CCR Update

MTV terminates agreement with Craig, CHUM to rebrand MTV Canada and MTV2Viacom International’s MTV Networks International has terminated the agreement it had with Craig Media for the Category 1 MTV Canada channel and the Category 2 music video channel MTV2, so new owner CHUM Ltd. says it will rebrand them effective June 30. The channels’ new names and program titles will be revealed shortly. CHUM acquired the two channels when it purchased Craig Media on December 1, 2004. Under the terms of the agreement between Craig and MTV Networks, the deal could be terminated upon a change in control of the channels. CHUM will be required to pay MTV Networks the licence fees remaining under the terms of the agreement, which amount to about $10 million. MTV Networks no longer has the option to acquire an equity interest in the two channels.Alliance Atlantis boasts that its specialty TV channels are tops in audience growthAlliance Atlantis Communications Inc. stated May 10 that its 13 specialty TV networks led the television industry in audience growth in the first three months of 2005 – gaining 17% among adults 25-54. The figure is almost three times higher than the specialty TV industry average of 6%. Specifically, HGTV was up 17%, Food Network Canada rose 17%, Life Network grew 9%, Showcase gained 8% and History Television was up 5%. The broadcaster’s digital specialty TV channels saw audiences increase 53% with adults 25-54 in winter 2005 compared to the same period in 2004. All of the diginets grew 44%. “With the overwhelming growth that we have experienced with each of our channels we are outpacing the specialty industry overall and further validating the programming and marketing strategies for all of our channels,” said Alliance Atlantis executive VP of programming and operations Norm Bolen in a May 10 media release. Cablecos want rules mandating carriage of local radio stations eliminatedThe Canadian Cable Telecommunications Association (CCTA) is asking the CRTC to eliminate the requirement that Class 1 and Class 2 cablecos carry local radio programming services. The requirement spelled out in section 22 of the Broadcasting Distribution Regulations states that large cablecos must carry all local radio stations, at least one French and English-language CBC radio station, and a provincial educational radio programming service, if applicable. The CCTA tells the CRTC that only 4% of cable subscribers make use of the cable analog audio channels so removing the must-carry requirement would have little effect on the market. The association notes in its application that removing the requirement would give the cable industry regulatory symmetry with direct-to-home satellite TV distributors, which don’t have the regulation, free up capacity for more high-definition (HD) and digital TV channels, do away with interference problems and help out with royalty payments.In some systems, notes the CCTA, capacity freed up by the elimination of the rule would enable the launch of 30 additional standard definition digital TV channels and six addition HD TV services. “Cable frequencies that were once clear have become restricted due to the use of the same frequency by newer over-the-air radio stations or have been impaired due to the adjacency of these signals,” reads the CCTA’s submission. Moreover, the CCTA points out that accessing a cable operator’s analog audio service is complex for consumers since they have to install a separate cable outlet or splitter to create a separate feed for the subscriber’s radio tuner or stereo. The CCTA brief also states that cablecos “face disproportionate copyright obligations by virtue of the operation of the commission’s must carry requirement.” It notes that the Broadcasting Act and the Copyright Act have different definitions of a “local” or “distant” signal. Because what is considered a local signal under the Broadcasting Act may be considered a distant signal under the Copyright Act, cablecos can be required to pay copyright royalties because the carriage of distant signals under the latter act is subject to a compulsory licence requiring the payment. The CCTA says that if the rule is eliminated, cablecos will continue to offer a variety of local and distant audio programming services, given that their competitors currently offer a comprehensive suite of audio programming services. The CCTA submission says that Bell ExpressVu distributes 23 radio stations from across Canada, and that Star Choice offers 71 radio stations. The CCTA says that the cablecos would offer the radio stations on digital, which would allow their customers to receive “robust and reliable high-quality audio programming services irrespective of their geographic location or the existence of physical obstructions blocking the over-the-air frequency.”CRTC denies MTS complaint over Shaw’s distribution of discretionary services in “digital basic” packageThe CRTC has turned aside a complaint by MTS Allstream Inc. that alleged that Shaw Cablesystems were offering Canadian pay TV service The Family Channel and U.S. superstations as part of their digital basic TV package in contravention of the Broadcasting Act (Broadcasting Decision 2005-188). While it disallowed MTS’ complaint and request for a mandatory order to stop Shaw from distributing the channels as part of a “digital basic” package, the CRTC noted that current rules were ambiguous. As a result, the regulator issued a call for comments on proposed amendments to the distribution and linkage rules in response to issues raised in the decision. MTS had argued that Shaw was in breach of paragraph 12 of the commission’s distribution and linkage rules in packaging The Family Channel and U.S superstations KTLA Los Angeles, WBN-TV Chicago, MPIX New York City and WSBK-TV Boston on “digital basic.” That section of the rule requires that where a licensee distributes any of the services in question, “the licensee is required to distribute the service exclusively as