TORONTO – The idea of “TV anywhere” has not yet been realized in Canada, but it’s what consumers will demand very soon, according to industry experts who spoke during a special panel titled “The Revolution of TV: Content Anywhere and Anyhow” at the Canadian Telecom Summit on Tuesday afternoon.
“There are a lot of indications that we’re about to go through a major change,” said David Purdy, senior vice-president of content for Rogers Communications. “Today, we’re in the middle of a revolution, but it’s nascent.”
The panel discussion’s moderator, Peter Miller, chair of Interactive Ontario, quoted some statistics from CBC’s Spring 2013 Media Technology Monitor that perhaps suggest the broadcast industry is on the cusp of change. “Only five per cent of Canadians watch non-linear TV, which seems like a ridiculously small number,” he said. “The number of Canadians who have disconnected from the (cable or satellite TV) system – who exclusively watch online – is still very small, only about five per cent.”
However, as of spring 2013, one in four Anglophone Canadians subscribe to Netflix, which is up from 15% in the spring of last year, Miller added. In addition, 30% of Anglophones have watched at least one clip online, and three quarters of those watch entire episodes of TV programs online.
Purdy added another statistic to the discussion, saying 12.7% of Canadians do not subscribe to a pay television service. He said many of these people are young people coming out of university, a group who would traditionally subscribe to cable TV but are less likely to do so now. “Netflix has proven there is room for new business models,” Purdy said.
The impact of the IP revolution on video and the entertainment space has been dramatic, he continued. “You’re seeing content distributed across IP platforms, which by their nature are run by telecom companies… As content moves across all platforms, it’s inevitable that the telecom industry gets much more involved in the entertainment space.”
Michael Hennessy, president and CEO of the Canadian Media Production Association, said there are some serious downsides to having major broadcasters in Canada owned by telecom companies. “The upside is the financial stability that comes from telecom,” he noted. “The problem is telecom is focused on controlling costs and margins and finding the highest return. The content business is not a great investment, so making content and even acquiring high-volume content is looked upon as costly… in a very negative sense. So there’s stability in the short term, but I think it’s problematic.”
David Fuller, chief marketing officer for Telus, said he agrees telecom service providers have to become “inextricably linked” to the entertainment services industry, but he doesn’t believe telecom providers need to own content to be successful. He added that mobile platforms must be an extension of the broader content and entertainment system and can’t be stand-alone silos.
“Consumers want an integrated experience,” Fuller said. “Ideally, they want to be able to start watching a movie on the biggest screen in the house, the TV, and then if they have to go somewhere, they want to pause it and then pick it up later on their smartphone.”
Plus, issues around licensing are an inhibitor to a “TV anywhere” experience, which leaves consumers frustrated. “Consumers want to pay for content once and then watch it on a binge basis, or a time-shifted basis, and certainly on a play-shifted basis,” Fuller added.
Purdy said telecom-owned broadcasters have an opportunity to bring to market a comprehensive “TV anywhere” offering that allows for time-shifting and play-shifting, and that drives shareholder value and real customer benefit, “but if we dither and dally, and try to extract market-share benefit at the expense of our competitors by withholding our content, then I think it will be a lost opportunity.”
