NBI/Michael Sone Associates
193 Church Street
Toronto, Ontario
M5B 1Y7
Telephone 416-360-0424

June, 2011

Table of Contents

Section Page
A Note on Accuracy vi
     1.0      Market Overview and Analysis 1
     2.0      Equipment Providers 8
          2.1      Alcatel-Lucent 8
          2.2      Microsoft 12
          2.3      Motorola 16
          2.4      Cisco 20
     3.0      Over-the-Top (OTT) TV 22
          3.1      Apple TV 22
          3.2      Netflix 23
     4.0      Service Providers 26
          4.1      Bell Aliant 26
          4.2      Bell Canada 28
          4.3      Cogeco 33
          4.4      EastLink 35
          4.5      MTS Allstream 37
          4.6      Rogers 41
          4.7      SaskTel 46
          4.8      Shaw 49
          4.9      Shaw Direct (formerly Star Choice) 50
          4.10      TELUS 51
          4.11      Videotron 54

List of Figure & Exhibits

Figure/Exhibit     Page
Figure 1: Canadian Digital and IP Market, Subscribers and Revenues (2009-2014) 7
Exhibit 1: Digital TV Subscribers/Net Subscriber Activations & Market Shares by Service Provider (2009-2014) 59
Exhibit 2 Digital TV Subscribers & Market Shares by type of Service Provider (2009-2014) 60
Exhibit 3 Digital TV Service Revenue and Average Revenue per Unit, (2009-2014) 61
Exhibit 4 Digital TV Service Revenue by type of Service Provider, (2009-2014) 61

About This Report

NBI/Michael Sone Associates’ Canadian Digital and IPTV Services Market Report, 2011 Edition is our fourth publication on this sector. As the roles of telecommunications and electronic entertainment become increasingly intertwined, with the telcos offering TV, and the cablecos phone services, this report provides a single source of information regarding recent television developments in the converging cableco, telco and satellite sectors. It examines the latest and emerging technologies for delivering user-manageable TV services and touches on the role that wireless technologies are starting to play in endowing broadcast television with real time mobility.

The report is divided into four sections. The first opens with a snapshot of the Canadian market for digital television services, the technologies that drive them and the service providers deploying them. This overview examines the differences between and commonalities of Digital, IPTV and Satellite, touches on Mobile TV, standards development, advantages and/or limitations of each, and future developments. A second section profiles the major equipment manufacturers’ products such as middleware, set-top boxes and end-user solutions, as well as their relationships with particular service providers. Section three broaches the subject of so called “over the top” or OTT delivery of TV services via the Internet and the impact that medium and two of its major practitioner companies, Apple TV and Netflix, are having on the entire pay-TV industry.

The fourth section contains 11 service provider profiles, including details of deployment and partnerships. Particular emphasis is placed on the increasing role that IPTV will play in providing the telcos with their terrestrial-based offering both to compete with the cablecos and complement their own satellite service. Finally, a series of exhibits illustrates subscriber & revenue estimates, market shares and forecasts for 2009 to 2014.