Thanks, Ken.
Thank you, everyone.
Consumers today want to watch what they want, when they want, and where they want it. They want to watch their favourite show at 8 p.m., but if they miss it they would rather see it later. They want to see content on their TVs and on their mobile devices and computers. A business plan or public policy initiative that does not come to grips with this aspect of consumer behaviour is doomed to failure.
There are many experts who predict that all television viewing will migrate to the Internet. Already we see services like Hulu in the U.S. These over-the-top providers threaten to put cable television providers and perhaps Canadian broadcasters out of business. This process is called disintermediation, and it has already replaced many bricks-and-mortar businesses with online businesses.
The “anywhere, anytime” vision, however, does not mean it is inevitable that all video viewing will take place from the Internet. We believe over-the-air broadcast networks and cable television networks could be with us for some time to come. But to survive, these networks need to be efficient and give consumers the functionality they demand.
So what can Canadian cultural industries do to benefit from developments in the emerging and digital media and prepare for future developments? We'll answer this question from the perspective of Rogers Cable and how we are hard at work giving customers anything, anytime, and anywhere by upgrading the Canadian television experience using modern digital technology.
Digital television viewers can see their favourite channels from other time zones, giving them a time-shifting option to watch their programs earlier or later than they air locally. Personal video recorders--PVRs--are also used by 20% of our customers. They allow consumers to easily record, fast-forward, rewind, and pause television programs. In addition, a large number of programs are available on video-on-demand, allowing customers to watch them whenever they want.
Rogers on Demand also offers Rogers on Demand Online, a service we launched last November. The vision behind this service is that consumers can watch the shows they subscribe to either on television or on the Internet, on a PC. While not all TV programs are yet available on RODO, we do have a very healthy offering of over 37 content brands. The service has been very well received by consumers. In the future, we intend to expand the service to mobile phones as well.
Digital technologies can also do more for the broadcasters. Cable operators in the U.S. are beginning to develop targeted advertising platforms so that different ads can be sent to different people, depending on their neighbourhood or their preferences. One of those is called Project Canoe.
This would allow TV broadcasters to charge more for their ads, which in turn would improve their business cases. In effect, it would make television advertising more targeted and measurable, like Internet advertising is today.
Ken.