Broadcasting in a UbiquitousWorld

University of OttawaJanuary 16th 2007

Namir AnaniAssociate Executive Director

Policy Development & Research

PG 2

Outline

• Background

• Main drivers & trends transforming the broadcasting environment

– New Media Value Chain

– Social and cultural changes

– Access (wired & mobility)

• New Media project scope

• Evolving issues

• Conclusion

PG 3

The CRTC

The Canadian Radio-Television and Telecommunications Commission is an arm’slength, quasi-judicial body that derives its mandate from both Acts

ν Telecommunications Act objectives include:

[ High-quality, reliable and affordable telecommunications accessible to all Canadians

ν Broadcasting Act objectives include:[ the maintenance and enhancement of national identity and cultural sovereignty

[ encourage the development of Canadian expression by providing a wide range of programmingthat reflects Canadian attitudes

[ contribution by each element of the broadcasting system to the creation and presentation ofCanadian programming

[ each broadcasting undertaking shall make maximum use, and in no case less than predominantuse, of Canadian creative and other resources in the creation and presentation of programming

PG 4

Canada position in the media & entertainment world

Global media and entertainment industries 2006

Source: 2006 Cygnus Research, PricewaterhouseCoopers,Future Exploration Network

SIZE OF GLOBAL MEDIA& ENTERTAINMENTINDUSTRY: US$1,350billion

Canada's share of theglobal media &entertainment in 2006 isUS$36 billion

SIZE OF GLOBAL MEDIA& ENTERTAINMENTINDUSTRY: US$1,350billion

Canada's share of theCanada's share of theglobal media &global media &entertainment in 2006 isentertainment in 2006 isUS$36 billionUS$36 billion

PG 5

Main drivers transforming the broadcasting environment

ν New media value chain¬ The closed loop and interactive relationship between

content producers, consumers and advertisers in the newmedia environment is dramatically changing the valuechain compared to the passive experiences of traditionalmedia

ν Social and cultural changes¬ The participative culture of audiences are changing the

value chain between content producers, consumers, andadvertisers

ν Access (Wired & Mobility)¬ A fundamental shift is taking place of both access

channels (Cable DSL, etc) and devices towards morebandwidth and mobility, enabling anywhere/ anytimeconsumption of media

PG 6

NEW MEDIA VALUE CHAIN

Online broadcasting servicesare bringing innovative waysfor broadcasters/contentproducers, advertisers, andconsumers to interacttogether

Online broadcasting servicesare bringing innovative waysfor broadcasters/contentproducers, advertisers, andconsumers to interacttogether

ConsumersConsumers

AdvertisersAdvertisers

Broadcasters/ContentProducers

Broadcasters/ContentProducers

Distribution ChannelsDistribution Channels

PG 7

New media broadcasting services

Direct from Content ProvidersDirect from Content Providers

Mobile experienceMobile experience

TV experienceTV experience

Computer experienceComputer experience

Media AggregatorsMedia Aggregators

PG 8

Trends – Online Media Sites

The above chart shows that there is growth across allmedia-related segments on the Internet. This data

indicates that almost 80% of Canadian internet usersvisit one or more multimedia sites online each month.

Source: comScore Media Metrix

Growth of Various 'Indexes'

0

5,000

10,000

15,000

20,000

25,000

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

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Un

iqu

e V

isit

ors

(0

00

s)

Total Internet Multimedia Sites TV Sites Radio Sites

PG 9

Internet TV viewing

Short and long format, pre-recorded or live, the quality ofexperience is becoming similar to conventional broadcasting

Short and long format, pre-recorded or live, the quality ofexperience is becoming similar to conventional broadcasting

Source: ComScore Media Metrix 2007

Veoh TV

0

400

600

800

1000

1200

Jan-

07

Feb-0

7

Mar

-07

Apr-0

7

May

-07

Jun-

07

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7

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7

Un

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(00

0s)

PG 10

2005 / 2006 Ad Spend Totals

0

500

1000

1500

2000

2500

3000

3500

Do

llars

Sp

en

t (0

00s)

2005 344 665 562 1207 1309 1358 1,532 2,659 3,013

2006 370 692 1010 1255 1401 1412 1,586 2,712 3,240

Out-of-Home

Magazines InternetYellow Pages

RadioMiscellane

ousCatalogue/Direct Mail

Newspaper Television

Internet Advertising

Online advertising expenditures aregrowing by leaps and bounds,

Internet ads in 2006 represents 1/3of TV advertising

How it compares to the totalenvelope in 2006 = $13.7b

PG 11

SOCIAL & CULTURAL CHANGES

• Attributes of Participatory Cultures (brandcultures, fan cultures, etc):

– foster the creation, circulation, and interpretationof media content to serve personal and collectiveinterests;

– builds on collective knowledge, bringing togetherinnovative ways for entertainment, advertising,brands, and consumers to interact together;

– creates closer, more rewarding relationshipsbetween media producers and consumers

PG 12

Participatory spaces

Facebook.com Growth Trending Jan `06 - July `07

4,302

6,329

8,860

3,371

10,501

11,350

12,518

163 206 265 351 347 343 387 473 493807

1,282 2,226

0

2000

4000

6000

8000

10000

12000

14000

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Un

iqu

e V

isit

ors

(000s) Compounded Monthly

growth rate of 38% fromSept ’06 to July ‘07

Compounded Monthlygrowth rate of 38% from

Sept ’06 to July ‘07

12.5 Million Canadians visitedFacebook in July 2007(Source: comScore Media Metrix)

Web 2.0 is enabling a change from an individual experience on theinternet to collective cultural experiences

