Robert Brihil, Toronto Star, July 12, 1997

ExpressVu Inc. has drastically overestimated how many people will buy a Canadian satellite service that is restricted to the same programming as cable TV, "grey market" satellite dealers charge.

But ExpressVu stands by its business plan and maintains its numbers of 1.5 million customers within six years is based on 'exhaustive research, not casual observation' by dealers, said company president Michael Neuman.

But these same dealers, who have sold some 300,000 U.S. dishes in Canada over the past 2 1/2 years, insist the BCE Inc.-controlled ExpressVu is in for a shock.

"Cable subscribers will not, by and large, invest in Canadian (direct-to-home satellite service) to receive a clearer picture of the same programming," said Brian Dinsdale, founding member of an ad hoc group called the Canadian Satellite Industry War Committee.

He said ExpressVu and its Canadian rival, StarChoice, will be limited to a niche market of 100,000 to 150,000 customers.

"Customers want the choice. They want ESPN, regional sports channels, HBO, Cinemax, Nick at Nite and all the other channels not licensed by Ottawa for distribution in canada but available on U.S. dishes, said Dinsdale. On Thursday, Newman announced ExpressVu will go to market within weeks, starting at $599 for the set-top box and dish receiver. He did not reveal what programming will be offered or what it will cost.

But ExpressVu is limited to provide only programs approved by the Canadian Radio-television and Telecommunications Commission. "There's a cornucopia of stuff available on U.S. dishes. So ExpressVu has more channels than cable, it's basically the same stuff. Pay-per-view is a bust, people want programming channels not movies a la carte" Dinsdale said.
He said there are more than one million satellite dishes in Canada, when the older big dishes are added to the total. And all those customers are watching TV channels not necessarily approved by the CRTC, Dinsdale said.

But Neuman shot back that Canadians are itching for a home-grown service for many reasons:
-ExpressVu research shows viewers want American programming but not at the exclusion of Canadian.
- Regulations are not carved in stone. The CRTC has 26 foreign channels before it which it could soon approve, he said, such as the Playboy and Golf channels.
- "Grey market" subscribers are tired of the illegality ot their dishes, he said, and the requirement to set up a phony U.S. address to obtain programming.

Many different Canadian courts have come down on both sides of the issue, some saying 'grey market" is legal, some saying it's illegal. The Federal Court of Canada ruled last month that it is illegal. Ultimately, the question must likely be decided by the Supreme Court of Canada
Dinsdale insists the Charter or Rights will prove Canadians have the right to watch whatever satellite service they wish. He said he is sick and tired of dealers being portrayed as criminals by politicians and broadcasters.
"We are small business people-3,000 across Canada-who have created 15,000 jobs, pay taxes and buy gods and services in our communities."

Dish ruling riles Copps' pal

By Robert Brehl
Toronto Star Business Reporter

A close friend of Heritage Minister Sheila Copps says Ottawa is acting like Communists by telling him what he can watch on TV.

Ron Foxcroft owns a DirecTV satellite system - like 300,000 other Canadians - and he's mad as hell following yesterday's ruling by the Federal Court of Canada that deemed ``gray market'' satellite TV dishes illegal.

He said he doesn't feel like a criminal for having a U.S. satellite dish at his home.

``I feel the government is the criminal for suppressing our rights to live the way we want,'' Foxcroft said.

``Canada isn't Communist, is it? What's next? Will they stop us from subscribing to U.S. magazines?''

A successful entrepreneur who owns both Fluke Transport trucking in Hamilton and the Fox 40 Whistle company, which sells 40,000 whistles a day worldwide, Foxcroft has known Copps for years.

``Sheila's my friend. I refereed Sheila in high school basketball. She's a dear, dear friend of mine.

``I respect her tremendously and I donate to her campaign. But on this issue, she is misguided,'' he said.

``I think it is just disgraceful and (the government) should grow up and move into the 20th century.''

It is ridiculous, Foxcroft said, that he will have to drive his 4-year-old son to another grown son's house in Lewiston, N.Y., 50 kilometres away, just to watch the Disney Channel, if there's a government crackdown on U.S. satellite dishes.

``I'll have to drive to my son's house for freedom of choice,'' he said.

Foxcroft said deregulation came to the trucking business years ago and, in the long-term, made Canadian firms like his stronger, even if they underwent short-term pain.

``If these Canadian satellite companies and broadcasters were more efficient they wouldn't need government protection.''

Besides, Foxcroft said, the Canadian satellite firms are not exactly pikers.

ExpressVu Inc. is controlled by BCE Inc., the phone giant that is one of Canada's largest corporations.

Star Choice Television Network is controlled by Shaw Communications Inc., Canada's third-biggest cable company.

Canadian broadcasters have long argued that without regulation, Canadian TV and culture would be even more swamped by Hollywood programming. As it is, American programs dominate Canadian television, they say.

A government official said he was pleased with yesterday's decision but said Canadian dish owners should not fear police knocking on their doors.