Will Web Video Top the Tube?

Canadians have an obsession with screens. After returning home from a computer screen-filled day, we surf the Net and watch TV. Often at the same time. Call us crazy.

We love the Internet. 22 million of us—that's almost 67%—are connected to it. Speed is a major preoccupation, judging by our towering rates of broadband connectivity.

According to Statscan, three years ago we spent an hour and a quarter online on average, up a half hour from three years before. I'll bet my shorts that the trend's continued, and more than a third are "heavy users" —those online two-plus hours a day.

Statscan's 2005 findings reported that just under half of us used the Net for personal "non-business" use at work. Apparently, many of us don't wait until 5:00 to email friends and family, check news and weather, view video clips, shop, read celebrity gossip, plan travel, etc.

Employers shouldn't outright ban personal Internet use but rather, recognize the ubiquity of the Net and the value of well-informed, well-connected employees. (Good thing I'm paid to market an interactive Web firm—it's in the company's best interest that I see loads of viral videos. How much of YouTube's 412 years' worth of video have you watched at work?)

At home, I don't have cable or satellite TV. Not even rabbit ears. I watch hockey and news at cbc.ca, through a desktop player so tiny it makes my eyes bleed. But for most, the Internet does not replace TV—it is just another entertainment form. Last year's survey by Samsung confirmed some similarities between the two mediums:

We average 9 hours of TV a week—468 hours a year.
9% of us watch over 29 hours a week; in BC it's over 15%.
58 per cent of Canadians have TVs in the bedroom.
Average monthly subscription fee: $51.50

We also invest serious money in DVD rental and purchases. But a quick survey of my twenty and thirty-something friends revealed a lust for downloading—with no worries about penalties. While the US courts threaten offenders with crushing fines, the RCMP say they won't target "liberators" of copyrighted files for personal use.

But there is a price to pay. Downloading requires major bandwidth and today's networks aren't scaled for it. A half-hour TV show eats more of it than does receiving 200 emails a day for a year.

Internet service providers don't like bandwidth hoggers. When CBC used the file-sharing service BitTorrent to stream "Canada's Next Great Prime Minister", Bell Canada "throttled" Web access for BitTorrent users and others, slowing down access for their users and others whose ISPs used Bell lines.

Subscribers rightly wonder about service guarantees. The Net neutrality debate will intensify as broadband-intensive offerings increase and more is demanded from the existing pipelines.

Maybe Web-based TV 'casters like Hulu, Babelgum and Joost represent the media-viewing future. Delivering all sorts of long and short-form video via legal P2P (peer-to-peer) file-sharing technology, they're free and have fewer ads than TV.

Though no one can guarantee the picture quality of 'live' video streamed over the Internet, Joost looks darn good. But for me, "content is king". Original, compelling stuff—accessible when I want it—will earn my attention, even if I can't contribute to reviews of last night's 'Desperate Housewives'.

Networks and broadcasters (and startups and everyone else) are driving themselves nuts figuring how to monetize Internet video. At stake in Canada: $3.4 billion in ad revenue, $1.7 billion in programming fees.

The big American networks know how to work it. They win viewers' hearts by offering some of their best shows, and complementary content, online.But if you TV addicts need a Web-enabled fix at work, don't hope to see ''Heroes' or 'Big Brother' or 'Family Guy' on the network sites—unless you surf from the United States.

Don't blame the CRTC—they don't regulate online broadcasting. Blame licensing agreements between American broadcasters and Canadian partners. Simply put, the digital rights cost too much.

That's why I'm keeping an eye on services like Joost. And in the meantime, if I'm feeling screen-starved, there's always YouTube, CBC.ca and my friends' downloaded stashes.

(Submitted by Seth Klapman for 'Business Thompson Okanagan' May 2008 issue)

Have you any questions or comments? Can we help you at all with your Internet-based marketing needs? Please contact:

Seth Klapman, Marketing
Acro Media Inc.
103 - 2303 Leckie Road
Kelowna, BC, CANADA
V1X 6Y5
tel: 250.763.8884
fax: 250.763.6936

Acro Media Inc. (acromediainc.com) is an interactive agency that professionally delivers four main solution sets:

Ecommerce solutions—for product sales.
Corporate sites—for lead generation.
Showcase design—for brand building.
Portal sites—for community building and member services.

With a decade’s experience and team of 33, Acro Media ably provides:

Acro Media guarantees their work, and builds W3C valid search engine friendly Web sites.

