Tag Archives: Rogers

| Montreal, TV

Rogers proposes two television stations to replace CJNT

Back in May, when Rogers and Channel Zero announced that they had reached an agreement to buy CJNT from the latter and turn it into a Citytv-branded station (with it becoming a Citytv affiliate in the meantime), it was unclear whether it would remain Montreal’s only ethnic television station. Rogers Media President of Broadcast, Scott Moore, couldn’t be pinned down either way on what, if any, amendments to the station’s licence the media giant would propose as part of the purchase.

On Sept. 5, the Canadian Radio-television and Telecommunications Commission published the application for transfer of ownership, and we learn that, in fact, Rogers is asking to change Citytv from an ethnic station into an English one, or at least to relieve it of a condition of licence requiring 75% of programming from 8pm to 10pm be ethnic in nature (a condition that previous owners have tried and failed to have relieved).

But this request comes with a twist: In exchange for turning CJNT into an English station, Rogers proposes to support a brand new television station in Montreal whose programming would be almost entirely ethnic in nature. The new station, which would be the 10th over-the-air television station in Montreal, would be run by an independent group and would include some of the same programming that used to air on CJNT.

During this week, I’ll be speaking with the principal parties involved (Rogers, Channel Zero and the independent group proposing the new station). In the meantime, here’s what the applications themselves say.

Citytv Montreal

“The acquisition of CJNT-TV and its conversion to an English-language commercial television station will allow RBL to establish an over-the-air television presence for Citytv in Montréal. This is a key step towards making Citytv more competitive with CTV and Global in terms of programming and our ability to access network advertising revenues.”

Rogers has made clear its intention for a more national footprint for the Citytv network, which celebrates its 40th anniversary this week. Advertisers treat Citytv, which has no stations east of Toronto, as a small regional player, and Rogers wants that to change. So it signed an affiliation agreement with three small-market western stations in the Jim Pattison Group, and acquired Saskatchewan educational network SCN, rebranding it Citytv Saskatchewan. And it acquired CJNT in Montreal.

The network still isn’t complete. There’s no station in Atlantic Canada, and only a retransmitter in Ottawa. But these moves have increased the network’s reach about 27%.

Being a national advertising player is a priority for Rogers, so much so that it’s willing to lose a lot of money on a Citytv station in Montreal:

“In terms of revenue potential, Citytv has a very limited ability to sell network advertising. National advertising buyers want access to top quality programming on national networks with extensive audience reach to meet their clients’ needs in the most efficient way possible. They naturally look first to CTV and Global for network buy opportunities, as these networks have the national reach that they are seeking. Citytv network buys may be considered to fill the gaps, but only after the buyers have exhausted their advertising opportunities with the large national networks.”

Purchase price

The application lists a purchase price for CJNT: $10.3 million. That breaks down as about $550,000 for the actual assets (mostly transmission assets, as Rogers isn’t interested in the existing studios or programming rights), and the rest for the licence itself. When Channel Zero bought CJNT in 2009, it was in a package deal with CHCH in Hamilton for $12, along with commitments to cover the stations’ liabilities.

If we consider a $6 purchase price and a $10.3 million sale price, that’s a 171,666,667% return on investment in just three years for Channel Zero, or 57,222,222% a year. That’s about 10 million times the rate on my RRSP.

From the Rogers application, we also learn a bit about Channel Zero’s motives, including the fact that it took the station mainly so it could get CHCH:

Channel Zero’s primary consideration was the acquisition of CHCH-TV; however, it was clear that the stations were being sold as a package and Channel Zero was enthused by the opportunity to acquire an ethnic station in one of Canada’s greatest cities.

Channel Zero has invested just under $500,000 on technical upgrades to the CJNT-TV facility including converting the transmission facilities to digital. It has also created new office facilities and has funded operating losses which are expected to total $1.5 million by the end of the current broadcast year.

This is consistent with criticisms that while Channel Zero has invested a lot of time, energy and money into programming at CHCH, it has all but ignored CJNT. (Though, the application also correctly points out that if Channel Zero had not bought CJNT in 2009, the station would likely have been shut down.)

The big question, though, is why Rogers is bothering with this when it could just apply for a new licence for a new television station, and leave CJNT to remain ethnic. The CRTC asked the same question, and here is Rogers’s response:

Montreal, as a major English-language television market, remains a key part of our expansion strategy. As such, we have looked at number of options to monetize Citytv’s programming in this market including applying for a new licence, applying for a rebroadcast transmitter, negotiating broad distribution and simultaneous substitution with local distributors and available acquisition opportunities.

The purchase of CJNT-TV was the most attractive of these options as it represented the fastest and most predictable entry into the market and would allow us to start monetizing our programming in the upcoming broadcast year.

The other point made is that if Rogers tried to start a new station, Channel Zero and CJNT would probably be first in line to oppose it.

It’s through the related application presented for this CRTC hearing that we learn that Channel Zero had originally planned to ask the CRTC to convert CJNT from an ethnic station into an English station, similar to what Rogers is proposing now. Channel Zero and the group behind the new ethnic station project came up with this joint proposal in order to allow CJNT to become English without depriving Montreal of its only ethnic television station.

