Presentation for Circom’s 31st Annual conference Scenarios for a convergent world: Non-linear TV and the online challenge – Where is the European TV industry heading? 10 May 2013 • Lluís Borrell 2
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Agenda
. Setting the scene Context on linear and non-linear TV The European broadcasting model A structured perspective
. The evolution so far Linear TV and audience fragmentation The ‘explosion’ of non-linear TV Putting things in perspective
. The policy and regulatory debate moving forward Key issues and leading perspectives in EU Contents 4
Setting the scene
The evolution so far
The policy and regulatory debate moving forward Setting the scene 5 Linear TV and non-linear TV – do we understand the difference? How is this evolving? (1/2)
Element Traditional or linear TV New TV or non-linear TV (in this presentation) Scheduling ▪ Broadcast or scheduled ▪ Non-linear TV or non-scheduled TV or on-demand TV Device ▪ TV set ▪ Time-shifting and PVRs ▪ STB ▪ Multiple devices (primarily TV sets ▪ EPGs increasingly PC, smartphones, tablets) that are connected with sufficiently fast broadband connections ▪ Search engines, apps Consumption ▪ Primarily laid-back ▪ Primarily laid-back consumption (TV) and consumption (TV) long-format viewing, but also short video ▪ Primarily family or group clips
Transmission ▪ Over broadcast ▪ Over two-way broadband Internet networks networks: streaming TV or over-the-top TV (multiplatform): (OTT) terrestrial, satellite, cable, ▪ Audiovisual social TV IPTV ▪ Multicast streaming over Internet Setting the scene 6 Linear TV and non-linear TV – do we understand the difference? How is this evolving? (2/2)
Element Traditional or linear TV New TV or non-linear TV (in this presentation) Type of ▪ Managed service ▪ Non-managed service service / ▪ High quality (SDTV, ▪ Low to high quality (size of screen) content HDTV, UHDTV) ▪ Usage driven by professional content but ▪ Professional (films, also UGC sports, news, TV series, etc..) Business ▪ FTA, commercial or PSB, ▪ Pay OTT, online TV, FTA, etc. model and pay TV ▪ Also relevant: PPV, VOD and SVOD
Setting the scene 7
What will we call the future TV services? (1/2)
. Complex to define ‘future TV services’ – mainly due to issues associated with the device (the ‘TV set’)
. Seamless combination of traditional linear TV and non-linear TV Scheduled and unscheduled programmes – ‘timely programming and events’ as well as ‘catalogue-driven’ Multiple transmission platforms and standards – open or closed, one- way and two-way Many layers of service provision – scheduled TV channels, EPGs, search engines, apps, etc. Multiple devices (TV, PC, smartphone, tablet, etc.) – issues of coherence and compatibility Multiple uses and consumption – complementary (simultaneous) or not, individual vs. family or group Generational switch?– “Us” vs. the younger generation Setting the scene 8
What will we call the future TV services? (1/2)
▪ We are seeing a change in the paradigm for TV services … ▪ … the old measuring tools are getting obsolete … ▪ … and thus we can only have an unreliable approximation of the scale and timing of the impact of changes ▪ Despite this uncertainty, the industry needs to plan commercial strategies, policy and regulation Setting the scene 9 Looking at the pillars of the European broadcasting model – what impact will connected TV have?
. Traditionally dominated by terrestrial distribution and reception; growing importance of cable and satellite . TV value chain dominated by broadcasters/platforms, not content producers or studios . Relative importance of PSB followed by ‘historical’ commercial TV channels and the growing importance of pay TV . Relatively concentrated from an economic point of view – less competitive than the USA Setting the scene 10 Looking at the pillars of the European broadcasting model – what impact will connected TV have?
