French-language European TV channels expected to drive digital cable in Quebec

Lagging digital penetration in Quebec is expected to get a shot in the arm with the launch of three new French-language European television channels this week. The move means foreign channels will get a head start for audience share on licensed Canadian French-language digital specialty channels, which have delayed launching until there is a larger base of digital TV subscribers. Digital growth in the province has been slower than in other parts of the country, some people say due to a lack of digital choices suitable to the French-language market. Representatives of EuroNews, Paris Première, and planete expressed few concerns about launching into a universe of just 180,000 digital cable subscribers at a media briefing in Montreal earlier this week. But the Canadian market is an extension of their established home base, unlike their Canadian counterparts, which are starting from scratch. Some French-language Canadian digital channels say there’s no business case to launch until there are at least 800,000 Quebecers who have digital TV service. The three European TV channels are available on Vidéotron ltée and Cogeco Cable Inc. systems. None of them have inked deals with satellite TV distributors Bell ExpressVu LP and Star Choice Communications Inc. But representatives from all three channels say negotiations are ongoing with the satellite TV operators. EuroNews also has CRTC permission to launch the English version of its channel, and would like to get national satellite carriage for it. The new French-language channels expect to drive up digital penetration by providing more choice to French-speaking people in the province. Currently, fewer than 35 of the approximately 140 TV channels offered in Quebec are French. The addition of these European-based channels marks the first time that Quebecers will get foreign French-language television channels. TV5, available on the analog dial, does contain programming from various French-speaking countries, but it does not carry as much European programming as these new channels are promising. The three new TV channels will be packaged with two digital audio channels – Radio France Internationale (FRI) and its sister station FRI Musique Monde (see story in this issue – and be priced at $4/month. The channels will be available on free preview until Sept. 19. "There is a saying in French that says even the giant begins very small," says Frédéric Vinzia, senior VP of multiThématiques, which operates the documentary channel planete. "We are confident that the digital market will expand within a few years. We are ready to be patient." Stephane Quéré, COO of Paris Première, a channel focusing on the arts and cultural scene of France, agrees. "I hope that the fact that there are more channels in French will help develop the digital offer," he tells CCR. "Much of the new digital channels are English channels, so I hope these (French-language) channels will help boost digital penetration in Quebec…All I can say is that I hope this introduction will enable other French-speaking channels to come and make the digital offering larger." Jean-Paul Galarneau, general manager of communications at Vidéotron, anticipates that the new channels should help push digital penetration in Quebec to a combined 220,000 subscribers for Vidéotron and Cogeco by the end of the year. He also predicts that the cablecos will have half a million digital subscribers in three years. Vidéotron currently has 140,000 digital subscribers and Cogeco has 40,000 in Quebec, according to Galarneau. He anticipates that the channels will result in the addition of 10,000 digital subscribers in Quebec City alone over the next several months. There are currently about 540,000 total digital TV subscribers, including satellite subscribers, in Quebec, according to Decima Publishing research. Galarneau disagrees with the 800,000-subscriber figure cited by Canadian French-language digital licensees needed to launch, and figures that they should be able to survive at the 500,000 digital subscriber level. The European channels see their entry into the Quebec market as the first step in further expansion. Quéré notes that the Paris Première signal is provided to Vidéotron and Cogeco via a satellite that also covers the rest of North America and South America. "We’re discussing with Latin American operators and operators in the United States. We’re trying to get the signal on both continents," he says. "Canada is a major opportunity and a major step, but it is not the last step." Mark Adams, editorial director of EuroNews, also sees the June 19 launch as "getting a foot in the market." "The Canadian market is important," he tells CCR. "I’d be lying to you though if I said it was as important as the Russian market, where we are already in 10 million homes. Obviously, we have modest expectations (in Canada). But I think launching together with the other French-language European channels will give us more visibility. When you start a business, you start small." During the CRTC process to authorize new foreign channels for distribution in Canada last year, there were some concerns about programming broadcast by these European channels that is currently aired by Canadian analog specialty services. When the CRTC approved 19 foreign services for distribution in Canada last July, Pierre Roy, president and CEO of Les Chaînes Télé Astral Inc., warned that existing French-Canadian analog channels might find it harder to acquire programming. Astral’s Historia airs some of the documentaries that are broadcast on planete. The regulator attempted to deal with those concerns by ruling that foreign services cannot hold or obtain preferential or exclusive programming rights in the Canadian market (CCR, Aug. 2/01). "Exclusivity on all documentary films doesn’t mean anything to us. We’re ready to let Canadian broadcasters be first. It doesn’t bother us," Vinzia tells CCR. As well, Radio-Canada’s analog news service Le Réseau de l’information (RDI) carries a daily 15-minute highlight of news from EuroNews, an arrangement both parties anticipate continuing. "We didn’t oppose EuroNews’ entry into Canada, and we plan to continue the daily EuroNews roundup," says Gilles Desjardins, director of business development at RDI. EuroNews, which covers world events from a European perspective in seven languages, already reaches 124 million households in Europe, the Middle East, Africa, Asia, and North and South America. Paris Première has more than 4.6 million subscribers in France. Planete is the first French-language channel dedicated exclusively to documentaries.

French-language European TV channels expected to drive digital cable in Quebec

Broadcast | June 21, 2002

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us