A view from Media Week

Will Project Canvas deliver on its commercial potential?

The IPA is concerned that the BBC's lead involvement in Project Canvas, the planned set of VoD services on Freeview, may diminish its commercial opportunities. Will Canvas deliver?

Yes - Leonardo Metelli, Digital director, Starcom
The success of the BBC's iPlayer has shown the appetite for catch-up TV services. And this growth is not restricted to the PC environment -30% of the iPlayer's video requests come from Virgin Media's TV service.

Make no mistake, the demand for quality catch-up services is on the rise and the launch of Canvas on Freeview and Freesat platforms is certainly welcome. But to unleash Canvas' full commercial potential, BBC, BT and ITV will have to quickly build a balanced ad-funded model that pleases both users and advertisers.

Finding the balance between an interactive, non-obtrusive user experience and the engagement and reach demanded by advertisers will be the difference between thriving and failing. Assuming Canvas' partners take on board advertising community feedback when developing the services, the venture has a good chance of becoming a commercial success.

Yes - Kevin Murphy, Managing director,  Zed Media
As a consumer and a media planner, I am excited by the concept. Creating an open technology that allows
content providers to reach viewers through their TV via a broadband connection and offer them access to a multitude of on-demand programming is a mouth-watering prospect.

Virgin Media has one up on Sky by enabling access to iPlayer content through its set-top box and Canvas would significantly expand this offering.

But even current set-top box advertising opportunities are being under- utilised. The enhanced targeting,
consistent media placement format opportunities and eventually the converged audience volume that Canvas would bring will help it become a commercial success.

The variable in predicting Canvas' full potential for commercial success is Sky.

No - Nigel Walley, Managing director, Decipher Consultancy

The problem with Canvas at this point is a lack of definition. There are too many unknowns about its commercial structure. The BBC understandably wants to keep the commercial profile low to avoid a competition review, but the advertising industry needs a strong central body that can coordinate the creation of new ad formats, create a targeting platform and distribute data.

The complexity for the ad industry comes from a realisation that the BBC is the only organisation with the commercial momentum and resources to drive through the creation of such a platform. But the BBC has not historically shown an understanding of the needs of the ad community.

We need this new platform to match the development of intelligent, dynamic TV ad formats we are beginning to see on the cable and satellite platforms. To ensure this happens, the ad industry needs to make its voice heard at senior level around Canvas.

Yes - Mark Jarvis, Founding partner, The7Stars

The attempts to counterbalance the BBC's hegemony in VoD and to create a unifying and commercially viable system are to be welcomed. There is enough evidence to suggest commercial operators need to find different ways of making money to support their programme budgets.

Canvas has to ultimately succeed - although there are obstacles to overcome. There's no doubt these guys will face barriers in resolving the competition and access issues inherent in any cooperation between the BBC, ITV and BT. But Canvas is being hailed as a more open platform than Kangaroo and if this proves to be the case in practice, it should overcome these issues with a little more ease.

Canvas can succeed. All major broadcasters are developing VoD services, the technology is available and if the hardware can be made cheap enough, it will take off as a viable commercial opportunity.