MONT TREMBLANT – When Cogeco Cable began rolling out video on demand about five years ago, “we thought we were building a virtual video store,” says the company’s director of affiliate relations JP Caveen.
Not any more, of course. VOD has moved leaps and bounds away from that.
Caveen was part of a video on demand panel organized by CTAM Canada held Monday afternoon during the Canadian Cable Systems Alliance 14th annual general meeting that included a programmer, an aggregator and three operators.
They were there to share their success stories and challenges with the independent cable companies who are about to launch VOD or may have just launched it.
While adult content is the initial big driver of the platform (adult “tends to be the driver, at least early on,” said TVN Entertainment VP affiliate sales Alyson Stewart), subscription video on demand has also surged. Domenic Vivolo, SVP marketing and sales at Astral Media, home of The Movie Network, reported over four million TMNOD views in August alone, usually a slow month for television.
“It’s about entrenching ourselves with the consumer,” added Vivolo – a consumer that can get content in so many places nowadays.
Rogers Cable VP & GM David Purdy added that on his systems, 50% of TMN subscribers watch the programming on demand and not the linear channel. It’s a key added value aspect of Rogers Digital Cable which the company “baked into “ the subscription fee of its customers. Such added value tends to make later rate increases more palatable then, added Purdy.
The Rogers exec also called on other broadcasters to offer some of their prime time content up for on demand viewing and thanked CTV for its contributions of Gossip Girl, Pushing Up Daisies and Big Shots.
Unique content is also key, added Myrianne Collin, senior director of marketing, broadcast distribution at Videotron. The Quebecor-owned company has offered much content from Quebecor-owned TVA as well as special events that can’t be seen anywhere else, such as the Just For Laughs galas and a recent Celine Dion concert, which eventually make it to regular TV, but illico digital subscribers get it first.
“The success in the French market has proven to us the real home run is getting that main network prime time programming on demand,” added Purdy, whose company records 800,000 to a million VOD orders (free or paid) per week.
One of the real keys though for future VOD growth is advertising – and it’s up to the CRTC to alter its thinking, said Purdy. “We have to get them to move off their antiquated position that on demand can’t have advertising,” he added.
On demand content can have some advertising, but only if it airs on a linear channel first. Purdy envisions targeted ads to customers and dynamically inserting new ads into VOD streams to keep content fresh. But until the BDU hearings in January, any ads in VOD will have been previously aired.
“We need the Commission to move off of this antiquated position. On demand not about a video store, it’s about the future of television.”
Other challenges include the electronic program guide, where it can be very difficult for customers to drill down and find content they want.
“We like to call it retro-chic,“ said Purdy of Rogers EPG. The next generation guides need more web-like functionality because one of the key new things that IPTV providers have – and Purdy says Bell will begin its IPTV rollout this fall in Toronto – is much easier search and that “is the single-biggest threat IPTV brings to the market.“
From left to right the panel members were: David Purdy, Myrianne Collin, Domenic Vivolo, JP Caveen, Alyson Stewart and mnoderator Harris Boyd.
