HD stick-and-carrot presents opportunities for High Fidelity HDTV

Although the CRTC has recently underscored the importance of getting more Canadian-made high-definition programming on the air, the next two months will be pivotal for High Fidelity HDTV Inc., a Canadian specialty broadcaster somewhat unique in that it’s made high-definition programming its genre. "We anticipate that Equator and Rush will launch within the next four to six weeks," says company co-founder John Panikkar. "Once we have those on the air, there will only be five all-HD Canadian-originated channels, and we will have four of them." High Fidelity’s first two all-HD channels made their debut on May 12 (CCR, March 24/06). Treasure HD showcases antiques and other collectibles, while OasisHD features panoramic nature vistas. CTV Inc.’s Discovery HD rounds out the three dedicated HD channels on air at present, but the next two to launch from High Fidelity will be EquatorHD and RushHD, featuring scenes of exotic places and cultures and footage of extreme sports respectively. High Fidelity licenses the Treasure and Rush trademarks from Rainbow HD Holdings LLC of Jericho NY. In its recently released framework for the transition to HD specialty services (CCR, July 4/06), the CRTC made no secrets that it would like to see more homegrown HD programming to address the gap between the roughly three million HD-capable sets believed to be in consumers’ homes on one hand, and the Canadian content available in high-definition on the other. "If you add up all the cable and satellite HD subscribers, I don’t think you’d get to 500,000," Panikkar says. No wonder that many in Canada’s broadcast industry fear that more of their compatriots are turning to HD programming from south of the border to satisfy their craving for intense picture and sound quality. Accordingly, Canada’s communications regulator has issued specialty broadcasters an ultimatum: move to HD in a timely fashion, or risk losing your undertaking’s protected status for its genre, direction that Panikkar says he’s "taken very careful note" of. But in addition to the stick, there’s a carrot in the form of special dispensation for so-called transitional HD licences for programmers while they build their high-definition programming licences. It’s a practice that has Panikkar scratching his head, however. Under the terms of transitional HD licences, broadcasters are held to a minimum of 50% of evening programming in HD during their first year of licence, ramping up to an eventual 50% of all programming by the beginning of year six. "Think about that for a moment," Panikkar says. "I sit down two years from now to watch the HD version of a…specialty channel from one of the incumbent broadcasters, I’ve got only a 50% chance that I’m actually going to see a program in HD." The switching back and forth between standard and HD programming will infuriate viewers, he predicts. Transitional HD licenceholders have also been granted dispensation when it comes to Canadian content, Panikkar notes. For instance, the standard definition version of Alliance Atlantis Communications Inc.’s Life Network is beholden to devote 82.5% of its programming to Canadian productions under its current licence, but its HD version will be required to dedicate only half of its 50% HD programming to Cancon, meaning at least a 7.5% break on overall Cancon requirements. "What happens to the rest of your Canadian content obligation?" Panikkar asks. "I’m not sure that’s been clearly spelled out." With a North American standard for HD not yet finalized, Canadian producers can be forgiven for their reluctance to invest in new cameras and other equipment at present. But Panikkar notes that not only have HD camera prices dropped by 60% to 80%, thanks to innovations like Sony’s new XD HD, but export markets for Canadian HD productions are showing interest. He points to Collector Showdown, a joint production between High Fidelity and the aforementioned Rainbow HD. "The Canadian content that we produce is going to find an automatic home on a Rainbow channel in the United States," Panikkar says. The two together, he adds, mean that for Canadian producers, "there really is no good reason not to be producing in HD today."

HD stick-and-carrot presents opportunities for High Fidelity HDTV

Broadcast | July 20, 2006

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