CCR Update

TELUS likely to launch TV service in NovemberTELUS Communications Inc. plans to launch its TV service at the beginning of November, well-placed industry sources tell Canadian Communications Reports. A spokesperson for TELUS said the company at this time would not disclose the launch day for its TV service. Earlier this year, TELUS’ executive VP of government and regulatory affairs Janet Yale said that the telco’s mobile TV service, which was licensed in August 2003, would be operational by year-end (CCR, Feb. 14/04). TELUS’ unsettled labour dispute apparently contributed to the delay in the launch. Back in February, Yale said the delay was a matter of priorities and that enhancing the company’s DSL offerings was more important. CTV to rebrand talktv as MTV CanadaCTV Inc. announced September 28 that it has inked a deal with Viacom International’s MTV Networks that will see the Canadian broadcaster’s analog channel talktv rebranded as MTV Canada. Talktv is currently available to 4.4 million households. The deal, announced with no price tag attached, also gives CTV exclusive access to the MTV brand and library of programming for use in Canada across CTV’s conventional and specialty TV channels, as well as exclusive access to MTV’s array of digital media assets in Canada, including online, wireless, interactive and video-on-demand (VOD). The agreement also calls for CTV and MTV to create original Canadian programming for airplay in Canada and on MTV channels around the world as well as to develop new digital media content for Canadians. CTV already has the rights to MTV’s The Osbournes, Newlyweds, Nick and Jessica, Punk’d and Pimp My Ride, while CTV’s Degrassi: The Next Generation and Instant Star are broadcast on The N, a Viacom-owned cable TV channel. CTV confirmed in a media release that it would be fully compliant with its talktv licence condition that requires that 68% Canadian programming (71% in prime time). CTV also stated that it has applied to the CRTC for a new Category 2 music digital specialty TV channel. It marks the second foray of MTV into Canada; its initial stab was with Craig Media, which branded its Category 1 digital youth channel MTV Canada. But when Craig’s media assets were acquired by CHUM Ltd., the youth station was renamed Razer in July 2005, and CHUM paid MTV about $10 million to get out of the deal. The Category 2 MTV2 channel that CHUM acquired from Craig was renamed PunchMuch. CHUM has carried quite a bit of MTV programming on its MuchMusic specialty TV channel, but company officials say the analog music channel remains well-positioned. "CHUM has been expecting and planning for the re-launch of the MTV brand in Canada for some time. MuchMusic continues to enjoy a long and deep 21-year relationship with Canadians from coast to coast, with over 7 million cable and satellite subscribers, as well as an established variety of new media platforms," said CHUM president and CEO Jay Switzer, in response to the CTV-MTV announcement. Switzer hinted that CHUM could challenge CTV over whether the nature of talktv, as licensed, was changing. "We’ll be intrigued to see how talktv can be morphed into an MTV brand and still remain a talk channel as licensed. We will be actively encouraging the CRTC to enforce both the spirit and letter of all talktv’s conditions of licence. Based on the totality of today’s announcement, we will soon be seeking appropriate necessary regulatory flexibility for MuchMusic to competitively respond," he said. CHUM successfully challenged Craig when it rejigged its channels after inking the deal with MTV, which resulted in the CRTC imposing some conditions on Craig’s MTV Canada and MTV2 (CCR, Feb. 28/03). "While MTV’s return is unlikely to affect CHUM’s mature channels such as MuchMusic, we speculate that subscribers who were grandfathered into PunchMuch and Razer will now be more likely to migrate to a more appealing destination, talktv. Given BDU’s (broadcast distribution undertakings) bundling strategy, however, negative impact on CHUM is likely to be moderate," according to Desjardins Securities Research media analyst Carl Bayard. Losique calls for inquiry into New Montreal FilmFestSerge Losique, the founder and president of the longstanding Montreal World Film Festival (MWFF) is asking for a "neutral and independent inquiry" into the "humiliating failure" for the city of the New Montreal FilmFest, which was organized by Equipe Spectra. Montreal-based broadcaster Astral Media and Quebec cable giant Vidéotron ltée were sponsors of the new film event, which won about $2 million in Telefilm Canada, Quebec cultural ministry and other government funding away from Losique’s festival after a competitive process (CCR, Sept. 10/04). Despite having the government money pulled, Losique mounted his festival from August 