As close neighbours of the United States we share a common market for consumer goods. As long as we can remember we’ve had the same selection at the same time. The same movies open on the same dates, the same DVDs and CDs hit stores on the same schedule, and in most cases, the same TV shows air at the same slots. Somehow that changed with the arrival of the internet and cell phones.
Despite our status as one of the most-connected countries in the world in terms of internet usage, despite our long history as a consumer of popular culture, Canada has found itself placed on a massive waiting list when it comes to the latest wireless devices and digital content services.
The iTunes Music Store took more than a year to arrive. Satellite radio came after a three year delay and Tivo finally crossed the border seven years after launching to acclaim in the United States. In some cases, the delays are so long that Canada never sees the first generation of a device, getting the second model or later instead. Apple’s iPhone, the Microsoft Zune, and Flip Pocket Camcorder are prime examples.
It’s one thing for a physical product to find a late release, perhaps production supplies are too low, but the same issue effects digital products too where there’s no manufacturing expense, where companies can literally copy and paste a shipment just for Canada.
How strange is it to click on a link to a streaming video or music link and be told:
We’re sorry. This content is only available within the United States.
Unlike our European or Asian brethren, we share the same space, the same culture as the Americans. You have to go out of your way to block us from access.
To help gain an understanding of the underlying issues, today I’ll take a look at a number of gadgets and digital services that are currently listed as “MIC”, Missing In Canada.
Gadgets
Amazon Kindle
http://www.amazon.com/kindle
The official word from Amazon - "We know that Kindle is something our international customers want and we look forwarding to serving them. We haven't announced a timeline yet and we are not doing so at this time."
Since 2007 Amazon has launched three different versions of their popular e-Book reader; the Kindle, the Kindle 2, and the Kindle DX. Despite competition from Sony’s multiple Digital Reader models and an upcoming device from Indigo/Chapters, not a single one has made it into Canada and there's no sign that any of them ever will.
What's the problem? Unlike other e-book readers, the Kindle uses an EVDO cellular data network to allow users to purchase books from the Amazon online store. Amazon absorbs the cost of this service to encourage its use and presumably makes enough from book sales to cover the expense of the data connection.
In order to launch it in Canada, they will have to partner with a Canadian wireless carrier, like Bell or Telus to provide that same kind of EVDO connection locally. Our higher data rates might make it harder for Amazon to absorb the expense and our smaller market might mean lower book sales, making it also harder to cover costs. These and other factors no doubt make it harder for Amazon and a Canadian wireless carrier to agree on terms for the service.
Are Canadian Data Rates Really That Much Higher?
When Twitter became popular in Canada, the expense of trying to cover incoming SMS "tweets" from Canadian mobile users forced the company to shut down the service, explaining that the bill was doubling regularly. It was only with changes from our local carriers themselves that the costs were reduced and the service allowed to continue.
The Kindle and similar devices that use cellular data networks may face the same issues. Where Twitter’s service is one Canadian wireless carriers can adopt and offer as their own, the same can’t be said of the Kindle or this next device.
The Jitterbug
http://www.jitterbug.com/
The official word - In response to high demand from Canadians the company has drawn up a business blueprint for expansion into Canada, but as they themselves are not a carrier, they need to partner with a Canadian wireless carrier like Bell or Rogers to gain access to a local network to offer the service, one who is interested in meeting the needs of seniors and simplicity lifestyle users. So far, they have not found a partner.
The Jitterbug is a cellphone designed for seniors and the simplicity lifestyle market. It is both a cellphone and a service offering simple features and controls, with simple rates and services. Only the basic phone features are included, buttons are in plain English, the speaker is loud and clear, and a good ol’ fashioned live operator is available at the push of a button.
This month the company launched their latest model, the Jitterbug J which includes caller ID and Bluetooth to connect with accessories.