If the Rogers acquisition is denied, Channel Zero is apparently still interested in converting CJNT into an English station. From Rogers’s application:

In the event the Commission denies the proposed transaction, 2209005 (the licensee of CJNT) intends to apply to the Commission to convert CJNT-TV into an English-language television station as it does not believe the station is viable, on a long-term basis, as an ethnic station based on its current business model. RBL (Rogers Broadcasting Ltd.) has also been informed by 2209005 that should the Commission deny the proposed transaction that it will strongly oppose any applications for a new English-language television station to serve Montreal, as 2209005’s intention is to apply for an English-language television station in Montreal.

Programming

Proposed Citytv schedule for CJNT (PDF)

As previously stated in May, Rogers’s plan for CJNT would not include a daily evening newscast, since Montreal already has three of those (CTV, CBC and Global). Instead, most of a Montreal Citytv station’s local programming would come through a local morning show called Breakfast Television Montreal, which would run from 6am to 9am weekdays. This is consistent with Citytv’s other (non-Toronto) local stations, which also rely on Breakfast Television for most of their local programming.

The application describes the proposed morning show as “a mix of local news, information and entertainment programming focused exclusively on the Montréal market.” It also touts the “community” focus of the shows, covering everything from cultural events to fundraisers.

The other local show would be a weekly sports show, which in its application Rogers calls “Connected Montréal”:

RBL will also launch a weekly half-hour sports program, to be known as Connected Montréal, dedicated to covering the best in professional, amateur, university, CEGEP, and junior league sports in the Greater Montréal area. Currently, there are no programs on television that showcase the talented athletes and coaches that make-up this rich and diverse sporting community. We intend to focus on the positive influences sports bring to young people, community building, and the historical and cultural fabric of Montréal.

This show will include a mix of game highlights; team, athlete and coach profiles; and analysis from a wide variety of local sporting events. This program will be uplifting and motivational, providing Montréalers with the opportunity to celebrate their city’s athletic achievements.

The proposed programming grid lists a one-hour program called “The Fan” that would air Sundays at 6pm and repeat Mondays. The half-hour option seems to be the more recent of the two. It’s not clear at this point when exactly the show would air, but likely on weekends with at least one repeat, Moore tells me.

With 15 hours for the morning show and half an hour for the sports show (repeated once), the station would produce 15.5 hours of original local programming a week, and air 16 hours including the repeat.

Citytv Montreal would also air Citytv network programming as it does now, including Cityline and programs like The Bachelor Canada.

But the big thing is U.S. programming. The reason Rogers wants more local stations (as opposed to distant-signal carriage on local distributors) is to benefit from simultaneous substitution. The real losers here aren’t CFCF or CKMI, they’re WPTZ, WFFF, WVNY and WCAX, who will lose a big chunk of what non-substituted primetime programming it has left.

Plan B: An ethnic station

Rogers’s application proposes an alternative if the CRTC decides against turning CJNT into an English station:

“RBL would be prepared to respect the current licensee’s commitment to provide 14 hours of local ethnic programming each week, provided that the word “original” is deleted. We would be prepared to accept the revised commitment as a (condition of licence) in the licence to be issued for CJNT-TV as an ethnic station.”

But more importantly, Rogers needs the requirement that 75% of programming from 8 to 10pm be ethnic to be removed, as well as another similar condition requiring that at least 50% of programming between 6pm and midnight be ethnic. Without those licence changes at minimum, Rogers says it will walk away from the deal.

“Without these changes to CJNT-TV’s licence our purchase of the station no longer has any strategic value to our broadcast group.”

If the CRTC doesn’t buy the two-station plan, Rogers may have a tough time convincing the CRTC to move forward with this change. The CRTC has already twice denied previous owners’ applications to have this condition removed.

It’s not clear at this point what Rogers would do as far as local ethnic programming in case CJNT remains an ethnic station under its control. But it would not air an English morning show if the station remains ethnic.

Finances

Rogers’s proposed five-year budget for an English-language CJNT shows it would lose between $6 million and $7 million each year as an English station, and in fact it would get worse rather than getting better. The largest expense, about half its total, would be for the acquisition of American programming. Less than half of that, about $3 million a year, would be spent on Canadian programming, including its local shows.

Under the second proposed scenario, where Rogers buys CJNT but it remains an ethnic station (relieved of its obligation to air 75% ethnic programming from 8 to 10pm), it would spend only about $1 million a year on Canadian programming and about $6-7 million on U.S. programs, but would lose slightly less money every year.

Technical parameters

No changes are being proposed to the technical setup of CJNT. It would remain on digital channel 49 (virtual channel 62.1), transmitting from a small tower on the roof of the CTV/TVA transmission building next to the Mount Royal tower, with 4 kilowatts effective radiated power.

Rogers proposes its licence for CJNT expire on Aug. 31, 2016, which is when CJNT’s current licence expires.

