CCR Update

VDN Cable wins Class 1 distribution licence for Toronto marketThe CRTC has granted Montreal-based VDN Cable a Class 1 cable broadcasting distribution licence to serve the Toronto market (Broadcasting Decision 2005-1). During the process, Rogers – which delivers its cable TV service to many multiple unit dwellings in Ontario’s capital – told the commission that it should not issue a BDU licence to VDN until it was satisfied that the applicant’s proposed distribution of TQS met all of the criteria for the distribution of a distant Canadian signal, which the CRTC found it did. VDN plans to use the Class 1 cable licence to serve the multiple unit dwelling market in Toronto, opting to target buildings there with Satellite Master Antenna Television (SMATV) systems, or those with numerous grey or black market TV customers (CCR, Aug. 17/04). VDN is hoping to establish a customer base of about 10,000 in Toronto.Western Channel wins extension in deadline to launchThe CRTC has approved an application by Craig Media Inc., acquired since by CHUM Ltd., for an extension of the time limit to launch its Category 2 diginet, The Western Channel (Broadcasting Decision 2005-5). Also known as the Stampede, the channel now has until November 16, 2005 to get on air.World Television Network granted extension in deadline to commence operationsWorld Television Network/Le Réseau Télémonde inc (WTM) now has until June 14, 2006 to launch on the digital dial, after the CRTC granted it an extension in its deadline to commence operations (Broadcasting Decision 2005-10). WTM owner Dan Iannuzzi argued fruitlessly before the CRTC for a licence to broadcast the channel in analog (CCR Update, Feb. 13/03). Iannuzzi died unexpectedly in November 2005 (CCR, Dec. 6/04).Rogers to consolidate cable licences in St. Thomas, Owen Sound areasRogers Cable Communications Inc. has received CRTC approval to expand the area of cable TV coverage under its St. Thomas ON area licence to include Strathroy ON (Broadcasting Decision 2005-7). Rogers already serves Strathroy, but under a separate licence. The decision means that Rogers needs only one licence. The cableco also received CRTC approval to include Midland ON, which currently operates with its own licence, under the licence it has for Owen Sound ON (Broadcasting Decision 2005-8).MediaNet applies for broader programming categories for its digital ethnic channelsMediaNet Canada Ltd. is asking the CRTC to expand the program categories that its Category 2 ethnic channels News International, Music Music Music, and MovieWorld can broadcast (Broadcasting Public Notice 2005-7). MediaNet tells the CRTC that the licence amendments are necessary because “services with a narrower nature of service are not successful in smaller ethnic communities.” Comments on the proposal are due by February 21.Revenues up at CanWest’s Canadian broadcasting operationsRevenues at CanWest Global Communications Corp.’s Canadian broadcasting operations increased 5% to $200 million in the first quarter ended November 30, compared to the same quarter a year earlier, according to financial results released January 11. EBITDA (earnings before interest, income taxes, depreciation, amortization, investment gains and losses, loss on debt extinguishment, minority interests, interest in earnings of other equity accounted affiliates, realized currency translation adjustments and loss from discontinued operations) was $55 million, which is relatively stable with last year’s results due to increased investment in programming for conventional television. Global’s TV programming has been taking a major hit in the ratings race, which culminated in a shake-up of personnel last year (CCR, Oct. 8/04). “In Canada, a stronger advertising market in the first quarter helped to stabilize results from Canadian television, but we still have work to do to restore Global Television to its traditional leadership position in Canadian audience ratings. The conventional TV model is stronger than it was throughout last year,” reads the company’s financial results released January 11.Things were better for CanWest overseas, particularly in the Australian market. EBITDA at CanWest Global’s TEN Television Network in Australia rose 30% to $120 million in the first quarter compared to the same quarter a year earlier, on 16% growth in quarterly revenues to $247 million. The Australian network led the ratings in the 16-39 demographic and was second in the older 25-54 demographic. The results were announced just days before The Australian newspaper reported that CanWest’s 57% stake in TEN might be sold to newspaper group John Fairfax Holdings. The Australian valued TEN at $3.9 billion, and CanWest’s stake at about $2.2 billion.Shaw planning to imminently introduce digital phone service in move toward “triple play”Shaw Communications Inc. CEO Jim Shaw told shareholders on January 13 that the cableco would soon launch a digital phone service as it focuses on the “triple play” market in 2005. “I’d say it’s a matter of weeks before the launch of Digital Phone in Edmonton,” he said. Shaw predicted that about 500,000, or 20% of its current customer base, would sign up for Digital Phone in the next four to five years.The company announced net income of $18.8 million for the first quarter ended November 30, 2004, according to financial results released January 12. That compares to a net income of $20 million in the same period a year earlier.Customer growth in its cable and Internet business continued. Digital customers grew by 4%, or 21,501, to 562,036 at November 30, 2004. Basic cable subscribers rose by 17,109 to 2,139,597 at November 30. Internet customers increased 4.7%, or by 47, 748, to about 1.069 million. Shaw’s direct-to-home satellite TV customers retained through subsidiary Star Choice declined by 3,068 in the quarter.