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Broadcasters and the Broadcasters and the Internet

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Broadcasters and the Broadcasters and the Internet Broadcasters and the Broadcasters and the Internet Internet EBU Members’ Internet Presence Distribution Strategies Online Consumption Trends Social Networking and Video Sharing Communities November 2007 European Broadcasting Union Strategic Information Service (SIS) L’Ancienne-Route 17A CH-1218 Grand-Saconnex Switzerland Phone +41 (0) 22 717 21 11 Fax +41 (0)22 747 40 00 www.ebu.ch/sis European Broadcasting Union l Strategic Information Service Broadcasters and the Internet EBU Members' Internet Presence Distribution Strategies Online Consumption Trends Social Networking and Video Sharing Communities November 2007 The Report Staff This report was produced by the Strategic Information Service of the EBU. Editor: Alexander Shulzycki Production Editor: Anna-Sara Stalvik Principal Researcher: Anna-Sara Stalvik Special appreciation to: Danish Radio and Television (DR) Swedish Television (SVT) Swedish Radio (SR) Cover Design: Philippe Juttens European Broadcasting Union Telephone: +41 22 717 2111 Address: L'Ancienne-Route 17A, 1218 Geneva, Switzerland SIS web-site: www.ebu.ch/director_general/sis.php SIS contact e-mail: [email protected] BROADCASTERS AND THE INTERNET TABLE OF CONTENTS INTRODUCTION.............................................................................................................. 1 OVERVIEW .............................................................................................................................1 1. The general Internet landscape: usage, websites, advertising ............................................. 3 2. Social networking and user-generated content have driven the online video market........... 7 3. Online video consumers crave professional content but do not want to pay ........................ 8 4. Broadcaster online video strategies ...................................................................................... 9 5. Emerging peer-to-peer platforms .......................................................................................... 9 6. Capacity problems may be a future obstacle ...................................................................... 10 GENERAL INTERNET DEVELOPMENT AND EVOLUTION...................................................... 13 GLOBAL OVERVIEW..............................................................................................................13 1. Concentration of ownership for popular and emerging properties ...................................... 15 2. Online category development: participation and networking on the rise............................. 17 PUBLIC SERVICE BROADCASTERS ONLINE .................................................................... 19 EBU MEMBERS' INTERNET REACH........................................................................................19 CASE STUDIES - PUBLIC SERVICE BROADCASTERS...............................................................20 Danish Radio and Television (DR)................................................................................20 Swedish Television (SVT).............................................................................................31 Swedish Radio (SR)......................................................................................................46 British Broadcasting Corporation (BBC)........................................................................59 Nederlandse Omroep Stichting (NPO)..........................................................................72 LARGE COMMERCIAL MEDIA GROUPS AND BROADCASTER STRATEGIES ........................... 79 1. Large media groups extending influence ............................................................................ 79 2. Broadcaster online video strategies .................................................................................... 82 SOCIAL NETWORKING AND ONLINE VIDEO SHARING ........................................................ 93 ONLINE COMMUNITIES AND SOCIAL NETWORKING..................................................................93 VIDEO SHARING SITES ..........................................................................................................96 1. The YouTube phenomenon................................................................................................. 98 2. YouTube collaboration with EBU Members......................................................................... 98 TV SERVICES ONLINE: PROGRAMMING, ADVERTISING AND CONSUMPTION ............................102 1. Increasing online availability of personal TV services....................................................... 102 2. Web video's impact on conventional TV consumption...................................................... 106 3. Expanding or chasing audience? ...................................................................................... 109 4. Worldwide streaming activities .......................................................................................... 111 5. Real TV online - Joost and Babelgum............................................................................... 114 6. Online video advertising expenditure ................................................................................ 115 7. The problem of monetisation............................................................................................. 116 8. Web effects: new styles, genres, aesthetics ..................................................................... 117 9. Non-UGC web specific programming:............................................................................... 118 CONCLUSIONS .......................................................................................................... 121 CONCLUSION: FUTURE MEDIA CULTURE AND CONVERGENCE...............................................121 1. Divided audience ............................................................................................................... 122 2. Cultural shift....................................................................................................................... 122 3. Finance as motor............................................................................................................... 123 4. Quality product remains key.............................................................................................. 123 5. Convergence of media and interweaving of services........................................................ 125 6. Pirates become emperors ................................................................................................. 127 7. Long term viability: the venture capitalist view .................................................................. 130 8. The future of Public Service hangs in the balance............................................................ 131 EBU - Strategic Information Service APPENDICES ............................................................................................................ 135 APPENDIX A ......................................................................................................................137 1. comScore definitions ......................................................................................................... 137 2. comScore database methodology..................................................................................... 138 APPENDIX B ......................................................................................................................140 1. Streaming .......................................................................................................................... 140 2. Swedish Radio (SR) .......................................................................................................... 141 3. Social networking .............................................................................................................. 142 APPENDIX C ......................................................................................................................143 1. Internet acquisitions (<$1 billion)....................................................................................... 143 APPENDIX D ......................................................................................................................146 1. File Sharing P2Ps.............................................................................................................. 146 BROADCASTERS AND THE INTERNET | INTRODUCTION | 1 INTRODUCTION Overview As the Internet increasingly becomes an important source of information and entertainment to more and more people, established broadcasters will face new challenges and opportunities. Time spent on the Internet is approaching levels of television consumption, with user-generated content and networking sites becoming more popular. Broadcasters have been adjusting their business strategies as new sources of audiovisual content become available and consumers behaviours shift. Meanwhile, broadcasters' hold on mass audiences is being challenged by new companies and new business models. Unique monthly1 visitors to BBC and YouTube - 15-24 year olds (UK) 5,000 4,000 3,000 BBC.CO.UK Y OUTUBE.COM 2,000 Total Unique Visitors (000) Visitors Unique Total 1,000 0 Jul'06 Jul'07 Oct'06 Jan'07 Jun'07 Feb'07 Mar'07 Apr'07 Sep'06 Nov'06 Dec'06 Sep'07 Aug'06 May'07 Aug'07 Source: EBU based on Comscore This year Google UK will earn higher advertising revenue than terrestrial Channel 4. Channel 4's CEO commented: "People need to wake up and realise
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