ITV looks to Canvas for paid video clips

12 Aug 2009 | 16.43 Europe/London

Project Canvas, if approved, could be the starting point for ITV to begin charging for access to exclusive clips, archived shows, behind the scenes footage and star interviews, according to Carolyn Fairbairn, Group Director of Development and Strategy.

The possible new revenue stream is opened up by the proposed internet television platform being open to all interested broadcasters. Hence, there will be a good mix of free content but there will also likely be premium subscription channels and video on demand services – after all, BT Vision is one of the founding partners.

This will mean that viewers are likely to have an account (although it will not be compulsory) to pay for content across the many channels eventually offered by Canvas, opening up the path to charging small amounts (measured in pennies rather than pounds) for individual clips. A single broadcaster on its own would be unlikely to be able to charge small payments online because card transaction fees would make it uneconomic to collect pennies and viewers would not want to set up a variety of accounts with individual broadcasters.

Waiting on government decision

For the moment, with a government decision on whether Canvas will be allowed to roll out not expected until the end of the year or the start of next year, ITV has no concrete plans. However, Fairbairn does point out that it will be a good opportunity to go beyond the company’s current online catch-up service which she is keen to underline will continue as it does today.

“The 30 day catch up service on ITV.com will almost certainly always be ad-supported but we think there are opportunities with archive content and exclusive extra footage of interview and behind the scenes interviews,” she says.

“We think this could take off with Canvas. As it’s an open platform we would envisage having a joint payment system so people don’t have to register with each content provider. They could have one account that is billed when they select some exclusive behind the scenes content from us or a pay per view movie from someone else.”

Why charge for clips?

The broadcaster is looking to supplement a drop in advertising revenue caused by the recession and the proliferation of competing satellite and cable channels.

The issue of charging for online content has been brought to the forefront after remarks made by ITV’s Chairman, Michael Grade, that the revenue share it received from YouTube clips of Susan Boyle was “derisory”. In the future, he said, the broadcaster would instead sell clips itself direct for around 25p to 50p.

A spokesperson for the channel has pointed out the eventual fee would be more likely pitched around 10p to 15p.