Audiences watching TV via broadband may be growing, but a new report concludes that traditional broadcasting isn’t going anywhere. In fact, streaming shows online is mainly bolstering traditional TV audiences.

The report, recently published by Toronto’s Convergence Consulting Group, dispels the notion that increased broadband penetration would mean an end to traditional TV. It points out that streaming programming online is too expensive to duplicate the profit margins of traditional business models, and estimates that no more than 5% of Canada’s conventional and specialty audiences are tuning in online.

‘For [traditional TV] shows that are making very good money in advertising and content sales right now, to go online and give that up makes absolutely no sense,’ says Convergence Consulting president Brahm Eiley.

According to the report, conventional Canadian broadcasters would be giving up $2.3 billion in annual advertising revenues, and specialty networks $2.45 billion in ad revenues and content sales if they were to completely switch from traditional to broadband delivery of programs.

Broadcasters are, however, using broadband as a way to boost audiences and build show loyalty.

Kris Faibish, CTV VP of digital media, says streaming traditional TV shows online is highly complementary and does not cannibalize conventional TV. For example, much of the audience watching TV online is catching up on a missed episode of a regular broadcast, which makes it more likely that viewers will stick with a show throughout the season.

CTV does see plenty more potential for the platform. The network is working to develop original, made-for-broadband models, something Faibish says is key to surviving in the changing new media market.

‘I think you’re going to see a whole different kind of television show coming out that doesn’t conform to the 22- or 44-minute formats,’ she says.

For example, this month, CTVglobemedia’s MTV.ca is launching the first new media dating game, Date My Playlist. Viewers submit playlists of their favorite music, TV, videos, or other entertainment to the site, and the playlists are then used to match people up for a date. Eight 10-minute episodes will stream as a trial, and the entire show was created with advertising partner Maynards Candy.

Claude Galipeau, SVP of new media for Alliance Atlantis, also feels that new media platforms work well in conjunction with traditional TV, and says that streaming TV shows online as prereleases or catch-up episodes is helping overall audience numbers.

‘The old arguments about how new platforms are cannibalistic or somehow confuse people have all been thrown by the wayside. There is uniform agreement in the U.S. that this kind of activity deepens loyalty, especially to scripted drama,’ he says.

Canadian audiences have had limited access to major U.S. dramas online, though availability is on the rise, as seen with Global’s Heroes and CTV’s Nip/Tuck. As the Convergence Consulting report points out, when more American programming does start streaming in Canada, ‘The key question for the Canadian market is which online content will end up in the portfolio of Canadian companies, and at what price, and which will stay with the Americans.’

Another key issue for Canada lies in the social media arena. According to the report, Canadians spend as much time on American-owned sites as they do on domestic sites.

‘This should only intensify as U.S. online video and social networking sites create Canadian versions,’ states the report. MySpace, Google and Google Video have all created Canadian versions.

‘Because of the lack of Canadian user-generated video sites of any scale,’ the report continues, ‘MySpace and YouTube will also become promotional and distribution vehicles for Canada as they are becoming in the U.S.’

Meanwhile, a March growth spurt at AAC’s own BlogTV could suggest Canadian social media might just stand a chance. BlogTV is distinct from YouTube or MySpace in that it provides live rather than just recorded video, and is exclusively for Canadians.

Over the month, the site attracted 173,000 unique visitors and 1.5 million page views. Subscriptions climbed from 400 to 15,000, and the site is streaming more than 500 live shows a day, with each show attracting an average 10 viewers and some attracting more than 100.

According to Galipeau, one of the things that attracts users to BlogTV is that only Canadians can access the site.

‘Canadians can define themselves at BlogTV, and are not drowned out in a sea of American,’ he says. ‘If we want to compete with the Americans in social media, one, and possibly the only technique is to exclude Americans.’

www.convergenceonline.com

www.mtv.ca

www.blogtv.ca