Tag Archives: TV specialty channels

Children’s TV massacre: Family Channel, ABC Spark, Nickelodeon, Chaîne Disney, Disney XD, Disney Jr., Family Jr., WildBrainTV, Télémagino all to be shut down

In a matter of weeks, the number of specialty television channels in Canada for children is going to drop dramatically.

Earlier this summer, Corus began telling distributors it planned to shut down ABC Spark, Nickelodeon, La Chaîne Disney, Disney XD and Disney Jr., effective Sept. 1. While it’s not a complete pullout of children’s TV — it will keep Cartoon Network, Boomerang, the English Disney Channel, Treehouse and YTV — it’s a major cutback, driven by the broadcasting company’s dire financial situation.

Then on Monday, WildBrain informed its investors that it was pulling out of regulated Canadian TV completely, shutting down Family Channel, Family Jr., WildBrainTV (formerly Family CHRGD) and Télémagino, 37 years after the original Family Channel launched. (No date has been set, but it will happen “in the coming months.”)

In their case, the move was driven mainly by the fact that both Bell and Rogers chose to drop the services, and WildBrain was unsuccessful in getting the CRTC to rule that they had subjected them to unfair treatment. The result of these decisions was a failure of its planned sale of two thirds of its TV assets to a company called IoM Media Ventures.

Outside of the public broadcasters like CBC and foreign streaming services, Corus and WildBrain were responsible for just about all English-language children’s TV in Canada.

Neither Corus nor WildBrain is required to provide full public info on specialty channel financials in their CRTC reports, but what we do know is:

  • ABC Spark saw its revenues drop from $15.9 million in 2020 to $7.5 million in 2024, and despite an 18% cut in programming expenses last year, it continued to lose money
  • Boomerang’s revenues dropped from $2.4 million in 2020 to $1.5 million in 2024, which was less than half its programming costs alone
  • Disney Jr. saw its revenues decline an average of 8% a year, while its programming costs increased 28% a year
  • Disney XD saw its revenues decline an average of 10% a year
  • La Chaîne Disney was losing an average of 18% a year in revenues
  • Nickelodeon was seeing average revenue declines of 12% a year and spent more in programming than it got in total revenue despite a 37.5% cut in its programming budget in 2022-23

Based on their CRTC returns for 2023-24, these nine channels invested $11.1 million in Canadian programming that year. That’s a small fraction of the $387 million spent on Canadian children’s programming that year across the industry, but when it was described as a “crisis” even before these cuts, you can imagine how they feel about it now.

The great Canadian specialty TV shuffle begins, but it’s not going well for you

It’s New Year’s Eve. In a matter of hours, a great realignment takes place as Canadian rights to U.S. specialty TV brands owned by Warner Bros. Discovery change from Bell and Corus to Rogers.

We’ve known about this change for more than six months now, and yet we still have many unanswered questions, including whether you’ll be able to watch HGTV and Food Network content if you’re not a Rogers cable subscriber.

So here’s what we do know:

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Bell’s MTV2 becomes latest casualty of specialty channel decline

If you’re a subscriber of Bell Media’s MTV2 channel, you may have already received a notice that the channel is being shut down at the end of March.

The shutdown is not too surprising. It was on my list of endangered channels along with ESPN Classic and Yoopa, which have seen dramatic declines in subscribers and advertising in recent years.

According to the latest CRTC data for the 2021-22 broadcast year, MTV2 had about 750,000 subscribers (including zero satellite TV subscribers), about $215,000 in total advertising revenue, and had cut expenses by 84% in four years to try to shrink itself back into profitability.

Billed as “the ultimate destination for Canada’s 12-24s”, the channel currently runs marathons of reality shows like The Real World, Teen Mom, Catfish, Geordie Shore and Canadian filler shows Cash Cab and Comedy Now!

The channel began service in 2001 during the digital specialty channel explosion, originally as Craig Media-owned MTV Canada, then rebranded to Razer and finally to MTV2. MTV still exists as a separate Bell Media channel under a separate licence, though Bell hasn’t done much more to promote that channel than it did MTV2, and it was also bleeding money according to CRTC data.