26 to September 5 with private sponsorships. The eight-day New Montreal FilmFest ran from September 8 to September 25, but many of the theatres were empty. At the close of the festival, Equipe Spectra – headed by Alain Simard – issued a media release apologizing to directors. "The first festival as faced with a big problem: many of its films, in particular those of the beginning of the week, attracted few spectators," stated the release, titled An interim edition, a valuable learning experience. It also stated, "Our team put its heart and soul into this task (of organizing an inclusive, international film festival), toiling assiduously through late nights and weekends, and we would like to convey our gratitude to everyone who contributed to this effort…We understand the great anticipation of filmgoers and the press, and we share their impatience. Like them, we are disappointed that this edition did not measure up to expectations. It was certainly not up to the high standards set by Equipe Spectra, a cultural organization renowned worldwide for its expertise in the domain of festivals." The Christian Channel to launch October 1The Christian Channel, a national Category 2 diginet for Christian viewers, will launch on Saturday, October 1 at 6 a.m. ET on Rogers Digital Cable on channel 396, VisionTV announced September 30. The channel will offer ministry programming, news and current affairs, music, drama and movies targeted at Canada’s 22 million Christians. The channel is solely owned and operated by the VisionTV group of channels. More information on the channel is available at www.christianchannel.ca. High School Television Network gets new ownershipThe CRTC has approved an application that will see the assets of High School Television Network – one of the first digital channels to run into financial problems – to be acquired by a company yet to be incorporated (Broadcasting Decision 2005-473). The diginet devoted to the lifestyles of high school students was temporarily managed by SF Partners Inc., which filed the application, after going into receivership. The new corporation that would own the channel would have four shareholders: Aaron Goldman, with 65% voting interest, Janice Goldman and David Goldman (with 15% each), and Irwin Archinoff (5%). Goldman was previously involved in the operation of the channel as an investor and service provider through his ownership of Freedom Studio Inc. CSR, Sirius Canada, CHUM apply for satellite radio licence amendmentsCanadian Satellite Radio and Sirius have applied to the CRTC for amendments to their conditions of licence that would incorporate promises that they made as Cabinet deliberated on whether the initial licensing decisions should be reviewed (Broadcasting Public Notice 2005-94). The promises include that four of eight Canadian programming channels be in the French-language, that two of the French-language channels be music based, and that more Canadian channels be added within 36 months of launching if subscriber projections are met or there would be a 1% increase in their contributions to a talent fund (CCR, Sept. 9/05). In rejecting a series of appeals from cultural groups on the licensing of the two U.S.-based subscription satellite radio services, Canadian Heritage asked the CRTC to enshrine the additional concessions made by the services into their conditions of licence. CHUM has also filed a licence amendment that would allow it to broadcast less Canadian content, replacing a condition of licence that stated it would distribute 50 Canadian channels with one stipulating that it would link a non-Canadian audio channel with every Canadian channel it includes in its terrestrial-based subscription radio service. CHUM has proposed a number of other changes as well. Comments on the licence amendments are due November 4. CSR indicates that it plans to launch in December 2005. Meanwhile, Industry Canada has cleared a hurdled for the satellite radio operators by clarifying that it will allow the use of foreign-based satellites for the delivery of the satellite subscription radio services into Canada (CCR, Jan. 28/05; Jan. 14/05). "It is after careful review of the policy and taking into account the circumstances surrounding this case, that the government will modify its policy to allow the use of foreign specialized satellite facilities for the transmission of Canadian digital broadcasting satellite subscription radio services in Canada," reads a September 26 Industry Canada media release. "…We have confirmed that Canada does not have the spectrum resources, nor could it obtain appropriate spectrum for the operation of a stand-alone Canadian satellite radio broadcasting facility in less than five to eight years."

CCR Update

Broadcast | September 30, 2005

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