ICI

ICI (International Channel / Canal International) is a project of Mohammad Nowrouzzahrai and his family, who want to bring Montreal’s ethnic television station back to its roots. Nowrouzzahrai produced a Persian program for Télévision Ethnique du Québec, which was a public access cable channel and became an over-the-air broadcaster in 1997 as CJNT. It was sold to WIC in 1999, and became a Canwest station when Canwest bought WIC.

Mohammad’s son Sam, who worked for him in the TEQ days, runs the day-to-day operations at Mi-Cam Communications, a production company owned by his father which created programs for CJNT in its early days. According to the application, Sam Nowrouzzahrai, aka Sam Norouzi, would continue in this role at ICI.

Because the ICI project predates the announced sale of CJNT to Rogers, the plan does not consider Rogers’s involvement locally. And with the announcement that Rogers is buying CJNT, the plan doesn’t change much. But there’s an additional bonus for ICI, in that Rogers has proposed to use the tangible benefits package of $1 million (10% of the $10 million purchase price) to help fund the ICI station and offset its losses. This is additional money that ICI’s original plan hadn’t considered. (If the ICI station is denied, Rogers plans to put the money to other uses.)

Because it gets funding from Channel Zero, the ICI application is dependent on the sale of CJNT to Rogers. Otherwise, the two would both be ethnic stations competing with each other.

But the group behind ICI insists that it is not contingent on Rogers converting CJNT from an ethnic station into an English-language one. Though it admits that the business case becomes a lot tougher (particularly if it doesn’t get that $1 million in benefits money), it feels that it could continue while competing with CJNT. ICI’s plan does not involve OMNI programming, which CJNT currently airs a lot of as a Citytv affiliate.

Rogers, however, is less convinced that Montreal could support two ethnic TV stations:

“…we believe there is increased potential for brand confusion and audience fragmentation as a result of having two ethnic stations in the market. Based on the above, and given CJNT-TV’s financial history, it is not clear to RBL that there is room for two ethnic stations in the Montreal market.”

It’s hard to imagine the CRTC ruling in such a way that we get two ethnic stations, considering the precarious history of the existing one. If ICI is approved, expect Rogers to get its wish for a fully English station.

Ownership

The channel would be run by 4517466 Canada Inc., a company owned 90% by five members of the Nowrouzzahrai family (specifically, Mohammad Nowrouzzahrai, his wife and three children). Another 5% would be owned by Marie Griffiths, who used to own part of CJNT and is the controlling owner of Groupe CHCR, which runs Montreal ethnic radio stations CKDG (Mike FM) and CKIN-FM. The other 5% is “to be determined.”

Finances

The group would be financed by up to $1 million from Channel Zero’s Movieola subsidiary, as well as about $1 million in benefits from Rogers (over five years) that come from the tangible benefits package from its acquisition of CJNT.

The station would have an operating budget of about $3.5 million for each of its first seven years, with programming in the news, music/variety and entertainment magazine formats. There would also be about 14% of its programming budget spent on non-Canadian programs.

Its revenue, entirely through local advertising, would start around that level and eventually increase to $6.5 million by the end of its first seven-year licence term. The station would be profitable by the third year, and making almost $2 million in Year 7.

That sounds incredibly optimistic. To put it in perspective, according to the same application, the English stations combined received about $8 million a year in local advertising in the six years up to 2009, and $10 million in 2009-10. And CFCF currently has about 100 times the audience of CJNT.

Cooperative

According to the application, the station would operate as a producer’s cooperative. This means the producers of individual shows would be responsible for their own budgets, and for selling their own advertising. The application explains the structure this way:

Ici proposes a channel that will operate very much like a co-operative in that each of the individual language producers will be able to shape their program as their own business within the overall business structure that ici will create. Each of the producers will own the advertising inventory within their own programming and therefore be in a position to generate revenue through the sale of advertising to the community that they know best. The producer’s will in turn provide a share of these revenues to ici in exchange for the services which ici will provide.

This makes sense, in that the individual producers are closer to their communities than any central ad sales staff could be. But it also means that more of the risk would be on the shoulders of the individual producers. Many would probably end up producing their shows on a volunteer basis.

Programming

Proposed programming schedule for ICI (PDF)

Programming for ICI would originate from a small studio (74 square metres) on Christophe Colomb Ave. in Ahuntsic, at the home of Mi-Cam Communications.

The programming would be in 15 languages and directed to 18 ethnic groups, including:

  • Italian
  • Latino
  • Arab (including: Lebanese, Egyptian, Moroccan, Algerian)
  • Portuguese
  • Greek
  • Haitian
  • Polish
  • Armenian
  • Persian
  • Romanian
  • African (French)
  • Russian
  • German
  • Afghan
  • Indian
  • Pakistani
  • Chinese

The largest chunk of programming would be Italian (31%, including most of the weekday afternoon schedule), followed by Arabic (10%), Spanish (8%), Greek (3%) and Mandarin/Cantonese (2.5%).

Some of the programs previously produced for CJNT would find a new home on ICI. The application includes signed letters from hosts and staff of Chinese, Bangladesh, African and Egyptian programs that aired on CJNT, as well as potential producers of other programs, that are willing and excited to sign on to this project.