. From a public policy and regulatory perspective, a focus on consumer welfare, at least in terms of: level of competition levels and types of advertising pluralism, diversity, protection of minors, etc. local and European independent production – importance of PSBs debate on scale/funding of PSBs Setting the scene 11 A range of key factors are changing the European broadcasting model
. Digital (DTT/DSO) – multiplication of offerings (diversity) and STRUCTURAL fragmentation Changing consumer . Enhanced TV quality – move towards HD and 3D TV patterns and a more . Explosion of connected TVs and new devices – offering and competitive landscape? adoption . Lower barriers to entry – a shift of power in the value chain
CYCLICAL . Advertising – downturn in advertising revenues Weaker underlying . PSB – pressure on public financing for PSB fundamentals? . Pay TV – growing but weaker consumer spending
. Advertising bans on national PSB channels: imposed in Spain REGULATION AND (complete) and France (partial) PUBLIC POLICY . Advertising limits: higher for commercial thematic channels (France), and debate on asymmetric rules (UK, Ireland, etc.) Lighter-touch . Greater focus on competition law – general guidelines to focus ‘competition law’ and on economic ex-post regulation rather than ex-ante new ‘targets’ for . Pay-TV competition rules – action on key bottlenecks (UK, regulation? France) . Public policy – open debate across EC Contents 12
Setting the scene
The evolution so far
Linear TV Non-linear TV Putting things into perspective
The policy and regulatory debate moving forward Evolution so far – Linear TV 13
Key trends in linear TV over the last 10 years
Element Key trends over last 10 years Scheduling ▪ Groups of families instead of single TV channel scheduling Device ▪ Evolution in complexity of STBs, DVRs and EPGs – zapper, thick box, thin box, gateways, etc. Transmission ▪ DTT/DSO as catalyst – multiplication of TV channels and fragmentation of audiences – all Western European countries have completed DSO, while some Central and Eastern European countries are yet to follow Consumption ▪ Growing/sustained consumption – average viewership of linear TV has been increasing in most countries and is expected to continue to increase ▪ Multi-room services Type of service / ▪ High quality – emergence of HDTV transmission (simulcast) and 3D TV content ▪ Professional – sophistication in production to increase quality, participation Business model ▪ Evolving business model – in terms of revenue, we see a different trend: – overall growth in TV revenues – PSBs are suffering most from the economic crisis – lower growth or decline in advertising-based broadcasters – medium/high growth in subscription-based TV Evolution so far – Linear TV 14 DTT/DSO has been a major driver of change in Europe, with marked variations in its impact
Progress of DSO in Europe . DSO was completed in most European countries by 2012 . DTT/DSO has had a significant effect on the structure of the TV market, particularly in markets where terrestrial is dominant multiplication of TV channels fragmentation of audiences . Terrestrial remains the most important TV distribution platform in the EU mainly due to the UK, France, Spain and Italy, where the DSO effect has DSO not formally launched been most notable Some DTT services launched Analogue switch off (ASO) underway ASO complete
Source: DigiTAG, Ofcom, Analysys Mason Evolution so far – Linear TV 15 In terms of new devices and formats, penetration of HDTV and DVRs/time shift have grown to similar levels
Take-up of HDTV and DVR in larger EU countries in 2012 (% of households)
45%
40%
35%
30%
25% HDTV 20% Claimed DVR