a discretionary service.” MTS argued that since all of Shaw’s digital TV subscribers received the channels, they were not being offered on a discretionary basis. The CRTC ruled that the interpretation of the word “discretionary” was at issue. The commission ruled that Shaw was offering the channels on a discretionary basis since it had an analog basic that all subscribers received, and since customers had to buy or rent a digital set-top box for the “digital basic” package, the services were distinguished from the analog basic package. The CRTC also noted that the intended purpose of section 12 was to protect basic TV service subscribers from incurring increased costs due to the inclusion of additional channels in the basic package – something that was not happening in this instance.Subscription radio hopefuls inking dealsEven before the CRTC has decided to which company or companies it will grant subscription radio licences, the licence applicants have been cementing deals. Canadian Satellite Radio (CSR) has signed a memorandum of understanding (MOU) with specialty TV channel Asian Television Network (ATN) to produce a Mosaic channel for its proposed satellite radio service. “We welcome ATN to satellite radio’s outstanding team of production partners and will work together with ATN to broadcast programming for various South Asian languages, including Punjabi, Hindi, Urdu and Tamil,” said Stephen Tapp, CSR president and COO. CSR has also announced that its partner in its proposed subscription radio service, XM Satellite Radio Inc. will create a weekly program that will showcase Quebec and French-Canadian musical talent. As well, CHUM Ltd, which has proposed a terrestrial-based subscription radio service, has signed an MOU with jazz station JAZZ.FM91 to supply hosts, content and programming expertise and promotion for its venture. As part of the agreement, JAZZ.FM91 will contribute three to six channels of jazz format radio services to CHUM Subscription Radio Canada (CSRC). A third applicant for a subscription radio service involves U.S. player Sirius Satellite Radio in conjunction with the Canadian Broadcasting Corp. and Standard Radio. Sirius in the United States has announced an agreement with singer-songwriter Jimmy Buffet to launch a service called Radio Margaritaville. Radio Margaritaville started in 1998 as an Internet-only channel that is broadcast from a restaurant in Florida. It is proposed that the Canadian satellite radio service would pretty much mirror that one offered in the United States with a few Canadian channels added. Sirius has also signed on Howard Stern to begin a show beginning next year and Martha Stewart.Season three of Canadian Idol premieres May 30 on CTVSeason three of CTV Inc.’s Canadian Idol will premiere on May 30 with a one-hour audition tour highlights special at 8 p.m. ET. The show will be aired on three consecutive nights: May 30 to June 1. The Western auditions (in Vancouver, Calgary, Saskatoon, Whitehorse and Winnipeg) will be broadcast on May 30, Eastern auditions (in St. John’s, Charlottetown, Sydney, Moncton and Montreal) on May 31 and the final auditions (in London, Sudbury and Toronto) on June 1. The show is produced in association with CTV by Insight Productions, along with Atlantic Canada-based Rink Rat Productions and Alberta-based Aquila Productions.Diversity conferences running this weekAstral Media, TQS, and TVA in conjunction with the Canadian Association of Broadcasters (CAB) are hosting a one-day conference on the reflection and portrayal of cultural diversity in Canadian French-language TV on May 12 in Montreal. For more information on the conference, visit http://www.cab-acr.ca/telediversite/default.shtm. As well, Women in Television – Toronto (WIFT-T) is offering an “Introduction to Diversity Management for Broadcasters” course on May 18 in Toronto. At the seminar, Cynthia Reyes, cofounder of Innoversity, will present an interactive seminar on creating and managing a culturally diverse broadcast team. The seminar is the first program in the 2005 Global Television executive development series, which are being presented by Global Television Network in partnership with Heenan Blaikie LLP. For information, call 416-322-3430, ext. 21.Shaw family buys additional shares in CorusThe Shaw family has upped its stake in Corus Entertainment with the purchase of 250,000 Class B non-voting shares of the company during the week of April 29. The Shaws also stated that they would continue to purchase additional shares in the Canadian-based media and entertainment company.INTERNATIONALEarly adopters lukewarm on music- and TV-centric cellular phone devicesFewer than 9% of respondents in an early-adopter consumer survey were very or extremely interested in buying a cell phone capable of playing MP3 or other music files, and less than 11% were very or extremely interested in broadcast TV functionality, according to research firm In-Stat. “Cell phone manufacturers, carriers and content providers face serious challenges in convincing these end-users of the benefits of music- or video-centric phones,” says In-Stat analyst Neil Strother. The report, Warning: Early-Adopters Have Lukewarm Response to Multimedia Handsets, also noted that some mobile programming, such as news and weather, was popular. It also noted that payment schemes had to more flexible.VCom opens Asia-Pacific regional sales headquartersVCom Inc., the company that acquired Image Wireless and also Copper Valley Cablevision in British Columbia last year, has opened an Asia-Pacific regional sales headquarters. The headquarters is located in Sydney, Australia and is designed to serve the entire Asia-Pacific region, including the Australian market. Victoria BC-based VCom, formerly WaveCom Electronics Inc., stated it would provide data over cable, broadband wireless and video-on-demand applications in the region.

CCR Update

News | 05/11/2005 4:00 am EDT

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