In all, the programming grid proposes 33 shows of half an hour or an hour in length, almost all of them locally-produced weekly shows. Shows appearing more often include a one-hour yoga show weekdays at 7am,, and a Hellenic show and a Greek show that would each be produced twice a week. Most shows would be repeated at least once on another day.

Monday and Thursday evenings, from 7pm to 11pm, the channel would air Teleritmo, which consists mainly of music videos in Spanish.

Despite the involvement of Rogers, which came after the original application for this station was submitted, there are no significant plans for OMNI programming on ICI, even if CJNT is stripped of its ethnic station status. “We do not envision OMNI programming being a significant portion of the ici schedule,” the application says.

Also unlike OMNI (and CJNT under Canwest, Channel Zero and as a Citytv affiliate), the ICI station would not air significant English-language programming during primetime (or at all, really). It says this is because of the way the industry has changed in the past decade. Rather than each station in a market acquiring programming, the large players (Bell, Rogers, Shaw) buy U.S. programs on a national basis, leaving little room for small broadcasters. So instead of trying to put some high-profit U.S. programs in primetime (and take advantage of simultaneous substitution to steal some ad revenue), the station is abandoning this practice and focusing entirely on ethnic programming. It does leave open the door to airing some U.S. programs, however, particularly those that are acquired by other independent stations like CHCH in Hamilton.

Though there are no definitive plans for programming synergies with Rogers, the application does expect Rogers and Ici to collaborate on national ethnic ad sales if CJNT becomes an English station.

The revised application also suggests news gathering resource sharing between ICI and Citytv, much like OMNI and City share resources in other markets, with the same visuals being used by both but with different reporters in different languages.

Master control would either be shared between Rogers and ICI, or if that doesn’t work, ICI says it is prepared to rent master control facilities from other broadcasters.

Conditions of licence

The ICI application proposes to replicate most of CJNT’s current conditions of licence, namely:

  • At least 60% ethnic programming between 6am and midnight
  • At least 60% ethnic programming between 6pm and midnight
  • At least 75% ethnic programming between 8pm and 10pm
  • At least 55% Canadian programming between 6am and midnight
  • At least 50% Canadian programming between 6pm and midnight
  • Ethnic programming directed at at least 18 ethnic groups and in at least 15 languages each month
  • 100% closed captioning of programming, including all advertising in English and French by Year 4
In addition, the station proposes, like CJNT, to have a minimum of 14 hours of local programming a week. The actual proposed programming grid would, in fact, be double this, not including repeats. Including repeats of local programming, more than half its broadcast day and almost all of primetime would be locally produced. If they could pull this off, it would put Montreal’s private English broadcasters to shame.

Proposed transmission pattern for “ICI” would be directional, with a triangular shape.

Transmitter

ICI would operate on Channel 47 (it had originally proposed Channel 51), with a transmitter on the Bell tower on Mount Royal (just west of the main CBC tower). That’s the same tower CFCF used when it was operating a temporary digital transmitter (also on Channel 51). Because the plan for this new station began before CFCF left that channel, they decided to move to Channel 47. Industry Canada also has a moratorium on issuing new broadcasting certificates for Channel 51.

The transmitter would put out a maximum 5,500 watts ERP at a height of 196 metres. This puts it about on par with CJNT’s current signal, for those wondering if they’d be able to capture it.

Unlike CJNT, which is carried by many distribution services, ICI expects it would not get satellite carriage, and so would rely solely on local cable systems (which are required by law to carry all local over-the-air stations). About two-thirds of Montreal’s English population and 80% of the francophone population either get cable or rely on over-the-air reception, according to the application’s estimates.

The CRTC is considering these two applications at a hearing to begin Nov. 7 in Gatineau. The deadline for comments is 8pm Eastern Time on Oct. 5. To submit an intervention, click here, choose Option 1, then choose “2012-0756-4: Rogers Broadcasting Limited” (for the CJNT application) and/or “2012-0175-6: 4517466 Canada Inc.” (for the ICI application).

| Business, Media, Opinion

Branchez-Vous unplugged

I suppose it was kind of inevitable. The independent media company Branchez-Vous!, known for its boring-looking Web portal, its news service that cribs other news services, and other websites including Showbizz.net and Fanatique.ca, has been bought by Rogers Media for $25 million, pending approval from shareholders (though administrators with 76% of the stock have already agreed to the takeover).

As much as the media holdings are valuable, though, the acquisition’s main value seems to come from the advertising network used by bloggers and more mainstream sites like Le Devoir and Rue Frontenac.

Financially, the deal is pretty sweet for B-V. The 40-cents-per-share price is 242% of the company’s closing share price on Thursday and about double what the stock has been trading over the past six months at least.

But as much as I think the company is worth every penny of the asking price, I can’t help but feel a bit sad at the loss of one of the few truly independent media sources left in Quebec.

It’s not that I think Rogers is evil (okay, I do think Rogers is evil, but not more than its competitors) or that there will be some radical change to the way Branchez-Vous operates (they’ve already said all management and employees are staying). It’s that a decision that was made by a small management team might now have to go through focus groups to remove any chance that it might offend anyone or detract in some way from the company’s branding.

