The television industry in Canada has experienced significant changes in recent years driven by new technologies and trends. More choice and services are available to viewers through cable, satellite, IPTV and over-the-top services like Netflix. While Canadians still spend a lot of time watching TV, viewership is changing as people engage in multi-screen viewing and social media around content. Disruptive forces include Internet TV/OTT services producing original content, the rise of multi-screen experiences, and cord-cutting, though the latter remains relatively small in Canada. Broadcasters are focusing on audience engagement across multiple platforms to keep up with these changes.

1. Television 2013
Digital Disruption

2. Television 2013
• We will look at:
– Television in Canada
• Who is watching television?
• What they are watching?
• What services are they using?
– What trends are emerging?
– What are the disruptive forces to watch?
– Innovative projects …
– What’s next?
– Question & Answer

3. TV Milestones in Canada
1950’s Launch of Canadian broadcast industry
Conventional, over the air channels driven by advertising revenue & American
programming
1960-1970 Launch of Cable TV
American & local Canadian channels
1980-1990 Launch of Direct to Home Satellite
Launch of 8 Specialty Channels – now over 200!
Cable & Satellite distribution for an additional fee
1990-2000 Telco’s commence distribution through fiber lines
2000-2010 Over the top services emerge through internet delivery
Convergence & vertical integration, Video on Demand
2013 Mega Media Companies dominate landscape (Bell, Rogers, Shaw,
Videotron)

4. 2013: What’s Happening in the Industry?
CHANGE:
• The television broadcasting industry has experienced incredible changes over the last
few years. Vertical integration is on the rise! Competition for subscribers/viewers is
intense with TV Anytime/Anywhere in the Strategic Plans for all major players.
CHOICE:
• Consumers have more choice based on different transmission technologies such as
You Tub, Netflix, Smart TV App’s etc…. BUT are frustrated with high prices and a
lack of ability to select only the channels they want to watch.

5. Is Anyone Watching TV in Canada?
And the Answer is….Yes (today)
• 13.8 million TV households (Population of 33,476,688)
• 99% of Canadian households have a television
• 74% have more than one television
• 33% are HD-equipped
• 93% have either Cable or Satellite
• 30% have a PVR
• 18.2% had access to VOD
Source: TV Basics 2012

6. How Much are They Watching?
A Lot!
) in Canada
Persons 2+ = 27.36
Men 18+ = 27.30
Women 18+ = 30.18
Teens (12-17) = 21.36
Children (2-11) = 21.30
Source: The Nielsen Company, 2011/2012 season
Average Weekly TV Viewing (Hr/Min) in Canada
Persons 2+ = 27.36
Men 18+ = 27.30
Women 18+ = 30.18
Teens (12-17) = 21.36
Children (2-11) = 21.30
Source: The Nielsen Company, 2011/2012 season
But is this the whole Story???

7. There is Nothing On TV Tonight!
According to TVB there were 331 Conventional,
Specialty and Pay stations in Canada as of 2011. This
number is growing each year.
Conventional or Specialty? What Are
Canadians Watching?
44%
43%
5%
8% Canadian Conventional
(44%)
Canadian Specialty
(43%)
US Specialty (5%)
US Conventional (8%)

8. How are we Viewing?
How Are Canadians Viewing TV?
How Are Canadians Viewing
TV?
Cable
Satellite
IPTV
Wireless Cable

9. What Exactly Are We Watching?
) in Canada
Persons 2+ = 27.36
Men 18+ = 27.30
Women 18+ = 30.18
Teens (12-17) = 21.36
Children (2-11) = 21.30
Source: The Nielsen Company, 2011/2012 season

10. What Trends Are Emerging?
Even with the explosion of the Internet & OTT
people are still watching television in Canada.
• Viewers are watching more TV …but differently
• Multi-Screen is growing rapidly but not eroding television
viewing.
• Consumers want content anytime/anywhere!
• Quality is critically important – content, sound, pictures
and …services

11. What Trends Are Emerging?
• Television is migrating to the internet. The percentage of Canadians
using internet TV has doubled in the last 3 years! (internet TV can
be web TV or IPTV)
• Integration of social networks is being demanded! (Facebook, Twitter
etc)
• Time-shifted consumption (VOD) is on the rise.
• The percentage of Canadians ‘cutting the cable cord’ remains
relatively low. (More about this later)
• Over the Top services (OTT) like Netflix and You Tube are now
offering Original Programming and Quality Channels

12. But …which Trends are Disruptive?
Let’s take a look at a few that are changing the
landscape of television in Canada.
1. IPTV & Over The Top television (OTT)
2. Multi-Screen & Social Media
3. Cord Cutting & No Cord
The Impact of Internet TV on Canadian Programming. (Source:
Source: Impact of Internet TV on Canadian Programminghttp://www.omdc.on.ca/AssetFactory.aspx?did=7251)

13. Disruptive – Internet TV & OTT?
• Over the Top services (OTT) like
Netflix and You Tube off another
way for consumers to enjoy
television. This is being driven by
the migration to internet TV
(IPTV), the ease by which we can
access these offerings by Smart
TV’s, the wide variety of content
and low cost.
• To add to this these OTT services
are now offering Original
Programming and Quality
Channels
• IPTV Launch – Not
So Long Ago
• IPTV In
1994, ABC’s World
News Now was the
first television
program to be broadcast over
IPTV Launch – Not So Long Ago
In 1994, ABC’s World News Now was the first television
program to be broadcast over the Internet, is using the CU-
SeeMe videoconferencing software. In Canada NBTel (now
known as Bell Aliant) was the first to commercially deploy
Internet protocol television over DSL in 1999
Source: http://en.wikipedia.org/wiki/IPTV

14. Disruptive – Over The Top?
• Main reason for using these
sites is:
– “watch whatever I want” (26%)
– “It’s Free” (15%)
– and “Catch-up TV” (15%)
• You Tube is the most popular website
used for content sourced online (64%)
• In 2012 Netflix 20% of Canadians
subscribed and 93% were aware of
them
• While game consoles, laptop
computers & tablets are used to
access Netflix…more people are
watching Netflix on TV than any other
device!