UPDATE (May 6): The CRTC has revoked the channel’s licence at Bell’s request.

TVA to replace Yoopa with TV version of QUB Radio

The fallout of the Bell-Quebecor war has another victim: Yoopa, which Bell pulled from its television service in retaliation for Quebecor’s Videotron pulling Bell channels Vrak and Z, is being shut down in January, replaced by a video version of Quebecor’s QUB Radio online radio service as of Jan. 11.

According to its annual filing with the CRTC, Yoopa had $2.6 million in revenue, all but $30,000 of which came from subscriptions, in 2021-22, and spent about $2 million on programming, a bit less than half of which was Canadian. It had 340,000 subscribers and a staff of three.

The loss leaves a hole for television targeting young children, though public broadcasters Radio-Canada and Télé-Québec devote much of their morning programming to programs for kids.

Meanwhile, Quebecor seems to be doubling down on its QUB Radio digital talk radio project, and will now be putting even more resources into it, even though it already has a 24/7 news channel in LCN. Quebecor doesn’t release ratings or financials for this online-only service so we have no idea if it’s successful. But it’s cheap, at least compared to the news programming we see on LCN.

Whether QUB Radio or its still-to-be-named TV version lasts is an open question. Honestly I’m a bit surprised it survived the latest round of media cuts at Quebecor.

In theory, QUB TV could apply to be a national news service, requiring other providers to carry it, but that would require having news bureaus and regular news updates, and the CRTC might have some questions if it tries to just piggyback on LCN’s resources to achieve that status.

Videotron will obviously embrace QUB Radio on TV. Bell is probably not interested. Whether others who carry Yoopa, like Cogeco, make the switch is an open question.

Bell Media gave up on Vrak, now it’s shutting it down (which channel is next?)

The announcement came last week: Bell Media is ending the “activities” of Vrak, a channel that used to be about family and youth but recently has become just another soulless number airing reruns and dubbed American shows.

It was surprising in that Vrak was one of the marquee Astral Media specialty channels, had a larger than usual amount of original programming focused especially on youth (kind of like a Quebec version of YTV), a hefty per-subscriber fee and a good amount of name recognition in Quebec.

But Videotron finally pulled Vrak from its distribution service last week (it wanted to do so more than a year ago, but Bell complained to the CRTC, which finally ruled in February that it could not prevent Videotron from terminating its agreement with the channel and sister channel Z).

And all the stuff that was special about Vrak was in the past tense anyway. It cancelled all that original programming, and even dropped its youth focus. When it announced its fall schedule recently, the “original productions” section was all shows that were original to Bell Media but not to Vrak, and had already aired on Noovo or Crave. Its “interim” schedule, until Sept. 30, allows it to finish off seasons of shows for the few still watching.

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TVA to buy Évasion and Zeste, eliminating another independent TV broadcaster

The number of independent commercial television broadcasters in French Canada can be counted on one hand, and soon that number will decline even further as Bell and Quebecor gobble up whatever they don’t already own.

As Bell’s proposed purchase of Corus’s Historia and Séries+ awaits CRTC approval, TVA announced Tuesday it has agreed to purchase Serdy Media’s specialty channels Évasion and Zeste for $24 million.

The transaction requires CRTC approval, and we’ll learn more when that application is posted. Generally the purchase of TV assets requires a tangible benefits package of 10% of the value of the transaction, which means at least $2.4 million going to production funds or other independent initiatives that benefit the broadcasting system.

Évasion is profitable, with almost $10 million in subscription revenue, $2.6 million in ad revenue and $10 million in expenses in the year ending Aug. 31, 2016. But in 2015 and 2016 it lost bout 5% of subscribers a year. Zeste does not have full financial information published by the CRTC, but had $6.6 million in revenue and $3.8 million in Canadian programming expenses in 2016, which suggests a similar level of profitability.

This is yet another step in the consolidation of French-language television in Canada in two hands: Bell and Quebecor. Each is bulking up to compete with the other, convincing the CRTC that their purchases are necessary because the other has gotten bigger. If the Corus and Serdy sales go through, it would leave only V, children’s channels, non-profit services, some local stations and a handful of others (MétéoMédia and Frissons TV) not controlled by the two giants.

