How will the digital distribution revolution look for TV producers?

Have you ever considered how Netflix and the forthcoming digital distribution revolution might threaten Canada’s traditional TV distribution model? 

Dan Fricker has. In his recent thought provoking article on he looks at how digital distribution is transforming the Canadian TV industry and he discusses the current state of digital media funding.

Fricker mentions two of TV’s digital media partner project funds (both of which Kensington has received to accompany several of our traditional productions, including our popular TV series Museum Secrets):

  • The Bell Fund’s convergent digital media stream (gives out $35-million in production funding annually)
  • The Canadian Media Fund (gives out $360-million annually)

Meanwhile, Fricker dug up stats from comScore, citing Canada as the second ranked country for online video engagement, with citizens consuming an average of 25 hours of video per month. And he notes that Netflix is now extremely well-positioned as a low-cost option, compared with more expensive cable TV packages. That said, Canadian TV viewers may be increasingly drawn to cheaper online options and away from traditional TV. 

But one important question remains: “If Netflix and its counterparts are delivering content to Canadians, should they not be subject to the same rules & regs as our domestic broadcasters, and be required to subsidize homegrown productions? Or does the Canadian funding system need to look past simply creating innovative digital media content, and focus instead on alternative distribution channels able to compete in today’s market?” – Dan Fricker.

What do you think?
We wonder what the alternative will look like in years to come… and everyone else also seems to be searching for that answer too.

Amanda @, Social Media Lead