BUSINESS
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FRIDAY, JAN. 2, 2015
Streaming options transform TV world CHANGES TO CANADIANS’ VIEWING HABITS HAS GOT TELECOM COMPANIES STREAMING BY THE CANADIAN PRESS TORONTO - To tear through two seasons of Orange is the New Black or binge-watch episodes of Scandal? The great TV debate raged through households in 2014 as a growing array of streaming video options opened the doors to a new world, and began to transform how some of us watch television. Some of the country’s biggest cable providers leapt into the game, launching their own answers to Netflix in an effort to prove they’re still cool. But industry watchers say fans shouldn’t get ahead of themselves when it comes to perceptions of the country’s overall viewing habits, which still lean towards cable television and over-the-air antennas. “We need to calm down,” said Duncan Stewart, a director of technology, media and telecom at Deloitte. “Even in 2015, the majority of television will continue to be consumed through traditional linear broadcasts.” Stewart estimates between five and 10 per cent of all TV viewing is happening through video streaming services, a fraction of the country’s overall time in front of the television. However, a swath of new alternatives are laying a foundation that will train younger Canadians to think differently about TV, whether its Hollywood movies or Saturday night hockey. In the final weeks of 2014, two streaming TV options hit the market: Shomi, a partnership between Rogers (TSX:RCI.B) and Shaw Communications (TSX:SJR.B), and CraveTV, a similar offering from Bell (TSX:BCE). While they’re often described as an attempt to steal thunder from Netflix, both are also trying to silence the growing conversation around people cancelling their cable packages.
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Shomi is only available to Rogers and Shaw customers while in its “beta test,” and there are no definitive plans to make it available to people without cable. Bell’s CraveTV is available to its TV subscribers and through some of the country’s other providers, including Telus (TSX:T), Bell Aliant and Eastlink. Rogers has built a similar catch into its NHL GameCentre service. The streaming video platform is a pipeline for more than 1,000 national and out-of-market NHL games, but the bells and whistles of GamePlus —which include multiple camera angles for the biggest moments of the game — are only available if you’re a Rogers customer. Here sits the anchor weighing down the video streaming revolution — the companies involved in linking viewers with what they want to watch, have made it tough to break free of their older services. “They’ve got of one foot on the gas, and one foot on the brake,” said analyst Kaan Yigit at Solutions Research Group. “But until the demand is met, people will do whatever they have to (in order) to get their fix.” One of those alternatives is online piracy. Consistently, the most popular downloads are shows like Game of Thrones, that can only be watched by cable TV subscribers who pay for HBO. The federal government hopes to curb the trend with the Copyright Modernization Act, which goes into effect on Jan. 1. The law requires Internet service providers to warn customers they catch illegally downloading copyrighted music, movies and TV shows. But even if the new legislation helps slow piracy, that doesn’t necessarily mean viewers will flock to the cable providers. Recent findings from Yigit’s firm show a growing number of Canadians are thinking about shedding their cable television service.
A poll last spring found 39 per cent of about 1,000 respondents at least “considered cancelling” their paid TV subscription over the previous six months, with 17 per cent of those who answered saying they “seriously considered” it. Those are the highest levels recorded since the quarterly survey began in 2010. But those figures don’t account for younger Canadians for whom cable TV isn’t even a consideration, Yigit said. “Looking at my 12-year-old son and his friends, they spend half of their time on Instagram,” he said. “They’re spending half an hour watching each other’s short 15-second videos.” Yigit said while a series of short clips might seem negligible, when you factor in the popularity of music videos on YouTube, the rise in popularity of Vine with teenagers, and other social media platforms, it’s starting to make an impact. “It’s not even that audiences are shifting to a new medium to watch the same content,” he said. “Audiences are shifting to watch slightly different, and maybe differently engaging, content.” So as companies race to keep up with the growing popularity of streaming video, they’re also turning to other avenues. Bell Media is squeezing into social media with Hubub, a platform that it got behind in the fall with a $5-million investment. The service encourages users to engage in conversation about hot topics in the media as an alternative to Facebook and Twitter. Whether companies can successfully make forays into new media remains to be seen. Neither Shomi nor CraveTV have released early subscriber figures, but they almost certainly pale in comparison to the roughly four million households that several analysts have estimated Netflix has amassed in Canada since it launched here in 2010. And competition, particularly in video streaming services, will only intensify in the coming years.
NEW YEAR’S EVE DECORATING
BRIEF Loonie advances Wednesday amid weak Chinese data TORONTO - The Canadian dollar closed slightly higher Wednesday at the end of a tough year amid general U.S. dollar weakness and falling commodity prices. The loonie gained 0.05 of a cent to 86.2 cents US. Commodity prices fell in the wake of data that suggested China’s economy is slowing. HSBC’s survey of Chinese manufacturers found their activity contracted in December with its monthly purchasing managers’ index crossing the 50 threshold to fall to 49.6. Markets were expecting that outcome since a preliminary version of the survey released earlier in the month also showed a contraction but the confirmation underpinned hopes for more government stimulus in China. The February crude oil contract in New York dropped 85 cents to US$53.27 a barrel. Prices failed to respond to data showing a sharper than expected drawdown of U.S. crude oil inventories last week. The Energy Information Administration says that inventories declined by 1.8 million barrels to 385.5 million barrels. Analysts expected a decline of 1.25 million barrels for the week. Elsewhere on the commodity markets, March copper gave back three cents to US$2.83 a pound while February gold faded $16.30 to US$1,184.10 an ounce. The Canadian dollar has tumbled 7.8 cents U.S. or 8.32 per cent this year. The American dollar strengthened in 2014 as the Federal Reserve wrapped up its massive program of buying bonds and mortgage-backed securities that kept long-term interest rates low.