Here’s what Canada’s French-language television landscape looks like:

Quebecor (Groupe TVA):

  • TVA
  • addikTV
  • Casa
  • LCN
  • Moi & Cie
  • Prise 2
  • TVA Sports
  • Yoopa

Bell Media (*former Astral channels):

  • Canal D*
  • Canal Vie*
  • Cinépop*
  • Investigation
  • RDS
  • RDS Info
  • Super Écran*
  • Vrak*
  • Z*

Corus:

  • Historia (pending sale to Bell)
  • Séries+ (pending sale to Bell)
  • Chaîne Disney
  • Télétoon

Groupe Serdy:

  • Évasion (pending sale to TVA)
  • Zeste (pending sale to TVA)

V Média:

  • V
  • MusiquePlus
  • MAX

Independent for-profits:

  • DHX Media: Télémagino
  • Frissons TV
  • Pelmorex: MétéoMédia
  • RNC Media (regional affiliates)
  • Télé Inter-Rives (regional affiliates)
  • TéléMag (Quebec City)

Radio-Canada:

  • ICI Radio-Canada télé
  • ICI ARTV
  • ICI Explora
  • ICI RDI

Other public and non-profit broadcasters:

  • AMI Télé
  • Canal Savoir
  • CPAC
  • Télé-Québec
  • TFO
  • TV5/Unis
  • Community channels

TVA pulls the plug on Argent

argent-logoArgent, the only French-language business specialty channel in Canada, is being shut down on April 30, owner Groupe TVA announced on Tuesday.

The television and cable industries are in turmoil and TVA Group has concluded that, despite the marketing efforts made in recent years to support Argent, it would be difficult if not impossible to achieve the profitability to continue operating the economic and financial channel.

I’m not sure what those “marketing efforts” were exactly (I’ve never seen an ad for the channel, beyond the branded business pages of the Journal de Montréal), but questions can certainly be raised about TVA’s commitment to the channel, which for one thing was never distributed in high definition, even on Quebecor’s Videotron cable system.

After taking its usual unnecessary swipe at Canada’s public broadcaster (which doesn’t have a business news channel), TVA said the decision would affect an unspecified number of employees. La Presse reports its nine permanent employees will stay with TVA, but their shift to other jobs might affect temporary employees at LCN and elsewhere.

The channel launched in 2005.

According to data submitted to the CRTC, Argent’s financial situation has been in significant decline since 2010-11, going from $4.2 million in revenue to $2.4 million in 2013-14. (Data for the year ending Aug. 31, 2015 should be out within the next month or two.) This is largely because of a decline in subscription revenue (advertising makes up only 2% of revenue), which in turn is because of a decrease in the number of subscribers, from a high of 957,000 in 2010 to 552,000 in 2014.

In the three years from 2012-14, the channel lost almost $2 million, and nothing indicates that 2015 or 2016 would have been any different.

The news of Argent’s shutdown has interesting timing since Canada just added its second English-language business channel (Bloomberg TV Canada) and the first one, Business News Network, is still doing quite well financially, with a 40% profit margin.

And the suggestion that this decision comes out of the CRTC’s recent pick-and-pay TV decision also doesn’t jive with the fact that its financial troubles started long before then and that Videotron, also owned by Quebecor, has been offering custom channel packages for many years now.

But these days it makes more sense for a Canadian business channel to be based in Toronto than Montreal. The only place I remember seeing Argent on TV was at my local Caisse Desjardins bank. I guess they can switch to LCN.

Cuts in QMI’s investigative bureau

UPDATE (April 21): Meanwhile, there were cuts to the investigative reporting team at Agence QMI, Quebecor Media’s shared journalism outlet.

https://twitter.com/AndrewQMI/status/722844090702794753

Andrew McIntosh is an investigative reporter who’s been in the business more than 30 years, working for the Globe and Mail, Montreal Gazette and National Post before joining QMI in 2010 as their top investigative reporter. His awards include three National Newspaper Awards.

You can read some of his reporting for QMI here.

