Broadcasting in a Ubiquitous
World
University of Ottawa
January 16th 2007
Namir Anani
Associate Executive Director
Policy Development & Research

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 2

The CRTC
The Canadian Radio-Television and Telecommunications Commission is an arm’s
length, 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 programming
that reflects Canadian attitudes
[ contribution by each element of the broadcasting system to the creation and presentation of
Canadian programming
[ each broadcasting undertaking shall make maximum use, and in no case less than predominant
use, of Canadian creative and other resources in the creation and presentation of programming
PG 3

Canada position in the media & entertainment world
Global media and entertainment industries 2006
SIZE OF GLOBAL MEDIA
SIZE OF GLOBAL MEDIA
&& ENTERTAINMENT
ENTERTAINMENT
INDUSTRY: US$1,350
INDUSTRY: US$1,350
billion
billion
Canada's share of the
Canada's share of the
global media &
global media &
entertainment in 2006 is
entertainment in 2006 is
US$36 billion
US$36 billion
Source: 2006 Cygnus Research, PricewaterhouseCoopers,
Future Exploration Network
PG 4

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 new
media environment is dramatically changing the value
chain compared to the passive experiences of traditional
media
ν Social and cultural changes
¬ The participative culture of audiences are changing the
value chain between content producers, consumers, and
advertisers
ν Access (Wired & Mobility)
¬ A fundamental shift is taking place of both access
channels (Cable DSL, etc) and devices towards more
bandwidth and mobility, enabling anywhere/ anytime
consumption of media
PG 5

NEW MEDIA VALUE CHAIN
Online broadcasting services
Online broadcasting services
are bringing innovative ways
are bringing innovative ways
for broadcasters/content
for broadcasters/content
producers, advertisers, and
producers, advertisers, and
Broadcasters/Content
Broadcasters/Content consumers to interact
consumers to interact
Producers
Producers together
together
Distribution Channels
Distribution Channels
Advertisers
Advertisers
Consumers
Consumers
PG 6

New media broadcasting services
Direct from Content Providers
Computer experience
TV experience
Media Aggregators
Mobile experience
PG 7

Trends – Online Media Sites
Growth of Various 'Indexes'
25,000
20,000
Unique Visitors (000s)
15,000
10,000
5,000
Total Internet Multimedia Sites TV Sites Radio Sites
0
07
7
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Source: comScore Media Metrix
The above chart shows that there is growth across all
media-related segments on the Internet. This data
indicates that almost 80% of Canadian internet users
visit one or more multimedia sites online each month.
PG 8

Internet TV viewing
Short and long format, pre-recorded or live, the quality of
Short and long format, pre-recorded or live, the quality of
experience is becoming similar to conventional broadcasting
experience is becoming similar to conventional broadcasting
Veoh TV
1200
1000
Unique Visitors (000s)
800
600
400
0
7
07
07
7
07
7
07
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Source: ComScore Media Metrix 2007
PG 9

Internet Advertising
Online advertising expenditures are
growing by leaps and bounds,
Internet ads in 2006 represents 1/3
of TV advertising
2005 / 2006 Ad Spend Totals
3500
3000
Dollars Spent (000s) 2500
2000
1500
1000
500
How it compares to the total 0
Out-of-
Magazines Internet
Yellow
Radio
Miscellane Catalogue/
Newspaper Television
envelope in 2006 = $13.7b
Home Pages ous Direct Mail
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
PG 10

SOCIAL & CULTURAL CHANGES
• Attributes of Participatory Cultures (brand
cultures, fan cultures, etc):
– foster the creation, circulation, and interpretation
of media content to serve personal and collective
interests;
– builds on collective knowledge, bringing together
innovative ways for entertainment, advertising,
brands, and consumers to interact together;
– creates closer, more rewarding relationships
between media producers and consumers
PG 11

Participatory spaces
Web 2.0 is enabling aachange from an individual experience on the
Web 2.0 is enabling change from an individual experience on the
internet to collective cultural experiences
internet to collective cultural experiences
Facebook.com Growth Trending Jan `06 - July `07
14000
12,518
12000 11,350
Compounded Monthly
Compounded Monthly 10,501
Unique Visitors (000s)
10000 growth rate of 38% from
growth rate of 38% from
Sept ’06 to July ‘07
Sept ’06 to July ‘07 8,860
8000
6,329
6000
4,302
4000 3,371
2000 1,282 2,226
163 206 265 351 347 343 387 473 493
807
0
Au 6
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12.5 Million Canadians visited
Facebook in July 2007
(Source: comScore Media Metrix)
PG 12

