CCR Update

PrideVision launches April 12, but Shaw, Star Choice, ExpressVu refuse to carry itPrideVision’s rebranded Category 1 gay, lesbian, bisexual and transgender (GLBT) channel, OUTtv, launched April 12, but Shaw Communications, Star Choice and Bell ExpressVu are refusing to add the must-carry channel to their lineups. PrideVision spokesperson Daniel Paquette says that the company has filed a complaint with the CRTC over the refusal by Shaw Cablesystems and the two direct-to-home (DTH) satellite TV distributors to distribute the channel. OUTtv was originally scheduled to be launched on April 7, but the company said technical problems from digital cable providers caused a postponement until yesterday. Rogers Cable, Cogeco, Vidéotron, and some independent cablecos are carrying OUTtv.“Shaw wants to continue the practice of distributing Canada’s Category 1 GLBT service as a standalone service as it has for the last three years, for $7 to $9 which is up to 12 times higher in price than any other category 1 digital channel,” notes OUTtv president Bill Craig. “…As an independent and gay oriented service, we have been treated in a highly discriminatory manner. It’s very frustrating that after eight months since we acquired our Category 1 licence (after buying it from the Headline Media), these two distributors behemoths (ExpressVu and Shaw, which owns Shaw Cablesystems and Star Choice) continue to constrain our little operation and may indeed snuff us out with their tactics and practices. Together Shaw and Bell control close to 70% of Canada’s digital subscribers.” In acquiring the channel, Craig indicated that revised carriage terms were fundamental to its survival (CCR, March 25/04).Revenues for Canadian private radio up 2.5% to $1.2 billion in 2004: CRTCPrivate radio earnings before interest and taxes (EBIT) decreased by 1.3% to $224.1 million on revenues of $1.2 billion, which were up 2.5% in 2004 from the previous year, according to CRTC figures released April 12. The financial statistics reveal that the French-language radio market was the hardest hit, while the English-language radio market along with the ethnic and Aboriginal stations experienced some growth. The English-language radio market saw EBIT increase 0.6% on revenues that grew 4% in 2004. EBIT for ethnic and Aboriginal stations jumped 67.2% on revenues that were up 5.7%. In contrast, the French-language radio market, according to the CRTC statistics, saw its revenues fall 4.6% and EBIT decrease by 19.3%. In the English-language radio market, EBIT for the AM stations grew 76.8% to $4.9 million from $2.8 million after years of decline, while the FM stations saw EBIT decline a slight 0.5% to $192.4 million. In the ethnic and Aboriginal radio field, EBIT for the AM stations increased 73.1% to $3.2 million, and for the FM stations rose 7.3% to 10.5 million. For the French-language market, EBIT for the AM stations fell from a loss of 2.6 million to a loss of $4.7 million and for the FM stations decreased 10.8% to $27.8 million in 2004. There were 544 Canadian radio stations (164 English-language AM stations, 274 FM English-language radio stations, 15 AM French-language stations, 77 FM French-language stations, eight AM ethnic or Aboriginal stations and six FM ethnic or Aboriginal stations) in Canada in 2004. Industry Canada appoints members of the telecom review panelIndustry Canada on April 11 announced the appointment of Gerri Sinclair, Hank Intven and André Tremblay as members of the Telecommunications Policy Review Panel announced in the federal budget (CCR, Feb. 25/05). Sinclair has extensive knowledge of Internet technology; Intven has experience in legal and regulatory issues in telecommunications in Canada and 20 other countries; and, Tremblay spent more than 20 years in management positions at telecommunications companies. The panel has been asked to deliver a final report by the end of 2005. As it did when the review panel was first announced, the Canadian Cable Telecommunications Association (CCTA) welcomed the review when the appointments were announced. “While the current telecommunications framework has opened up many markets to competition, cable companies continue to face broadcasting restrictions that limit the potential of convergence. Meanwhile, residential telephone service remains a monopoly,” stated CCTA president Michael Hennessy in a news release. “Even with 14 million cell phones and digital telephones entering the market, 97% of households still subscribe to the monopoly telephone service. In such circumstances, consumer interests cannot be assured solely through market forces.”The review panel was also mentioned with regard to foreign ownership in Canadian Heritage minister Liza Frulla’s response to the Lincoln report on broadcasting (CCR, April 8/05). Frulla’s response, contained in the document Reinforcing Our Cultural Sovereignty – Setting Priorities for the Canadian Broadcasting System, recommends that existing