Rogers puts forth plan B

Forget the ISP and WSP levy, and look instead to an online video portal that Rogers Communications plans to launch later this year to solve Canada’s online broadcasting problems, company officials told the CRTC on Tuesday.

The portal will stream on-demand the same TV channels offered on Rogers Cable. It would be free to all Rogers cable subscribers, and could be accessed from any ISP. The cableco also promised to promote the portal heavily.

‘Canadian pay and specialty services will be able to put their programming online knowing that it will only be viewed by customers who have paid to watch their linear television service,’ said Rogers VP and GM of TV services David Purdy during the ongoing new media hearing. ‘This service will improve the value of the traditional TV platform and reduce [cable] churn. This, in turn, will keep viewers connected to the Canadian broadcasting system.’

Rogers officials said the benefit to broadcasters is that the portal would dramatically reduce the cost of delivering high-quality video on the Internet.

Rogers’ SVP of regulatory affairs, Ken Engelhart, noted the portal could be replicated by other cablecos, and that the Toronto media giant could share its technology with resource-strapped smaller systems.

CRTC chair Konrad von Finckenstein asked subsequent speakers, including reps from Shaw Communications and CTVglobemedia, whether the portal would be an effective alternative to placing a levy on ISPs and WSPs; another proposal on the table aimed at putting more money in new media projects.

CTVgm president of revenue and sports Rick Brace said the service would have to be universal and widely adopted to be effective.

The CRTC chair also hinted that if a fund were implemented, that it would be cross-platform and not new media specific. Referring to the Canada Media Fund the feds announced on Monday, von Finckenstein said, ‘Obviously [funding content for all platforms] is the aim everybody supports, including the Commission.’ The CMF will not make any new money available.

Rogers vice-chair Phil Lind stated the portal was consistent with this multiplatform approach. Rogers also continued to contend that the proposed levy would be unlawful. There is some uncertainty whether the CRTC has the necessary authority to place a levy on ISPs and WSPs.

Von Finckenstein, a former judge, refused to go down that route, however. He said that if a levy is imposed he would let the courts decide.