CBC Speech, number 3

Filename: CBC

Word count: 3094

 

 

 

Leading the Way for the Next Generation of Content

The CBC's Perspective

 

Presented by John Lewis, Executive Director, New Media

 

 

Good morning.

 

Walk into any world-famous art gallery and you'll come across wonderful paintings, sculptures and drawings. You might spend the whole day there, traveling from room to room and painting to painting. But if you don't know the background or history of the pieces you're looking at, you might go home at the end of the day simply saying, "I liked the colour Monet used, or Rodin really knew how to sculpt."

 

 

Now, let's say you decided to go back the next day and take a tour with a professional tour guide. This leader might direct you to the same paintings and sculptures you saw the day before, but this time you might learn about their history. Or this leader might discuss reasons for the use of colours or textures. At the end of this second day, chances are, you will go home really appreciating what you had seen.

 

Today I hope to be your tour guide while I lead you through my main topic, "convergence in mass media" and how the CBC is approaching it. Specifically, the focus of this presentation is on content and how we hope to develop content in an interactive broadband environment.

 

The media we use and consume in our everyday lives is changing faster than any of us can keep up with it, it seems. No longer are we happy to simply plunk ourselves down with a book at the end of a long day, as we might have done a hundred years ago. Now when I come home, I can choose to listen to the radio, watch TV, talk on the phone, send Email to a friend in Australia or order tickets by Internet for Death of a Salesman playing in New York. If I really feel like tuning out, I can even play a video game! And these options are increasing all the time. We are living in an ever-growing technological society. In other words, we are becoming more at ease with the technology that touches us day-to-day.

 

As a case in point, consider some statistics offered by an American-based web site called e-land.com. It states that the speed of adoption for Internet far surpasses any other medium. The adoption rate for radio was thirty-five years. For television, the adoption rate was thirteen years. For personal computers, it was sixteen years. And how long for the Internet? Only four short years.

 

But it's not simply the media that are changing. The way that these media are disseminated is changing too.

 

When I look at this world around me, telephone lines aren't there solely so I can talk to my friend on the other side of the city. My cable bill might include an invoice for more than simply access to 63 channels. A satellite isn't merely something scientists use to gather information. In this atmosphere of imminent convergence, content will have to be strong, both in the traditional media and in what we're calling new media if we want to remain competitive -- if we want to lead the way for the next generation of content.

 

With that being said, if it seems like we're "madly off in all directions" that is somewhat true. If there is anything we have learned, it is that we do not know for sure what form or forms the provision of content will take in the future. Our job at the CBC is to be flexible and respond to our audience's needs and wants. By doing that, we will share stories about Canadians, who we are and how we see the world in a whole new and effective way.

 

So here's what I propose to talk about today:

The New Media Environment

        As I mentioned a minute ago, the our media environment is changing. I plan to lead you through some of the indicators we have experienced at the CBC that suggest there is a need to prepare ourselves for a different future.

 

The Evolving Capacity

        We'll also take a quick look at bandwidth, as well as the type of programming generally associated with its levels.

 

A New Approach

        If bandwidth gives us the means to an end, we will need to produce for multiple platforms, from analog television and radio, to a highly interactive broadband environment.

 

Program Examples

        At the end of this presentation, we will look at some pretty exciting examples of what CBC has had in the works: Budget 99, Market Place, a French kid's site called Fd6 (that we're incorporating into the English market) and Hockey Night in Canada.

 

So let's begin with a look at the New Media Environment.

 

Like most people in the media industry, I didn't start out working in new media. I've been with the CBC for about fifteen years. Needless to say, when I first walked through the CBC's doors, words like "Internet," "Web site," and "broadband" were not exactly in common use.

 

So prior to heading up New Media, I headed up our Business Development Department. Our projects ranged from buying a television station in New Brunswick, to launching two specialty services in the U.S. market (fifty percent owned by the CBC), to creating a pay audio continual music service called, Galaxie, carried by many cable and satellite services here in Canada.

 

The nice thing about those services that live in the analog world, was the relatively accurate predictability of business plan projections. We could project the number of suppliers. We could project the price. We could even project who our audience would be.

 

In the new media world, however, because it's so new, there is a real lack of certainty when it comes to projections. I don't know about you, but I can barely keep up with the mergers and acquisitions today, let alone put together a predictable business plan.

 

Growing Demand

 

What we do know is that there is a growing demand for new media. According to the results of a recent ACNielson Canada survey, almost twice as many Canadians are using the Net as they were in 1996. Talk about adoption of media!

