VIDEO ON DEMAND, wireless, HDTV, deregulation – Canada’s small cable operators will gather at Mont Tremblant in just over two weeks for Pixel Nation, which is the theme for the 2007 Canadian Cable Systems Alliance’s annual general meeting.
The formal – and informal – parts of the event will be lively, given the upcoming broadcast distribution undertaking policy review coming in January, and all the issues Canada’s independent cable operators face at home and will want to address there.
Panel sessions include a video on demand session and technical session led by CableLabs, along with a members-only meeting with the CRTC, a tabletop trade show, awards luncheon (with a great planned keynote speaker who had not yet confirmed at press time, so we can’t say who it will be), dinner and of course, the traditional golf tournament on day two (a spa day for the non-duffers).
With the AGM rapidly approaching, Cartt.ca editor and publisher Greg O’Brien recently chatted with CCSA CEO Alyson Townsend (pictured) about the event and what’s on her members minds as we head into the fall.
Greg O’Brien: Where’d the theme for the AGM come from, "Pixel Nation: Construct, Batch, Amplify"? Can you expand on that a bit for me?
Alyson Townsend: We chose to symbolize the individual parts of a picture, where together they make a cohesive hole. The pixels are intended to represent the individual member companies that as they consolidate, make a clear and well defined picture of the future.
It’s intended to be symbolic of what CCSA is.
GOB: So, what will the AGM be focusing on specifically then?
AT: Well, there are several areas but we tried not to do too much this year. We found that sometimes (in past years) – we tried to satisfy too many different things. This time we’re starting off with our president’s reception, which is traditional, on the Sunday night. And then Monday morning, first thing, we’ll have our annual meeting which is for members’ only. That’ll only take about an hour.
Then there is the bulk purchasing trade show which will take place from 9 until 12. And that’s been expanded because there was an overwhelming desire from both the members and the vendors to expand that time period. Actually, we’ve sold that out and we have a waiting list, so, that is going to be very well attended.
Then next we have our awards luncheon, at which time we’ll announce our member of the year and our supplier of the year.
The afternoon we’ve divided into two parts, rather than having too many speakers. So, from 2:15 for the next hour is going to be a technical presentation by CableLabs and it is something that will appeal to everybody. It’s called Innovation Showcase and the premise of it is to talk about future technology and future revenue streams.
GOB: Not stuff that’s pie in the sky, but more stuff that’s actually in development or close to being launched, that sort of thing?
AT: Exactly… And you know our members, they want something practical, affordable, do-able. But also intriguing. So, it will be pretty hands on. Chris Lammers is doing the presentation (CableLabs’ EVP and COO) and is a very good speaker.
GOB: And then there is the CTAM VOD session.
AT: Yes, and the panelists are confirmed for that now.
GOB: How important is video on demand to your members right now because some of them have already launched?
AT: It is a priority for us in the upcoming year. We already have the equipment deal with SeaChange and that deal allows members to choose between various scenarios, various pricing scenarios for its packages so there is something in there for the larger, medium and smaller size members.
GOB: Right.
AT: We have a deal with TVN, the aggregator out of the U.S., so they handle the pitcher-catcher part and the encoding piece. And then there is the content, and of course that’s always our challenge: Affordable access. We do have a number of deals, but we’d like to have more and that will be a focus for us over the upcoming year.
GOB: You handle those deals yourself with the studios?
AT: Yes. We also work with TVN on some of them.
GOB: Do you need more from Canadian broadcasters with video on demand?
AT: Yes we do, we do. And we have found that the U.S. content providers seem to have a more clearly defined strategy regarding VOD, (but) talking to the Canadian content providers, they’re still – a lot of them are still testing out different ideas and different marketing methods.
GOB: There’s a lot more free VOD and ad supported VOD in the States than there is here. And then a lot higher viewership of video on demand content there.
AT: Yes, well it’s kind of a chicken or egg thing isn’t it? You know if you have the content, then people will start to watch.
GOB: What are some of the other things that you’re members are worried about or tackling right now? Is high definition on top of the list? Telecom? Wireless? All of those things?
AT: High definition always. That’s always an issue for our members. The costs of high definition are problematic and that’s something we will likely address in the upcoming BDU review… We’re a little bit worried about our members’ customers being disenfranchised as far as HD programming goes.
