BANFF – It seems as though you can’t go far at the Banff World Media Festival without hearing talk about over-the-top (OTT) providers, and, depending on your point of view, whether they are a bane or boon to the Canadian broadcasting industry.
At a panel discussion on Monday called "OTT Services The Future of Television" — moderated by Telus’ Michael Hennessey — a Canadian cable company, broadcaster and the independent producers coalition faced down a trio of representatives from foreign OTT services Google TV, Boxee and Netflix. But with every expectation of fireworks, the predominant tone of the discussion seemed to be one of ‘can’t we all just get along’?
Gary Maavara, EVP and general counsel for Corus Entertainment, seemed somewhat resigned to having to compete with the OTT providers for viewers, but feels that regulation is needed to perhaps keep them in check (or perhaps deregulation of the traditional players).
“As we look at the future of television and regulation, we have to start thinking about things such as how do we develop a new regulatory framework?”, he said. “The first thing we have to do is reframe our thinking and stop asking ourselves questions like ‘where’s television going’? We have start asking ourselves where’s the bit stream going, where’s the technology going?”
Norm Bolen, president and CEO of Canadian Media Production Association (CMPA), said that while independent producers are adapting their business models to participate in the “digital future” beyond Canada’s borders, a strong regulatory regime that supports the domestic production industry is vital.
“As the broadcasting system evolves and more and more consumers get their content through these new vehicles, it’s important that those vehicles make a contribution to the system”, Bolen said. “What that contribution is and how it is applied to Canadian programming is yet to be determined. But it’s important that (foreign OTT providers) make a contribution even if they have no negative impact on the existing players. It’s about being part of the ecosystem.”
Unsurprisingly, Boxee co-founder and CEO Avner Ronen disagreed with that approach.
“I don’t think that the government needs to come up with ways to take money from Boxee or Netflix”, he responded. “I think what needs to happen is that if Canadian content is going to get produced, then I think that there’s just going to be more ways for consumers to get it now, and for producers to take advantage of global opportunities.”
Ronen said that Boxee is currently having “good conversations” with Canadian broadcasters and producers about content but has so far been unable to negotiate international broadcasting rights, meaning it does not distribute CanCon internationally right now.
Not so with Netflix.
“From Netflix’s perspective on acquiring Canadian content, we’ve been embraced by many of the distributors because we’re another outlet to sell it to and in many instances we’re paying good money for the Canadian content”, said David Hyman, Netflix’s general counsel. “So in that way, I see the Internet as creating a more vibrant marketplace both in the acquisition and production of that content.”
He then wondered aloud whether Canada’s Broadcasting Act, as it stands, can “step up to these new challenges” or whether deregulation is a better route to go.
“Is it something that needs to be looked at holistically as opposed to saying ‘let’s graft on what we’ve currently created to these OTT providers and that’s the solution to it’?”, he continued. “I think it is worth a vibrant debate.”
“We must adapt to what we have today, and what’s at hand is the beginning of an influx of OTT services that are pulling dollars out of the system”, countered CMPA’s Bolen. “The Commission in the past has been able to adapt to new developments very effectively. If you think about satellite radio, they determined that satellite radio is not competitive and there’s no danger to the radio system, but they taxed them and they’re making a contribution to Canadian content. And (U.S. networks) A&E and CNN also make a contribution through the BDUs.”
Dave Purdy, vice-president and general manager of television for Rogers Cable injected a humorous note to the proceedings.
“I don’t believe that there’s any sort of genuine conversation going on in any one of (the OTT providers’) operations about the long term success or health of the Canadian broadcasting system”, he said firmly. “While I don’t think that they’re nefarious individuals, or trying to destroy the Canadian broadcasting system, there’s always the law of unintended consequences, and commoditizing the industries that they’re in. I would take no comfort in that as a Canadian producer.”
That prompted a lengthy response from Boxee’s Ronen, which at one point saw Purdy remove his jacket as he jokingly struggled to retain his composure.
“I don’t think that the people sitting in the cable companies or telephone companies in Canada have great passion about the future of Canadian content either”, Ronen said to a mix of scattered applause and laughter.
Cartt.ca senior editor Lesley Hunter is in Banff this week covering the 2011 Banff World Media Festival
