Is TVO to become yet another ad competitor?

It's a sideline issue about another medium, but there is one interesting aspect about the announcement yesterday about TV Ontario's revamp. A story in today's Toronto Star says that one of the outcomes may be selling advertising on the previously ad-free channel.

"While Education Minister Sandra Pupatello pledged $7.5 million in new funding for each of the next two years for digital equipment and an additional $10.4 million in "transition" funds, the head of TVO pointedly did not rule out advertising down the road. 'Over the next two years, we'll be placing a great deal of emphasis on building a sustainable business model for TVO, and key to that is building new revenue streams," said TVO CEO Lisa de Wilde.' We have the benefit, the good fortune, of receiving an operating grant (of $45 million) from the government of Ontario every year. But I, like Jeff Skoll who invented eBay, believe you can serve the public interest and you can balance your books.' "

Antonia Zerbisias's media column in the Star confirms that de Wilde did not talk about investment in content at all, but didn't rule out ads as a stream of revenue, quoting her as saying:

"This strategy is not ratings based," she said. "This strategy is about educational content aligned with the minister's priorities, where we will be doing something that is unique in the market place."