GATINEAU – Despite the fact cable and other TV carriers in many countries are compiling and using data gleaned from customer set top boxes to modify their programming and advertising, Canadian companies seem loathe to do the same or are apathetic about moving quickly to gather that real-time information, according to their submissions to the CRTC’s TV Policy Review, slated to get under way a month from tomorrow.
The Commission asked nine different questions about establishing a set-top box (STB) audience measurement system in Canada, covering issues from consumer privacy to costs and governance. With a few exceptions (especially from the advertisers themselves) interest in such an arrangement here by media companies ranged from lukewarm to cool. (Avid Cartt.ca readers might recall we believe the Canadian industry’s continued lethargy on this issue is now actually harming the traditional TV system.)
Not surprisingly, the Association of Canadian Advertisers and the Canadian Media Director’s Council want to see that data. “Television is changing rapidly and the tools and metrics we need to continue to support it must change as well. Canadians have access to not only many licensed services distributed through alternatives such as cable, satellite and telco, but many un-licensed services such as Netflix, YouTube, etc. It has evolved into a complex structure, and one that needs a better measurement system,” reads the submission from the two groups.
“An enhanced audience measurement system using set-top-box data could dramatically improve the accuracy and information available to broadcasters, distributors, content providers, and yes, to advertisers as well.
“Advertisers rely on measurement information as a trading currency to assess audience size and therefore to price advertising time on television, but they require much more depth and breadth of data. A STB-based measurement system has the capability to provide significant enhancements and insights that will benefit not only the sellers of TV time, but the buyers as well,” it continues.
“It has evolved into a complex structure, and one that needs a better measurement system.” – ACA/CMDC
“One example of such enhanced metrics would be specific commercial audiences. Currently only average minute program audiences are offered as currency. With commercial audience data, advertisers could plan and buy TV with more accuracy and confidence.” (their emphasis)
Rogers Communications is not exactly on board with moving ahead on using set top box data, even though its executives have said in the past, they gather, and act, on such data already.
“Before the Commission considers whether a new audience measurement system is needed in Canada, it should first identify the problem or gaps in current monitoring practices that it is trying to address,” reads the Rogers submission. “There would appear to be two potential issues. The first is that some niche services cannot get ratings from BBM because their audiences are too small. This affects their ability to sell advertising. Second, and more broadly, advertisers are moving to platforms such as Google that offer them the ability to target different segments of the population at the individual level. While People Meters, and more recently, Personal People Meters (PPM) provide a vast improvement over the traditional diary monitoring systems, especially in the largest urban markets, there are still noted tracking gaps that must be addressed in order for broadcasters to compete with Google et al. for available advertising dollars.
“We do believe, however, that it would be difficult if not impossible to implement.” – Rogers Communications
“We do not believe a stand-alone STB-based audience measurement system would address either of these issues. We do believe, however, that it would be difficult if not impossible to implement. Barriers to implementing such a system include both practical and technological limitations. STB data collection was principally designed to help distributors set packages and channel line-ups, not to establish a separate and unique audience measurement tool to sell commercials,” adds the Rogers brief.
On the other hand, however, Rogers Media president Keith Pelley recently acknowledged (in our story linked above) the power of that STB data in referencing an individual show on Sportsnet – and added the company has built its own audience intelligence platform with profiles of over 15 million Canadians in an effort to try and predict what they want and to better provide myriad products and services.
Quebecor Media seems to be on side with Rogers in its submission. “STB-based audience measurement systems have their limitations, since they do not provide data on the demographic breakdown of viewers, number of viewers, or viewing outside the home. They also make it difficult to distinguish between tuning and watching a channel when the set-top box is on but the TV set is off. In addition to these difficulties, the business model for the implementation of this type of system also needs to be validated as we are still waiting to see successful examples in other countries,” reads its submission
However, on the other, other hand, American measurement company Rentrak is already securely aggregating data for U.S. carriers and their clients and it, too supplied a brief to the CRTC for this hearing outlining how it already does what many submissions from Canadian companies say can’t or isn’t being done. The technology already works. It’s secure and everyone wants to see and use the data.
“Rentrak processes second-by-second TV viewing information from more than 13 million U.S. households in virtually every U.S. ZIP code. This neighborhood granularity yields the most accurate representation of total market viewing,” reads its submission. “Rentrak passively collects and aggregates viewing information 24/7/365 from all types of U.S. multichannel video programming distributors (MVPDs)—cable, satellite, and telco.”