 

But that isn't to say that in 1996 only a few people were logging on. That year we produced a television drama about Canada's infamous 1950's fighter aircraft called The Avro Arrow. At the same time, we launched one of our first web sites. This website, which had a chat line, was dedicated to the show. Over one hundred and fifty thousand individual Canadians from across the country came on-line to share their thoughts and aspirations. We even had one of the pilots turn up.

 

This desire to participate interactively in a TV-based Canadian event just blew us away. It was one of the early indicators that we had something different that would grow to become very popular. We truly felt like we were leading the way.

 

Another indication that we were on to something big was during the last federal election. We had created a website for that event. After that election, a journalist told us about an interesting thing that happened at the Canadian embassy in Mexico. This journalist was invited to a evening soiree at the embassy to watch the election results via satellite television.

 

Part way through the night, however, they lost their signal. So there they were with their food and drink in hand, but no information about the election back home. But one person from the crowd said, "Wait a second, CBC has a Website." So they pulled their computer out, put it beside the television, and were able to find out information about specific ridings, as well as the overall results.

 

Although the embassy eventually got its signal back that night, this incident showed us that, for a different reason, there is a growing demand for new media.

 

Then there was the Quebec election. Now being more experienced in predicting the demand, we anticipated heavy traffic. We set up proxy servers. We had guaranteed bandwidth. We streamed audio and video according to demand. We thought we had all bases covered.

 

What we didn't anticipate was the volume of web-based traffic that exceeded the ISP capacity. I was with a group of other CBC employees in a Quebec City hotel room that night. We were checking out our competition in television, radio and on the Net when I realized we couldn't get into our own site. So I called up our folks and said, "I've done everything here. Why can't I get in?" It didn't make sense. We were only at three-quarters capacity.

 

It was then that we realized the problem wasn't the site itself, but getting to our destination. It was like a massive traffic jam on the access roads to the shopping mall -- with the stores only half filled with customers.

 

So this is another indicator that there is a strong, growing demand. It also means that we need to respond to the way our audience is accessing our content.

 

Demographics

 

While some people still think of web surfers as young, pocket-protector clad young men, our research indicates individuals from all age groups are now Internet users. And while the strongest showing is still in the fifteen to twenty-four year-old age group, there has been an increase in seniors and women who regularly log on. There are clear indications that this is not a passing trend or fad.

 

Strong Correlation

 

There's also a strong correlation between watching television and accessing the Internet. They are not unrelated activities. One of the TV related sites that drives the highest traffic is a cooking show called C'est Chaud. As soon as the on-air chef says he's posted the recipe for the dish he just prepared, the traffic starts.

 

Audience Feedback

 

One of the reasons why were are able to know when traffic heats up (excuse the pun!) is due to our ability to track user flow. If users stay on our site only a few seconds and leave, then we know we've screwed up somehow. If the system is set up right, however, then our audience is more likely to come and stay awhile. In television or radio, you may find out the next day what your numbers were, but you don't have the immediate feedback you get from the Net.

 

By the way, our users stay an average of ten minutes, compared to the average of a minute or less.

 

Conclusion

 

Obviously, Canadians are using the Internet as a platform to access content, just as they do in radio, television and print. What is less obvious is what Canadians and others are seeking and how they're doing it. It is our job to discover how best to develop content that is informative, attention grabbing and still entertaining and turn into the Next Generation of Content.

 

The Evolving Capacity

 

Let's move on to the question of "how."

(Narrowband)

        Right now, our research indicates that most Internet users are accessing the Internet at speeds of 28.8 Kbps. They're using the Net for basic services such as booking airline flights, hotels or for simple research. Much of what we use the Internet for today requires logical left brain thinking.

        The CBC has eight hundred lines, which means that at any one time, at most, eight hundred users can access our audio/video content. Of course it's hard to make any sort of business case from that.

        Multicasting, however, will allow greater simultaneous access to content. That promises to be an element that would change business cases. It would also allow a greater level of content to be developed in the broadband environment.

 

(Broadband)

 

So what is broadband? Quite simply, it's an efficient use of a wide band of frequencies. That means we are able to pack more information over a cable so we can offer services only dreamed of before.

 

Right now we're running about 1 Meg, but will eventually increase that to six Megs or more. When using six Megs, you can provide full motion video, more interaction with the audience and have emotional right brain potential.