“We believe that this will be another significant year in Shaw’s history. We started out in the cable business over 35 years ago and now have more than two million cable customers. Seven years ago, we entered the Internet market and today we have the highest penetration rate in North America, with 50% of basic customers now subscribing to our Internet service. In fiscal 2005, we will enter another exciting phase of Shaw’s evolution as we launch our next growth opportunity – Digital Phone,” Shaw said in a statement issued with the financial results. Shaw also noted that the company had accelerated certain capital expenditures to advance the rollout of Digital Phone and other new products and services.Cogeco digital TV subscriber base reaches 225,831 at end of Q1Cogeco Cable Inc. added 17, 395 digital TV subscribers in the first quarter ended November 30 from the previous quarter, according to financial results released January 17. The company had 225,831 digital TV customers (148,433 in Ontario and 77,398 in Quebec) at November 30. Cogeco attributed the digital TV customer growth to the “success of an attractive digital terminal rental plan launched last June and August in Ontario and Quebec, respectively and the addition of MoviePix to the digital pay and television service in Ontario.” The company notes, “During the first quarter, capital expenditures rose by $6.8 million, mainly as a result of an increase in expenditures related to digital terminals. The number of digital terminals rented by Cogeco Cable’s customers increased as a result of an attractive rental plan launched during the fourth quarter of fiscal 2004.” The company also states that the rollout of subscription video-on-demand and high definition (HD) services to 86% and 67% of the customer base respectively this fall should contribute to the future growth of digital services. It also notes that the HD coverage will increase in the coming months once the service is offered to most of Quebec’s customer base. Cogeco’s basic TV customer base grew slightly to 831,598 from 823,855. The company’s financial results stated that it had a net income of $3.8 million for the quarter.CHUM appears poised for further expansionCHUM Ltd. appears poised for further expansion, whether through expanding its existing businesses, partnerships and joint ventures or acquisitions, according to statements in its financial results released January 14. “The company’s radio segment has the capacity to increase the number of stations in certain markets and to penetrate new markets within the existing regulatory framework,” reads CHUM’s financial results for the first quarter ended November 30. For example, the company has acquired the radio assets of Seacoast Communications Inc. in Victoria (CCR, Oct. 8/04). “Similarly, the company’s television segment will seek to continue to expand the reach of its conventional television business on a profitable basis and expand its offering of specialty television channels in complementary genres,” states CHUM. EBITDA for the company’s radio properties was up 25%, and EBITDA for its television services increased 32%, according to the financial results. Radio revenues in the quarter amounted to $36.1 million, an increase of $3 million, or 9.1%, compared with the same quarter a year earlier. The company’s AM and FM radio stations (minus the newly acquired Seacoast stations) showed revenue growth of 24.7% and 3.7%, respectively, over the corresponding quarter last year. The strong growth in radio was attributed to a favourable advertising market, especially in home improvement and decorating, and automotive retailing. Television revenue increased 1.7% in the first quarter of fiscal 2005, with growth being driven by CHUM’s specialty TV stations. Each specialty TV channel recorded increases in advertising and subscriber revenue. Advertising revenue for its specialty TV channels for the first quarter increased 13%, and subscriber revenue rose 8.6% over the same period a year earlier, CHUM reported. The inclusion of Craig acquired TV broadcast assets such as conventional TV stations in Brandon, Calgary, Edmonton and Winnipeg, and digital specialty channels MTV, MTV2 and TV Land will not affect CHUM’s financial results until the second quarter of fiscal 2005.Astral again posts strong financial resultsMontreal-based Astral Media once again reported strong financial results for the first quarter ended November 30, with net earnings jumping to $25.6 million from $20.9 million in the same period a year earlier. EBITDA for the quarter increased 16% to $42.5 million from $36.6 million for the same quarter in 2004. “On the television side, strong point-of-differentiation programming on our networks continues to pay off with a 4% increase in subscription revenues and a 28% increase in advertising revenues,” said Ian Greenberg, president and CEO, in a January 13 media release. “Radio reported a 5% increase in revenues along with solid results in the fall BBM ratings, further positioning our two key networks Energie and Radio RockDétente in the top positions with listeners in Quebec. Finally, our outdoor advertising division also stood out with a 26% increase in revenues compared to the same period last year.”History Producers announce board of directorsThe World Congress of History Producers, organized by Achilles Media, has announced its board of directors, which will serve to provide guidance and stability to the annual conference. The board consists of 13 members, including one representing RAI International, the host broadcaster for the 2005 conference. The inaugural World Congress of History Producers international board of directors includes Nima Abu-Wardeh (producer/presenter with BBC