Bitove’s HDTV Networks files for OTA licence

Quintessential Canadian entrepreneur John Bitove has created another stir with his second foray into broadcasting. This time, he’s proposing to do what many broadcasters say is prohibitively expensive: set up a network of terrestrial digital transmitters and deliver over-the-air high-definition television to eight major markets. HDTV Networks Inc. plans to roll out a free over-the-air HDTV network covering Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Ottawa, Montreal and Halifax, likely by sometime in 2009. "The transmitters will be essentially built out in the same fashion as any other conventional network, the only difference being it’ll be entirely digital and HD out of the gate as opposed to converting from analog," says executive VP Stewart Lyons. The company filed its application with the CRTC on December 15 last year. Its greenfield approach to building out a network could give HDTV Networks a budgetary advantage over other conventional broadcasters, which have been lamenting the cost of converting their current analog facilities to digital transmission standards. Indeed, many conventional TV programmers pressed the CRTC at the recent conventional television policy hearings in November last year for concessions on timelines, relaxed financial requirements, additional sources of funding, and more (CCR, Dec. 6/06). "In the arguments that presented at the conventional hearings, it seemed that there’s some costs involved with converting an existing analog bricks-and-mortar building all the work to go through to pull cables…and master control to convert analog to digital," Lyons says. Other developments in the conventional broadcasting industry look promising for the fledgling HD network. Lyons notes that the pending acquisition of CHUM Ltd. by CTV globemedia could free up some premium programming for acquisition by other broadcasters, including HDTV Networks. "That’s exactly something that we’re hoping is the case," he says, adding the new service will "have some great opportunities for independent productions, and for unheard Canadian producers to have some of their wares shown." "Just like a regular network, we’re looking at a mixed set of programming," Lyons says. "The programming thing is difficult, just because we don’t know exactly when our launch date will be. We’re assuming ‘08 or ‘09, something like that, so what does the programming world look like in those years? We don’t entirely know." He adds that for the purposes of filing its licence application with the CRTC, HDTV Networks proposed a sample programming schedule that includes "a mix of everything from movies to sports and everything else." Of course, HDTV Networks will likely have to make its signal available for carriage by BDUs as part of its conditions of licence if its bid is successful. "If we’re licensed as an over-the-air broadcaster we’re probably a must-carry anyways, but we’ve always anticipated that there’ll be an option for BDUs and DTH guys to carry us," Lyons says. And while other broadcasters have issued a call for additional funding to be made available to bankroll the conversion to digital broadcasting and the acquisition of HD content, Lyons says HDTV Networks anticipates the advertising sold on its stations will cover the construction and maintenance costs. "We applied on the basis of the current rules, and we’re happy to abide by those," he says. HDTV Networks should also satisfy two key criteria the CRTC has increasingly emphasized in its policy frameworks and licensing decisions: enhanced competition, and the myriad social policy objectives around migrating to digital broadcasting. "A lot of Canadians buy HD television sets, they want HD packages, and what they pick up is a lot of American programming," Lyons says. "The conventional broadcasters have expressed their reluctance to do a lot of HD conversion, so that leaves us in a position to provide something that Canadians want and deserve to have." Finally, with makers of HDTV sets increasingly building in ATSC tuners to receive high-definition over-the-air signals – negating a stand-alone box – the potential audience for high-definition television delivered by non-BDU means could swell dramatically. Indeed, the hybrid approach advanced by CBC and CanWest MediaWorks Inc. at the conventional television hearings takes into account the demand for over-the-air HD programming in roughly the same number of metropolitan markets as HDTV Networks plans to operate in. "It’s exciting that consumer electronics companies are embracing over-the-air HD….That’s exactly what we’re all about," Lyons says. Lyons also says the new firm will operate separately from Bitove’s other broadcast venture, satellite radio operator Canadian Satellite Radio Holdings Inc., which is the Canadian partner of XM Satellite Radio Inc. There will, however, be some executive crossover, with both Lyons and Bitove holding their respective posts at both companies.

Bitove’s HDTV Networks files for OTA licence

News | 01/16/2007 5:00 am EST

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