 

How close are we to a broadband world? Well, according to research by Forester, by the year two thousand and two (2002), fifty percent of online users will be using broadband. Without a doubt, at that time, there will be a strong enough business case for investing more into the development of broadband.

 

A New Approach

 

We at the CBC have been producing content for an analog radio and television environment. We've started to produce in a narrowband environment in the last year and are now thinking about broadband. We need to take a new approach to content if we are on our way to a very different media environment.

 

Already our audience is able to exercise choice. If I don't like a program I'm watching for example, I can click the remote and try something else. Knowing the audience's desire to exercise choice, websites have a great deal of selectivity. Personally, I find it difficult to watch television newscasts. Although their content is good, they are deciding for me which stories I should watch. I want that choice and I can get it on the Internet. And while I can't get the quality of audio and video that I would from the television, with a broadband environment, that will change soon.

 

Multicasting will bring us a step closer to being able to afford to produce content for an active, as opposed to passive, audience. Again, this means that an increase in users will lead the way to a better business plan.

 

From basic selectivity, we will move towards on-demand interactivity. What does that mean for content? Well, The Next Generation of Content needs a new approach.

 

Let's see how we're preparing for that environment.

 

Federal Budget 1999

 

        What you don't see here is probably the biggest breakthrough. The production team that developed content for this site was a common team that included radio, television and new media journalists. So because it was the same group, we were able to be consistent in the "look and feel" for both the site and the television program.

        Both offered the same information at the same time and the site was mentioned during the radio and television broadcasts.

        This news site had the second highest traffic to date.

        Users could find highlights from the budget, background information that might not be available on television, there was a video of the speech, and they could even review documents related to it.

        Yet for all the site's advantages, it still falls short of providing access to multi-applications on one screen. People are telling us they want that access. They want to be able to sit in their family room watching television, but have data surrounding it. They want to watch Paul Martin speak, but also review documents at the same time.

 

Market Place

 

        Even though we repeat Market Place several times during the week in the analog world, you either see it or you miss it. And even if you happen to catch it, the subject matter is such that you may wish to refer to it at a later date.

        If we accept that notion, then we must lead the way to the Next Generation of Content by offering much more than a simple TV program. It, in effect, becomes a consumer information service. And I think this is where the environment is headed. Look at any survey result regarding what people are looking for in Internet, and you'll see the number one reason is always information gathering. So the audience's expectations of this service will be very different that their expectations of a TV program. They'll be expecting it to be comprehensive.

        What we have now is of good quality and it allows us access to archived material, but it is not a comprehensive consumer site -- yet. We are considering going in that direction, but we can't do it alone. We need to join forces with others in the same field.

        With that in mind, it is conceivable that as we lead the way towards this Next Generation of Content, the TV program will become only a key promotional element to the larger, new media service.

 

Fd6

 

        This site is a good example of how we've created a direct relationship between the audience -- kids in this case -- and six characters from the site. As kids come onto the site, they register (privacy concerns are addressed), and select one of the characters as their best friend. This character creates an on-going relationship with them by sending Email.

        It's amazing what can be done. In May, Julie Payette will "adopt" the science character, the blond-haired girl, and take it up into space with her to conduct an experiment with it. The kids will be able to follow the progress, as they'll be linked in.

        So the potential for this kind of interactive program is staggering. What was also staggering, by the way, was the excellent response we received from the audience. In its first two weeks, we had sixteen hundred kids register in the French market.

        What is also interesting about this project is its impact on television. We are now looking into turning the concept into an animated television show. So it's going from Internet to television, and not the other way around.

        So this is another example of the New Generation of Content. Kids aren't sitting passively in front of the television, but are having an on-going, interactive relationship with this medium.

 

Hockey Night in Canada

 

        This is my last example of how the CBC is tackling new media concepts.

        This site is much like the one we created for the Federal Budget. Its content is appropriate for simultaneous transmission with the television program, as well as appropriate for ongoing reference.

        While there are ways of simultaneously displaying Internet based content with the television signal in an analog environment, a fully digitized environment will mean we will have no choice but to speed up the shift to the New Generation of Content. As I have mentioned before, while we don't have full real-time video right now, with broadband just around the corner, eventually we will.

 

Conclusion

 

That brings me to the end of my presentation. I hope that after this tour through issues surrounding new media content, the next time you log onto our site, you'll look at it a little differently -- and you'll appreciate it more. Just as I have appreciated the opportunity to speak to you today.

 

Thank you.