15%
10%
5%
0% France Italy Germany UK Spain
Source: Ofcom, Market report 2012 PSBs – fragmentation of audiences and groups of TV channels Evolution so far – Linear TV 16 PSBs’ share of linear TV viewing has fallen, especially in countries with high DTT penetration
Change in TV viewing share of selected PSB channels between 2001 and 2010
50% -8.6pp 80% 45% -13.7pp -11.8pp 70% 40% -6.4pp -10pp 60% 35% -13.6pp 30% 50% 25% 40% 20% -1pp 30%
15% DTT penetration DTT TV market share market TV 20% 10% Low DTT 10% 5% penetration 0% 0% 2001 May 2001 May 2001 2010 2001 May 2001 2010 2001 2010 2001 2010 2011 2011 2011 RTVE BBC RAI FT SVT TV2 ZDF Source: EAO, Analysys Mason Historical New channels DTT penetration
In most cases DTT/DSO has cut the share of major PSB channels by 9–14 percentage points, this has only been partly compensated by new TV channels (family of channels) Evolution so far – Linear TV 17 Historical commercial channels have suffered similar erosion where DTT penetration is high
Change in TV viewing share of selected commercial channels between 2001 and 2010
50% 80%
45% -8.1pp 70% 40% 60% 35% -9.1pp 30% 50% -11.6pp -8.3pp +0.6pp 25% 40% -8.7pp
20% 30% DTT penetration DTT TV market share market TV 15% 20% 10% Low DTT 10% 5% penetration 0% 0% 2001 2010 2001 May 2001 2010 2001 May 2001 2010 2001 2010 2011 2011 A3 ITV Reti TF1 TV4 RTL Televisive Italiane Historical New channels DTT penetration
Source: EAO Evolution so far – Linear TV 18 Overall consumption of linear TV increased at a CAGR of 0.4%–1.4% over the last decade and remains strong
Average minutes of TV viewing per day in larger EU countries, 2002–11 300 2010/11 growth 3.9% 7.1% 0.9% 2.8% 2.1% 0.0% 250 1.1% 1.4% 1.4% CAGR 1.4% 1.3% 2011/2002 200 0.4%
150
100
50
0 Austria France Germany Italy Spain UK 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Consumption of linear TV is strong in countries with the Source: EAO, strongest growth in non-linear TV Analysys Mason Evolution so far – Linear TV 19 Total TV revenues increased at a CAGR of 1.6%–3.7% over the last few years despite recent declines during the crisis
Total TV revenues in larger EU countries, 2004–11 (EUR million)
2010/11 15,000 growth 3.0% -2.5% 3.6% 2.7% -4.0%
CAGR 1.6% 2011/2004 2.8% 12,000 3.7%
3.3% 9,000
3.4%
EUR million EUR 6,000
3,000
0 France Italy Germany UK Spain 2004 2005 2006 2007 2008 2009 2010 2011 Stronger crisis Source: EAO, Analysys Mason Evolution so far – Linear TV 20 Commercial broadcasters seem to have suffered the most from the economic crisis …
Revenues of selected major advertising-based TV groups, 2008–12 (EUR million)
7,000 2010/11 growth 0.0% -7.9% 4% 2.7% -12.5% 6,000 1.0%
5,000
-3.0%
4,000
0.2%
3,000 5.4% EUR million EUR
2,000 CAGR 2011/2008 -2.9% 1,000
0 RTL Group ITV Mediaset TF1 Antena 3 2008 2009 2010 2011 2012
Source: EAO, Analysys Mason Evolution so far – Linear TV 21 … though PSBs have also suffered, unless protected by licence fee and subsidies
Revenues of selected PSB groups, 2007–11 (EUR million)
2010/11 6,000 growth 7.3% -0.2% -3.0% -1.9% 1.6% 5,000
4,000 CAGR -1.9% 2011/2007 4.7%
3,000
2.3% EUR millionEUR 2,000
1,000 %
0 ZDF France Télévisions BBC Group RAI Group 2007 2008 2009 2010 2011
Source: EAO, Analysys Mason Evolution so far – Linear TV 22 In contrast, pay-TV players have enjoyed continued (though slower) subscriber and revenue growth …
Pay-TV subscribers, 2008–11 (million) Pay-TV revenues, 2008–11 (EUR billion) 200 10% 40 12%
180 9%
160 8% 30 9% 140 7%
120 6%
TVhouseholds TVrevenue
100 5% - 20 6% -
80 4% EUR billion EUR
60 3%
Millions of householdsof Millions Growth of payof Growth 40 2% payof Growth 10 3% 20 1%
