Rogers to offer cable TV services via the web this year

After 18 months of behind-the-scenes work, cable giant Rogers Communications Inc. is launching a broadband television portal by mid-year that it says will keep subscribers paying while offering pay and specialty services a chance to expand audience reach at minimal additional cost. “This service will improve the value of the traditional TV platform and reduce churn. This in turn will keep viewers connected to the Canadian broadcasting system,” said David Purdy, VP and general manager, television services at Rogers Cable. Unveiled today at the new media hearing, Rogers executives said the video portal will also save pay and speciality services, who depend on subscription revenues from Broadcast Distribution Undertakings (BDUs), the pain of “cannibalizing” or splitting their revenues when they put their programming online. Rogers proposed the portal after reiterating its view that an ISP levy to fund Canadian content is illegal under the Broadcast Act and not the only way to ensure that the objectives of the Act are met. A major hurdle hindering broadcasters from putting content online is the high cost of distribution and promotion. Rogers executives told the hearing the portal will reduce costs by providing its broadcast partners with servers and access to the Internet at reduced costs. Ken Engelhart, senior VP, regulatory, said the portal will offer the same kind of service viewers get on television, including video-on-demand. “It will mirror exactly our linear service,” he told the hearing. The portal will allow viewers to watch their favourite shows at the time of their choosing and in whatever location they are in. Additionally, Rogers Cable customers will be able to access content on the portal regardless of the ISP they use. An offering on wireless is also in the works. Access will be through a password and viewers will get services corresponding to their cable package. For example a subscriber to basic cable will expect to get the same service on the Internet. “The main benefit that we get as a cable company in terms of spending the operating capital is a reduced charge. So we get subscribers staying with us longer and enjoying their services more, so we get a turn benefit and more customers as a result of that,” said Purdy in an interview. Purdy said Rogers has signed letters of intent with over a dozen content partners, who can choose whether they want to participate in the new portal. “The response has been pretty positive because they are looking for ways to put their content online more efficiently, they are looking for ways to grow their advertising revenue stream but not to undermine their subscription revenue stream,” he said. CRTC commissioners appeared both surprised and impressed with the proposal. However, they kept the executives on the hook with myriad questions touching on privacy and consumer concerns, video-on-demand, billing, advertising returns, and the potential for small ISPs to put services on the portal. Executives stressed that care has been taken to ensure that customers’ privacy will not be violated. Commissioner Michel Arpin asked whether the portal would offer Rogers an unfair competitive advantage over their ISP competitors. “What about ISPs that are small and don’t have resources? Is this a way of beating them,” he asked. But Engelhart replied that there’s still a window of opportunity to discuss the proposal with small ISPs. “We haven’t heard those negotiations yet but we will be happy to do it,” said Engelhart. Commissioner Rita Cugini asked how content will be categorized on the portal to which Purdy replied that viewers will be able to access services through broadcaster’s channels just like on television. The portal is expected to be robust, offer better navigation and flexibility. Broadcasters which have content—such as deleted scenes and movie trailers—that they were not able to show on cable or DTH, could transfer these to the portal, Engelhart said.

Rogers to offer cable TV services via the web this year

Broadcast | March 10, 2009

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