Online Activities & Pursuits
Source: PEW INTERNET & AMERICAN
LIFE PROJECT, July 25, 2007 report
In Canada, 2007
In Canada, 2007
••Over 50% of Canadians with Internet access have watched or downloaded
Over 50% of Canadians with Internet access have watched or downloaded
videos from the Internet, and almost aaquarter (23%) once aaweek
videos from the Internet, and almost quarter (23%) once 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 13

Consumer shift since 1998
Canadian Broadband Internet Speed Distribution
6,000
5,167
5,000
Subscribers (000)
4,000
3,000
2,000
1,014
1,000 698
0
)
kbps bps) ove)
o 256 000 k nd ab
d (up t 6 00 - 1 bps a
Spee eed ( d (1.5
M
Low m Sp Spee
Mediu High
Source: Internal Data Collection – Dec. 2006
Over 5 million homes
can potentially take advantage
of Internet television
PG 14

MOBILITY
The growing trend is that
The growing trend is that
distribution channels and
distribution channels and
devices are shifting to the
devices are shifting to the
mobile arena
mobile arena Source: Cybertrends Dec 2006
PG 15

Trends - Wireless
Wireless Subscriptions in Canada
ν Availability and usage
20,000 of wireless devices is
16,000 also growing at a
Subscribers (000s)
steady rate, but mobile
12,000
broadcasting still
8,000 nascent
4,000
Bell Canada Mobility Services
0
Mobile TV Video On Demand Radio On Demand
2002 2003 2004 2005 2006
CBC Newsworld Ripley's Hits 1
RDI Animax Mobile The Pulse
Weathernetwork GOLTV Soul Town
Meteomedia The Score Heart & Soul
Fox News Channel Têtes à claques 60's Vibrations
Fox Sports MTV Totally 70's
ν There are an increasing TLC
Star Network
NHL
Fashion Television
Big 80's
Jazz Café
number of content options on G4TechTv
The Shopping Channel
ESPN
Fox
New Country
Prime Country
mobile devices YTV
Treehouse
STC
AccuWeather
Iceberg Radio
Classic Vinyl
Toonworld TV Classics Comedy Time Classic Rewind
Comedy Time Tribute TV Hair Nation
Speed Bite First Wave
MaxxSports CBC Radio Canada The Spectrum
Bloomberg Television Global News CBC Radio 3
Maxx Look Zap Area 33
MuchMoreRetro CTV Chill
Vibe BNN Bande à part
MuchMusic Bikini Girls
Models (ALL SIRIUS)
Source: Bell Canada website – November 2007
PG 16

NEW MEDIA PROJECT SCOPE
Broadcasting Act How does
System should provide a wide range of programming that reflects broadcasting on
Canadian attitudes, opinions, ideas, values and artistic creativity
new media
platforms
contribute to the
Traditional Broadcasting New Media Broadcasting objectives of the
Conventional Broadcasters
Pay / Specialty Broadcasters
Internet Broadcasting
Mobile Broadcasting Broadcasting
Video-on-Demand Audio and video on
BDUs
Broadcasting websites
Content aggregators
Mobile Devices Act?
Satellite Radio Broadcasting
What is the impact on traditional
broadcasting
What is the impact on the
underlying
telecommunications system?
PG 17

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 2007 May 2008 2009
New Media
Decisions Report
Impacts Report
Stakeholder Consultation &
Research
Validation of Regulatory
Impacts
Public Hearings & Policy
Formulation
PG 18

Evolving Issues
ν Emerging new media broadcasting services are enabling analogous-to-TV
experiences, and a more meaningful value chain between content
creators/broadcasters, advertisers, and consumers
CONTENT
[ What is the impact on traditional broadcasting?
[ How does broadcasting on new media platforms contribute to the objectives of
the Broadcasting Act?
[ Is there a need for measures to support Canadian content in the New Media
broadcasting environment?
ACCESS
[ Are there access constraints in Broadband or Wireless?
PG 19

Conclusion
This creative New Media space offers new opportunities for
This creative New Media space offers new opportunities for
Canadians to access and see themselves reflected in this
Canadians to access and see themselves reflected in this
environment.
environment.
PG 20