VIDEO-ON-DEMAND SERVICE GET THUMBS UP
By Adnews Staff
WIC Western International Communications of Vancouver was awarded two video-on-demand licences last week from the Canadian Radio-television and Telecommunications Commission. WIC subsidiary Allarcom Pay Television was awarded a licence for a video-on-demand service which will use a set-top-box. This service will launch in about six months. The second license was given to WIC and Emc3 of the Netherlands for their joint venture, Electronic Digital Delivery Inc. This service will be available in about 18 months and will require consumers to have an EDD VCR. EDD is an electronic video rental service that will enable digital VCRs to download 100 minute movies in about five minutes. Other licences for video-on-demand were given to: a joint venture of Shaw Communications and Alliance Communications Corp., Viewer's Choice, a partnership of TMN Networks, Rogers Pay-per-View and NetStar Enterprises, as well as Canal Indigo, owned by Viewer's Choice, Reseau de television Quatre Saisons Inc., Cogeco Inc. and Telemetropole. In awarding the licences, the CRTC set out the following rules: Each VOD service must contribute at least 5% of its gross annual revenue to a fund to subsidize Canadian productions. They must maintain a minimum inventory ratio of one Canadian film for every 20 films. Shaw has said it will keep a one-to-10 ratio and Canal Inigo will have a ratio of one-to-12. All revenue earned from the exhibition of Canadian films must be paid to the rights holders of those films, as another incentive for Canadian production.