‘Golden age of TV’ facing changes: panel

TORONTO — There has never have been a better time than now to be a consumer of television, it was said during a panel discussion Wednesday at the Canadian Telecom Summit, but it was also discussed how big changes are afoot, and those in the industry are facing uncertainty. Peter Miller, chairman of Interactive Ontario, which promotes the digital-media content industry, spoke about how now is the “golden age of TV” because consumers have never before had the ability to access whatever they want, when they want. Miller, acting as moderator for a discussion on where the TV industry is headed, asked panel participants what the future holds, given the emergence in trends such as cord-cutting and the increasing extent to which the Internet is becoming a conduit for video content. “I think things are really f***ed up,” said Michael Hennessy, president of the Canadian Media Production Association (CMPA), prompting a chuckle from the audience. “And the reasons for this are that the conventional-television business, which anchors broadcasting, is in terrible shape and nobody’s predicting anything but in terms of advertising revenue.” Hennessy added that specialty-TV broadcasters are also in trouble, given the decision of the CRTC to force service providers to unbundle subscription packages next year. Later in the panel, Hennessy said content producers themselves, the group he represents, are in good shape for the short term, as there has never been so much demand for content. He worried, however, that content might become “commoditized” at some point because so much of it is being produced and distributed globally, and people have a limited amount of time to consume it all. George Burger, director of VMedia Inc., an independent provider of Internet and TV services, said: “On the BDU side, I think there’s no question that … we’re going to change very dramatically pretty soon.” Burger said he has two children in their early 20s who have “no interest whatsoever in conventional television, other than maybe sports,” and he speculated that could be a sign of what’s to come. He said later in the discussion that opportunities could arise for service providers to help organize content for customers who face an increasingly complicated environment for video content. However, Burger added: “I would not be crazy about being a TV producer, wondering where I’m going to be making my living in five or 10 years.” Hennessy immediately responded: “I represent a lot of very nervous people.” VMedia announced Wednesday that it would become the first TV-service provider in Canada to offer a skinny basic package, as will be mandated by the CRTC next year to be available for no more than $25 a month. VMedia said in a press release its skinny basic would cost $17.95 a month. Raj Shoan, a commissioner for the CRTC, said that while there is much change occurring in the TV industry right now, it is not certain that the sector as a whole is facing long-term decline. “The commission’s research indicates that while traditional cable, traditional satellite has stagnated, there’s been substantial growth in IPTV,” he said. “So it’s not exactly accurate to say the BDUs overall are declining.” Shoan added: “There’s no conclusion to be reached as of yet. I think the industry is transitioning to an IP-based world in which programs will be available on demand, and I think most major broadcasters are transitioning to that kind of model or that kind of offering in an effort to retain viewers.” He acknowledged that younger people are not subscribing to TV services as readily as older consumers, though he added that “you could also make the argument that perhaps what they don’t want is to pay for television.” “I can certainly tell you I have friends of mine in their 20s and early 30s. They do not have cable. They have no intention of paying for cable. But when they come to my place, the first thing they do is crack a beer and turn on my television, because they’re not paying for it. “But at a certain point, they’re going to have jobs, they’re going to have income, they’re going to have kids, they’re going to settle down, they’re going to be able to purchase some of this stuff.” Shoan did not address a case he has initiated in Federal Court that sees him fighting a report and judgment from CRTC officials, including CRTC Chairman Jean-Pierre Blais, that found he broke workplace-harassment rules. David Asch, senior vice-president of Shomi, the video-streaming service of Rogers Communications Inc. and Shaw Communications Inc., said despite services like his, there will always be a market for live content. Still, Asch spoke positively about the prospects for growth for a service like Shomi, for reasons such as the flexibility and choice it gives viewers, and also because of the array of devices, including smartphones, tablets and TVs, that can be used to access it. “You’re going to see a lot more devices roll out. … If we were to look two or three years down the road, some of these devices you’re going be able to consume your video content on, you probably haven’t even seen yet,” he said. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Shruti Shekar at sshekar@thewirereport.ca

‘Golden age of TV’ facing changes: panel

Broadcast | June 3, 2015

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‘Golden age of TV’ facing changes: panel

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