CCR Short Takes

Cogeco registers net gain in basic TV subs, digital TV on riseCogeco Inc. registered its first net increase in basic TV customers since 1998, adding about net 3,200 basic customers in fiscal 2004 to reach a total of 823,855. It added 16,211 digital terminals in the fourth quarter ended Aug. 31, 2004 to reach a total of 823,855, and its Internet subscriber base rose by 5,190 to a total of 245,026. In fiscal 2004 ended August 31, Cogeco’s digital TV subscriber base increased 28%, or by 56,984, and its Internet customers grew by 19%, or by 39,847. Cogeco attributed its jump in digital TV subscribers to more targeted marketing and an attractive digital terminal rental plan launched last June and August in its operating territories in Ontario and Quebec. Cogeco’s broadcasting affiliate, Cogeco Radio-Télévision Inc., experienced a more difficult financial year due to a volatile advertising market and higher television programming expenses in the first half of the fiscal year. Its TV revenues fell by 9.7% and its radio revenues by 8.4%. Cogeco announced a fourth-quarter profit of $1.5 million, but a loss of $20.6 million on revenues of $648.1 million for fiscal 2004. The company had a profit of $6.8 million on revenues of $613.7 million a year earlier. This year, Cogeco adopted new accounting procedures, which has led to a shortened useful life of home terminal devices and other long-term cable assets. This change resulted in an increase of $1.6 million and $20.1 million in amortization expense for the fourth quarter and fiscal 2004 respectively. CRTC licenses yet more Category 2 digital TV channelsThe CRTC has licensed more Category 2 digital TV channels, including the Christian music-based People TV to OlaFarmHollywood Corp. (Broadcasting Decision 2004-450), the Natural Resources Television Channel to a company of the same name (Broadcasting Decision 2004-447) and the Farsi-language Arya TV to Arya Persian TV Network Inc. (Broadcasting Decision 2004-446). Category 2 Get Safe! is given extension in launch periodThe Category 2 diginet Get Safe! Inc. has been granted an extension to the date at which it is to be launched by until November 1, 2005 (Broadcasting Decision 2004-441). Digital TV subscribers top 4 million in Q2: Decima ResearchMore than 4 million Canadian households subscribed to digital TV services by the second quarter of 2004, according to Decima Research Inc.’s latest edition of THE DIGITAL DOMAIN: Tracking the Growth and Development of the Canadian Digital TV Distribution Market report. The number of Canadian households subscribing to digital TV subscription services increased by an estimated 3%, or about 110,526 in the second quarter (February/March 2004 to May/June 2004), compared to an estimated 3%, or about 113,429 in the same period a year earlier. Cablecos continued to register strong gains in digital TV subscribers, adding about 68,381 in the second quarter for a 4% increase. Canada’s two satellite TV distributors added 36,344 net subscribers, and the wireless cablecos continued to see declines. Mario Mota, VP of broadcast and media research at Decima Research, estimates that there will be more than 4.2 million digital TV subscribers by the end of the year, and more than 4.6 million by the end of 2005. "We estimate that the number of digital TV subscribers in Canada will surpass the number of analog subscribers within three years," he tells Canadian Communications Reports. "With Bell ExpressVu’s recent pricing and packaging changes, and the introduction of new low-cost digital boxes by some cablecos, I think we’re going to see a real push to migrate analog subscribers to digital." For more information on THE DIGITAL DOMAIN, contact Mario Mota at (613) 751-5089, email mmota@decima.com, or visit http://www.thedigitaldomain.ca. Cossette acquires majority stake in U.S. firm PainePRCanadian communications company Cossette Communication Group announced October 4 that it had acquired an 80% interest in PainePR, a U.S.-based public relations firm with a staff of 50 in offices in New York, Los Angeles, San Francisco and Orange County. Cossette said the acquisition is aimed at strengthening its U.S. convergent communication offering. The company did not release a figure for the price paid, stating only that the total purchase price is comprised of a closing payment and future payments based on the financial performance of PainePR over a period of four years. The closing payment and payment of future considerations are expected to be mostly satisfied in cash. ACTRA praises inclusion of culture in throne speechThe Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) is praising a brief mention of culture in the October 5 Speech from the Throne. The organization, however, once again calls on the government to intervene to save Canadian drama and to keep Canadian control of the broadcasting system. ACTRA wants the government to order a review of the CRTC’s 1999 television policy, provide long-term, enhanced funding for the Canadian Television Fund, and keep ownership of Canadian broadcasting companies in Canadian hands. The reference in the Throne Speech, found in the last paragraph of a section headed Canada’s Cities and Communities, states: "What makes our communities vibrant and creative is the quality of their cultural life. The government will foster cultural institutions and policies that aspire to excellence, reflect a diverse and multicultural society, respond to the new challenges of globalization and the digital economy, and promote diversity of views and cultural expression at home and abroad." TSN, Discovery get CRTC greenlight to broadcast in HDThe CRTC has approved a request by The Sports Network for an amendment to its broadcasting licence in order to allow it to be distributed in high-definition (Broadcasting Decision 2004-453). The programming in HD would be the same as that available on the analog version. The Canadian Cable Telecommunications Association (CCTA) intervened in support of the application, but opposed any requirement to carry the HD service. In rendering its decision, the CRTC noted that carriage of the service will be arranged through negotiation. The CRTC also granted approval to the Discovery Channel to broadcast in HD (Broadcasting Decision 2004-452). The Category 2 diginets Hustler Channel and X Channel were also given a licence amendment that allows them to broadcast in HD (Broadcasting Decision 2004-451). Require distributors to promote mandated services: CABThe Canadian Association of Broadcasters (CAB) is recommending that distributors be required to dedicate a minimum of 5% of their local availabilities for the promotion of mandated services, in addition to 75% of the local availabilities currently reserved for the promotion of Canadian programming services. The CAB suggests that these local availabilities be provided to those services whose carriage is mandated under section 9(1)(h) of the Broadcasting Act at no cost. To date, the CRTC has ordered distribution of four 9(l)(h) services: The Aboriginal People’s Television Network (APTN), the Cable Public Affairs Channel (CPAC), TVA and Voiceprint. The CAB says local avails should be provided as part of a marketing and promotion plan that each distributor is required to develop for the 9(1)(h) services. The marketing plan could also include promotion of 9(1)(h) services on barker channels and community channels, and make commitments with regard to the use of electronic programming guides aimed at raising the visibility of the services. The CAB filed its October 7 comments with the CRTC in relation to the process looking at ways to promote and improve the visibility of channels whose national distribution has been required (Broadcasting Public Notice 2004-46). Vidéotron wins approval to carry third set of U.S. signalsThe CRTC has granted Vidéotron ltée the right to distribute a third set of four U.S. commercial networks, provided that it doesn’t distribute any more than two sets of U.S. commercial network signals to any subscriber (Broadcasting Decision 2004-460). Vidéotron can now distribute KIRO-TV (CBS) Seattle, KING-TV (NBC) Seattle, KOMO-TV (ABC) Seattle, and KCPQ-TV (FOX) Tacoma, Washington; and any of the Canadian TV signals included in the list of part 3 eligible satellite services. In making the decision, the commission noted that the services would be offered on a discretionary basis and that Vidéotron had signed an agreement with the Canadian Association of Broadcasters (CAB) regarding the distribution of these signals and the protection of program rights. Therefore, Vidéotron does not need to perform non-simultaneous program deletion on these TV signals.

CCR Short Takes

Broadcast | October 22, 2004

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