GOB: And the broadcasters are looking – when it comes to the smaller markets that your members are in – to cable and other sources to be able to deliver those HD signals so they don’t have to put up new transmitters.
AT: Precisely.
GOB: So, that creates a whole scenario for your members that is completely unsettled that nobody’s talked about yet.
AT: That’s right. So, we do intend to cover the transport issue of HD programming in the upcoming BDU regs.
Something else that we’re looking at and that we’re very interested in pursuing is a wireless solution – a white label wireless solution that our member companies can brand so that they can in their markets provide some competition.
GOB: So, different than what EastLink is doing, selling Rogers Wireless.
AT: That’s right.
GOB: So you’d be more along the lines of like a Virgin or Videotron, where your members would market it in their own brand name?
AT: That’s what we would prefer yes.
GOB: Individual cable systems’ brand names – where it would it be Blue Water Cable Wireless, for example and not a CCSA-created brand name for everyone to buy into?
AT: No, I don’t think that CCSA intends to come up with a brand (like that).
GOB: How far along the wireless path are you?
AT: Just beginning to think about it – but we do have some inquiries out as to who we might be able to partner with. We’ll need a strong partner.
GOB: Do you intend to bid on wireless spectrum or anything like that?
AT: No I don’t think so. As the CCSA is concerned, no… We’re a service organization. We’re really not designed to be a type of equity venture.
GOB: Okay. One of the other meetings is the members’ meeting with the Commission. What are you going to be addressing with them?
AT: That’s going to be one of our most interesting events. Now, it’s for members only, so it’s a little bit different than the structured panel that we had last year. This is intended to be very informal – an hour cocktail party where members have access to the commissioners and the chair (Konrad von Finckenstein) has confirmed that he will be there… It’s just an opportunity for our members to actually meet the commissioners and to have an exchange on whatever they feel that they want to. We find that the members really tell their stories the best.
So, we do not have a strategy here. We don’t have a message that we’re trying to create, corporately. This is the opportunity really to have a one-on-one with the commissioner that you know maybe, as a cable company in Northern Alberta for example, you would not get a chance to do.
GOB: Sure. While there’s overriding issues your members all share, each one has their own difficulties and hiccups that they have to deal with locally and regionally.
AT: Right. It’s an opportunity on both sides. The Commission often does not often get to meet these people either, so it’s to provide them with the opportunity to meet them and to provide the members with access which they ordinarily wouldn’t have.
GOB: I wonder, too, what your thoughts are on the industry consolidation that’s going on in media and cable. In the last 12 months, I mean you’ve maintained the number of subscribers your members served but you’ve you’ve seen some members consumed by other members. What do you think of all of that and how does it affect the CCSA?
AT: There are two parts to the consolidation. One is on the programming side – and that’s a concern. For the largest BDUs of course, it’s less of a concern because they’re both content providers and distributors, so what they lose on one hand, they often gain on the other. But CCSA members are pure distributors and consolidation of (programming) providers can mean a real imbalance in power.
One thing that we’re concerned about there – and again this will be something that we likely address in the upcoming BDU reg review – is we don’t want to repeat the experience of our U.S. counterparts where they found with consolidation of content that deals were often linked together.
GOB: I’ve made mention of that, too, where the largest programmers (in the U.S.) have said: well if you want this really popular channel, well then you’ve got to carry these other five new ones that we’ve got now.
AT: That’s a concern to us.
GOB: Or, "we’ve got the world’s most popular sports channel, here’s a 20% rate hike, if you don’t like it, well that’s really too bad," which happens Stateside.
AT: That’s right, that’s right. So all of a sudden, the programming services are the ones that the customers want can become very, very expensive if you’re not going to carry the other services which maybe are not so popular… So we worry about that.
You know, when there are only two or three content providers at the end of the day, the independent cable operators really have no counter balancing bargaining power, if that scenario develops.
On the BDU side (of consolidation)… we’ve lived through tons of consolidation before. And in fact this time it’s probably even more optimistic because the acquiring company is a CCSA member company (Halifax-based EastLink has this year doubled in size after purchasing other CCSA members such as Persona, RuSh Communications and Amtelecom).
EastLink has been a long-term supporter of CCSA. And I think for EastLink or any CCSA member for that matter, the issues don’t change as a result of the purchase of another member company.
They still have the very real challenge of remote headends with very few subscribers, for example. So, the issues are the same as they were before. The ownership really doesn’t change that.
