More cable and/or satellite distribution companies may follow in the wake of Cogeco Cable Systems’ decision to offer pay-tv service Moviepix to its tier 3 subscribers at no additional charge, according to James Leder, exec vp of sales marketing and programming for TMN-The Movie Network.

‘There’s strong indication that more will follow suit,’ says Leder, who is currently in discussions with other broadcast distributors looking for a similar deal.

But Canada’s biggest cable operator has no plans to move Moviepix or any other pay service to tier 3 to drive subscriber rates, says Colette Watson, Rogers Cablesystems’ vp programming and pr.

‘We’re not contemplating any changes to tier 3 at this time,’ says Watson, adding that Rogers’ 47% tier 3 penetration rate is ‘right on target.’

Len Collins, director, sales and marketing for Cogeco, says that while Cogeco currently enjoys tier 3 penetration of over 50%, the addition of Moviepix is forecasted to drive that level to ‘the mid-60s.’

‘Dropping a pay station that was formerly $10 a month as a standalone service into a package you can now get for $5.99 with 12 or 13 other partners, obviously will cause folks who had previously said `No’ to the new tier to stand back and reevaluate their decision,’ says Collins.

At the old rate, Moviepix was received by roughly 8% or 9% of Cogeco subscribers, says Collins. Cogeco has moved hgtv to basic.

Cogeco will now pay an undisclosed amount each month in subscriber fees to Moviepix, which is owned by Astral Communications. Collins says the forecasted increase in tier 3 subscribers as well as the elimination of upkeep and maintenance costs of some descrambling boxes should make the move profitable for Cogeco.

‘We won’t be losing any money going forward with this plan,’ he says.

Cogeco has 780,000 customers in Ontario, Quebec, Saskatchewan and b.c.

Meanwhile, Watson reports Rogers is mulling over its submission to the crtc’s in response to its recent decision that French private network tva must be carried nationally on cable systems.

‘It’s an out-of-the-ordinary licensing decision I must say,’ says Watson. Submissions in response to the tva ruling are due Nov. 30.

Watson also notes that Rogers will be adding doc channel Canal d to tier 3 in its Ottawa service area and moving Canal Famille to basic.