Star Choice goes after cable

In a move to step up competition with the cablecos, Star Choice Communications has rolled out a new financing program offering consumers a lower down payment and monthly payments than its previous offering.

‘When you look at analog cable and then look at what we do digitally, there is a huge advantage to the consumer for about the same amount of money,’ says Bruce Barr, vp of sales and marketing for Star Choice.

For an $80 down payment and monthly payments of $12.49 per month for 36 months, Star Choice hopes to bring on board those customers who found the original hardware investment of approximately $500 to $600 out of bounds.

The subscription rate for the top-end package is $45 a month whereas a similar package on cable costs $60 a month, according to Barr.

Star Choice’s channel capacity will expand this fall when ExpressVu vacates the Anik E2, opening up another 60 channels for Star Choice. When Star Choice switches to the Anik F1 in March 2000, the company will have the capacity to broadcast 300 channels. ‘There will be 30 transponders at a compression ratio of 10 to one,’ says Barr.

The only limitation for Star Choice is crtc regulatory approval of any new eligible satellite services which it wants to offer.

As Star Choice gears up for the launch of hdtv this fall, the company is meeting with programmers to secure more digital content for broadcast. ‘Our challenge now is to get that content,’ says Barr.

If Star Choice is unable to find digital programming from Canadian broadcasters or programmers, Barr says ‘we might have to pull it down from the sky and give to our customers.’ But in order to do that, the company would have to seek crtc approval.

Meanwhile, in other news, the crtc has announced it is considering delaying the hearing for the Star Choice/Canadian Satellite Communications (Cancom) merger application originally scheduled for May 3.

The two companies plan to create a synergy between their diverse customer bases. While Cancom represents customers in the business and wholesale end of the satellite business, Star Choice is primarily residential.

‘The merger will allow us to be a strong and viable competitor,’ says Barr.