Bell Expressvu posts $700M Cdn loss in 4th quarter

B.C.E. subsiduary posted a $700 M loss (EDITA was -$100/sub) in the fourth. They had 1.069M subs.

Of significance was B.C.E. pointing out the negative EDITA at Expresssvu. Historically, any B.C.E. subsiduary reported in such a manner has been sold, folded or undergone a major restructuring soon after the report

I hope they don't shut down. I LOVE my ExpressVu Service!

I actually watch it more then I do my Dish Network and DirecTV accounts!

(I am actually thinking of ordering a ExpressVu 6000 receiver as I hear they are now planning on showing the olympics in HD!)

Scott

Before any American viewers go running out to buy Expressvu, be aware of issues in the Canadian DTH world.

First of all Expressvu's parent company B.C.E. does have much patience with loosing divisions. They will spinoff, sell, close down weak links quickly.

eg) Nortel was spun out before it's meteoric rise and supersonic downfall
South American wireless - no profit, walking away

Secondly, Expressvu is the DirecTv of Canada - more subs (1M+), climbing losses
meanwhile Star Choice (owned by Shaw Cable) with 700K will break even this year.

The 3 main issues facing Expressvu are:
1) Security leak and Expressvu's slowness on response. Star Choice on the other hand uses the secure Motorola DCII system. Additionally the same outboard Motorola HD decoder can be used for 4DTV, SC and Motorola cable boxes
2) Telesat Canada is also owned by B.C.E. When NIMIQ 2 is launched in 2003, the full cost will added to Expressvu's ledger - even though most transponders will be empty and Expressvu will not realize any additional revenues from the second bird. While they haven't announced programming assignments for the two birds, there is the monetary question of paying for the dual sat upgrades

Their competition is a Ku band DTH service as opposed to DBS service like Directv, Dish Expressvu. As such Star Choice buys transponders on Telesats C/Ku birds. So when a new satellite launches, Star Choices expenses are only for purchased transponders not whole bird. On F2, a C/Ku/Ka satellite, which will be launched next year to replace E2, Star Choice has bought 10 ku transponders with an option for 6 more. In addition, F3, a C/Ku satellite, will also be launched in 2003 with 32 ku transponders. All Telesat F series satellites have North American continental beams - no spot beams, no regional beams like the E series. At the present time, all SC systems ship with elliptical dish/dual LNBF with 4 receiver multiswitch (neither Cdn provider charges extra monthly for additional receivers)

3) Lastly, there is the issue of what becomes of Expressvu Echostar receivers if the Dish/Directv merger occurs. As widely reported, the decrease in duplication of satellites, uplinks, office staff etc. means that over time the merged company can afford to swap boxes with present subs. However, in the Expressvu case, there is only costs.

Expressvu has advantages, at this time for "southern" subs - namely all services are on 1 satellite than can be seen in US (SC main services are on F1 - "the world's most powerful commercial satellite - as Telesat likes to boast; but HD, most french services + ethnics are on E2 which can be received only in the northern third of US)

Expressvu also has the Echostar PVR, whereas Motorola + Shaw are in some deal to built an outboard PVR to fit all Motorola cable/satellite boxes. However, the hardware is done, but the software supplier has not finished the job (guess who - Microsoft)

So it's sort of a tortoise/hare situation in Canada. Star Choice moving slower than even most ardent subs want, but facing what appears to be a good future with secure hardware, lot's of bandwidth (In addition to 96 continental ku transponders available on the F series, Canada has a regional beam C/Ku slot vacant at 114, so SC could have E type regional beam satellite if the need occurs)

Whereas, for Expressvu - how long will the BCE shareholders patience last? will Expressvu fix the E* security issues? what happens if Charlie stops all design and hardware production? plus 2 satellites are the max for Expressvu as Canada only has 2 DBS slots.

I think the figure is $70 million not $700 million. Expressvu may get sold but its not going away. Eventually they will make money. Revenues are strong. Customer aquisition costs are whats driving these losses. I'm really not concerned about the long term viability of Expressvu.

Originally posted by Ontarian:
I think the figure is $70 million not $700 million. Expressvu may get sold but its not going away. Eventually they will make money. Revenues are strong. Customer aquisition costs are whats driving these los[/b]

$70 million or $700 million, it's still not exactly chump change. Hmmm. . . Could this be why B.E.V. is so desperately trying to put a stop to DirecTV gray market subscribing and piracy in Canada that it took CanAm Satellites all the way to the Supreme Court?