Movie Channel Costs for Cable Providers? - Canadian TV, Computing and Home Theatre Forums

monet4sale · 2010-04-23, 09:04 PM

Hi All,
Can any one qualified tell me please what the costs are for cable companies to provide the "Movie Network" and "Superchannel" to their subscribers?
Am working on a triple play solution for our small rural village with around 1000 people. The hardware is all figured out. Now we are closing down on the legal and special programming details. Many thanks

travisc · 2010-04-23, 09:10 PM

This information is typically confidential, and will probably depend on whether you're negotiating with them on your own, or as part of a larger bargaining group like the Canadian Cable Systems Alliance.

monet4sale · 2010-04-23, 09:14 PM

Thanks for the hint, but do you know what the costs are for a small provider? An other hint?

ScaryBob · 2010-04-24, 12:22 PM

The rates may be set by the CRTC. I know they were at one time and they were published by the CRTC. Don't know if this still applies. IIRC, is was about $12 for TMN at one time but that has probably changed. The TMN package retail price has gone up by about $4 since then so that might provide some indication. I have no idea what SC costs.

Dr.Dave · 2010-04-24, 01:51 PM

I think Travis gave the best answer.

Here's some public info from Aug. 2008. Keep in mind that the bulk of the numbers would be attributed to the largest BDUs like Rogers. Eastlink and Bell, who would be in the best bargaining position and get the best volume pricing.

TMN Subscribers 1,126,000
Revenue $116,848,000
Rev./sub/mth $8.65

MPix Rev./sub/mth $1.23
Super Channel would be similar to TMN.

http://www.crtc.gc.ca/eng/publicatio...2009/cmr43.htm

travisc · 2010-04-24, 08:15 PM

The rate is definitely not set by the CRTC.

InMontreal · 2010-04-27, 11:06 AM

I came from a small city, and let me tell you that our small cable provider have more flexibility than the big ones, and you sometimes get a few free extras, from a channel surfing point of view.

Content providers like Astral Media knows that your direct competitor is the big satellite guys, so don't expect them to propose an inflated price at the bulk, and it's negociable. But you won't find the bulk price in a public forum, since this information will cause subscribers to call you and get a discount, blaming you for taking advantage over them on profits. It's better off you contact them directly.

digital_rookie · 2010-04-28, 03:52 PM

monet4sale,

Your best bet to find out prices from any programmer, whether it be a movie, specialty, ppv service would be to call the programmer. Once you give them your launch plans and applicable business details, they will be able to discuss and/or provide you with contracts, etc. that detail out rates and carriage conditions, like packaging, etc.

As travisc said, if you were part of a buying group like the CCSA, you may be able to benefit from their volume pricing, even though you yourself are only a very small operator. Just like any other business, when you buy in volume, you get better pricing. The more volume you can leverage, the better your price will be.

Note on Dr.Dave's comment:

Be careful about using any of the financial data from the CRTC as a way to dig out a specific rate for any service and building your business model on those reports.

The number of subscribers that are noted in the CRTC returns for any year of the reports are at a single point in time, the year end, whereas the revenues posted for that year are for the full year.

You would need to know subscriber numbers each month of a year (or average # over the course of the year) to get a truer understanding of what an effective overall rate would be for any service, whether a movie, specialty or ppv service.

Plus, for specialty services, you would also have to remove any other revenues (advertising, other) to find out what the subscription rate likely is.

Good luck.

2010-04-23, 09:04 PM	#1
monet4sale Rookie Join Date: Apr 2010 Posts: 3	Movie Channel Costs for Cable Providers? Hi All, Can any one qualified tell me please what the costs are for cable companies to provide the "Movie Network" and "Superchannel" to their subscribers? Am working on a triple play solution for our small rural village with around 1000 people. The hardware is all figured out. Now we are closing down on the legal and special programming details. Many thanks

2010-04-24, 12:22 PM	#4
ScaryBob Veteran Join Date: Feb 2009 Location: The Dandelion City Posts: 7,133	The rates may be set by the CRTC. I know they were at one time and they were published by the CRTC. Don't know if this still applies. IIRC, is was about $12 for TMN at one time but that has probably changed. The TMN package retail price has gone up by about $4 since then so that might provide some indication. I have no idea what SC costs. __________________ At 20 I had a good mind. At 40 I had money. At 60 I've lost my mind and my money. Oh, to be 20 again. --Scary

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2010-04-23, 09:10 PM	#2
travisc Veteran Join Date: Jan 2002 Location: Uxbridge, ON Posts: 3,587	This information is typically confidential, and will probably depend on whether you're negotiating with them on your own, or as part of a larger bargaining group like the Canadian Cable Systems Alliance.

2010-04-23, 09:14 PM	#3
monet4sale Rookie Join Date: Apr 2010 Posts: 3	Thanks for the hint, but do you know what the costs are for a small provider? An other hint?

2010-04-24, 01:51 PM	#5
Dr.Dave Moderator Join Date: Aug 2005 Location: Winnipeg Posts: 4,705	I think Travis gave the best answer. Here's some public info from Aug. 2008. Keep in mind that the bulk of the numbers would be attributed to the largest BDUs like Rogers. Eastlink and Bell, who would be in the best bargaining position and get the best volume pricing. TMN Subscribers 1,126,000 Revenue $116,848,000 Rev./sub/mth $8.65 MPix Rev./sub/mth $1.23 Super Channel would be similar to TMN. http://www.crtc.gc.ca/eng/publicatio...2009/cmr43.htm

2010-04-24, 08:15 PM	#6
travisc Veteran Join Date: Jan 2002 Location: Uxbridge, ON Posts: 3,587	The rate is definitely not set by the CRTC.

2010-04-27, 11:06 AM	#7
InMontreal Join Date: Mar 2010 Location: Montreal Qc, Vidéotron SA 83000HD Posts: 296	I came from a small city, and let me tell you that our small cable provider have more flexibility than the big ones, and you sometimes get a few free extras, from a channel surfing point of view. Content providers like Astral Media knows that your direct competitor is the big satellite guys, so don't expect them to propose an inflated price at the bulk, and it's negociable. But you won't find the bulk price in a public forum, since this information will cause subscribers to call you and get a discount, blaming you for taking advantage over them on profits. It's better off you contact them directly.

2010-04-28, 03:52 PM	#8
digital_rookie Join Date: Oct 2002 Location: Toronto, Rogers Cable Sony 50" SXRD, SA8300HD 320 GB, SA8300 SD , 2 x SA 3200 Posts: 145	monet4sale, Your best bet to find out prices from any programmer, whether it be a movie, specialty, ppv service would be to call the programmer. Once you give them your launch plans and applicable business details, they will be able to discuss and/or provide you with contracts, etc. that detail out rates and carriage conditions, like packaging, etc. As travisc said, if you were part of a buying group like the CCSA, you may be able to benefit from their volume pricing, even though you yourself are only a very small operator. Just like any other business, when you buy in volume, you get better pricing. The more volume you can leverage, the better your price will be. Note on Dr.Dave's comment: Be careful about using any of the financial data from the CRTC as a way to dig out a specific rate for any service and building your business model on those reports. The number of subscribers that are noted in the CRTC returns for any year of the reports are at a single point in time, the year end, whereas the revenues posted for that year are for the full year. You would need to know subscriber numbers each month of a year (or average # over the course of the year) to get a truer understanding of what an effective overall rate would be for any service, whether a movie, specialty or ppv service. Plus, for specialty services, you would also have to remove any other revenues (advertising, other) to find out what the subscription rate likely is. Good luck.