On November 30th, Rogers Cable launched their Rogers on Demand online video portal – this service will (initially) allow Rogers subscribers to stream video from 19 channels and will deliver expanded features in the coming months.  Bell Canada has a similar service, Bell TV Online, that currently offers “watch now” streaming from three popular channels.

For many Canadians, who are unable to access Hulu and other popular US-based sites, the launch of these services is a welcome development.

Many Internet studies, including our own, have shown a major shift in online entertainment habits: subscribers worldwide have shown an appetite for on-demand video services as a replacement for P2P filesharing.  Video streaming offers the convenience of watching something now with the simplicity of a single click, which is appealing for subscribers who aren’t inclined to configure P2P clients for maximum performance or who don’t necessarily want to plan their viewing well in advance.

A key factor contributing to the relative popularity of on-demand video is the availability of local content and services.  For example, real-time video is most popular in Asia-Pacific, the United States, and the United Kingdom, thanks to localized programming and services (think Hulu and BBC’s iPlayer).  Obviously, the broadband network infrastructure needs to provide a consistent quality of experience; however, this is a necessary but insufficient condition.  In regions where Internet speeds are high, but localized programming and language support is not available, we still observe disproportionate levels of P2P traffic.

Presumably, the majority of Canadians who will use the Rogers on Demand online portal are also using Rogers as their Internet provider.  Likewise with Bell TV Online.  If recent history has taught us anything, it’s that these services will prove very popular, and both the Bell and Rogers broadband networks will see a significant shift in traffic composition as Internet subscribers embrace the “now” experience as a part of their entertainment routine.