Canadian Market Primed for Consumer Video Viewing Shift

TORONTO, October 28, 2011 – International Data Corporation Canada (IDC Canada) today released key highlights from its newly published report, Canadian Online Video 2011 Vendor Analysis: Beyond the Hype – IDC Canada's Online Video Index (IDC #CA2CT211). At present, the Canadian online video market remains very complex: each service has a different approach and is at a different stage of development. As a result, there are no accepted or proven business models to pave the way.

"Innovation will continue to drive this market," said Emily Taylor, Consumer Technology & Services analyst at IDC Canada. "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 U.S with online video services and it is only a matter of time before they eye the Canadian market."

In the Index, IDC evaluates Canadian online video services across four factors: availability, content, user base, and price. The services assessed in this study were selected as they are content aggregate and distribution sites, available in Canada, that require consumers to pay to access full-length, premium content. A total of 11 services were profiled in this study: Bell TV Online, CinemaNow, Cineplex Entertainment, iTunes, Netflix, Rogers On Demand Online, Shaw/Shaw Direct Online Video On Demand, Sony Entertainment Network, Videotron illico web, YouTube Movies, and Microsoft Zune Video Marketplace.

Other key findings from the report include the following:

One size does not fit all – 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. This presents a dilemma to providers – cater to all or risk losing out on one or the other group.

Device Partnerships Key – 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. Providing this support for all content across multiple devices – seamlessly – will create a strong service.

Traditional Pay TV Services Will Continue Their Evolution – All online video services rely on the Internet, and this places service providers in a powerful position. It is expected over time that Canadian household penetration of broadband Internet will outpace pay TV services.

To view an IDC Market Minute video, in which Emily Taylor discusses her research, please go to http://www.youtube.com/watch?v=heVl8YCDE9w.

Please contact Joanne Haywood to arrange an interview and/or for additional quotes.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com