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Archive: May 15, 2000
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New media and the broadcasters
by: May 15, 2000 Print

Today's new media producers have the-once-in-a-generation opportunity to define a new paradigm and lay the groundwork for the future of entertainment, information and lifestyle programming.

In these still early days of the new media, broadcasters and production companies are scrambling to adapt to the changing landscape of content distribution. Everyone has a different business model. And everyone believes their system is right.

Steven Forth is the ceo of DNA Media in Vancouver. For him, new media companies must keep traditional broadcasters close if they are going to succeed on the new playing field.

"We believe that in the future, the Internet will be the prime, but not the only distribution medium for all forms of content. And we also think that each media will take on some of the characteristics of the other media. Given that, we feel that we need to develop relationships with the [traditional] broadcasters because they will be one of the prime creators of content for the Internet. And also, many of the broadcasters are going to be very involved in the distribution."

dna, which concentrates on educational and lifestyle programming, believes the broadcasters should be thinking about the new distribution models that are sure to arrive. For dna, the managing of server farms (allowing for many simultaneous content streams) is not in their future.

"If the broadcasters are smart," Forth begins, "one of the things [they will do] is manage server farms. They will perhaps acquire companies that do that. It's the computing adjunct to the cable system."

Rights, distribution

agreements

Before discussing the ways broadcasters are attempting to go interactive, Forth points out that broadcasters had better look after agreements pertaining to their outdated territorial-based rights and distribution models.

Forth expects territory-based rights deals to disappear over the next decade. "That poses a severe challenge to both the business models of Canadian broadcasters and many other Canadian cultural industries, and also to Heritage Canada and Industry Canada. A lot of Canadian cultural industries are dependent on the redistribution of international product [largely American product] as their core revenue stream. And if that is taken away from them, as it almost certainly will be over the next decade, they're going to need a very, very different set of business models."

In terms of interactive initiatives launched by Canadian broadcasters, Forth believes they're finally coming up to speed.

"I think the Canadian industry has made great strides in the last three to six months. It's late in the day for them to be doing so. And I'm looking forward to a radical repositioning of some of these companies. I think that CanWest Global has some very smart business ideas in the area," Forth says, going on to explain that CanWest has yet to release anything.

Forth is concerned about the fact that Bell Canada Enterprises has just bought ctv. "The problem with that, is that neither of those companies really has any experience or ability to create online interactive media."

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