Banff brewer batches ale to help give bison new home in mountain park BANFF— A brewing company in a popular Alberta mountain resort town hopes its new charity ale will help provide a home where the bison can roam once again in Banff National Park. Banff Ave. Brewing Co. has produced a bubbly called Homeward Bison Pale Ale that will be sold for the next few months at 10 separate locations in the town and one in Lake Louise. A portion of the proceeds will go to the Bison Belong Initiative, a group that wants to see the iconic species reintroduced into the park. Kent Paterson, the company’s head brewer, says there was no question about developing the beer because he does lots of hiking in the area and would love to bump into a herd of bison. Parks Canada finalized a draft plan last year for a five-year pilot project that would start by introducing a small herd of 30 to 50 animals into the backcountry.It’s hoped the population will eventually reach 1,000 bison. The project has yet to be given the green light and opponents have raised a number of concerns, including how the animals will be transported. Julia Lynx with Bison Belong says the animals lived in the region for thousands of years. “There’s evidence of them everywhere and we would just love to be part of the legacy of bringing them back.”
Uber says man charged with sex assault was not authorized to pick up passengers CHICAGO — Uber says a Chicago driver accused of sexual assault was not authorized to pick up passengers for the ride-sharing company. The San Francisco-based company says Maxime Fohounhedo was driving on an account created in his wife’s name in violation of Uber’s rules. Prosecutors say he used his own photo and phone number on the account. Uber spokeswoman Jennifer Mullin couldn’t immediately explain how that discrepancy was missed during background checks to verify and set up the account. Fohounhedo was arrested Sunday, and has been charged with sexual assault in an alleged attack on a passenger in November.
Photo by ASHLI BARRETT/Advocate staff
Shelby Estell, an employee at Billy Bob’s Saloon in the Sheraton hotel, helps decorate the bar for New Year’s Eve. Billy Bob’s was one of dozens of local venues that welcomed hundreds of revellers to bring in the New Year 2015.
Tired of the same old apps? Check out these new tech startups in 2015 BY THE ASSOCIATED PRESS NEW YORK - Uber, Facebook, Instagram — sure, they’ve been all the rage, but as 2014 winds down we’re all ready for something fresh. From ride-hailing to photo sharing, here are a few up-and coming apps and startups to watch in in 2015. Which will be the breakout hit of the new year?
TELL A STORY
Instagram, which is owned by Facebook Inc., now has 300 million users — more than Twitter. Scrolling through its snapshot feeds gives users a quick glimpse into the lives of friends and strangers. (At least the parts that include empty beaches, cappuccinos with perfect foam hearts and smiling babies in clean clothes.) Its simplicity is part of its appeal. But what if you want to tell a longer story? Enter Storehouse, a mobile app that promises to let you share “your stories, as they happen.” Instead of sharing one-off photos, Storehouse lets users combine photos, videos and words to share anything from a detailed recipe, to travel memories or a first-person documentary on the Yakuza. Storehouse was founded by Mark Kawano, who previously worked at Apple as a User Experience Evangelist, helping developers design iOS and Mac apps. “Writers always had a great platform for blogging,” Kawano said recently. “But that hasn’t happened with photographers yet.” Other photo apps, he said, are basically just status updates in a visual form. Storehouse hopes to change that.
HAIL A RIDE
If you haven’t heard of Uber, you must never leave your house or watch the news. Many people also are familiar with Uber’s smaller rival Lyft, which burnishes its kinder, gentler image by slapping huge pink moustaches on the front of its cars. But more companies are queuing up to squire you around town.
Harley Richards, Business Editor, 403-314-4337 E-mail hrichards@reddeeradvocate.com
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In 10 cities in the U.S., including San Francisco, Seattle, Chicago and Los Angeles, you can order up a Sidecar. The service differentiates itself by letting passengers input their destinations when they book rides and sort drivers based on price, shortest ETA and favourites. In Los Angeles, there’s also Opoli, which lets drivers bid for your ride so you can decide which one to go with. You can pick your vehicle too, and make a reservation. Unlike many other app-based car services, Opoli also allows its drivers to work for competitors. Opoli doesn’t take a commission on a fare; its drivers pay a subscription fee to use the service.
COOK A MEAL
Food-ordering apps such as Seamless have made it easy to order in. And if you want to venture outside, OpenTable and smaller competitors such as Reserve help you quickly book a table with their smartphone apps. But if you’d rather give your loved ones the personal touch, new DIY services will provide carefully measured ingredients and detailed recipes for even the clumsiest of cooks. Sites such as HelloFresh, Plated and Blue Apron deliver weekly boxes of raw ingredients —even including spices and, at least in the case of HelloFresh, water. The only things you’re assumed to have in your pantry are salt, pepper, oil and possibly butter. An upcoming “family plan” box for Blue Apron, for example, features chicken under a “brick” with rosemary, roast potatoes and broccolini; New Englandstyle shrimp rolls with warm potato and kale salad; fresh pappardelle Bolognese with romaine, celery and apple salad and two-cheese pizza with iceberg chopped salad. T he meals are quick to prepare, so if you’re tired of takeout and live in their delivery location, these services could spice up your diet. Or maybe help with that “eat-healthy” New Year’s resolution?
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