Source : National Post

Current 'diginets' losing money

Television channels including The Horse Network, The Nerd Network, and The Poetry Channel may see the light of day thanks to the federal broadcast regulator.

More than 200 digital channels got the nod in November of 2000 to go on the air, as soon as their owners could convince a cable or satellite company to carry the signal to viewers.

About 40 made it on by the following fall, including the Western-themed Lonestar and horror channel Scream TV, and the licences for the balance were to be rescinded last month.

But in a ruling yesterday, the Canadian Radio-television and Telecommunications Commission extended the licences until Nov. 24, 2004.

In granting the final extension, the CRTC said that "significantly" more Canadian homes have the technology to receive a digital TV signal than when the channel licences were granted.

The commission also noted that distribution of digital channels whose owners must negotiate carriage by cable and satellite TV companies "has evolved in a positive manner."

The list of new channels which could hit the airwaves within the next year includes The Model Network, The Love Channel, Military Television and Recovery TV.

Judy Holm, a producer and former model who won the licences for The Model Network and The Love Channel, as well as The Nerd Channel and The Poetry Channel, could not be reached for comment on their prospects.

She is living in a hut in Mexico which does not have electricity, according to an employee with her company Markham Street Films.

Military Television and Recovery TV, a channel devoted to addiction issues, are owned by Toronto-based broadcaster Alliance Atlantis Communications Inc.

"The broadcasting business is definitely an area of growth for us," said a spokeswoman. "But we don't have any specific plans to talk about with these [channels]."

Despite the optimism from the broadcast regulator, there have been early casualties among the so-called "diginets," or digital-only channels.

Alternative music channel EdgeTV was yanked by owner Corus Entertainment Inc. in August after less than two years on the air because it was not economically viable.

And Bell Globemedia, which owns the CTV Network, also pulled the plug on one of its digital TV channels. WTSN, the Women's Sports Network, was guaranteed cable and satellite distribution but was taken off the air in September after it failed to generate sufficient advertising revenue.

Craig Media Inc., which planned to launch Stampede in the fall, did not do so, and the company "has not confirmed a launch date yet," according to publicist Jodi Taylor-Bruce.

Still, CanWest Global Communications Corp. added a jazz channel, CoolTV in the fall, and executives told analysts on a recent conference call that the company's handful of digital channels are breaking even financially -- a year ahead of schedule.

The 47 digital channels launched in late 2001 sustained a combined pre-tax loss of $148.1-million after generating less than $50-million in revenue in 2002, according to filings with the CRTC.

Fresh financials and subscriber details are expected within the next couple of weeks.

© National Post