Since its launch in 2006 the company has been inundated with calls and e-mails from Canadians. The company’s CEO David Inns and VP of Marketing Bill Yates are both Canadian and the interest to serve their home country is definitely there. It’s not high cell phone rates or issues with roaming charges that are the problem. The company simply needs a Canadian wireless partner.
Online Services
Microsoft Zune Marketplace
http://www.zune.ca
When Microsoft first launched the Zune in 2006, it came with an official store for users to purchase music.
While the players are available here, the store never found a launch. Users can fill their players with music they've downloaded from the internet or DRM-free tracks purchased from Apple's iTunes instead.
This is the one that really shocked our staff here at CTV. How can a digital player be sold without a music store to go with it?
The official word – “We do not have any Canadian timing to announce”. No launch date is planned for the Zune's music store, although Microsoft plans to connect the devices to their Xbox Live-based movie store later this year. The central music service is still missing with no word as to when it might, if ever appear.
While the licensing issues surrounding online music have been cleared up for many online stores including those by Apple and Puretracks, Microsoft's may be tied up by a difference in their business model.
The Zune marketplace is built around a subscription. Users pay $30 per month to access all of the store's music. This twist might make licensing the music either more expensive or harder to clear. Can Canada’s smaller marketplace support a service that only takes in $30 per month to cover the licensing expense for an entire catalog of music?
This might explain why the company chose to focus on their Xbox-based Video Store and its limited selection instead.
Hulu and Pandora
If there are two American services worthy of our envy and cross-border pining its Hulu and Pandora.
http://www.hulu.com/
First launched in 2007, Hulu offers free streaming access to top television shows and movies, both through its own website and through syndication deals with other online outlets who suffer the same international restrictions. NBC Universal, Fox Entertainment, and ABC (Disney) all own shares in the company and have helped it become a legitimate success with revenues from commercials.
http://www.pandora.com
First launched in 2007 (where for a brief period it was available to Canadians) Pandora offers free streaming access to popular music tracks. Songs in the collection have been analyzed by the Music Genome Project so that when users enter a song, it produces a personal radio station playing music that is similar. Songs discovered in this manner can then be purchased through Amazon or the iTunes store.
The official word - Both companies are tied up with “licensing constraints” and “international streaming rights” that keep them from a quick launch into Canada. These will be cleared....eventually. As we have already done with Apple's iTunes for music and again for movies, and again for TV shows, it's merely a matter of waiting.
While the rest of the world moves at a faster pace thanks to technology, content licensing is still ebbing at a decades-old pace and many content creators are taking advantage of the change to digital to re-negotiate all the agreements, which has to include not only the publishers and studios involved, but all the composers, performers, lyricists, etc.
In some cases, new fees are being introduced, making it more complicated (XM SIRIUS Satellite sates they have to pay several fees that did not exist with terrestrial radio) and changing rulings with the US Copyright Rulings Board have made it harder for streaming services to navigate the issues.
To make matters worse, this process has to be performed one country at a time and it's usually the bigger international markets that are addressed first. Canada, although next to the US, is a very small market and so must wait to even get to the point of beginning to discuss these issues. For us, the wait becomes years as a result.
In the case of Hulu and Pandora, a launch of these services in Europe will be a strong indication that an arrival in Canada will be following.
Mobile Apps
With the introduction of downloadable Apps for popular smartphones such as the Apps Store for iPhone, App World for Blackberry devices, and the Android Market for the HTC Dream and Magic, comes another platform where digital services are with-held from Canadian users.
XM Sirius Satellite App
Earlier this month Sirius XM launched a free mobile App for the iPhone and iPod Touch that allows users with subscriptions to connect and stream content to their device. It includes 120 channels from both the XM and Sirius services, excluding Howard Stern and select sports broadcasts. Included with the download is a free 7 day trial. The App was only released into the US iTunes Apps Store.
The Official Word – A Canadian version of the app is currently in development, one that will reflect the channels offered by XM and Sirius in Canada, and it should arrive “soon”.
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