foreign ownership limits for broadcasting and telecommunications be maintained at current levels. But the document notes, “For greater clarity, the government wishes to indicate that it is not prepared to modify foreign ownership limits on broadcasting or content more generally. That being said, the government has recently announced its intention to appoint a panel of eminent Canadians to review Canada’s telecommunications policy and regulatory framework. This panel will be asked to make recommendations on how to move Canada to a modern telecommunications framework in a manner that benefits Canadian industry and consumers. In the context of this work, the panel may be helpful in shedding new light on this very important issue.”CRTC grants CTV Newsnet permission to break from 15-minute news wheelThe CRTC on April 7 granted CTV Newsnet a licence amendment that will allow it to break away from the 15-minute news wheel that it was required previously to follow. The CRTC decision also allows the channel to broadcast a limited amount of analysis and interpretation of news (Broadcasting Decision 2005-131). CTV Newsnet made the application to amend its licence on August 25, 2004. “We welcome today’s news from the commission. This decision will mean more news choices for Canadian viewers,” said CTV News president Robert Hurst in a media release. “The CRTC has done a superb job in balancing competing interests in protecting Canadian news voices against the influx of American news channels.” CTV Newsnet was forced to follow the 15-minute news wheel due to a controversial CRTC decision in 2001, following a complaint by the Canadian Broadcasting Corp. that feared competition for its Newsworld channel (CCR, Dec. 6/01).Roger Cable puts Fox News, Bloomberg Television on free previewRogers Cable announced April 12 that it has added the U.S. channels Fox News and Bloomberg Television to its digital channel lineup in Newfoundland. Fox News is on a 60-day free preview, and Bloomberg Television will be free until October 26.CRTC puts out call for radio licence applications for Grande Prairie ABThe CRTC issued a call for applications for a radio broadcasting licence to serve Grande Prairie AB (Broadcasting Public Notice 2005-30) on April 12. The commission put out the call after receiving one such application.CTV issues Idol challenge to Toronto mediaCTV is challenging the Toronto media to see if they have what it takes to “audition” for its reality TV series Canadian Idol. The challenge was issued two weeks before auditions for the general public for the show begin in Ontario’s capital. The winner of the “Toronto Media Idol Challenge” will be announced on April 18, with the winner receiving $5,000 to go to a charity of his/her choice. The event will be taped for broadcast as part of season three of the show.World Congress of History Producers sets datesOrganizers of the World Congress of History Producers announced April 12 that the event will take place December 1-4 in Rome. For more details on the event, go to www.history2005.com.INTERNATIONALAsian digital TV market to double by 2008: In-StatThe Asian digital TV market will more than double to 10.4 million shipments in 2004 to 28.8 million in 2008, according to research firm In-Stat. China, Japan and South Korea are the biggest Asian markets for digital TVs, notes the report, For Your Viewing Pleasure: Digital TV Gets Top Billing in Asia. “Japan has been leading the TV market for a long time, creating international brands such as Sony, Sharp, Panasonic, Sanyo, Toshiba and Hitachi,” says Rudy Teng, managing director of In-Stat’s Asia Pacific research. “However, with the recent active promotion of high-end brands LG and Samsung from South Korea, and brands like TCL Chang Hong, Konka, and Skyworth from China occupying the middle and lower-range market, together with new entrants BenQ, Teco and Sampo from Taiwan, the digital TV market is flourishing in several Asian countries.”Digital cable TV subs will outnumber satellite before end of this year: reportThe number of digital cable subscribers will outnumber the number of people subscribing to all-digital satellite TV by the end of 2005, predicts the Convergence Consulting Group Ltd. The forecast was made in its report, The Battle for the North American Couch Potato: Bundling, Internet, TV, Telephone, which was released this month. The report notes that, unlike in the United States, cable and satellite TV prices in Canada are roughly on par, so it is no surprise that cable gained basic TV subscribers in 2004 and that digital cable TV additions also accelerated. Cable-only products, such as video-on-demand (VOD) and subscription video-on-demand (SVOD) are also helping, the report notes. The Convergence Consulting Group report also estimates that Canada’s cablecos will represent 11% of the residential telephone market by the end of 2007.

CCR Update

News | 04/13/2005 4:00 am EDT

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