Shaw Cablesystems hoping to distinguish its VOD service with music videos

The video-on-demand (VOD) service Shaw Cablesystems is rolling out beginning September 4 in Calgary could include free music videos - a move meant to distinguish the service from other offerings. That strategy could also put a dent in the music specialty channels of mid-sized broadcasters CHUM Ltd., Craig Broadcast Systems Inc., and Corus Entertainment Inc. Michael D'Avella, senior VP of planning at Shaw Communications Inc., says offering music videos on demand will set Shaw's VOD service apart from other offerings since it's "one of the concepts that we will have that others don't at this stage." "It's non-programmed videos. Our service will allow viewers to access their favourite bands anytime they want. We think it's a fairly compelling proposition. You don't want to have to wait for any one of these stations to air the top 20 (videos)," D'Avella tells CCR. Established music channels such as CHUM's MuchMusic and MuchMoreMusic, and newly launched digital channels including several CHUM channels, Craig's MTV channels, and Corus' Edge TV could find themselves in a competitive crunch if the music video portion of Shaw's VOD service were to take off. CHUM Television president Jay Switzer told CCR in late April that he believes technologies such as personal video recorders (PVRs) and VOD would affect the company's drama channels more than its music channels (CCR, April 25/02). "The playlist is only 20 or 30 videos and no one has to wait more than an hour or two to see their favourite video, so we don't think channels like MuchMusic will be particularly PVR-heavy," he said. D'Avella notes that the top 20 music videos in various genres will be available on Shaw's VOD service for up to two weeks. Customers will be able to download them as many times as they want during that period. He anticipates having a video catalog of specialized music selections grouped by artist. "It's very inventive and creative from a customer's perspective," D'Avella says. "If you have kids in a particular household that like a particular band and they want to watch the video five times over, here you go, knock yourself out." He adds that the typical VOD window of 24 to 48 hours for movies would probably be extended for the music videos, but that the menu would be altered more often - perhaps once a week as the top 20 changes. "We haven't priced the music videos out," D'Avella notes. "We may just do it free of charge to reward customers who take both our data service, whether its high-speed or Lite-speed, as well as digital. It may be another value-added service that we may offer for free." The VOD service will be available only to customers who take both Shaw's Internet and digital cable services. Shaw's approach regarding music videos may be just what it needs to give its digital cable and Internet services a boost. The cable operator recorded significantly slower growth in both digital cable and Internet subscriber additions in its third quarter ended May 31 (CCR Update, June 26/02). Shaw's VOD service will also include films and theme-packaged weekends, which is similar to plans announced by Rogers Cable Inc. for its VOD service (CCR, March 1/02). D'Avella notes that pricing and packaging have yet to be finalized, but he estimates that feature films would be priced at between $4 and $5, similar to pay-per-view offerings and available in the same window. Children's programming or series would be less expensive, he adds. But like many VOD providers, Shaw has yet to work out programming licensing deals with the major Hollywood studios. So far it has only inked a deal with Hallmark Interactive for Hallmark Entertainment's 300-title library. But Shaw noted in a June 20 news release that it anticipates adding Hollywood films, television series, children's programming, documentaries, educational programming, music videos, and adult content over the next few months. While Rogers is using SeaChange International servers, Shaw has chosen nCube equipment. D'Avella says server capacity will not be an issue. The VOD service will enable customers to select programming from a library of titles through an online ordering system and view the programming on their television at a time of their choosing with typical VOD features - full VCR/DVD functionality including pause, rewind and fast forward using their remote control. For a period of up to 48 hours, viewers can watch a program at their convenience and as many times as they want. After the VOD service is launched in Calgary, Shaw will bring the service to Edmonton, Vancouver, Victoria, and interior British Columbia in stages. The service will be available to virtually all of its digital cable and Internet customers in Western Canada within eight months of the Calgary launch. "This is probably one of the most definitive rollouts of VOD in North America. Everyone else is doing it piecemeal. We're going to do it in a fairly large fashion once we get going," D'Avella says. "The smaller systems will depend on economics. In our case because of the way we've interconnected our systems, we can offer this service in Red Deer simply by servicing them out of Calgary," he adds. The VOD service has been tested with 500 employees in Calgary over the last three months. "The service is intuitive and there have been no problems in terms of functionality," D'Avella notes. He adds that the look, feel and presentation of the customer interface has been changed based on feedback received during the trial.

Shaw Cablesystems hoping to distinguish its VOD service with music videos

Broadcast | July 4, 2002

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