CNM Short Takes

CBC Radio 3 sees overhaulCBC Radio will undertake a comprehensive restructuring of CBC Radio 3 to give it an increased focus on radio programming while maintaining a history of innovation on the web. As part of the re-alignment, according to a media release, Radio 3’s web strategy will change. Its NewMusicCanada.com, RootsMusicCanada.com and JustConcerts.com will be merged and re-launched as part the new online home for Radio 3. CBCRadio3.com will be discontinued in its magazine format after publication of its March 4 issue. The new single web site is being touted as a comprehensive site for Canadian indie music, with over 5,500 artists, 27,000 tracks of music, concerts, streaming play lists and other features. Radio 3 expanded from its rock format in late 2001 after finding its NewMusicCanada.com channel was unexpectedly successful. The new focus on radio programming comes after proponents of a third CBC network were never able to find funding internally, and made the decision to launch on the web (CNM, July 12/00) Portable music services will not have a big impact this year, according to Parks Associates’ new report Digital Music: Analysis and Forecasts. Respondents in the recent Parks Associates survey Global Digital Living strongly favoured the single-track purchase model over a subscription when presented with both options. Roughly 40% said they were likely to buy songs one at a time, but only 8% were likely to use a subscription service. "The market has a long way to go in promoting subscription models," said John Barrett, director of research at Parks Associates. "There is hope Microsoft’s Janus technology will boost the digital music market by enabling portability and greater integration of hardware and content. However, our data show the industry needs to translate these solutions into something more tangible and desirable to consumers. At present, consumers either do not fully grasp the value of a subscription ‘all-you-can-eat’ service, or they simply don’t want it." - February 10 media release CBC loses Olympic rights to CTV/Rogers partnershipA partnership of Bell Globemedia and Rogers Media has been awarded the broadcast rights to the 2010 and 2012 Olympic Games by the International Olympic Committee (IOC), winning out over the public broadcaster. The partnership paid US$153 million for the rights, including US$90 million for the 2010 Olympics in Vancouver, and US$63 million for the 2012 Summer Games. The CBC paid US$28 million for the 2006 Turin Games and US$45 million for the 2008 Beijing Games. Bell Globemedia and Rogers say they will broadcast coverage of the games coast-to-coast, including on over-the-air TV stations and radio with CTV (English), TQS (French), and Rogers Radio and its ethnic channels OMNI 1 and 2, and on specialty TV channels TSN, Rogers Sportsnet, RDS, OLN and mobile platforms with Bell Mobility and Rogers Wireless. "With this partnership, the celebration and coverage of the Olympic Games will be available to more Canadians in more ways than ever before," said Tony Viner, president and CEO of Rogers Media. CBC/Radio-Canada brass expressed disappointment with the decision, stating it would likely have won the bid if competence and quality of coverage had been the main factors in the decision. "However, as a Crown Corporation, CBC/Radio Canada has an obligation to taxpayers to be fiscally responsible, and this requirement firmly shaped the financial part of our bid," the CBC stated in a February 7 media release. "In preparing our bid to the IOC, we knew, and we know still, that competing to win the rights to broadcast the Olympic games at any cost is simply not a reasonable proposition for us. We could not mortgage the programming budgets of other sectors of our schedule to overpay for the Olympics." Six sites shut down for hateSix web sites that were in possible violation of Canada’s hate laws have been shut down based on an alert from the Friends of Simon Wiesenthal Centre. The sites are: shareeah.org; islaam-online.net; Jewstoislam.com; Worldofislam.com; newsuncovered.org; and, al-thabaat.com. The sites were operating from a server in Kelowna, BC. Media chair to be featured on MTV CanadaThe RX(2) media chair distributed by Empower Technologies will be featured on MTV Canada’s broadcast of 969. The US$1,599 chair features a complete Xbox 5.1 surround sound system, manufactured under licence from Spherex. The technology includes a six-channel, 300W RMS direct digital amplification from Apogee Technology, Aureas digital signal processor from Texas Instruments that decodes Dolby Digital, PLII and DTS, and MaxxBass bass extension circuitry from Waves and a tactile transducer from ButtKicker for "sound you not only hear but also feel." Government gazettes changes to Copyright Act Industry Canada is sponsoring changes to the Copyright Act to take into account new procedures the CRTC has for regulating small cable systems. The amended Small Systems Regulations will maintain the status quo in applying a special copyright royalty rate payable by the small cable systems by taking into consideration the commission’s new regional licensing, and its exemption from licensing of small cablecos. The February 5 gazette notice changes the current term "licence area" to "service area" since many of the systems are no longer licensed. The definition is being changed to ensure that lower copyright royalty rates will continue to apply to small cable systems even though they are now except from