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October 31, 2011

Canadian online video market remains complex, no proven models: IDC

Device partnerships is the key for the market, says IDC Canada

By CBR Staff Writer

The Canadian online video market does not have any accepted or proven business models to pave the way, as it remains very complex with each service having a different approach and is at a different stage of development, according to a new report International Data Corporation (IDC) Canada.

The report, Canadian Online Video 2011 Vendor Analysis: Beyond the Hype – IDC Canada’s Online Video Index, also indicated that one model does not fit all, as for some consumers, one or two pieces of content online per month will be suitable; while others will rely on these services for much of their programming.

The report revealed that partnering with device makers to include support on TVs, set-top boxes, Blu-ray players, gaming systems, and DVRs will increase reach, as will increasing mobile device platform support.

According to the report, evolution of traditional pay TV services will continue, and service providers will be in a powerful position, as it is expected over time Canadian household penetration of broadband Internet will outpace pay TV services.

IDC Canada Consumer Technology & Services analyst Emily Taylor said innovation will continue to drive this market, and the introduction of new devices and new platforms – including consumer cloud – will strengthen services as well.

"Competition will only get hotter given that major brands like Walmart are active in the US with online video services and it is only a matter of time before they eye the Canadian market," Taylor said.

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