Stornoway set to launch another diginet with its Category 2 pets channel

Defying naysayers who predicted that new independent broadcasters wouldn’t be able to withstand the digital competition of established players, Stornoway Communications Inc. is set to launch its third channel, which will be devoted to pets. The Pets Network, licensed in November 2000 as a Category 2, will be carried on Rogers systems, and possibly Cogeco, come November. Further, Stornoway is planning to rebrand its Category 1 i-channel next month after rejuvenating its Category 2 dance channel bpm.tv in September. Stornoway is not concerned that it has only one distributor signed on to carry The Pets Network, which is being marketed with the tag line "Come. Sit. Stay." "I don’t think there is going to be a time when you are going to get every distributor in synch in launching a new channel. So what we’ve had to get our heads around is that if we get Rogers, or a couple of the larger distributors, is that enough to create a presence and to start to create a brand?" says Stornoway VP Frank Bertolas. "Our hope is that once the channel is real and up and running, it will start to attract some attention in this particular niche. So that when there are other channels being launched by the other distributors, we’ll be first in line. That’s what our strategy is." The rebranding of its first two channels and the launch of another represents a turnaround from Stornoway’s early days when president and CEO Martha Fusca had to continually defend her company and state that it was there for the long haul (CCR, Feb. 15/02). At that time, analysts were predicting that the viability of smaller companies was shaky given their relatively few resources (CCR, Aug. 15/02). "It’s ironic that the channels of established broadcasters were the first to go," Fusca tells Canadian Communications Reports. CTV Inc.’s Category 1 women’s sports channel WTSN was killed (CCR, Sept. 4/03) as was Corus Entertainment’s Category 2 music channel Edge TV (CCR, June 20/03). Stornoway has not been without its troubles, including the breakaway from it by another independent, Channel Zero Inc., early on in the launch of i-channel and bpm.tv (CCR Update, April 3/02). Cal Millar, VP and CFO of Channel Zero, which owns Movieola and Silver Screen Classics, tells CCR that he soon will be launching three more channels, all of them featuring adult content. As well, Alliance Atlantis Communications Inc. has recently launched another Category 2 diginet, Fine Living Canada (CCR, Sept. 10/04). Bertolas says it is the right time to be establishing more digital channels. "I think that the industry has sort of digested the 50-or-so channels (that were launched in the first digital wave in 2001) after three years, and have stabilized. Advertisers are certainly more accepting of the digital channels, and I think that distributors are looking for new channels," he says. "I think there is an appetite there for some pretty strong niche genres that weren’t launched back in 2001, so we’re filling in the holes." Stornoway’s facilities have the ability to carry up to six channels, and it is looking to share them with other smaller independents as it once did with Movieola. It is expected that the Category 1 PrideVision, acquired by William Craig from Headline Media, will move in and rent the infrastructure needed to keep the gay and lesbian channel on the air (CCR, June 4/04). PrideVision has also announced its intention to move ahead with a porn channel, so Stornoway could acquire some additional capital by servicing PrideVision’s future needs (CCR, Sept. 10/04).

Stornoway set to launch another diginet with its Category 2 pets channel

Broadcast | September 29, 2004

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