0 0% 2008 2009 2010 2011 0 0% 2008 2009 2010 2011 Cable IPTV DTT Satellite Pay TV Growth Revenues in EUR Growth
Pay-TV channels and operators seem to be in a better financial position than the PSBs
Source: EAO, PWC GEM 2012, Analysys Mason Evolution so far – Linear TV 23
… making them the most resilient to the crisis
Revenues of selected private pay-TV groups, 2008–12 (EUR million)
2010/11 9,000 growth 5.4% 3.2% 5.0% 8.3% 5.9% 17.1% 8,000 11.3% 7,000
6,000
2.8%
5,000
4,000
3.1% EUR million EUR 3,000 CAGR 7.8% 2011/2008 2,000 9.1%
1,000
0 British Sky Vivendi (Canal Plus) Sky Italia Kabel Deutschland ONO Sky Deutchland Broadcasting Ltd 2008 2009 2010 2011 2012
Source: EAO, Analysys Mason Contents 24
Setting the scene
The evolution so far
Linear TV Non-linear TV Putting things into perspective
The policy and regulatory debate moving forward Evolution so far – Non-linear TV 25
Key trends in non-linear TV over the last 10 years
Element Key trends over last 10 years Scheduling ▪ Catch-up services (7 days), pre- and post-live broadcasting streaming of key shows, archives Device ▪ Proliferation and take-up of new devices – DVR, connected TV, smart TV, Internet over TV Transmission ▪ Broadband is developing rapidly, enabling the mass-market launch of non- linear TV services – increasing household penetration – improving bandwidth (speed) Consumption ▪ Consumption of non-linear TV is growing exponentially – number of users and viewing per user are increasing – as a result, total non-linear TV viewership is rising Type of service / ▪ Multiple standards content ▪ Multi-screen services ▪ Wi-Fi to support smartphones/tablets in portable/nomadic usage Business model ▪ Revenues from professional pay-TV and free online TV services are growing exponentially, but monetisation is still lagging behind – issues with standards for measuring usage and “ advertising currency” Evolution so far – Non-linear TV 26 Broadband penetration rose rapidly in Europe between 2005 and 2012 …
Broadband penetration, December 2005 Broadband penetration, December 2012
HH broadband penetration below 40% HH broadband penetration between 60% and 80% HH broadband penetration between 40% and 60% HH broadband penetration above 80%
With broadband penetration over 60% in most countries, the EU seems prepared for mass- market connected TV – but the quality of the experience needs more detailed assessment
Source: TeleGeography, Analysys Mason Evolution so far – Non-linear TV 27 … but mass-market connected TV will require further improvement in the average speeds achieved
Average downlink speed, 2011 Average downlink speed, 2013
< 6Mbit/s 12–18Mbit/s 6–12Mbit/s > 18Mbit/s Source: Speedtest.net
Sweden, Netherlands and Switzerland seem prepared for mass-market connected TV. Other countries are just at the low end of the requirements, but the 30Mbit/s Digital Agenda target suggests there could be a mass market for connected TV by 2020 Evolution so far – Non-linear TV 28 Speeds of 6–25Mbit/s might be sufficient for mass-market connected TV, including HDTV Required connection speeds, based on multi-usage and quality of service (figures are illustrative) Speed per type of service format
Service 3D TV / format Audio Music SD TV HD TV Ultra HD TV
online game
1–2 6–8 12–16 27–43* Few kbit/s 320kbit/s
1 Mbit/s Mbit/s Mbit/s Mbit/s
per HH per
2–4 12–16 24–32 54–86 Few kbit/s 640kbit/s
2 Mbit/s Mbit/s Mbit/s Mbit/s
flows
3–6 18–24 36–48 81–129 Few kbit/s 960kbit/s 3 Mbit/s Mbit/s Mbit/s Mbit/s
4–8 24–32 48–64 108–172 Few kbit/s 1280kbit/s 4 Mbit/s Mbit/s Mbit/s Mbit/s
5–10 30–40 60–80 135–215 5 Few kbit/s 1600kbit/s
simultaneous Mbit/s Mbit/s Mbit/s Mbit/s of 6–12 36–48 72–96 162–258 Few kbit/s 1920kbit/s
