Canadian audiences frustrated by a scarcity of prime-time television shows available online may have finally caught a break with the announcement of a deal that will bring three top dramas to the Internet here.
In a move that may pave the way for most of the highest-rated shows on television to make their way online in Canada, CTV Inc. struck a deal with ABC Inc. to stream three of that network's most-watched series online, supported by advertising.
Episodes of
Lost,
Desperate House
wives and
Grey's Anatomy will be available online for 28 days after their original broadcast for the remainder of the season, the networks said.
While the deal is not the first to bring U.S. shows to Canada, it is one of only a few to include dramas or comedies that are in the top-20 of the national TV ratings. Canadian broadcasters have put many of their own domestic shows online, along with programs from U.S. cable channels and reality shows, but most of the best-known prime-time hits remain absent.
The biggest hurdle so far has been the inability of Canadian and U.S. networks to agree on what the digital rights are worth and to find advertising support. Since Canadian networks buy the broadcast rights to such programs here, the U.S. networks aren't allowed to stream the same shows on the Internet north of the border.
A key to the deal with ABC was getting two advertisers – Duracell and Volkswagen – to sign on as sponsors, providing a revenue model for the network to proceed in buying the digital rights from the U.S. company.
“The market has matured considerably in the last year, and both audiences and agencies are becoming increasingly familiar with streaming video,” said Stephan Argent, vice-president of digital media for CTV.
Since CTV began putting TV shows online a few years ago, including domestic programs such as
Corner Gas and foreign content from MTV and Comedy Central, it has reached roughly 30 million streams a month, the network said.
“We've built the audience, which has brought the advertisers to the table and given us the opportunity to invest in these shows … Advertisers want to see that the audiences are there to make sure that their money is well invested,” Mr. Argent said.
The online deal with ABC expires at the end of this season. However, it may provide a blueprint for future negotiations if advertisers warm to the idea.
Both CTV and CanWest Global Communications Corp. have been trying to get as much of their prime-time TV schedule online as possible, but have been bogged down by rights negotiations.
In addition to agreeing on what those digital rights are worth in Canada, officials with ABC said security was also a key issue over concerns about potential online piracy.
“We waited for the right deal for both companies, and that wasn't purely a cost issue,” said Sarah Hird, spokeswoman for Disney-ABC International Television.
“In a deal such as this, partners need to work together to handle many other important issues too such as security and delivery.”
She suggested the company is interested in looking at further agreements to stream U.S. shows online in Canada.
“In time, we hope we can explore new media opportunities with all of our Canadian partners,” Ms. Hird said.