CCR Short Takes

CRTC approves transfer of PrideVision to William CraigThe CRTC approved on May 28 the $1.5- million purchase of the Category 1 diginet PrideVision by William Craig from current owner Headline Media Group Inc. (Broadcasting Decision 2004-191). Ownership of PrideVision will transfer to 6166954 Canada Inc., a numbered company wholly-owned and controlled by Craig. Craig will own 80.2% of the voting shares of PrideVision, and the remaining 9.9% voting shares will be owned by other shareholders. Headline Media was forced to sell the channel after it began losing massive amounts of money (CCR, June 5/03; CCR Update, Feb. 5/03). Craig says he can turn the fortunes of the channel around by negotiating new carriage agreements with distributors (CCR, March 25/04). The commission also approved a $150,000 benefits package in conjunction with the sale that consists of an endowment to the Trebas Institute to be spent over seven years on scholarships for students entering the institute’s film and television production program in Toronto and Montreal. PrideVision’s will be subject to the same terms and conditions as the existing licence, which expires Aug. 31, 2007. Our Public Airwaves wants money for CBC campaignThe lobby group Our Public Airwaves is asking the public for financial support to make greater support for the Canadian Broadcasting Corp. (CBC) an election issue. "This is the first time we’ve written to ask you for money. And it’s not something we plan to do very often. But it costs a great deal to wage an effective campaign and we want to put public broadcasting on the agenda in as many ridings as possible across the country. Any contribution you can make will help us reach that goal," reads a May 27 email signed by Our Public Airwaves executive director Arthur Lewis. Rogers launches high-definition personal video recorderRogers Cable Inc. announced June 1 that is offering its first high-definition (HD) personal video recorder (PVR). The Motorola DCT6208 will be available to Rogers’ customers in New Brunswick, Newfoundland and Ontario. The device can be rented for $19.95 a month or bought for $699. There is also a monthly service fee of $1.99. Rogers, Vidéotron apply for CRTC approval on 4+1 signalsVidéotron ltée has applied to the CRTC to amend the licences of its subsidiaries CF Cable TV Inc. and Vidéotron (Regional) Ltd. to distribute on a digital basis the following set of four U.S. signals: KOMO-TV (ABC) Seattle, King-TV (NBC) Seattle, KIRO-TV (CBS) Seattle and KCPQ (FOX) Tacoma, WA (Broadcasting Public Notice 2004-35). "The applicant submitted that the U.S. commercial network signals for which it is seeking authority to distribute will constitute a third set of such signals that it will distribute. The applicant indicated that it would accept a condition of licence that would prohibit it from distributing to any subscriber more than two sets of U.S. commercial network television signals," reads the CRTC broadcasting public notice. As well, Rogers Cable Communications Inc. is asking for commission approval to carry WGRZ-TV (NBC), WIVB-TV (CBS), WKBW-TV (ABC) and WUTV (FOX) from Buffalo NY instead of the corresponding Detroit MI signals. Rogers indicated it would carry the Detroit signals in St. Thomas, Strathroy and Tillsonburg ON only when the Detroit signals are of poor quality, the program being carried on both the Buffalo and Detroit stations is the same, and the program being distributed is not subject to a program substitution request by a local or regional Canadian broadcaster. American Idol is ratings winner Audience ratings for the two-hour finale of America Idol, which aired on CTV Inc. on May 27, peaked at 3.7 million Canadians (2+) during the final 30 minutes. The entire show was watched by 3.2 million, making it the most-watched episode of the season, according to Nielsen Media Research data quoted by CTV in a media release. Audiences for the third season of the reality TV-based show grew 20% from season two, and it was in the top 20 shows of the season on Canadian television. The high ratings bode well for the return of Canadian Idol on June, 1, and 3 at 8 p.m. on CTV. Rogers declares dividendRogers Communications Inc. on May 27 declared a semi-annual dividend of 50 cents per share on each of its outstanding Class B non-voting shares and Class A voting shares. The dividend will be paid on July 2 to shareholders of record on June 14. CCTA opposes rate increase request by VisionTVThe Canadian Cable Television Association (CCTA) is opposing a two-cent rate increase request by VisionTV on the grounds that the not-for-profit specialty channel is projected to remain in a surplus position without any further rate increase. "VisionTV’s status quo financial projections for the upcoming licence term indicate that it is expected to continue to post significantly positive net income even as programming expenditures increase. Over the upcoming seven-year period, VisionTV’s status quo financial projections indicate cumulative PBIT of almost $4.8 million and net income of $3.8 million," writes the CCTA in a May 19 submission to the CRTC. The cable association also notes that VisionTV has failed to provide sufficiently detailed information on the type of programming it proposed to develop with the incremental revenue, and the channel will be able to substantially improve its expenditure on programming relative to historical levels without any further rate increase. The CCTA also points out that Vision TV has asked to decrease its minimum Canadian content during the evening period to 50% from 60% in attempts to improve audience share and raise the profile of VisionTV and the Canadian programs being presented. "By providing VisionTV with this flexibility, the service would gain new opportunities to increase revenues through means other than simply increasing the cost to subscribers," states the CCTA. VisionTV is seeking a rate increase of two cents during its licence renewal. In a contentious decision in January 2003, VisionTV was granted a 2-cent increase to 10 cents a month per subscriber (CCR, April 22/04). "Kink In My Hair" in productionKink In My Hair, the second winner of VisionTV’s Cultural Diversity Drama Competition, went into production on May 29 (CCR, Oct. 31/03). The production, a look into the lives of hair stylists and their patrons in the Caribbean neighbourhood of Toronto, is being produced in association with Wilbo Entertainment, Defiant Entertainment and Ngozika Productions. The finished production is slated for delivery in the fall of 2004. CCTA supports Persona transfer of ownershipThe Canadian Cable Television Association (CCTA) is supporting the transfer of ownership of Persona Communications Inc. to Canadian Cable Acquisition Company Inc. because "having new investors supporting the company will help ensure the ongoing financial health of the cable systems it operates." The cable association further notes that Persona plans to join the CCTA if the transition is approved. "Having Persona as a CCTA member company would assist in co-ordinating he development of industry-side approaches to the many challenges facing the broadcasting sector," writes CCTA acting president Michael Hennessy in a May 21 submission to the commission. Persona has never been a member of the CCTA. Investment in Dan Krech, Cinemark under reviewThe Governor General in Council, on the advice of Canadian Heritage, on May 17 announced it was examining IDT Entertainment Inc.’s acquistion of Toronto-based Dan Krech Productions Inc. The investment was made by IDT through its affiliate TLL Dutch Holdings B.V. That same month, the government also stated it was reviewing the investment by Madison Dearborn Capital Partners IV, LP to acquire control of the Canadian business carried on by Cinemark Theatres at Vancouver, BC. Under the Investment Canada Act, sales of Canadian film distribution companies to foreign companies are technically not allowed unless they are determined to be in the public interest. In 2001, then Canadian Heritage minister Sheila Copps waived foreign ownership guidelines that would have prevented Vivendi Universal from purchasing Seagram Ltd., after concluding that the company’s $300-million benefits package warranted an exception to the restriction (CCR, Feb. 1/01). CHUM to produce MuchMusic Awards in high-definitionCHUM Ltd. will produce and broadcast its 15th annual MuchMusic Video Awards show in high definition/5.1 surround sound. The awards show takes place on June 20. The HD show will be aired on CitytvHD and exclusively in the United States on HDNet.

CCR Short Takes

Broadcast | June 4, 2004

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