6 Mbit/s Mbit/s Mbit/s Mbit/s No. No.
ADSL ADSL sufficient for large Fibre or DOCSIS sufficient proportion of HHs 3.0 required
* Speed required for 4K (UHDTV1) at 60 fps. For 30 fps, 14–22 Mbit/s is sufficient Evolution so far – Non-linear TV 29 New devices have proliferated and are being taken up – e.g. DVRs, connected TVs, smart TVs, Internet over TV
Take-up of new connected devices in larger EU countries, 2012 (% of households) 45%
40%
35%
30% Claimed DVR 25% TV over the Internet 20%
15% Connected TV or Smart TV 10%
5%
0% France Italy Germany UK Spain
These devices enable both “timeshifting” of traditional TV broadcasts (DVRs) and new models with delivery over the Internet
Source: Ofcom, Market report 2012 Evolution so far – Non-linear TV 30 The number of online viewers, and the amount of videos they watch, have increased over the years … Number of unique online TV viewers, Average number of online videos 2008–11 (million) watched per viewer per month, 2008–11
2010/11 2010/11250 50 growth 0.4% 3.4% -1.0% 4.3% -6.4% growth 6.8% -0.9% 8.1% 13.1% 9.6%
200 21% 17% 17% 40 7% 22% CAGR CAGR 2011/2008 2011/2008 18% 150 30
Millions 100 20
50 10
0 0 Germany Italy France Spain UK Germany Italy France Spain UK 2008 2009 2010 2011 2008 2009 2010 2011
Source: EAO, Analysys Mason Evolution so far – Non-linear TV 31 … resulting in substantial increases in minutes of consumption per day …
Minutes of online TV consumed per head per day, 2006–10
2010/1150 growth 25% 17% 23% 33% 21% 45 CAGR 40 2011/2008
35
30 42% 44% 2008 37% 25 2009 2010 20 2011
15
10
5
0 France Italy Germany UK Spain
Source: Screen Digest, EAO, Analysys Mason Evolution so far – Non-linear TV 32
… and even greater increases in revenues from non-linear TV
Revenues from online TV, 2006–10 (EUR million)
2010/11 growth 35% 49% 106% 102% 363% 200
180
160 CAGR 2010/2006 140
120 2006 82% 2007 100 2008 80 2009 111% 2010 60 117% 40 128% 251% 20
0 Germany Spain France UK Italy
Source: Screen Digest, EAO, Analysys Mason Evolution so far – Non-linear TV 33 In response, business models have evolved – with variations between countries
Proportion of revenues from non-liner TV realised by pay-TV and FTA business models, 2006–10
100%
90% 80% 70%
TVrevenues 60%
50% linear linear - 40% non 30% 20%
10% % of total 0% Germany Spain France UK Italy Pay-TV FTA
Source: Screen Digest, EAO, Analysys Mason Contents 34
Setting the scene
The evolution so far
Linear TV Non-linear TV Putting things into perspective
The policy and regulatory debate moving forward Evolution so far – Putting things into perspective 35 Summary of relative impact and degree of complementarity of linear and non-linear TV … at least so far
Element Key trends over last 10 years Scheduling / type of ▪ Complementarity of non-linear and linear TV for popular TV series and service programmes – potentially having a significant impact ▪ Importance of new players offering Internet-based non-linear TV Device / service ▪ Simultaneous growth of HDTV and non-linear TV ▪ Simultaneous growth of traditional and non-traditional non-linear TV Transmission ▪ Simultaneous growth of traditional transmission TV services (DTT, cable, satellite, IPTV) and broadband/Internet-based networks Consumption ▪ High growth in non-linear TV viewership needs to be put in line with the current evolution of the overall TV market Business model ▪ Although growing fast, non-linear TV revenues still make up a very small part of the whole TV market ▪ We expect non-linear TV to continue to grow – but it could grow: – along with linear TV, i.e. as a complement – at the expense of linear TV, i.e. as a substitute Evolution so far – Putting things into perspective 36 HDTV and Internet TV are developing along similar paths, but as yet Internet TV is only a small proportion of non-linear TV Take-up of HDTV vs. non-linear TV in Non-linear TV as % of total TV viewing by larger EU countries category in the USA, 2011–12