The other high-profile departure is Michel Morin, who was a journalist with Radio-Canada until he became a CRTC commissioner. After his term at the broadcasting regulator ended, he joined QMI’s investigative team. You can read some of his stories here.

10 things that might disappoint you about skinny basic and pick-and-pay TV

It’s March 1, 2016, which means the Canadian Radio-television and Telecommunications Commission’s new rules about TV packaging take effect.

To explain it, I wrote this piece for Tuesday’s Gazette, which also lists exactly what you’ll find in a skinny basic package in Montreal.

But in hearing people talk about the new rules, it seems there are some misconceptions or assumptions that people have that will cause disappointments when they actually try to take advantage of the new rules. Here are the ones I can explain so far:

1. In Quebec, not much changes

Videotron, the market leader here, has offered a small basic package and build-your-own bundles for many years now. And until December, when it has to offer almost all channels à la carte, they really don’t have to change how they operate.

Videotron’s new $25 a month basic package is pretty similar to the old one, with a few exceptions:

  • RDI is not included. CBC News Network is, because of an order that news networks be distributed in minority language communities (at reduced prices). Outside Quebec, it’s the reverse: RDI is mandatory, CBCNN is not.
  • Stingray music channels are not included
  • Some out-of-market over-the-air channels are not included. The CRTC rules say stations from other cities can only be included if there are fewer than 10 local stations, and even then can be added to reach a total of no more than 10. That means Montreal’s basic package loses CJOH (CTV Ottawa, included for historical reasons because the station’s transmitter in Cornwall reached into western Quebec), Granby and Sherbrooke lose Canal Savoir, and Gatineau loses most Montreal stations. Videotron asked for special permission to keep these stations, but was denied.

2. The $25 maximum doesn’t include set-top box rental, installation fees or taxes

The CRTC is clear that the $25 price is for programming only. Renting a set-top box will cost between $5 and $10 a month depending on provider, and if you’re not already a customer you’ll need to pay extra for installation.

3. Providers aren’t offering special deals or discounts on skinny basic

It’s very clear that none of the major TV providers are really promoting this new package. CBC even found out about Bell ordering its customer service representatives not to discuss it unless asked, even though that’s a clear violation of the CRTC’s rules.

Other attempts to downplay are more subtle. Most providers list the package at the bottom of web pages. Shaw calls it “Limited TV”, Rogers calls it a “Starter package” as does Bell Fibe. Telus calls it “Lite”.

But even if the CRTC forces them to offer the same amount of visibility, they aren’t obligated to offer the same deals. Free equipment rental, new customer discounts, customer retention discounts, even bundle discounts don’t apply to this package (though Telus offers it at $5 off if you bundle with other services).

New IPTV providers are more aggressive, however. Zazeen, which is used by Distributel in Quebec, offers an Internet-based basic package for $10 a month if you prepay for 12 months. VMedia (which isn’t available here yet) offers it for $18 a month.

4. The channels you want to add will be the most expensive

If all you care about are TSN and Sportsnet, because everything else you can watch online, well I have bad news for you. The wholesale prices for those channels averaged $3 per subscriber per month in 2014, and they’re going up. Those costs are being passed on to you. To get them on Videotron you need at least the basic + 10 channels package, which is $50 a month. Shaw customers can add them for $8 each or $12 for both.

While the retail cost of the basic package is regulated at $25 a month, the cost of add-ons isn’t regulated at all. And nothing requires all channels to be offered at the same price. You could be charged $5 a channel or $20 for a pick-your-own package with a lot of exceptions.

5. No, you can’t get HBO for 1/5 the price of The Movie Network

While most channels will be available à la carte, in some cases there are multiple channels tied to a single licence. That’s the case for TSN, the four main Sportsnet channels, and The Movie Network. If you spend $15 a month for TMN and its five channels, you won’t be able to get just HBO Canada for $3 a month.

The CRTC is reviewing its rules for multiplexed channels and will remove the requirement that they be sold as one unit. But don’t expect HBO Canada to be offered anywhere near that cheaply.