And even though the acquisition seems to be like a poodle eating a horse (Rogers’s holdings in francophone Quebec are pretty limited – Châtelaine, L’actualité and LOULOU, plus some lesser-known magazines and trade publications – and its web properties get about a quarter of the traffic of Branchez-Vous’s network), expect B-V to look more like Rogers by the end of this than Rogers looks like B-V.

Expect, for example, that Branchez-Vous freelancers are forced to sign Rogers Media’s draconian contracts, that would grant Rogers the ability to freely reuse B-V content in its magazines.

And next time there’s a labour conflict involving a media company (as was the case with Rue Frontenac), expect them to think a lot harder before deciding to take sides.

Most of all, a company that already took itself far too seriously will now do so even more.

But I guess it could have been worse. They could have been bought by Quebecor.

| Opinion, TV

Community lacking in community TV

The CRTC will be holding a hearing this month about community television, and at least one group is hoping they will close loopholes (or even just curb abuses that aren’t even loopholes) that allow cable companies to use these channels as promotional arms.

The CRTC requires cable companies to devote 5% of their gross revenues to Canadian programming. Of that, 2% must go to a community channel, kind of like those “cable access channels” we hear about in the U.S.

Even though it’s a very small fraction of their money, the cable companies decided they would put it to good use. Instead of just giving it over to an independent community broadcaster, they’d run their own community networks. Rogers uses the moniker RogersTV. With Videotron, it’s VOX. Shaw TV, TVCogeco, you get the idea.

The problem with having the cable companies in control is that this can lead to abuses. Rogers is being accused of having too much advertising. Others of not keeping proper records (which, admittedly, is a chronic problem for many low-budget broadcasters).

But the biggest problem seems to be that the programming itself isn’t fulfilling its mandate:

The CRTC audits found that Cogeco, Rogers, Shaw, and Persona all classified staff-produced news and other programming-even MTV promos in one instance-as “access programming”. Some Eastlink systems reported no access programming at all.

“The CRTC’s data show that Canada’s ‘community’ channels have become promotional tools for cable companies,” said Catherine Edwards, spokesperson for CACTUS.

A look at VOX, Videotron’s community channel, and you can see what they mean. A show devoted to TVA’s Star Académie. A show put together by a (former) Quebecor-owned weekly newspaper. Quebecor personalities are all over the schedule.

Sure, there’s the “Mise à jour [city name here]”, and the half hour where they show traffic cameras. But I don’t see much access here, nor do they make obvious how someone could get involved.

Perhaps the era of community television is over. We no longer need cable access when we have Internet access. People can just put their videos on YouTube. (Ratings certainly suggest that, with market shares of 0.1 and 0.2%.)

But until the CRTC makes that determination, cable companies should start playing by the rules – the spirit as well as the letter.

UPDATE (May 15): La Presse’s Marc Cassivi also thinks Vox isn’t doing what it should as far as community programming.

| Media, Technology

Rogers’s half-assed quality control

Last fall, I was asked to participate in a beta test of Rogers On Demand Online, a video streaming website for Rogers customers only. It has since launched and anyone who subscribes to Rogers Cable or Rogers Wireless can watch videos on the site. My review pointed out the disappointing video library, which included mostly Rogers-owned stuff like Citytv and a few specialty networks that didn’t really excite me (and are also unavailable unless you subscribe to the channel with Rogers Cable).

A couple of weeks ago I was on the site watching the one series that’s worth my attention – the West Wing through its Warner Brothers channel – when I noticed the video was a bit dark.

Make that very dark. I could barely make out what was going on in many scenes. Adjustments to my screen’s brightness were futile. So I clicked on the “feedback” link on the video and said that it was too dark.

This is the email I got back:

Continue reading →

| TV

Massive cuts at CityTV, but Rogers doesn’t care

Anne Mroczkowski

The axe fell Tuesday at CityTV. Everyone found out yesterday that long-time Toronto anchor Anne Mroczkowski and about 60 others have lost their jobs in a new round of cutbacks at Canada’s fourth-largest English broadcast network, which will also result in a lot of local programming being cancelled.

Coverage at the National Post, Toronto Sun, Toronto Star, Financial Post, Canadian Press, Globe and Mail, Reuters, the Wall Street Journal and all the usual Toronto blogs. Eye has a timeline of City cuts. Breakfast Television’s Kevin Frankish has a video of remaining employees talking about how much it sucks.

The irony in this is that CityTV is owned by Rogers, which is part of that Stop the TV Tax campaign by the cable and satellite companies against fee for carriage. Rogers has argued through it and appearances in front of the CRTC that local television doesn’t need the extra funding and that it is committed to local television without government funding.

With the cuts at City, and more importantly the cuts to programming at all City stations, we can formally call bullshit on that claim. Rogers doesn’t oppose fee for carriage because it believes that’s what’s best for City, it opposes fee for carriage because its cable business is more important to it than its TV business.

And so Rogers continues to sabotage its TV stations for its own benefit, and people like Anne Mroczkowski pay the price.

| Media, Opinion, Technology, TV

Rogers On Demand Online: Meh.

