The Canadian industry is counting on 2014 to be the year it finally answers Netflix Canada with its own online streaming service.

But whether Rogers Communications, which confirms it is “exploring opportunities” for its own subscription video on demand (SVOD) platform, might succeed with any potential offering will rest on the answers to several key questions.

Rogers is not disclosing details on firm plans for an planned online streaming service, which CARTT.ca first reported on last week.

But indie producers looking to license content to such a service from Rogers will be looking to see just how much of a bonanza it may become if it offers Canadian content.

Not much at the outset, predicts Reynolds Mastin, chief negotiator and chief legal officer at the Canadian Media Production Association, representing indie producers.

“Experience has shown that typically, broadcasters have only paid nominal sums for streaming and SVOD rights,” Mastin told Playback Daily.

“But as audiences and ad dollars increasingly migrate to these platforms, we expect that broadcasters will need to begin paying higher licence fees for these rights,” he added.

Netflix is currently the main destination for SVOD subscribers in Canada, and has shown strong growth since it launched. It currently has an estimated subscriber base of over 2.5 million.

Canadian producers would be able to earn incremental revenue by licensing library content to a Rogers SVOD platform.

The business terms for library content deals are typically freely negotiated between broadcasters and producers.

But another question that needs answering is will the CRTC regulate Rogers’ over-the-top service?

If not, subsidiary Rogers Media the broadcaster may not have the right under the terms of trade agreement to sub-license the SVOD rights to content to Rogers Communications the cable company as it rolls out a non-CRTC sanctioned SVOD service to compete with Netflix Canada.

Under the terms of trade agreement, which Rogers signed up to, a broadcaster secures the SVOD and streaming rights to content for Canada.

Traditionally, Rogers and other media players would exploit those rights on conventional and specialty channels, and sublicense those rights to its own or other cable and satellite TV players that operate CRTC-licensed SVOD services.

At the same time, the terms of trade agreement bars broadcasters from sublicensing content to a third-party, non-CRTC licensed SVOD service, like Netflix Canada.

It also remains to be seen whether a new Rogers digital service will commission original Canadian content.

If it does so as a CRTC-regulated broadcast undertaking, then the terms of trade agreement could apply, but how that may play out remains to be seen.