OTTAWA-GATINEAU – Rogers Cable has asked the CRTC to change the rules for airing commercials and affiliated programming on its VOD service to grab back revenues from advertisers moving online.
Since October 2005, Rogers has been allowed to show commercials on Rogers on Demand (ROD) where an ad was already included in a program previously shown by a Canadian broadcaster, there is a written agreement with the original broadcaster to air the spot, and the program is offered to subscribers on demand but for free.
Rogers wants its condition of licence amended so that it doesn’t have to offer the program for free, but it must still be obtained from a Canadian broadcaster under a written agreement with the broadcaster to air the show containing commercials.
ROD would then be able to offer programs that include any commercials, and not just those that appeared in the linear broadcast of the program, and to charge a fee to subscribers at its discretion.
It’s also asked the commission to be allowed to air the same commercial, sponsorship, and credit messages that appear as part of its community programming on its ROD.
Rogers’ application also requested the commission lift its ban on airing programming, other than filler, produced by Rogers or someone related to Rogers. It wants to distribute up to 10% of ROD’s total programming produced by other Rogers services, such as OMNI 1 and 2, Sportsnet, the Biography Channel, G4TechTV, and its Rogers Television community channels.
Allowing more ads on ROD is a business necessity, the company argues. “The Internet is providing both consumers and advertisers with a compelling value proposition,” said Pamela Dinsmore, VP Regulatory, Broadband & Video Distribution, in the Rogers application. “Faced with growing competition from unregulated alternatives, Rogers and our programming partners must provide consumers with a viewing experience, and advertisers with business models, that are at least comparable to what is available via other alternatives.”
Rogers is asking the CRTC to expedite its request. “The threat of the disintermediation of the Canadian broadcasting system is not a theoretical possibility that might take place in the next 5, 10 or 15 years. It is a threat that exists today and Rogers’ proposal will better position all players within the broadcasting system to counter it,” Dinsmore wrote.
The deadline for submitting comments or interventions on the application is July 17, 2007.