News/M Zone Productions), Daniela Bagliani (program acquisitions manager, documentary, RTI, Italy), Taylor Downing (Flashback Television executive producer), Christoph Jorg (ARTE France commissioning editor), Elizabeth Klink (researcher), Tom Koch (WGBH International director), Daniel Korn (3BM Television managing director), Tom Perlmutter (National Film Board of Canada, English Program director general), Ralf-Peter Piechowiak, (ZDF German Television executive producer of contemporary history), Jody Sheff (Thirteen/WNET executive producer of history and features), Meg Villarreal (U.S. Independents Inc. director general), Cindy Witten (Alliance Atlantis Broadcasting VP of original production, factual and BBC programming) and Piero Corsini (commissioning editor at RAI Educational). The formation of the board was announced at the 2004 World Congress of History Producers held in Toronto (CCR, Nov. 8/04).Canadian broadcasters pitch in for tsunami reliefCanadian broadcasters have helped raise millions of dollars in donations for aid to the Asian countries affected by the tsunami. CHUM Ltd. canvassed its listeners across its 32 radio stations and 33 TV stations in early January to raise $4.5 million. The funds were raised through donations from public and private businesses and include a contribution of $100,000 by CHUM. The money raised goes to the Canadian Red Cross to aid in the tsunami relief. The CBC-hosted Canada for Asia benefit event on January 13 raised over $4 million. The event, featuring more than 150 performers and special guests, was broadcast on public and private radio and TV and was streamed on the Internet at CBC.ca. The proceeds ill go to World Vision, The Canadian Red Cross, UNICEF, Oxfam Canada, CARE Canada, Save the Children Canada, Development and Peace, and Oxfam Quebec. As well, Rogers’ OMNI Television raised $620,000 during a two-hour Canadians for Tsunami Relief (CTR) Appeal Special. The money will be directed to Oxfam Canada and the Canadian Red Cross.Cogeco adds Fox News to its lineupCogeco Cable has added Fox News to its digital channel lineup in Ontario, following in the footsteps of Rogers Cable and Shaw Cablesystems. The U.S. news channel has been added to Cogeco’s “More Variety” theme package. The specialty TV service will be on free preview on channel 127 for 90 days. Subscribers to the “Digital Select All” package will get Fox News at no additional cost.2005 W-FIVE premiere draws 1.23 million viewersAbout 1.23 million viewers tuned into the season premiere of W-FIVE, making it the most watched show of the night in Canada, according to preliminary BBM audience numbers released by the show’s broadcaster CTV Inc. The show included an episode on criminals swiping information from debit cards, and another segment on Oxycontin, a prescription pain reliever that has become a hot street drug.CTV to initiate 13-week tour for 2005 Canadian IdolCTV Inc. plans to go to 10 provinces and a territory over 13 weeks with its 2005 Canadian Idol audition tour. The tour will stop in 13 cities, up from nine last year. Cities new to the reality TV show looking for the country’s top singer include Whitehorse, Saskatoon, Sudbury, London, Moncton, Charlottetown and Sydney. Season three of the show is set to debut this summer. According to CTV, Canadian Idol finished with a per episode average of 2.2 million viewers and was viewed by over 17 million Canadians in total, representing 64% of the English population. CTV says the figures make it the most-watched Canadian series in the English language since the advent of electronic measurement.CTV’s new series Instant Star to premiere January 23Instant Star, a series about a 15-year-old who is about to make it big after winning the biggest singer/songwriter contest, begins airing Sunday, January 23 at 7 p.m. ET on CTV with back-to-back episodes. The series then moves to its regular timeslot – Sundays at 7:30 p.m. ET – starting January 30. More than a million viewers tuned in for a sneak preview of the series on CTV last September (CCR Update, Sept. 16/04). A companion web site has been developed by Snap Media (www.instantstar.ctv.ca). The series is being produced in association with CTV by Epitome Pictures. Affiliate publication Canadian NEW MEDIA featured an in-depth look at the show in June 2004 (CNM, June 9/04).CHUM, NonStop Television to launch Star! programming on Orbit’s The Hollywood ChannelCHUM Television International and Sweden’s NonStop Television have completed an agreement with Orbit Communications Company to launch programming from CHUM’s specialty channel Star! on Orbit’s satellite entertainment channel, The Hollywood Channel. Under the deal, The Hollywood Channel will air three consecutive three-hour blocks of CHUM programming daily. The programming will be seen in 32 territories in the Middle East and North Africa, including Saudi Arabia, Dubai, Morocco, Cyprus, Algeria, Egypt and Pakistan. CHUM and NonStop launched Star! in Scandinavia in July 2004 as a joint venture. Financial details of the deal have not been released.INTERNATIONALDigital radio gaining subscribers in U.S.: In-StatThere will be net 3 million new subscribers annually to digital satellite radio in the United States through 2008, predicts research firm In-Stat. A recent survey by the company reveals a growing awareness of digital satellite radio. “However, price is still a barrier for many consumers, particularly with new HD radios,” says In-Stat analyst Michelle Abraham. “Most consumers want to spend less than $200, and although satellite radio receivers are readily available for less than $100, HD radio receiver prices must decline before they are of interest to many consumers.”

CCR Update

Broadcast | January 19, 2005

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