6. It’ll probably be cheaper for you to keep your current package

If you’re interested in more than a couple of channels, chances are you’re better getting a big bundle, even if it might have some channels you don’t care about. It’s in the providers’ interest, and the broadcasters’, that as many people subscribe to as many channels as possible to spread the cost around. Simple economics will encourage you to buy more, just like a grocery store encourages you to buy in bulk.

7. Some channels will die

This is particularly true of independent channels like Vision, OUTtv and iChannel, that don’t have free advertising on CTV, Global or TVA. Some CRTC rules encourage providers to carry them, but if their number of subscribers goes down, they’re in big trouble financially.

8. Many channels will try to generate maximum demand at minimum cost

Consider a channel like AMC or FX. They’ve got some expensive must-watch shows during primetime, but the rest of their schedules are largely filler, with old movies or reruns. Expect a lot of channels to have one or two high-quality shows to get you to subscribe, but not much else for the other 22 hours of the day.

9. It’s competition, not regulation, that will really bring prices down

Part of the problem with TV service in this country is that because very few places have more than one incumbent cable company, there’s little competition (there’s satellite TV, but that has technical limitations). Bell and Telus are doing their part building up their fibre-optic networks to allow them to offer IPTV service.

But what would really make a difference are more independent third-party IPTV providers like Zazeen, VMedia and Colba.net. Those are still in their infancy and lack the kind of channel selection and quality the big guys have.

The CRTC has been doing a lot to make it easier for these guys to start up. New TV providers, even those operating in big urban centres, don’t need to have a licence until they reach a large enough subscriber base. Such exempt services also don’t have as many rules to follow. Plus they can use existing telecommunications infrastructure, similar to the way independent Internet providers do. And new rules about how the big broadcasters negotiate carriage will create less headaches for independent providers when signing carriage contracts.

But we’re still a while from these independents creating real competition for established TV providers.

10. No one really knows what the TV market will look like after this

We know that it will be more expensive to buy a set number of channels individually than in a bundle. We know that skinny basic will make less money for providers if they don’t have lots of add-ons. But how the economics will look exactly isn’t known.

Will we see channels go high-quality and expensive, like HBO, TSN and Sportsnet? Will they go cheap to maximize the number of subscribers? Will we see an explosion in the number of channels as the big guys try to maximize subscription revenue by splitting up their most in-demand programming? Will free previews be more or less common? Will this encourage more over-the-top offers for specialty channels wanting to bypass TV providers all together?

We’re not following the U.S. here, even though politicians there are trying to push for more consumer choice. So we’ll have to wait and see.

But it’s still a good idea

Skinny basic and packaging choice are good things. There are a lot of channels out there (*cough*BookTV*cough*) that survive almost solely on being included in large packages and have had nothing new to offer for years. Those deserve to reform or die.

But TV providers are going to do whatever they can to protect their bottom lines so long as they don’t have to worry about competition. So, unless you only want a few channels, and you don’t like sports, don’t expect to save too much under these new rules.

Instead, be happy that the money you pay is more likely to go toward channels and programming you care about than zombie services that profit from resistance to change.

UPDATE (March 1): I had a discussion with CBC Radio’s Q about the changes and what they mean for consumers.

Video: CRTC 1987 specialty channel hearings

With a month to go until the CRTC begins what will probably be the most important hearing into television policy in decades, it’s fun to look back at one of the hearings that shaped television in Canada as we know it, back in 1987.

The Youtube channel Retro Winnipeg recently posted nearly five hours of video from CRTC hearings held in July 1987 on specialty channel services. It led to a wave of new channels, including YTV, TV5, Family Channel, The Weather Network, CBC Newsworld and more.

Rather than have you sit through five hours of people in suits talking as boringly as they possibly can, I’ve split them up into sections, and you can watch the parts that interest you.

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Shaw Media to rebrand Twist, Mystery channels

As part of its fall upfront presentation to advertisers, Shaw Media announced on Wednesday that it is launching two new specialty channels before the end of the year. Though what the press release doesn’t say is that these are actually rebrands of existing channels.