60% 9%
8% Video on mobile 7% 6% Video on Internet 40% 5%
Video game Internet 4% console
over 3% Video DVD 20%
TV 2% 1% Timeshifted TV (DVR) 0% 0% Q3 11 Q2 12 Q3 12 0% 20% 40% 60% HDTV
France Italy Germany UK Spain
Source: Ofcom, Nielsen Evolution so far – Putting things into perspective 37 Despite the rapid adoption of connected TV, this seems to have had only a limited impact on overall consumption Non-linear TV as % of daily TV Incremental YOY % of total consumption consumption, 2008–11 going to non-linear TV, 2008–11
20% 5% 18% 5% 16% 4% 14% 4% 12% 3% 10% 3% 8% 2% 6% 2% 4% 1% 2% 1% 0% 0% France Italy Germany UK Spain France Italy Germany UK Spain 2008 2009 2010 2011 2009/08 2010/09 2011/10
Source: EAO, Analysys Mason Evolution so far – Putting things into perspective 38 For popular series and programmes, the complementarity of non-linear and linear TV can be significant
Example 1: “Africa” in the UK Example 2: “Polseres Vermelles” in Catalonia ▪ Leading TV series from the BBC with ▪ Leading TV programme from TV3 with average 20% average 20% share in the UK share in Catalonia ▪ Non-linear viewing could represent 25% of ▪ Young target audience total viewing ▪ Format is being exported to other countries incl. USA ▪ Non-linear viewing could be 34% of total viewing
Metrics for linear vs non-linear viewing of Metrics for linear vs non-linear viewing of “Africa” “Polseres Vermelles” 7 800 6
5 600
4 400
Millions 3
2 Thousands 200 1
0 0 Linear TV viewers non Linear TV Linear TV Unique web Postview Previews BBCiplayer requests viewers users video videostream streams
Source: The Guardian, BBC, TV3, Analysys Mason Evolution so far – Putting things into perspective 39 Although revenue from online TV is increasing exponentially, it still represents less than 2% of total TV revenues
Total non-linear revenues by source in larger Non-linear revenues as % of total TV revenues EU countries, 2008–11 (EUR million) in larger EU countries, 2008–11
200 1.6% 180 1.4%
160 1.2% 140 1.0% 120 100 0.8% 80 0.6%
60 0.4% 40 0.2% 20 0.0% 0 Germany Spain France UK Italy 2007 2008 2009 2010
Pay-TV FTA
Free models seems to be gaining momentum in most countries, but pay-TV models are also growing in relative terms in Germany
Source: EAO, Analysys Mason Evolution so far – Putting things into perspective 40 Future TV consumption – will connected TV be a complement for linear TV, or a substitute? Figures illustrative – for discussion only
Connected TV as a complement – Connected TV as a substitute – erosion traditional TV follows historical trend or decline in traditional TV 250 250
200 200
150 150
100 100
50 50 Consumption of online video vs TV (min) TV vs video online of Consumption Consumption of online video vs TV (min) TV vs video online of Consumption 0 0
TV Online Video TV Online Video Evolution so far – Putting things into perspective 41 In terms of revenues, will non-linear TV develop into a mainstream TV model comparable to FTA or pay-TV?
