Solutions Research Group

by Etan Vlessing
The Hollywood Reporter
Feb 27, 2002

Despite their slow takeup, Canadian versions of U.S. specialty channels have proved the most popular pickings of Canadian digital channels launched in September, according to a survey.

A poll by Solutions Research Group, released Tuesday, indicates that the new digital channels getting the most attention are mostly family-oriented and include National Geographic, Animal Planet, Discovery Civilization, the Biography Channel and MTV Canada.

Other digital channels in the top 10 are nostalgia-themed channel DejaView, Action, Lonestar, BBC Canada and Men TV.

With the exception of BBC Canada, the top 10 channels rely heavily on U.S. programming to woo new subscribers. And many of the new "diginet" offerings are partnerships between Canadian and U.S. broadcasters.

The Solutions Research study polled 1,250 domestic households between Jan. 17-22, asking them which of about 50 digital channels launched and sampled in September most interested them.

The timing of the sampling is a key element because the free preview period for the new digital channels ended Jan. 7, marking the first time Canadians with digital TV reception equipment had to buy the new services if they wanted them.

The study said the free-preview period ended before most Canadians had an opportunity to familiarize themselves with the new digital channels.

"Forty-one percent sampled half or more of the channels launched, another 35% sampled 'only a few,' and the remaining 25% have heard about the new digital specialties but did not have a chance to sample them before the preview ended," the survey reported.

Significantly, only 43% of the respondents could name a specific new digital channel or a genre of channels when questioned.

And 23% of those polled said they had subscribed to "at least one" of the new diginets as of Jan. 22, representing the slow takeup of the new offerings.

That finding is in line with Shaw Communications Inc., Canada's second-largest cablecaster dominant in western Canada, which said 22% of its 1.1 million cable and satellite subscribers had signed up for one or more of the new digital channels.

Rogers Cable Inc., the country's largest cablecaster, said early this month that 38% of its 270,000 digital TV customers had placed orders for one or more of the new channels after the free preview ended.

Bell ExpressVu Llp., one of two Canadian direct-to-home satellite services with digital capability, said about 40% of its 1 million digital subscribers had either subscribed to one or more of the new channels or shown strong interest.

Star Choice Entertainment Inc., the other Canadian DTH service, said 23% of its customers had signed up for at least one new diginet, with another 16% showing strong interest.

The Solutions Research survey recognized the differences in penetration estimates by Canadian cable and satellite operators.

"Overall, market potential appears greater for Bell ExpressVu and Star Choice -- a higher proportion of the customer base for these DTH distributors appears to be open to the idea of subscribing to at least one of the new specialty channels," the report said.

The industry consensus is that Shaw and Bell ExpressVu, which together control more than three-quarters of Canadian digital TV subscribers, will make or break the fortunes of the new digital channels.

For the new diginets to succeed, the study recommended that a "significant marketing effort" be mounted to capture additional subscribers as well as the introduction of "new free preview campaigns."

Canadian broadcasters were reluctant to extend the free-preview period beyond Jan. 7, though familiarity with the new services was low, because they wanted to tap much-needed subscription revenue for the new services as startup costs continue to mount.

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