Homepage of Rogers On Demand Online

Homepage of Rogers On Demand Online

A few days ago, I got an email from a social media marketing guy at Rogers, inviting me to participate in a sneak preview of the Rogers On Demand Online service being launched on Monday (see coverage of that at Digital Home, Paid Content, Mediacaster).

It’s being called a “Canadian Hulu”, which is like saying CTV’s video portal is a Canadian Hulu, except that CTV doesn’t charge to watch its content.

I can’t imagine why Rogers would want me participating in this. I guess they cast a wide net and don’t read this blog, because otherwise they’d know I don’t think very highly of Canada’s telecom companies, and most of my reviews are negative ones.

This one is no exception.

Continue reading →

| Opinion, TV

Battle of the fee-for-carriage misinformation campaigns

The battle for “fee for carriage” – forcing cable and satellite TV providers to hand over money to over-the-air broadcasters – is getting ugly.

A few weeks after CTV got Global and the CBC to join its “Save Local TV” campaign (now rebranded “Local TV Matters“), Bell (which owns the largest satellite TV provider) and Rogers (which owns Rogers Cable) have launched the counter-campaign Stop the TV Tax. Both websites feature “facts” pages with incredibly misleading arguments and statistics about the business model of television, and both are racing against the clock to get people to support their side in upcoming CRTC hearings on the fee for carriage issue.

Notably absent from either side is Quebecor, which owns the TVA television network (and Sun TV station in Toronto) but also the Videotron cable service. CityTV, the other notable absence on the broadcaster side, is owned by Rogers, which has clearly picked the other side in this debate.

The “TV tax” website has prompted CTVGlobeMedia to respond by calling it “misinformation”, while in the same release saying that cable companies are charging Canadians for conventional television, which is demonstrably false.

While CTV et al’s claims are suspect, the Rogers and Bell throw up some doozies of their own, including fantom quotes saying incorrectly that this is a “one time” fee. Except nobody said fee for carriage would be a one-time fee, and the website provides no source for this supposed quote. They also claim that conventional broadcasters had profits of $400 million last year, but the CRTC put that number at only $8 million (down from over $100 million) when it released statistical data in February. (UPDATE Oct. 6: I asked the Stop the TV Tax people about this, and they pointed to a Canwest quarterly report and an opinion piece about CTV, neither of which break down profit by conventional vs. specialty channels, and on Global’s side the operating profit for its non-Alliance-Atlantis TV network – which still includes a half-dozen cable channels like MovieTime and TVtropolis – was about $40 million)

When it comes to choosing between greedy broadcasters and greedy cable and satellite companies, most informed Canadians would prefer to choose neither. These slick (and expensive) lobbying campaigns – just think of how much they’re spending to lobby the CRTC directly if they’re spending this much on us – only reinforces the fact that both sides have plenty of money to spare.

| Business, Montreal, Opinion, Photos

Rogers reverse graffiti ads are a ridiculous waste

A worker pressure-washes the sidewalk through a Rogers ad template

A worker pressure-washes the sidewalk through a Rogers ad template

The other night, leaving work just after midnight, I noticed a pair of guys with a truck doing some cleaning. It’s not uncommon for graffiti removal pressure-washing to take place late at night downtown, since that’s when pedestrian and other traffic is at its lowest.

But I noticed something odd: They were spraying a board of some sort.

The Rogers template up close

The Rogers template up close

Getting a closer look, I saw it was an ad for Rogers, and put two and two together: these guys were part of some guerilla marketing campaign for Rogers, engaging in “reverse graffiti”

Now, reverse graffiti is not a new concept. It’s been used before to great effect artistically, and it’s been usurped by corporate forces too. So despite what the marketing genius behind this thinks, there’s no new ground being broken here.

But that’s not what bothers me.

Continue reading →

| TV

Rogers missing the point

Rogers, which appeared in front of the CRTC today to tell them it’s a bad idea to make crazy-profitable cable companies give money to on-the-brink TV broadcasters, says the whole CanCon problem is moot because it’s developing a Canadian version of Hulu which will feature CanCon.

There’s only one hitch: You have to be a Rogers cable subscriber to use it.

Perhaps CBC got it wrong, or Rogers executives are using a stretched analogy, but they seem to be talking about video on demand over digital cable, not online video.

UPDATE: This post makes it clearer: Rogers wants to setup online video in a walled garden format where you’d have password-protected access to programming based on what you’ve subscribed to on their cable system.

People in Quebec who have Videotron Illico digital TV get lots of video on demand. Plenty of TV shows can be viewed for free on the service, provided those TV shows are owned by Quebecor. Quebecor owns Videotron and TVA, so you only see TVA shows on the service.

That doesn’t sound to me like it’s solving the new media problem.

| Business, Navel-gazing, Technology

Rogers contract renewal: Just get a cheaper plan

The folks from Rogers Wireless have been calling me incessantly for the past week or two. They always call twice, from an unlisted Toronto number, and never leave a voice mail.

