Give cable/DTH subs access to same TV programming online: GlassBox TV

The CRTC should adopt new rules that allow cable and satellite TV subscribers to access the same television services on web and mobile portals, executives from GlassBox TV told the CRTC’s new media hearing today. Raja Khanna, co-CEO of the Toronto-based multi-platform broadcaster, said such a move could—over the long term—help sustain the financial viability of the cable industry and encourage the growth of online broadcasting in Canada. It could also allay fears that ad revenues are increasingly migrating to online platforms to the detriment of traditional broadcasters. “In other words, as long as I am a subscriber to a cable package, I am also granted access to a web portal that contains high quality video content available for streaming,” said Khanna. “These portals could prove to be an exclusive, legal and simple way to access all the content you want online from all the broadcasters you want, and ultimately be one way to compel people to subscribe or stay subscribed to cable and satellite TV services.” Khanna disputed the notion that the Internet is a platform for “new media specific content”, saying it is simply a new format for streaming television content. In that respect, he said most advertising on Internet platforms comes from professionally generated television content rather than from user-generated productions such as found on social networking sites like YouTube. User-generated content on the Internet generates only 4% in ad revenues, yet over 90% of these revenues come from professionally produced content, he said. Khanna later told Tech Media Reports that advertiser-supported television content on the Internet isn’t like to put BDUs in financial difficulty soon because “the money is still on those subscription fees.” However, he called for a realistic approach, one that will still keep money streaming to BDUs through a “tethered service delivery” on online platforms. This means having digital content produced for multiple platforms, including the Internet. “I think the cable companies and the satellite companies aren’t just going to sit down, turn over and play dead and watch the world pass them by. They are going to be very aggressive in defending their territory and the most likely way to do that is to provide their users access to their content over the Internet rather than letting the Internet cannibalize their business,” he said. However, Khanna said portals tethered to BDUs should be viewed differently from other Internet services when it comes to allocating shelf space for Canadian content and formulating the regulatory framework for administering them. The proliferation of WiMAX and 4G networks also means the CRTC should consider imposing shelf space and video-on-demand requirements on “hardware tethered” devices such as mobile phones, he added. “All these services should have the same Canadian content regulations tied to them.” Since the Internet shouldn’t be viewed as a specific platform for new media content, Khanna said it’s also time the CRTC examined how new media productions are funded, in light of the fact that broadcasters now have television audiences across multiple platforms. “In particular, we suggest that the (Canadian Television Fund) envelope circulation rules must be adjusted to take the online activity of a broadcaster into account at some level,” said Khanna at the hearing, stressing that the CTF does not take into account issues like online audiences, revenues and investments in new media. Last month’s federal budget renewed the CTV’s core funding for two years ($200 million), but without additional new money, he said the CRTC and industry must find ways to re-allocate funds while putting all these factors into consideration. While broadcasters who have a commitment to new media should get priority access to any new funds, Khanna was disappointed by the absence of major broadcasters at the new media hearing. “I would like to suggest that the absence of certain broadcasters at these hearings should not go unnoticed,” he said. Cash-strapped CTV and CanWest Global are among the broadcaster no-shows at the hearing, saying they have nothing new to contribute and to save money—a prepared appearance could hit over $100,000 for each broadcaster. Jeffrey Elliot, co-CEO and founder of GlassBox TV, stressed that new media is not only about content that is produced for online formats and that the Telefilm is the best venue (because of its experience) where such money should be directed, rather than the New Media Fund.

Give cable/DTH subs access to same TV programming online: GlassBox TV

Broadcast | February 23, 2009

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