Online cable portal proposed

Online cable portal proposed

Video-on-demand (VoD), in particular, has become a viable business for cable providers, according to annual filings made with the CRTC. Rogers on Demand made $9.5 million before tax last year, four times what it made the previous year, while Shaw's VoD profits rose to $17.4 million compared to just $490,000 in 2004.
Michael D'Avella, senior vice-president of planning for Shaw Communications, said individual networks were less excited about the prospects of VoD because of uncertain advertising revenue streams, but cable companies have been quick to jump on the distribution model because it is seen as a differentiator between competitors. However, the industry is pushing to allow more current ads to be inserted into VoD, a prospect that is encouraging broadcasters to invest more in it.
Given the success of VoD and other cable and satellite offerings, it is not surprising that one of the more tangible proposed online video business models hopes to build upon the cable business.
During Rogers' appearance before the CRTC new media hearings, the company unveiled plans for a Rogers Broadband Video Portal, which it sees as a way to reach an online audience without cannibalizing its cable audience, particularly subscribers to its on-demand service and specialty channels.
Rogers aims to provide online on-demand versions of programming it obtains from its broadcast partners — content that would be free to existing cable customers.
David Purdy, vice-president of television services at Rogers, said the portal would give Rogers the ability to preserve its cable revenue stream while giving its subscribers another outlet to view content.
"It also would give our customers a centrally aggregated site, so they know where to go to find things just as they do with cable," said Purdy.
Rogers said it was open to partnering with other companies on the portal, similar to how many of the major broadcasters in the U.S. teamed up on Hulu.