MediaTube plans to launch IPTV in Toronto market by end of summer

MediaTube Corp. is counting on the differentiated offerings of Internet protocol television (IPTV) to help launch a competitive new broadcasting distribution service in the greater Toronto and London areas this year. “We have similar capabilities with what you have with cable, but we’ll also open up the full suite of IPTV products and services,” MediaTube president Ted Chislett said by phone. “So the idea is that someone who takes our box will be able to watch the Internet on their TV, and see YouTube, as well as the normal cable channels.” MediaTube’s set-top box technology will include a browser, which Chislett said will “be as general purpose as possible, so you could browse the Internet and watch a variety of over-the-top services.” Bell Canada’s Fibe IPTV, which is available in Toronto and Montreal, offers online features such as email access, instant messaging, and a personalized homepage with news, weather, sports and other information. Bell’s Fibe service is powered by the Microsoft Mediaroom multimedia platform. The company says it will be available to almost five million households by the end of 2015. On Feb. 11, the CRTC approved MediaTube’s application to operate a terrestrial broadcasting distribution service in the Toronto and London areas. As an IPTV provider, MediaTube will lease unbundled DSL loops from Bell rather than purchasing bandwidth at wholesale rates because transmitting video over the Internet uses a significant amount of data. Mediatube’s plan involves running a fibre-optic connection from Bell’s central office to downtown Toronto, and then offering Internet and television service over the leased copper DSL lines. Third-party Internet resellers that lease unbundled loops are not subject to any potential usage-based billing charges for exceeding bandwidth caps (according to the CRTC’s usage-based billing policy, which is now on hold and under review). “We looked at that as the only way we could offer service without having to be at the mercy of the telco and what rates they may charge,” Chislett said. It’s the best way for a small competitor to approach things, Greg Taylor, a broadcasting expert in Montreal and post-doctoral fellow with Ryerson University’s broadband research project, said in an interview. “This company is smart to be building its own part of the fibre line. It’s going to be necessary,” Taylor said. “What has been seen in the U.S. is that television streaming has been taking up a lot of the broadband space,” he said, referring to reports that, in the United States, streaming service Netflix can consume up to 20 per cent of bandwidth usage during peak hours. But the choice to offer the service through Bell's unbundled DSL loops also means the company will have access to a limited customer-base. That’s because DSL service decreases in speed the further away a customer is from a central office—so that Mediatube can only stretch the service so far. “As a result of that, we are somewhat limited, if you will, as to which customers we could serve because of how far they are from the central office,” Chislett said. Taylor said he believes the introduction of services like Mediatube’s could be quite disruptive. “IPTV is offering a very interesting shake-up to a BDU industry that has gotten comfortable and, I would argue, complacent over the last two decades,” he said. “It’s a welcome bit of competition into an area of the broadcasting industry that has proved extremely profitable and has shown reluctance to new entrants.” Taylor said IPTV is the bleeding edge of merging television and Internet markets. Chislett said MediaTube is looking at implementing customized services for its set-top box, like the ability to view the MLS real estate listings service, or at some point adding a video-conferencing capability. MediaTube will also offer pay-TV channels like The Movie Network, in addition to pay-per-view and video-on-demand services. Pay services like these would come through signing redistribution deals with a third-party reseller, as Mediatube did not apply for a video-on-demand or pay-per-view licence. The technology and interface to deliver those services would, however, be Mediatube’s. Because licensing for these services is ongoing, MediaTube could not provide further details. MediaTube's channel line-up is not yet finalized, but in addition to offering set theme packs, the company also hopes to offer customized packages in which customers can choose some of their own station combinations. Mediatube’s service is expected to launch first in the Greater Toronto region, and then in the London, Ont. area. Chislett said the company plans to launch by the end of the summer at the latest. Taylor said a small company like Mediatube has potential for success, depending on pricing. “The alternatives for BDUs are somewhat limited. There’s usually two or in some places three , and I think you’re going to find there is a real desire for price differentiation,” he said. “It’s going to be like the new telecom providers who come in and offer something at a lower price and really take a significant market segment.” news@thewirereport.ca

MediaTube plans to launch IPTV in Toronto market by end of summer

Broadcast | March 4, 2011

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