15. Disruptive - Original Programming?
Netflix and You Tube are disruptive
technologies because they are
turning the broadcast model upside
down.
They are doing this through their
original programming strategies.
You Tube now offers high quality
HD programming available on
dedicated channels. Netflix
invested 100 million dollars to
obtain the rights to two seasons of
House of Cards. Their first original
program was Lillehammer.
Original programming puts them on
an even footing with traditional
broadcasters.
OTT is expected to impact Canadian
audience share by 6 share point
(27-33%) if Canadian content
regulations are not put in place.

16. Disruptive – Social Media?
Dick Costolo – CEO, Twitter
In an interview with CNBC Costolo
said his company is transforming
how people watch TV.
“We used to have the few
people in your living room that
you were having a shared
conversation with about what
you were watching. It’s now
exploded beyond the bounds
of the living room and it’s the
world that’s having a
conversation about what we’re
all watching.”
Sources: Photo: Bloomberg|Getty Images , Quote: http://www.cnbc.com/id/47285315/page/5

17. Disruptive – Multi-Screen?
• Multiscreen describes the ability to
watch television and also email, text,
Twitter or Facebook from another
internet enabled device. It is
disruptive in as much as it forces
broadcasters and content creators to
focus on Anytime/Anywhere viewing
as well as integration with social
networks.
• Multiscreen is popular with 18-30 year
olds.
– They enjoy the experience of multi-tasking
– Tend to watch more TV because of it
– Demand anytime/anywhere viewing
• Note: The majority of media viewing still
takes place at home (85%).
For detailed charts on a wide variety of viewing activities: (Source: CTAM
http://c.ymcdn.com/sites/www.ctam.ca/resource/resmgr/intouch/ctam_canada_intouch_volume24.pdf)

18. Disruptive – Cord Cutting?
• Cord Cutting …not yet disruptive
– Deloitte Canada is predicting less than 1% of Canadians will abandon
TV services they’re paying for from cable, satellite or telecom providers
in 2013.
– According to Duncan Steward, Deloitte’s Director of Research, “They
see three pillars that prevent cord cutting: Reality TV, Sports and
News.”
• No Cord… a trend to watch
– This category represents the 10% of the Canadian population who do
not have satellite or cable service. These individuals say ‘price’ is a
factor and they put a high value on obtaining media for ‘free’
– Profile: 14% are male between 18-24 years
(Source: OTT Broadband Video/Oneline TV Behavior & Attitudes 2012)
In Canada the number of Canadians who pay for traditional TV services was up in 2012.
Source: http://www.huffingtonpost.ca/2012/12/13/canada-cable-cutting-live-tv_n_2295236.html

19. What’s Coming Next?
What are broadcasters doing?
‘To stand out, broadcasters and producers are bringing people
together using strong brands (formats, actors, and presenters),
daring to mix up genres and explore themes that go off the beaten
track, as audience coming back”
Source: Julia Esperance, Media Consultant, Eurodata TV
Worldwide
• (Source: http://www.mediametrie.com/eurodatatv/communiques/nota-international-tv-trends-season-2012-2013.php?id=778

20. What Can We Expect To See?
According to Eurodata TV’s “One Television Year in the World”
2013 the key trends from Broadcasters included:
• Audience engagement as the primary focus for digital strategies
• Development of companion applications to extend beyond linear
broadcast
– Apps on your television, tablet, mobile devices
– Play along with TV & reality to – get into the action
• Don’t just watch – play along
• Go deeper into the action
• Tight-knit community of passions
• We’re all in the show now!
– Broadcasting of exclusive content
– Second Screen
– Optimized exploitation of social networking
– Click if you ‘like’
– Share what you are watching and earn rewards

21. Innovative Projects
• Dallas in the US – The comeback was accompanied by the game Rise to Power, an app that
allowed the user to accompany the character of their choice through the season in order to win
prizes. This strategy allowed TNT to beat all of major networks on the night of the premier.
• Les Revenants on Canal+ in France – was the most watched original series the channel ever
broadcast. In addition to visual quality they offered an interactive website delivering clues after
each episode.
• 100 Days of Nice in Denmark – relying on social networks, a well-known journalist gives himself
100 days to establish good manners and general niceness in his country. A real movement
launched on the web before the program started airing in order to support the project.

22. But What About An Entire Channel utilizing
these Disruptive Technologies?
Let’s take a look at a project that combines
many new and innovative elements of disruptive
technology.
https://vimeo.com/64127471

23. What’s Coming Next?
June 13, 2013 the CRTC announced consultation
on 20-year old broadcast regulatory regime and
what needs to be reset.
According to Jean-Pierre Blais…”Broadcasting, as
we once knew it, is no longer – and will never
again be the same, so it’s time to ask: do the
assumptions that lie beneath our current regulatory
policies still hold true?”

24. This isn’t a space poised for disruption. It’s a space
that’s already been disrupted – to such a degree
that it can make your head hurt to think about
it. What TV-lovers may want more than
anything is simplicity – and if ever there was a
company good at providing that, it’s Apple.
David Zax

25. THANK YOU
QUESTION & ANSWERS