licensing. When the CRTC exempted Class 3 cable systems from licensing back in 2001, they expressed concerns that they would no longer qualify for the reduced rates because the tariffs that they paid for programming under the Copyright Act were tied to small system licences. They expressed similar concerns when the CRTC announced it was considering issuing regional licences by company, rather than a licence for each cable system. The CRTC has also exempted Class 2 systems from licensing . InternetStudios moved to Big Apple, sees name changeInternetStudios Inc. has been renamed IS Media Inc. and moved to New York City as the company pursues a strategy as a multi-faceted media firm. It is currently in the process of acquiring Vancouver-based Airwaves Digital and Airwaves Sound. IS Media was formerly located in Santa Monica. Entrust adds security products for Microsoft WindowsEntrust Inc., which has significant R&D and sales operations in Ottawa, has announced a new authentication product for Microsoft Windows. the product protects user desktops with simple user names and passwords by adding a second layer of authentication that fits into the Windows environment. The product, Entrust IdentityGuard, is touted as a less expensive alternative to more costly proprietary hardware devices. Dalfen appears before Canadian Heritage committeeCRTC chair Charles Dalfen doubts that the committee or the government will propose any major changes to the commission’s mandate. He made the comments following his appearance earlier this month before the Standing Committee on Canadian Heritage. Dalfen appeared February 1 before the committee with CRTC vice-chair of broadcasting Andrée Wylie, Marc O’Sullivan, executive director of broadcasting, and other senior staff to provide an overview of the CRTC’s mandate and activities. Dalfen touched on the CRTC’s mandate and scope, its legislative mandate, its initiatives to boost homegrown TV drama, diversity, and non-Canadian third-language programming. He also noted that broadcast stakeholders have complained about the speed at which decisions are being made, and that the regulator was, therefore, "placing a special emphasis on finding ways to streamline our internal procedures in order to accelerate our decision-making." He added in his opening speech, "That effort has already begun to pay off; but more is still required, and we will continue to pick-up the pace." CHUM buys 100% of Learning and Skills Television AlbertaCHUM Ltd. has upped its ownership stake in Learning and Skills Television Alberta to 100% from 60% by buying the minority shares owned by Moses Znaimer, who held a 20% interest in the TV company; 1006228 Ontario Inc., a corporation controlled by Ronald Keast, and Peter Palframan, as well as Jay Switzer. The shares cost $32 million, $8 million of which will be paid in cash and the remaining in newly issued non-voting Class B shares in CHUM. Learning and Skills Television Alberta operates the following channels: Canadian Learning Television, ACCESS Television, CourtTV Canada and BookTelevision. The sale was completed on February 15 and announced on February 7. Hip Interactive sees lower sales in third quarter of fiscal 2005Hip Interactive Corp., Toronto, recorded a 20.3% decrease in sales to $142.5 million in Q3 2005 compared to Q3 2004, a result, it says, of continuing shortages of hardware and the associated decline in related software sales worldwide. The company incurred a net loss of $1.5 million or $0.02 per basic and diluted share, compared to net earnings of $6 million or $0.10 per basic share and $0.09 per diluted share last year. Sales in the distribution division, which includes video games, PC games and movies, fell from $158.4 million in Q3 2004 to $121.3 million in Q3 2005. To combat the slide, Hip has recently appointed new senior managers, and is taking steps to improve margins and reduce costs by consolidating several warehouses, expanding higher-margin product lines, improving processes and eliminating some duplicated functions, according to a media release. Prices fall on peripheralsStatistics Canada reports that prices for commercial computers fell 5.7% in November 2004 compared with a month earlier. Consumer computer prices fell by 5.4% during the month. In the case of peripherals, both monitor prices and printer prices fell in November, by 4.7% and 5% respectively. Anti-counterfeiting group recommends watch on CanadaThe International AntiCounterfeiting Coalition Inc. (IAC) has recommended that the U.S. Trade Representative list Canada as a "priority country" in its Special 301 report this year. The IAC recommends the step on the basis of what it characterizes as levels of copyright piracy more normally associated with Asian jurisdictions. The IAC writes: "Copyright industry members are now describing a landscape of copyright piracy that brings back images of Hong Kong and other Asian markets. Members whose companies produce entertainment software are now finding that pirate activity is not limited to flea markets, but has now expanded into shopping malls. Illegal duplication is now occurring in shopping malls with no need to conduct the activity in "underground" locations. Retailers are now displaying pirate products on shelves in shopping malls, which demonstrate the absence of any effort by Canadian authorities to take sustained enforcement actions to seize pirated goods..."

CNM Short Takes

Broadcast | February 17, 2005

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