Will Web Video Top the Tube? May 15, 2008 Kelowna, BC
Will Web Video Top the Tube? Canadians have an obsession with screens. After returning home from a computer screen-filled day, we surf the Net and watch TV. Often at the same time. Call us crazy. We love the Internet. 22 million of us—that's almost 67%—are connected to it. Speed is a major preoccupation, judging by our towering rates of broadband connectivity. According to Statscan, three years ago we spent an hour and a quarter online on average, up a half hour from three years before. I'll bet my shorts that the trend's continued, and more than a third are "heavy users" —those online two-plus hours a day. Statscan's 2005 findings reported that just under half of us used the Net for personal "non-business" use at work. Apparently, many of us don't wait until 5:00 to email friends and family, check news and weather, view video clips, shop, read celebrity gossip, plan travel, etc. Employers shouldn't outright ban personal Internet use but rather, recognize the ubiquity of the Net and the value of well-informed, well-connected employees. (Good thing I'm paid to market an interactive Web firm—it's in the company's best interest that I see loads of viral videos. How much of YouTube's 412 years' worth of video have you watched at work?) At home, I don't have cable or satellite TV. Not even rabbit ears. I watch hockey and news at cbc.ca, through a desktop player so tiny it makes my eyes bleed. But for most, the Internet does not replace TV—it is just another entertainment form. Last year's survey by Samsung confirmed some similarities between the two mediums: We average 9 hours of TV a week—468 hours a year. 9% of us watch over 29 hours a week; in BC it's over 15%. 58 per cent of Canadians have TVs in the bedroom. Average monthly subscription fee: $51.50 We also invest serious money in DVD rental and purchases. But a quick survey of my twenty and thirty-something friends revealed a lust for downloading—with no worries about penalties. While the US courts threaten offenders with crushing fines, the RCMP say they won't target "liberators" of copyrighted files for personal use. But there is a price to pay. Downloading requires major bandwidth and today's networks aren't scaled for it. A half-hour TV show eats more of it than does receiving 200 emails a day for a year. Internet service providers don't like bandwidth hoggers. When CBC used the file-sharing service BitTorrent to stream "Canada's Next Great Prime Minister", Bell Canada "throttled" Web access for BitTorrent users and others, slowing down access for their users and others whose ISPs used Bell lines. Subscribers rightly wonder about service guarantees. The Net neutrality debate will intensify as broadband-intensive offerings increase and more is demanded from the existing pipelines. Maybe Web-based TV 'casters like Hulu, Babelgum and Joost represent the media-viewing future. Delivering all sorts of long and short-form video via legal P2P (peer-to-peer) file-sharing technology, they're free and have fewer ads than TV. Though no one can guarantee the picture quality of 'live' video streamed over the Internet, Joost looks darn good. But for me, "content is king". Original, compelling stuff—accessible when I want it—will earn my attention, even if I can't contribute to reviews of last night's 'Desperate Housewives'. Networks and broadcasters (and startups and everyone else) are driving themselves nuts figuring how to monetize Internet video. At stake in Canada: $3.4 billion in ad revenue, $1.7 billion in programming fees. The big American networks know how to work it. They win viewers' hearts by offering some of their best shows, and complementary content, online.But if you TV addicts need a Web-enabled fix at work, don't hope to see ''Heroes' or 'Big Brother' or 'Family Guy' on the network sites—unless you surf from the United States. Don't blame the CRTC—they don't regulate online broadcasting. Blame licensing agreements between American broadcasters and Canadian partners. Simply put, the digital rights cost too much. That's why I'm keeping an eye on services like Joost. And in the meantime, if I'm feeling screen-starved, there's always YouTube, CBC.ca and my friends' downloaded stashes. (Submitted by Seth Klapman for 'Business Thompson Okanagan' May 2008 issue) Have you any questions or comments? Can we help you at all with your Internet-based marketing needs? Please contact: Seth Klapman, Marketing Acro Media Inc. 103 - 2303 Leckie Road Kelowna, BC, CANADA V1X 6Y5 tel: 250.763.8884 fax: 250.763.6936 Acro Media Inc. (acromediainc.com) is an interactive agency that professionally delivers four main solution sets: Ecommerce solutions—for product sales. Corporate sites—for lead generation. Showcase design—for brand building. Portal sites—for community building and member services. With a decade’s experience and team of 33, Acro Media ably provides: Web site design & development. Ecommerce & software integration. CMS & dynamic Web site solutions. Internet marketing & SEO. Online branding & corporate identity. Flash, interactive & motion design. Acro Media guarantees their work, and builds W3C valid search engine friendly Web sites.
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