Category 2 channels could prove to be the more popular draw on digital TV

Some of the Category 2 channels could end up being more successful than their Category 1 cousins in the upcoming digital launch, according to a panel of industry experts at the Canadian Film and Television Summit, held in Toronto last week. Some Category 2s have what many consider to be a popular niche, such as sex or hockey. A growing number in industry believe digital channels like these will outsell the Category 1s, assuming they get carriage capacity on cable and satellite. Distributors have to carry the Category 1s, but there’s no guarantee people will subscribe. A national survey of 2,010 Canadians commissioned by Decima Publishing shows that only 22 per cent of respondents would consider buying any of the new digital channels launching this September. The most popular channels among respondents are those focusing on biographies, documentaries, new technologies, health, mystery and travel. At the Canadian Institute-sponsored event, Chum Television VP of business and regulatory affairs Peter Miller said branding and/or uniquely defined genres will be key factors in winning consumers. He noted that it won’t be easy for channels to be noticed among the 40 or so expected to launch, particularly since digital penetration levels are low. He added that synergies in terms of programming, operations and cross promotion will also be critical to the viability of the new channels. Canadian Cable Television Association president and CEO Janet Yale said cablecos are looking for content to drive digital penetration and that the Category 2 channels could well foot the bill. "The Category 2 services are largely, many but not all, existing services from outside the country with recognized brands," she said. The success of new channels will also depend on pricing and packaging, matters that are still being negotiated. "What I think will be really interesting to see is which of the digital services will be the popular ones. Will they be some of the Category 1s, which were given more regulatory support but at the same time have higher Canadian content commitments to live up to, or will it turn out to be some of the Category 2s that will turn out to really be the drivers," commented CRTC director of discretionary services and social policy Martine Vallee. Decima Publishing will be producing a full report of the poll results, including consumer profiles and demographic information. The report will include results from our January poll on what Canadians are watching on the Net, and what they’re willing to pay for online. To reserve a copy, or for more information, email Debbie Lawes at: dlawes@decima.ca.

Category 2 channels could prove to be the more popular draw on digital TV

Broadcast | April 26, 2001

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