Twist becomes FYI

Twist TV, a lifestyle channel whose schedule includes reality shows like Till Debt Do Us Part, Extreme Makeover: Home Edition and I don’t know how many shows devoted to weddings and bride-ness, will be rebranded FYI this fall. FYI is “geared towards a younger, upscale audience” and “offers contemporary lifestyle programs” aimed at millenials. “FYI hosts a hub of modern lifestyle programming featuring health and wellness and food and fashion.”

FYI will effectively be a Canadian version of an American channel by the same name. A&E Networks is rebranding its Bio channel to FYI as of July 8. The U.S. channel has already announced what some of its new shows will be. The list includes Epic Meal Empire, a half-hour 16-episode show starring Montreal’s Epic Meal Time. (I don’t know if this will be considered a Canadian program.)

The U.S. rebrand also brings up the question of what happens to Biography Channel Canada, owned by Rogers, which shares branding with the U.S. version, and gets shows like Gangsters: America’s Most Evil, Mobsters, Women Behind Bars, Celebrity Close Calls, Celebrity Ghost Stories and My Ghost Story from its U.S. counterpart. Without a supply of fresh content, it too could be headed toward a rebrand.

Twist began as Discovery Health Canada in 2001. When the U.S. network turned into the Oprah Winfrey Network 10 years later, the Canadian Channel was morphed into Twist. (Corus rebranded a different channel, Viva (formerly CLT) into OWN Canada.)

The history of the channel means FYI remains tied to Discovery Health’s CRTC licence conditions, which requires it to air programming “devoted entirely to useful, practical, reliable and entertaining programming related to health, wellness and medicine.”

Whether Twist and FYI fit into this definition depends, I guess, on your definition of “wellness”. If reality shows about getting married or fashion or home renovations qualify, then I guess so.

FYI will also be bound by other licence conditions, limiting the amount of sports, drama, comedy, movie and music video programming combined to 10% of the schedule. There’s no limit on the number of reality shows, formal or informal educational shows, or entertainment magazine programs.

FYI must also ensure that at least half its schedule (and half its primetime schedule) is Canadian programs.

According to CRTC figures, Twist made $1.76 million in ad revenue in 2012-13, had 2.2 million subscribers and had a 60 per cent pre-tax profit margin, employing a staff of 10. It’s clearly not in financial trouble, though I guess Shaw believes it can boost those ad figures by targetting a younger audience.

Mystery becomes Crime + Investigation

The other rebrand seems less dramatic on the surface, but involves a much bigger change in programming. Mystery, the channel whose schedule is half Law & Order reruns (plus whatever shows Shaw owns that it can pretend fit into this category), will become “Crime + Investigation” in December.

“Crime + Investigation strives to engage viewers’ minds and crime solving skills, drawing the audience into investigations by offering a behind-the-scenes look at gripping, unforgettable crime stories,” reads the press release.

This is also a case of a Canadian channel copying a U.S. brand. Crime & Investigation is also owned by A&E. Its programming features reality shows following law enforcement and investigators.

If “CI” follows the U.S. version, this will mean dropping most of its drama reruns and replacing them with justice reality shows. And that would make it very similar to Investigation Discovery, formerly Court TV Canada, a Bell-owned channel that’s doing the same thing.

First licensed in 2000 as “13th Street”, Mystery is “devoted to mystery and suspense programming. The service will nurture and encourage short-form Canadian mysteries. It will provide a wide assortment of genre-specific programs including movies, television series, short films and documentaries that will focus exclusively on the delivery of entertaining programming on suspense, espionage and classic mysteries.”

Whether law and order reality shows fit into this definition is a matter of interpretation. The channel has limits on comedy, professional sports and music video programming, but is otherwise free to air what it wishes as long as it fits the nature of service.

Mystery was co-owned with Quebecor until 2012, when Shaw bought it out. As part of that deal, Shaw promised the CRTC to devote some funding to scripted dramas and other so-called programs of national interest until 2017. The dramas wouldn’t have much of a home on the new channel, but that money could also be spent on long-form documentaries.

In the latest CRTC financial numbers, Mystery had $6.5 million a year in advertising revenue in 2012-13, a staff of 11, about 2 million subscribers (growing steadily over the past five years) and a very healthy 47 per cent profit margin.