For several years broadcast constituencies in the UK have fought tooth and claw over the growing influence of the BBC, fighting off Kangaroo and forcing it into Arqiva’s hands, but failing so far to halt Project Canvas in its tracks.
Canvas is the BBC led attempt to produce retailable set tops which can take terrestrial TV alongside internet video. Canvas was supposed to get clearance to launch this year but we still can’t be sure they will be in the shops by Christmas and Canvas is now openly referring to launching in 2011.
This time it is because pay TV operator Virgin Media is now talking referring the issue to the local regulator Ofcom. Last week Canvas hit another problem in that Five, the company behind channel Five in the UK, itself owned by German broadcaster RTL, pulled out off the venture without explanation. This was possibly because its parent wanted to support more widespread European technology called HbbTV. Officially it is because Five itself is up for sale, but also because RTL wants to ‘review its digital investment strategy,’ whatever that means.
Much of the R&D for canvas has been carried out by the BBC and it has partnered with ITV, Channel 4, Talk Talk, BT and Arqiva, as well as Five, and now Five’s share of the costs will have to be re-allocated ‘ the group hopes this will be to a brand new player, rather than spreading it out among themselves. French mobile operator Orange has been in talks to replace Five, and it has similar ventures back in its native France where it has acquired football TV rights and runs a few TV channels of its own.
But now Virgin Media, perhaps sensing that Canvas is suddenly vulnerable once more, is considering wading it with a calculated legal challenge
Broadband TV News quoted Virgin Media yesterday saying, ‘It’s disappointing that what started with seemingly positive intentions has developed into something which wants to dictate how we all watch TV. The BBC Trust has explicitly admitted Project Canvas will hamper innovation and so damage competition. Companies of all sizes and from so many affected industries have expressed their concerns but, to date, these have been summarily dismissed.’
And that about sums up the action so far. BSkyB has been particularly hostile in its take on Canvas, but then again it would, since both Virgin and Sky really represent the bulk of pay TV in the UK, with just under 13 million pay TV customers between them and they feel very much that they compete with all free to air initiatives.
The concern is that it is the same old broadcasters who make up free to air TV in the UK, who are in charge of Canvas, and this will lead consumers to assume that Canvas IS web video to your TV, rather than just one variety of it. In which case the holders of the rights to publish through Canvas will be gatekeepers to TV in the UK ‘ and that’s all the old incumbents.
The truth is that Canvas is a relatively trivial technical achievement, and the combined European broadcasters have solved all the same problems in an initiative called HbbTV. All you have to do is take an internet video signal and decide how to show it side by side with a terrestrial set of channels on for instance an electronic program guide (EPG). The signal then has to be converted to something the TV can play and all that logic placed in a set top.
What Canvas is expected to place on top of the HbbTV style solution is an interface, a branding and a way of managing internet delivered video on the TV. But both initiatives ‘ Canvas and HbbTV will only show video from a handful of authorized sources ‘ not generic internet video. Canvas will almost certainly have the effect of overshadowing every other internet TV effort, except perhaps those from the Pay TV players ‘ Sky and Virgin. If the UK embraced HbbTV, then we expect each channel could have its own way of showing internet video, linked from its channels or through a new EPG. This is simply because HbbTV is less controlling and less defined, and leaves something for each broadcaster to create for himself.
Virgin Media says it is concerned that Canvas will restrict and distort competition, but as long as it remains open and allows other fresh TV channels equal access to the vehicle then there should be no reason why the BCC, which operates with UK consumer TV license fees, should not be associated with it. But will it? While there have been discussions with government services such as NHS Direct and the Netflix-like LoveFilm, these are not yet done deals and it could end up as a simple catch up club for existing broadcasters.
Canvas insists that it doesn’t want to own or control content just bring the technology to market.
If Orange comes on board then it will gain privileged use of the system the same as the other owners. This week former Ofcom advisor Kip Meek has emerged as the favorite to be appointed as the chairman of Project Canvas. Meek is thought of as steady hand who is well connected throughout all broadcasting and also with the current coalition Government.
But if Virgin goes ahead with the complaint, Meek’s old friends at Ofcom may feel compelled to enter a lengthy public consultation in order to give it a clean bill of health, which may include placing limits on who can use the system, before he can effectively take up the post.