Digital applicants agree on launch date, but not on how channels should be offered

A consensus has emerged among digital channel applicants that new Category 1 licensees must hit the market by September 1, 2001 at the latest, and it seems to be a view CRTC commissioners support. What isn’t as clear though, is how these new services will be offered. Pure pick-and-pay may be what many consumers prefer, but it doesn’t appear this will be an option for Category 1 services. How much real choice viewers will have next September will depend on how the bundles are offered, and that’s still an unknown. According to research presented by the Canadian Cable Television Association, Canadians want to create their own packages of television services, either on a stand alone ‘pick and pay’ basis or in a ‘pick pack,’ where they create their own packages. Following Alliance Atlantis Broadcasting’s pitch for the film and documentary channel, Signature Television, Health Network Canada and The Book Channel on the opening day of the hearings Aug. 14, chair and CEO Michael MacMillan expressed surprise that the issue of pick and pay wasn’t raised. "I think that the most important thing is that consumers have choice," he said in an interview. He suggested that packages offer the best value for viewers, but that perhaps some channels could be offered a la carte. In an interview several days later, Can-West Global Communications Corp president/CEO Leonard Asper said the market in Canada isn’t big enough for a pure ‘pick and choose’ option. "I think there has to be some allowance to package so that there can be viability of the services, and the services can get greater penetration because a lot of people don’t necessarily want to order a channel but once they have it, they find they watch it. There is sort of a soft marketing component of the packaging that helps get the new channels launched." The Specialty and Premium Television Association (SPTV) supports broad programming packages before narrower more expensive selections are offered. The SPTV brief states: "Offering large programming packages first will improve the affordability of services for consumers and help ensure the long-term survival of the new digital services." The SPTA also believes the prohibition on distributing Category 1 services exclusively on a stand-alone basis should be extended to Category 2 services. There have been few indications so far of how many channels the commission envisions packaging together. Only general questions about packaging are being asked. For example, CRTC commissioner Ronald Williams asked Levfam Holdings, which has applied for PrideVision in conjunction with Alliance Atlantis Communications Inc, if it anticipated having problems finding packaging partners for the gay and lesbian channel. "…Our research which we spent a lot of time and money on indicates to us that the gay and lesbian genre will be a real package driver," said Levfam executive VP Rob Malcolmson. More specific questions about packaging may be posed later in the hearings, when commissioners have a better idea of which services each applicant favors. During the last phase of the hearings after all 88 category 1 proposals have been presented and discussed, the panel will ask all parties which two or three of their bids should be given priority in licensing and why. The CRTC plans to license 10 services, and for now, most applicants are remaining tight-lipped about which Category 1 services they really want. "We may or may not (present a priority list)," said John Cassaday, president/CEO of Corus Entertainment Inc. "It’s different for us. If you are up here with a number of applications that you control, that’s one thing. But we have partners and each of our partners expects us to advance their case with equal fervor." Asper contends that Global hasn’t yet prioritized its proposed channels: "We’re going to have the opportunity to publicly state which ones we prefer. So I think until we’ve made that decision, they’re all important. I really can’t say. If we had time, we would have applied for 60 channels, 100 channels. There is no end to how many areas of human interest there are."

Digital applicants agree on launch date, but not on how channels should be offered

Broadcast | August 31, 2000

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