New pay TV apps are "a luxury no one can afford" says report

TORONTO – The four new pay television applications before the CRTC offer questionable customer value, will increase churn and hammer the bottom lines and the share prices of the two incumbent license-holders, says a research report published this week by investment bank Credit Suisse First Boston. The report, entitled “A Luxury No One Can Afford,” says the four new pay services misinterpret the state of the Canadian pay system (which it characterized as “gold plated”) versus the American system and that any new applicant would find it very tough to stimulate high penetration levels. The pay TV space in Canada...