CCR Update

Digital cable growth slides at RogersRogers Cable Inc. added about 28,000 net new digital cable set-top boxes in the fourth quarter ended Dec. 31, 2001. That figure is significantly lower than the 48,400 digital boxes added in the third quarter ended Sept. 30, but higher than the 15,200 digital boxes added in the second quarter. More details. Consumers want bundled services: Yankee Group reportAbout 39% of survey respondents indicated an interest in buying cable, Internet, and telephone services from a single provider, according to a Yankee Group report released Jan. 8. Although many consumers were motivated by price discounts, the primary reason expressed for bundled services was a desire for a single bill. The report also gives an overview of current bundled offerings available, and notes that a bundle combining all services is not yet available in Canada. The data on bundling was derived from the company’s third annual Canadian Technologically Advanced Family (CTAF) Survey, which is used to measure demand for a broad assortment of communications products and services. Cancom, CCSA extend agreement to digitalThe Canadian Cable Systems Alliance Inc. (CCSA) and Canadian Satellite Communications Inc. (Cancom) have extended their commercial relationship to include the digital provision of specialty services and pay-per-view signals. "This volume based agreement will benefit all CCSA member companies and will assist them to offer affordable digital technology to their customers," said Alyson Townsend, CCSA president and CEO. "The master agreement will apply to the full HITS solution as well as HITS QT, an alternative digital solution for independent distributors." Further details of the agreement were unavailable. Astral, Telemedia challenge Competition Bureau Montreal-based Astral Media Inc. and Telemedia Corp. have filed motions with the Federal Court of Canada contesting the Competition Bureau’s challenge of Astral’s $255-million takeover of 17 Telemedia radio stations in eastern Canada. The Competition Bureau says the proposed transaction will likely prevent or lessen competition substantially in six markets. "We are taking action to maintain competition between two major radio networks in Quebec for the benefit of advertisers and consumers," says Gaston Jorré, senior deputy competition commissioner. Astral argues that the CRTC should be the only body to rule on broadcast matters. More details: Astral Media press release Competition Bureau press release CRTC approves Category 2 Short TV channelThe broadcast regulator has granted a Category 2 digital specialty TV licence to Glassbox Television Inc. for a national English-language channel devoted to films and videos, ranging in length from one to 40 minutes. More details. Restructuring of TVA Group gets regulatory okayThe CRTC has approved an intra-corporate reorganization at TVA Group that will result in effective control of TVA falling to Groupe Vidéotron – Decision 2001-760. "The goal of the reorganization is to simplify the ownership structure of Groupe TVA Inc. broadcasting undertakings without changing its ultimate control or level of participation in the affected undertakings," the commission notes in its Dec. 17, 2001 letter decision. CCTA praises CRTC’s proposed community-based media frameworkThe Canadian Cable Television Association (CCTA) is happy with at least two items in the CRTC’s proposed policy framework for community-based media. "First, that existing community channels will not be required to have a licence and that opening up access to other community-based media services will not come at the expense of established channels," says CCTA president and CEO Janet Yale. "Second, the commission has granted our smaller systems financial flexibility to put more money into their local programming. This is recognition of the important role these channels play in their communities." The CRTC released the policy framework, which proposes creating another class of licence called community-based television programming undertaking, on Dec. 21, 2001 – Public Notice 2001-129. Comments on the framework are due Feb. 22. More details. CRTC releases small cable systems digital migration policyThe CRTC has ruled that the consent of programmers is needed before their analog channels can be distributed on a digital basis by small cable systems – Public Notice 2001-130. But the CRTC added that consent would expected to be given for digital distribution of services that would normally have been entitled to analog distribution, but which have not been carried due to lack of capacity. Consent is also expected in the case of duplication or migration of a service where the cable system undertakes that the programmer will be substantially "no worse off," in terms of wholesale fees received, the CRTC said. CRTC rejects appeal by Star Ray TV ownerThe CRTC has rejected an appeal by Jan Pachul, operator of the Toronto-based pirate low-power television station Star Ray TV, to overturn its decision to issue a mandatory order to cease and desist carrying on a broadcasting undertaking – Decision 2001-778. In its Dec. 20 letter decision to Pachul, the commission noted that, "You argue that your type of broadcasting is not within federal jurisdiction. We would note that this is, in effect, an admission that you are broadcasting." INTERNATIONAL NEWS VeriSign buys .tv domainVeriSign Inc. paid US$45 million to be the sole registry for .tv web addresses, the California-based Internet addressing giant announced Jan. 7. VeriSign, which already owns the contract to operate .com, .org, and .net addresses, adds .tv to the roster of Internet domains it manages with the purchase of .tv Corporation International, which holds the exclusive worldwide registry for web addresses ending in .tv. More details. Super set-top box unveiled by WebTV makerWebTV maker Steve Perlman unveiled Jan. 7 the Moxi Media Center, which integrates digital audio, video, television, and computer data into a single set-top device. The digital media server, with an 80-gigabyte hard drive, also supports interactive TV, instant messaging, and e-mail. Perlman’s Moxi Digital Inc., formerly known as Rearden Steel Technologies, plans to have the set-top boxes on the commercial market by 2003. Moxi also announced a partnership with satellite TV provider EchoStar Communications Corp. to roll out the new device. More details: Moxi Digital and EchoStar collaborate on advanced software platform for satellite TV set-top boxes Moxi Digital and Macromedia partner to embed Macromedia flash player in next generation home entertainment platform RealNetworks and Moxi Digital announce alliance to bring next-generation of home entertainment to cable and satellite customers NDS Group plc partners with Moxi Digital on next generation home entertainment platform Rearden Steel Technologies becomes Moxi Digital and unveils its plans for transforming the home entertainment experience Digital TV subscribers in U.S. top 17.3 million but growth slowing: The Carmel GroupAccording to The Carmel Group, the number of digital TV subscribers in the U.S. has grown to 17.3 million. Satellite TV operator DirecTV added 150,000 in November for a total of 10.6 million, and a 61.3% share of the U.S. market. EchoStar gained 140,000 that same month to reach 6.7 million, and a 38.7% share of the market. However, DirecTV added 400,000 more new subscribers in November 2000 than it did in November 2001. EchoStar added 230,000 more subscribers in November 2000 than in November 2001. The slowdown in subscriber growth is attributed to a souring economy, fierce competition, problems with piracy, and management troubles. More details. DirecTV to update its programming packages next monthU.S. satellite TV operator DirecTV will introduce new programming packages that will shift premium sports and movie channels away from bundles including basic cable networks and into tiers of one to five pay channels, according to Multichannel News. Customers will be able to switch to the new packaging, dubbed "Project Simple," online. More details. Satellite radio growing in U.S.XM Satellite Radio, and not digital television, was the hot consumer electronics gadget at Christmas, according to an article in the New York Times. Since it started in mid-November, 25,000 to 30,000 subscriptions to XM Satellite Radio and an equal number of specialized radios required to receive the service were sold, the article states. A second U.S. satellite radio company, Sirius Satellite Radio, plans to begin service in February.

CCR Update

Broadcast | January 9, 2002

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