WHAT IS PROJECT CANVAS
Project Canvas is an open platform for broadcasters, backed by the BBC, BT and ITV. The aim is to bring “catch-up TV” from the PC to the TV.
Online catch-up services such as the BBC’s iPlayer will soon be accessible to viewers with Freeview (free-to-air digital terrestrial TV service) or Freesat (digital satellite equivalent) and Broadband Connections. This is not a new phenomenon - the iPlayer is extremely successful on Virgin Media, accounting for 30% of the iPlayers total video requests.
Project Canvas is expected to launch in 2010, pending a review from the BBC Trust. All remains to be seen, since Kangaroo (TV On-demand service) was surprisingly killed off after a review by the competition commission. Will Project Canvas suffer a similar fate?
BBC Trust Consultation (PDF)
BBC Executive Proposal (PDF)
Below is a complete summary of latest updates.
HOW MUCH WILL IT COST
Project Canvas’ budget for the first five years is estimated at £24m. BBC, BT and ITV are expected each to put in £6m, assuming they manage to bring on a fourth partner to table.
OTHER PARTNERS
Everyone is wondering who the fourth partner will be, though Channel 4 and Channel 5 are obvious possibilities. (Channel 4 was also involved in the Kangaroo Project).
Project Canvas is open to all content owners and broadcasters, including YouTube. Content platforms such as Love-Film are also likely to come on board, streaming pay-per-view videos through the TV.
Other internet service providers (ISPs) are expected to come on board, in addition to BT.
THE BUSINESS MODEL
Over 14 million homes have Freesat or Freeview, which is an excellent source of traffic to the project. While Project Canvas is not looking to make money from the actual service itself, it expects to monetize the content that it delivers through advertising initiatives.
The project is publicized as being “free” but there may be hidden costs. As per the documentation shared today, “Set top box and other device manufacturers may choose to incorporate conditional access functionality to allow access to paid-for television or other services”. “Payment may also be required for internet based on-demand content through a range of payment models.”
WHEN WILL IT LAUNCH
Project Canvas aims to launch in early 2010, pending Trust approval.
WHO COULD GET IN THE WAY
The BBC trust is reviewing Project Canvas “soon”, seeing whether it is in the interest of licence-fee players. it will also explore competition issues, to ensure Kangaroo concerns are assuaged, even though the partner trio insist that this is open to any content provider. The Trust will announce its final decision on July 24th. Preliminary “emerging conclusions” will be published on June 8th.
BSkyB and Virgin Media could interfere at some point. Both players are competing heavily within the Pay TV space and are unlikely to accept a new free TV platform without at upside to them. At present Virgin is the only one carrying the iPlayer, and both services have been pushing their subscription models heavily.
WHAT IT MEANS FOR THE CONSUMER
This is excellent news for consumers, as it means they can now experience the content and interactivity of web catch-up tv services directly on their TV. Users will have free access to content from the iPlayer, ITV.com, 4OD, Demand Five, and websites such as YouTube, public agencies like NHS direct and sites like Flickr.
In order to use this service however, users need to acquire a set-top box, costing anywhere from £100 to £200. Naturally, Canvas requires access to the internet, so consumers will need to pay for a broadband connection unless they already have one. A broadband connection of 1.6 Mbps should suffice.
Service providers like BT will offer special tariffs to existing customers who wish to use the service, though they say that no additional subscription fees will be requires to access features like the iPlayer.
WHAT THEY ARE SAYING
“This proposal is founded upon partnership, and comes at a time when commercial public service broadcasters are facing unprecedented challenges,” said the BBC director of future media and technology, Erik Huggers. “While audience demand for high-quality public service broadcasting remains high, the ability of the commercial operators to deliver is seriously threatened by a changing media landscape and the difficult economic climate. Innovation is in the BBC’s DNA, and with our funding model and great content, we’re in a unique position to innovate for the benefit of everyone.”
See more quotes from Erik Huggers, here.
Diane Coyle, a BBC trustee says, “The [BBC] Trust has challenged the BBC executive to come up with proposals to help bring the benefits of the BBC’s public investment to the whole public service broadcasting sector. This is the first of these proposals to come forward to the trust and we will be scrutinising it to ensure the best possible outcome for licence-fee payers.”
WHATS IN A NAME
Project Canvas is the working title. If and as soon as the BBC Trust gives its go-ahead, the project will be rebranded.
Excellent Summary by Paidcontent
Read our first comprehensive article “What is Project Canvas”, here.
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February 27th, 2009 at 2:17 am
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