Michael Hennessy is president of the Canadian Cable Telecommunications Association, the national organization representing 80 Canadian cable companies that provide advanced media in the home through a wide range of entertainment, information, Internet and telecommunications services.
Last month, CCTA dropped ‘television’ from its name and became the Canadian Cable Telecommunications Association. That is not because we have given up on television; we have not. Rather, it is because we are embracing a new world when it comes to video as well as pursuing new opportunities for growth.
There are a number of reasons for our name change, including the evolution of technology, an increasingly competitive environment, and restrictive regulations in the traditional broadcasting market. Video has become more than television.
The convergence of digital networks, devices and computer processing has fundamentally altered our business as well as the broadcasting, production and telecommunications businesses. Although each of these is very distinct today, we believe large parts of these businesses will be unrecognizable in the next five years.
We are already seeing changes in the form of new products like VOD, IPTV, ITV and virtual channels. As a consequence of many advancements in technology, we are responding to rapidly evolving consumer demand for content and communication anywhere, anytime.
The market of the future – and the future began yesterday – will be all about our ability to personalize our services and meet the needs of consumers. Our industry will increasingly be defined by on-demand, anytime, consumer-controlled services. In this new world, market-based solutions are critical to success. Make no mistake – any attempts to erect barriers to stop the new consumer-driven world will fail because they now have the technology to bypass systems that are not responsive to demand.
As a quickly evolving industry, we have changed to meet the needs of the market.
This is as true for broadcasting as for telecommunications. Consumers are already accessing content (through the Internet and the black market) and services (VoIP) from anywhere in the world without any direct relationship with network providers or any need to adhere to national borders or regulations. Video is increasingly becoming interactive, targeted and point-to-point.
Changes we have seen to date will pale by comparison to what is about to occur in the next five years:
* Internet will be so fast that it will provide video experiences that compete with cable and satellite distribution.
* Improvements in wireless capacity and storage will extend both the reach of networks and the manner in which content is delivered and used.
* Voice, data and video services will become independent of platform and physical connection, and will perform seamlessly anywhere in the world.
No borders. No distance. Less protection. More competition.
The near future will bring an interactive and convergent world where loyalty will depend on factors such as bundling, value, mobility and quality of service. And, personalization will not just be critical but essential to survival. We are already seeing the emergence of new services and channels as providing both challenges and opportunities.
* VoIP services ride on networks independent of access. The only way to compete is to design an even better IP-based telephony service. That is why we are investing hundreds of millions of dollars in digital phone service.
* Movies are now being delivered to consumers over the Internet. So Canada’s movie channels have been fast innovators, partnering with cable distributors to offer consumers alternatives like scheduled content on demand and SVOD formats to strengthen brand.
I believe this is the right direction – to harness disruptive technologies that respond to consumer demand, including personalized video, digital phones, and/or networked content. Cable is fundamentally changing business models to catch the wave when it comes to the integration of entertainment, information and communications over IP-enabled networks.
Cable still means video. But video does not equate to television anymore. Our corporate name change is meant to remind us that in an IP world nothing stays the same and that IP changes everything.
-www.ccta.ca