this convention will strengthen our ability to develop and highlight our respective cultures." Ontario budget brings changes to production tax creditsQualifying labour expenditures covered by Ontario’s domestic production tax credit will no longer be reduced by equity investments from Canadian government film agencies, Ontario finance minister Greg Sorbara announced May 18. The new rule announced as part of the province’s budget delivered on May 18 applies to productions that started principal photography after March 27. The same tax credit will extend the start time of a production to include qualifying labour expenditures that are incurred as early as two years before principal photography begins. A person other than the production company can also now hold an interest in a film or television production unless one of the investors is associated with a tax shelter. The elimination of the so-called "grind" and the other adjustments to the domestic credit have been estimated to be worth about $8 million per year, according to the provincial government. "This is a step in the right direction," said Canadian Film and Television Production Association chair Laszlo Barna. "After SARS, a high dollar, and tax incentives from other provinces, Ontario needs to stay ahead of the game to stay competitive." There was a 36% drop in foreign service production in Ontario in 2003. But producers were unsuccessful in getting an increase in the Ontario Film and Television Tax Credit. It remains at 20%. Revenues continue to decline at Look CommunicationsLook Communications Inc.’s revenues for the first quarter ended March 31 were $11.4 million, down from $12.6 million for the same period a year earlier, as a result of fewer subscribers, the company announced. But the company also noted that the blended monthly average revenue per subscriber (ARPU) increased to $30.41 in the first quarter of 2004, compared to $29.40 in the first quarter of 2003. Company financial results released May 13 note that Look "experienced a sequential decrease in its subscriber base." It had 117,000 subscribers at March 31, compared to 125,000 subscribers at the end of December 2003. Of the subscriber losses, 71% or 5,700 subscribers, were attributable to residential dial-up accounts, which was anticipated in light of migration to high-speed Internet. The first-quarter results did not break out digital TV and Internet subscribers, but that information will be included in the company’s Q1 Management’s Discussion and Analysis document. It was not available at press time. Subscriber churn down in first quarter at Persona Inc.Canadian subscriber churn at Persona Inc. in the quarter ended March 31 fell 22% to 2,598 subscribers from 3,339 subscribers in the same period in 2003, according to company financial results released May 13. "Management believes that the successful launch and take-up of its digital cable offering in the past two years, as well as the continuous promotion of the company’s services during that period, has been responsible for the significant reductions in churn," reads the financial results. "Although management expects churn to continue to decline in 2004, the rate of decline will be smaller on a percentage basis." About 66% of Persona’s subscriber base had access to digital services at March 31, it was also noted. The number of digital subscribers during the quarter increased only moderately to 21,061 as at March 31. The number represents a 14.5% penetration rate of subscribers with digital access. Year to year, cumulative digital subscribers increased 13%. Revenues from Persona’s Canadian operations in the first quarter rose 12% over the prior year to $29.7 million, with a 13% gain in cable revenue offset by a 21% decline in telecom revenue from the same quarter a year earlier. The cable revenue increases resulted primarily from across the board rate increases implemented in mid-2003. CRTC dismisses CTV complaint against Rogers CableThe CRTC has dismissed an undue preference complaint filed by CTV Inc. against Rogers Cable Communications Inc. after it moved the specialty channel CTV Newsnet from channel 17 to channel 62 in the Toronto area (Broadcasting Decision 2004-188). CTV alleged that the move subjected it to an undue disadvantage. The complaint was filed on Aug. 18, 2003 and the decision released May 20. It also stated that by choosing to relocate Newsnet, rather than a Rogers affiliate, such as Sportsnet, The Shopping Channel, Rogers Community Television or Rogers’ barker channel, Rogers was conferring an undue preference upon itself and its affiliates. By making Newsnet less accessible to subscribers in those systems, CTV estimated that the channel realignment would result in a loss of $700,000 per year in advertising revenues. Rogers responded that channel placement issues, such as those raised in the CTV complaint, were commercial matters that the CRTC has consistently found to be best resolved without regulatory intervention. The CRTC determined that Rogers’ action had subjected Newsnet to a disadvantage and conferred a preference on itself. But the regulator was unable to conclude that either the disadvantage or the preference is undue. Alliance Atlantis directors unable to trade sharesThe Ontario Securities Commission has issued a formal and temporary order that prohibits, effective immediately, certain directors, officers and insiders at Alliance Atlantis Communications Inc. from trading their shares. The order was issued at the request of the company, following its failure to file its annual and first-quarter interim financial statements prior to the statutory filing dates under applicable Canadian securities laws. Alliance Atlantis has twice delayed reporting year-end and first-quarter financial results. The company says it is "a result of the wide-ranging review of Alliance Atlantis’ Entertainment Group announced on Dec. 10, 2003 that included the permanent reduction of the size and scope of certain television and motion picture production and distribution activities." The review is complex and requires the assessment of individual productions over several years, the company states. The company notes that it expects to issue and file financials by June 4. Securities commissions in some other provinces are also expected to issue similar orders. Voters support Canadian-owned broadcasting system: FriendsMaintaining Canadian broadcasting and communication systems in the hands of Canadians, diversity of media ownership, and a strengthened Canadian Broadcasting Corp. (CBC) are strongly supported by voters, according to Friends of Canadian Broadcasting. A public opinion survey, conducted by Ipsos-Reid on behalf of Friends, revealed that 85% of voters supported domestic ownership and control of Canadian communications and broadcasting companies. According to the survey, two-thirds of Canadians have an unfavourable opinion of foreign ownership of Canadian telephone and cable companies, 60% feel a majority of Canadians think there is too much media concentration, 62% think media concentration is undermining Canadian democracy, and 63% said that federal government should limit further concentration. The survey also reveals strong levels of support for the CBC. Canadians give the CBC top marks for protecting Canadian culture and identity on television. As well, eight in 10 respondents said they thought the CBC does a good-to-excellent job of meeting its mandate. The survey was conducted from May 4 to 9 and had a sample size of 1,100 Canadians. National results are accurate to within +/-3%, 95% of the time. TSN, Leafs sign three-year dealThe Toronto Maple Leafs hockey club has signed a three-year broadcast deal with TSN. TSN has obtained the broadcast rights to 40 regular season Leafs games for each of the next three years, starting in 2004-05. All of the game broadcasts will be produced by the Leafs, while TSN will produce the studio intermission shows and the pre-game and post-game shows. TSN also announced May 14 that it would sub-license 15 games each season to Rogers Sportsnet. The games will be broadcast throughout Ontario, with the exception of the Ottawa Valley. Financial terms of the deal were not disclosed. TechTV Canada to be renamed The diginet TechTV Canada will be renamed G4techTV following changes with the channel’s American partner. TechTV in the United States was acquired from Vulcan Programming through Comcast Corp.’s G4 Media division. As a result, G4 Media will acquire the one-third ownership that Vulcan had in TechTV Canada. CRTC denies Bragg request to change Class 1 systems to Class 2The CRTC has denied requests by Bragg Communications Inc. and its subsidiary Bay Communications Inc., operating as EastLink Cable Systems, to change the classification of the broadcasting licences for its cable systems serving Kingston and Yarmouth NS from Class 1 to Class 2 (Broadcasting Decision 2004-178). "Under the Broadcasting Act, the commission cannot change the class of a licence through a licence amendment. A change...requires that the commission issue a new licence," ruled the CRTC.

CCR Short Takes

News | 05/21/2004 4:00 am EDT

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