Figures illustrative – for discussion only Scenarios for growth of TV revenues in Europe (period to 2020)
Scenario Non-linear TV Linear TV (FTA) Linear TV (Pay TV)
Scenario 1 – Lower growth Evolutionary trend Evolutionary trend Evolutionary (CAGR 40%) (CAGR 2%) (CAGR 5%)
Scenario 2 – At the Medium growth No growth Slower growth expense of FTA (CAGR 50%) (CAGR 0%) (CAGR 2%)
Long-term Long-term substitution Higher growth substitution Scenario 3 – At the and decline – and decline expense of pay TV (CAGR 60%) “cord cutting” (CAGR -3%) (CAGR -1%) Evolution so far – Putting things into perspective 42 We expect the revenues from online TV to grow at different rates – all at the expense of traditional TV
Figures illustrative – for discussion only
Scenarios for TV revenues, linear vs non- Scenarios for TV revenues by source, 2012–22 linear, 2012–22 (EUR billion) (EUR billion)
2012 2022 2012 2022
S1 S2 S3 S1 S2 S3 Linear Non-linear
Non-linear as % 10% 21% 41% TV revenue growth 49% 35% 33% of total TV (10 years)
Source: Analysys Mason Contents 43
Setting the scene
The evolution so far
The policy and regulatory debate moving forward The policy and regulatory debate 44 Several countries have formally kicked off the debate around connected TV and future regulation of broadcast
. The specificities of broadcast media will need to be reassessed to reflect the new environment and to safeguard growth, innovation and competition
. Consultations will be launched to properly assess the potential need to adapt and/or consolidate discrete policy and regulatory frameworks EC is producing a green paper on connected TV this spring UK will publish a white paper France has set up a commission to study the connected TV market Germany’s regulatory bodies have published an opinion paper outlining their priorities in future regulation of connected TV Other countries, such as the Netherlands, are also starting the debate
The policy and regulatory debate 45 Key elements and issues likely to be at the core of the debates
TV advertising Access and prominence IP rights / Premium rights
Terrestrial spectrum Reference markets Net neutrality
European works Protection of minors
Each leading country within the EU assigns a different level of importance to each of these issues and the potential need and timing for convergence. The policy and regulatory debate 46 Key elements and issues likely to be at the core of the debates
Element Key issue Policy and regulatory reference
TV advertising Asymmetries in TV advertising regulations AVMS directives Access and Must-carry, linear and non-linear TV Universal access directive prominence services’ access to platforms and due Access directive prominence in EPG, searches, apps, etc. IP rights / Evolution of retransmission rights, Cable and satellite directive Premium rights territoriality, broadcast and VOD windows, AVMS directive events of major importance and premium Competition cases rights and distribution exclusivities Spectrum Spectrum and, eventually, administrative Framework directive, national incentive pricing (AIP) frequency plans and policies, EC spectrum inventory work and associated decisions Reference markets Changing definition of TV reference Market reviews, ex-post regulation markets Net neutrality Non-discrimination regarding third-party Framework directive content EU works Level of support for EU audiovisual AVMS directive production and model Protection of minors Protection of minors AVMS directive The policy and regulatory debate 47 Access and prominence issues have already gained momentum in the UK
Significance in trad. Significance in Commercial relevance Possible regulatory pay -TV market non-linear TV market tools Access and carriage ▪ TV channels are ▪ It might vary and ▪ Must-have content may ▪ Open access rules to included in operators’ evolve rapidly. determine a platform’s all? EPGs ▪ Will content providers’ viability ▪ Review and/or apps be available in ▪ Inclusion in key extension of ‘must- pay-TV platforms? platforms may be carry’ rules? ▪ Will content providers crucial for ensuring ▪ Review and/or be included in search high viewing figures. extension of ‘must- engine results? offer’ rules? Prominence ▪ TV channels are given ▪ It might vary and ▪ High prominence may ▪ Review and/or prominent numbering evolve rapidly be crucial for ensuring extension of ▪ Are apps being pre- high viewing numbers ‘appropriate installed or displayed – and revenue. prominence’ rules? on the ‘start screen’? ▪ This will have ▪ Order in results from implications for search engines? investments in content production (e.g. European works) Concluding remarks 48 Concluding remarks
. Complexity and uncertainty in short, medium and long term tactical approach for short term strategic planning for medium to long term . Established and new players have different perspectives a land of opportunity for new players limited ‘losses’ for established players, but a threat in medium and long term – prepare tactically! . You are not observer but KEY PLAYERs . Your actions can change current forecasts!
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Contact details
Lluís Borrell Partner [email protected]