To get them to stop, I finally answered today. As I expected, they were trying to get me to sign on to a fixed-term contract by “offering” me a brand new phone.

Except my phone works fine. Sure, the plug for the charger needs to be jiggled a bit before it works, and the exterior buttons turn the ringer off when it’s in my pocket. But I can still make and receive calls and text messages.

So I told the guy I wasn’t interested. Then he decides he wants to sell me on cool new features, but I’m happy with what I have.

I ask him if there’s anything he can offer me that would reduce my bill and keep the same features. Then he pulls out this “exclusive offer” where I get 100 daytime and 1000 evening/weekend minutes for $15 a month, $10 cheaper than my current plan (which also includes unlimited incoming calls). Knowing that I only use about 100 minutes a month anyway, I figure it’s worth it (evenings also start earlier, 6pm instead of 8pm). I tell him to go ahead.

He also gets me to change my features package for another one at the same price which gives me more text messages and has caller name ID.

But when he told me I’d have to sign on for 36 months, I hestitated. I don’t know where I’ll be in 36 months, and I don’t know if I’m ready to commit that much. No problem, he says, he can do it for 24 months instead (that’s apparently the minimum).

So in exchange for a 24-month commitment, my already cheap cellphone bill is now $10 cheaper per month, and I have more features.

So if Rogers is calling you to get you to sign a new contract, consider the following:

  • If you’re happy with your phone, tell them that and see what kind of plan features you can get instead
  • Ask them what they can offer you to reduce your bill instead of adding new features
  • Don’t readily accept a 36-month contract. See if they’ll reduce the commitment to 24 months. (After those 24 months, you can bet they’ll be calling again to repeat the process.)
  • Do a quick calculation in your head to see if it’s worth it. If they’re not offering a significant discount, don’t accept a new contract. Either get a new phone or tell them you’re thinking of switching to a new, cheaper provider.
| TV

CRTC Roundup: Rogers gets its own CP24

The big news this month is that Rogers has been given permission to launch its own 24-hour all-news channel in the Toronto area called CityNews.

Now, you might think, doesn’t City already have a 24-hour all-news channel for the Toronto area?

No, silly. CP24, the existing all-Toronto, all-news station, was owned by CHUM, which also owned City. But CHUM was acquired by CTV, which was forced to dump City as a result to satisfy the CRTC. For some reason known only to the CRTC, that didn’t include CP24, even though it was heavily linked to CityTV. Rogers ended up buying City, and is now the one behind this new network.

Even under CTV, CP24 is very much a City network. It even airs City News three times daily. Now, not only does CTV have to figure out how CP24 and CTV Newsnet are going to coexist, it has to deal with this new channel from Rogers which is no doubt going to take all the City content for itself.

Oh, and how does the CRTC justify having two Toronto all-news stations like this? Well, they split hairs like I’ve never seen before (emphasis mine):

CITY News (Toronto) would provide a niche news service targeted to Greater Toronto. In contrast, CP24’s mandate is and has always been to serve the region of Southern Ontario.

Yes, that’s right. CITY is for Toronto, while CP24 is for Southern Ontario. Therefore they don’t compete directly with each other. Yeah.

I might have understood if the CRTC pointed to its recent decision to allow more competition for news and spoirts programming. Instead, it came up with the flimsiest excuse in the book to pretend like the obvious isn’t true.

The application was opposed by CTV (for obvious reasons) and by The Weather Network, because of City’s unhealthy obsession with providing information on the weather.

Elsewhere in the news/blogosphere:

CTV wants HD loophole

CTV is applying for special permission from the CRTC to distribute HD versions of its local stations (including CFCF Montreal) to cable and satellite networks, even though those stations do not have digital broadcast licenses (and the CRTC normally requires that before distributing HD feeds). CTV offers excuses for not getting those licenses, and says that they should be granted this loophole to keep Canadians from seeking the same programming on U.S. networks. Deadline for comments is Jan. 9.

TSN2 is OK

Following complaints about the launch of TSN2 by the CBC and The Score, the CRTC has concluded that, though TSN is essentially exploiting a loophole to create a new channel, it has every right to do so. TSN2 takes advantage of time shifting and a special allowance to replace up to 10% of its programming on split feeds (presumably to get around regional blackouts for live sporting events) in order to create a second channel which shows 90% identical programming (though time-shifted three hours from TSN) and 10% different live sporting events from TSN.

Two new French-language networks

The CRTC approved Category 2 digital licenses for two new French-language networks:

Category 2 networks, which most new specialty channels are approved as, has no protection from direct competition (though it can’t directly compete with existing analog channels). They also have no guaranteed carriage rights, which means they have to negotiate with cable and satellite providers for a spot on their grids (and then get subscribers to add them).

More HD!

The following networks have received approval to setup high-definition versions of themselves:

| Business, Media

Debt crisis hurts HugeMediaCorps

After Canwest announced it was cutting jobs and CTV announced it was cutting jobs, Rogers is now announcing it is cutting jobs, about 100 of them, including staff at Maclean’s, Sportsnet and CityTV.

You know what these three megacorporations have in common? They all thought they could get rich by acquiring other media companies.

