Solutions Research Group

by Barbara Shecter
The National Post
Oct 31, 2001

Western-themed television channel Lonestar is among the most popular of the 50 specialty channels launched this fall, the Canadian Association of Broadcasters' annual convention was told yesterday.

So far, only about 12% of cable customers can receive the new digital channels, and only a fraction of them are tuning in to any of them. A further 1.6 million Canadians can pick up the signals with satellite dishes.

But Chris Frank, vice-president of business development at satellite operator Bell ExpressVu, said his firm's research has revealed that Lonestar, Animal Planet, Sex TV, The NHL Hockey Channel, Men and Showcase Fashion rank highest with viewers, with Lonestar leading the pack.

In sports, ESPN Classic is the most popular, he said, while Mystery and Biography come out on top in variety. Showcase Action, Showcase Diva and horror channel Scream lead the pack of movie channels, he said.

Kaan Yigit, of Solutions Research Group, which has tracked specialty TV launches for a decade, said his research also puts Lonestar near the top. He chalked up its success to the nostalgia factor, and said the channels that will do best will have a defined subject area: "If it takes you two sentences to explain your channel, you're in trouble."

Bill Hunt, vice-president of specialty affiliate relations at the Global Television Network, said his firm recognizes it is early in the ratings game. Nevertheless, he said, the network has been convinced by the performance of Lonestar and Global's other digital specialty channels, including Men and DejaView, to launch a new channel called CoolTV next year.

ExpressVu's Mr. Frank said the satellite operator has had 20,000 enquiries about the new channels, and that three out of four customers order them in bundles, rather than the more expensive option of purchasing channels individually. "It's better for our business plan and yours if we sell in packages," he said.

ExpressVu's business plan calls for 25% penetration of the new channels in the first year and as high as 50% by the fourth. The company is hoping customers are willing to spend "north of $50" a month on programming, so new orders won't cannibalize existing channels, Mr. Frank said.

Rogers Communications Inc. and Shaw Communications Inc. have not detailed their pricing.

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