Web 2.0 is enabling a change from an individual experience on theinternet to collective cultural experiences

PG 13

Online Activities & Pursuits

Source: PEW INTERNET & AMERICANLIFE PROJECT, July 25, 2007 report

In Canada, 2007

• Over 50% of Canadians with Internet access have watched or downloadedvideos from the Internet, and almost a quarter (23%) once a week

• 91% of 18-34 year olds in Canada accessed the Internet

In Canada, 2007In Canada, 2007

•• Over 50% of Canadians with Internet access have watched or downloaded Over 50% of Canadians with Internet access have watched or downloadedvideos from the Internet, and almost a quarter (23%) once a weekvideos from the Internet, and almost a quarter (23%) once a week

•• 91% of 18-34 year olds in Canada accessed the Internet 91% of 18-34 year olds in Canada accessed the Internet

Sources: CyberTrends, 2006 & Decima Research, 2007

PG 14

Consumer shift since 1998

Canadian Broadband Internet Speed Distribution

6981,014

5,167

0

1,000

2,000

3,000

4,000

5,000

6,000

Low Speed (up to 256 kbps)

Medium Speed (600 - 1000 kbps)

High Speed (1.5 Mbps and above)

Su

bscri

bers

(000)

Source: Internal Data Collection – Dec. 2006

Over 5 million homescan potentially take advantage

of Internet television

PG 15

MOBILITY

Source: Cybertrends Dec 2006

The growing trend is thatdistribution channels anddevices are shifting to themobile arena

The growing trend is thatdistribution channels anddevices are shifting to themobile arena

PG 16

Trends - Wireless

ν Availability and usageof wireless devices isalso growing at asteady rate, but mobilebroadcasting stillnascent

0

4,000

8,000

12,000

16,000

20,000

Su

bscri

bers

(000s)

2002 2003 2004 2005 2006

Wireless Subscriptions in Canada

Mobile TV Video On Demand Radio On Demand

CBC Newsworld Ripley's Hits 1RDI Animax Mobile The Pulse

Weathernetwork GOLTV Soul TownMeteomedia The Score Heart & Soul

Fox News Channel Têtes à claques 60's VibrationsFox Sports MTV Totally 70's

TLC NHL Big 80'sStar Network Fashion Television Jazz Café

G4TechTv ESPN New CountryThe Shopping Channel Fox Prime Country

YTV STC Iceberg RadioTreehouse AccuWeather Classic Vinyl

Toonworld TV Classics Comedy Time Classic RewindComedy Time Tribute TV Hair Nation

Speed Bite First WaveMaxxSports CBC Radio Canada The Spectrum

Bloomberg Television Global News CBC Radio 3Maxx Look Zap Area 33

MuchMoreRetro CTV ChillVibe BNN Bande à part

MuchMusic Bikini GirlsModels (ALL SIRIUS)

Bell Canada Mobility Services

Source: Bell Canada website – November 2007

ν There are an increasingnumber of content options onmobile devices

PG 17

NEW MEDIA PROJECT SCOPE

Internet BroadcastingBroadcasting websitesContent aggregators

Mobile BroadcastingAudio and video on

Mobile Devices

New Media BroadcastingTraditional BroadcastingConventional Broadcasters

Pay / Specialty BroadcastersVideo-on-Demand

BDUsSatellite Radio Broadcasting

Broadcasting ActSystem should provide a wide range of programming that reflectsCanadian attitudes, opinions, ideas, values and artistic creativity

How doesHow does

broadcasting onbroadcasting on

new medianew media

platformsplatforms

contribute to thecontribute to the

objectives of theobjectives of the

BroadcastingBroadcasting

Act?Act?

What is the impact on theWhat is the impact on the

underlyingunderlying

telecommunications system?telecommunications system?

What is the impact on traditionalWhat is the impact on traditional

broadcastingbroadcasting

PG 18

New Media Initiative

ν Three main phases

[ Phase I: Stakeholder consultation & research (national & international)

[ Phase II: Validation of the consultation/research data through forum discussions

[ Phase III: Public hearings

April 2007April 2007 20092009

Stakeholder Consultation &Stakeholder Consultation &ResearchResearch

Validation of RegulatoryValidation of RegulatoryImpactsImpacts

May 2008May 2008

Decisions ReportDecisions Report

Public Hearings & PolicyPublic Hearings & PolicyFormulationFormulation

New MediaNew MediaImpacts ReportImpacts Report

PG 19

Evolving Issues

ν Emerging new media broadcasting services are enabling analogous-to-TVexperiences, and a more meaningful value chain between contentcreators/broadcasters, advertisers, and consumers

CONTENT

[ What is the impact on traditional broadcasting?

[ How does broadcasting on new media platforms contribute to the objectives ofthe Broadcasting Act?

[ Is there a need for measures to support Canadian content in the New Mediabroadcasting environment?

ACCESS

[ Are there access constraints in Broadband or Wireless?

PG 20

Conclusion

This creative New Media space offers new opportunities forCanadians to access and see themselves reflected in thisenvironment.

This creative New Media space offers new opportunities forThis creative New Media space offers new opportunities forCanadians to access and see themselves reflected in thisCanadians to access and see themselves reflected in thisenvironment.environment.