Canwest was still paying off the debt it took on when it bought the Southam newspaper chain (which includes my employer, The Gazette) when it decided it needed more cable channels and acquired Alliance Atlantis. This gave them channels including Showcase.

Bell Canada responded to Canwest’s consolidation by planning a megacorporation of its own. Bell acquired CTV and the Globe and Mail and eventually most of CHUM’s assets. In exchange for the latter, BCE sold shares in the company to the Ontario Teachers’ Pension Plan, Torstar and the Thomson family, and BellGlobeMedia became CTVglobemedia.

A lot of Rogers’s acquisitions have been in the form of CTV’s sloppy seconds (oh wait, can I not use those words?). This includes Sportsnet, which CTV had to dump when it acquired TSN, and City TV ($375 million), which CTV had to dump when it acquired CHUM. It also acquired the Blue Jays, Fido, as well as specialty TV networks and radio stations within the past decade.

I’m no financial expert, and I don’t have a very clear idea of the balance sheets of these three companies, but this is a really bad time to have debt, especially risky debt (say, holding a bunch of assets in an industry that might disappear entirely in 10 years). The economic downturn that the mortgage debt crisis precipitated is certainly affecting these companies and worrying their management, but I think the debt problem is more significant here than the advertising or subscription revenue problems.

Perhaps this might serve as a warning that consolidation isn’t always the best way to go.

Or perhaps not.

UPDATE (Dec. 9): The New York Times, which I can only assume got the idea from this blog post, has a similar analysis of U.S. newspapers (though in that case, it was taking on debt to acquire other newspapers that got them into trouble).

| Opinion, TV

CRTC roundup: Cancon porn, TSN2 and the Rural Channel

Lots more fun out of the CRTC this week:

Insert “beaver” joke here

The biggest news (or at least the most titillating) is the approval of a new Canadian-based pornography channel. Called Northern Peaks (cute), it would feature 50% Canadian content (i.e. Canadian-produced porn) from various categories, including pornographic sitcoms and game shows (that actually sounds like fun, but it’s really just the company covering all bases, so to speak).

The 50% mark is actually quite unusual, and is well above what would normally be required for such a network. But apparently it was the applicant’s request, according to the National Post:

Mr. Donnelly said he was required to offer as little as 15% Canadian content to appease regulators.

But because he wants “to legitimately be Canada’s adult channel,” he started at half Canadian. He said there is a huge unfulfilled market in Canada for local porn. Beginning last year, he began getting calls from cable companies looking to license his Canadian productions.

“I’ve always found there’s a real turn-on to watching and knowing it’s people you could run into in the grocery store,” he said.

But with more than 200 titles (and presumably they can be replayed over and over again, since most viewers wouldn’t mind repeats of classic programming), he thinks he can do it.

Quoth the CRTC: “The Commission did not receive any interventions in connection with this application.” Really? Not even from the pizza guy? Or that nosy peeping-tom neighbour you’re just waiting to have sex in front of so they can masturbate to it?

Needless to say the media had a field day with this one, the National Post turning it into a front-page story (complete with photo) and an opinion piece that’s pretty tongue-in-cheeks (sorry) asking readers to comment and either denounce the channel or come up with some programming ideas for it. (A funny side-effect of the latter is offhand mentions of Sheila Copps and Avi Lewis, which means searches for these two under “related stories” brings up a comment about a porn channel they have nothing to do with.)

One comment posted to the Post:

When do the adults at the Post return from summer holiday?

Of course, it wasn’t just the Post. The Globe and Mail also had a lengthy article on it (about 12 inches), and the news was picked up by Canadian Press and Reuters and Agence France-Presse and reached news outlets all around the world (well, those two anyway). It also got a mention on an anti-abortion (but still pro-women) conservative website.

The channel is being run by Real Productions (apparently not this Real Productions nor that Real Productions, which appear lower in the Google raking and I’m guessing confused or offended at least a few potential customers), which is run by a man named Shaun Donnelly (but not this Shaun Donnelly, Assistant U.S. Trade Representative for Europe and the Middle East).

Due to the nature of the channel, it can’t be included in any channel packages and must be specifically requested by the subscriber. The network also promises to spend at least 25% of revenues on developing new programming.

Also of note is the 100% closed-captioning requirement, which may foreshadow a fight with Videotron concerning their demand that they not have to closed-caption on-demand video porn.

UPDATE (Aug. 18): The Globe has more on the channel, including an idea of what a broadcast day would look like. And then even more on the channel here. (They won’t let this story go, will they?)

UPDATE (Aug. 24): Farked. With suggestions on Canadian porn titles. Some of these people should write headlines for a living.

Continue reading →

| Canadiens, Montreal, Video

Recognize any of these faces?

Faces from the Habs riot of April 21, 2008

More faces from the … ahem … “alleged” rioters of Monday night.

Also posted on YouTube is the security video of a Rogers Wireless store downtown that was looted Monday night. They couldn’t take any cellphones because those were tied to the display tables, and those prepaid phone cards are useless because they have to be pre-activated by the cashier. But have fun with those charging adapters, I guess.