“STB data is particularly valuable in a ‘pick ‘n pay’ world.” – Rentrak
With the data its systems can collect (and Rentrak tracks VOD usage for its client, Rogers Cable) STB data can produce ratings for niche or multicultural channels – as well as local stations that are currently not measured. “STB data is particularly valuable in a ‘pick ‘n pay’ world,” reads its submission.
Rentrak says it is able to provide “stable, granular ratings with advanced demographics for all channels to have stable, granular ratings with the potential of advanced demographics to help compete against over-the-top competitors.” The company also noted that STB data could help producers when applying to the Canadian Media Fund and as a tool for BDUs to better understand how their linear and on demand content performs.
All this is not to say such a system will be cheaply implemented. Rentrak acknowledges this. BDUs will have to install or turn on the firmware or software in their digital boxes, and there are significant data storage matters, also. “The primary challenge is that data volume is increasing faster than resources that exist in the marketplace. Requirements for storage, processing, and network bandwidth all increase with the amount of data that moves through a system,” reads its submission.
Rentrak shows there is a business case for this – and that the technology works already. However, the company was born in a country (the U.S.) with far less regulation in broadcasting and much more competition in the advertising market – where cable companies also sell local ads, for example – which makes its business plan more robust there than here. “Commercial relationships would need to be developed with each of the BDUs in order to establish a viable service, as Rentrak’s costs will be determined by the number of participants. Rentrak has a business model that will work for the industry – we would seek to recoup our costs, and then create a pool of 35 percent of revenues over and above our costs, to be divided with each of the participating BDUs based on their percent share of total STBs aggregated in the system,” is how the company explains its business plan.
Some of the Canadian companies are not exactly tripping over themselves to pursue this (with independent broadcasters and Bell perhaps seeming the most keen). Most back the ratings currency historically provided by Numeris (formerly BBM), or propose moderate moves such as starting a working group to study the feasibility of STB data as ratings currency with a third party. Numeris is keen to take on the role, as noted in its submission.
“In order to ensure that the STB data provided has sufficient value, Bell believes that it is incumbent on all licensed BDUs, regardless of ownership and size, to participate in a STB-based audience measurement system,” reads the Bell Canada submission. “To implement this, Bell is willing to participate in a BDU-owned consortium, using a third-party aggregator to compile the viewership data from individual BDUs, and make that high-level aggregated information available by market and by channel on agreed upon terms and conditions to programming services.
“Smaller services do not have access to STB data in the same way that larger programming services affiliated with BDUs have access to such data.” – IBG
“The time and resources for a third-party aggregator to compile the viewership data and generate aggregated BDU reports will not be inconsequential. At a minimum, cost recovery must be mandatory for the third-party aggregator, similar to how BBM Canada (now known as Numeris), a not for profit entity, operates. However, it may not be possible to achieve the BBM operating model which would mean that an aggregator may demand a certain return.”
Shaw noted in its filing that it would participate in an industry-wide push to use STB data, asking for Numeris to be the third party involved in gathering the data.
The Independent Broadcasters Group certainly wants its data – as most of their smaller channels don’t register in the Numeris counts. The IBG “strongly supports the implementation of a set-top-box (STB) measurement system in Canada,” it reads. “While such a system would not on its own be a ‘panacea’ for the challenges faced by independent programming services… smaller services could be disadvantaged without an STB system. Smaller services do not have access to STB data in the same way that larger programming services affiliated with BDUs have access to such data. Also, BBM measurement data has certain well-known deficiencies in the measurement of ‘niche’ audiences.
The hearing starts September 8th with Netflix, Google and Amazon all slated to appear on day one.
ED NOTE: This is the 12th story (yes, the 12th!) of our ongoing, summer-long breakdown of the official submissions made to the CRTC for it's Let's Talk TV, TV Policy Review. The first 11 are linked below.
What’s the value of individual services – and how can consumers complain?
The CRTC must act to save local television
Different rules for different language markets
Genres have long been monkeyed around with. Do they still need protection?
Is basic bloated? Does it need a diet?
Pick and pay in Canada strikes out with U.S. media heavyweights
U.S. border stations want to use Let's Talk TV to wrest cash from Canadian BDUs
Should Yankee go home? The changing role of U.S. channels in the Canadian broadcasting system
No “Netflix Tax”, company warns CRTC
Snap Judgements: Everyone wants more choice – tied to a lot of ifs, ands, buts…
Original artwork for Cartt.ca by artist Paul Lachine, Chatham, Ont.
