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Entering the New Paradigm of Artificial Intelligence and Series

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Entering the New Paradigm of Artificial Intelligence and Series Entering the new paradigm of artificial intelligence and series A Study commissioned by the Council of Europe and Eurimages - December 2019 Authors: - Peacefulfish UG, Berlin, Germany: - Thierry Baujard - Rémi Tereszkiewicz - Axel de Swarte - Digital Media Finland, Helsinki, Finland: - Timoteus Tuovinen 2 Index Introduction: ...................................................................................................................................................... 4 1. Artificial Intelligence in the audio-visual sector ........................................................................................ 6 1.1. Introduction ............................................................................................................................................ 6 1.2. How Artificial Intelligence is used. .................................................................................................... 7 1.2.1. Description of Artificial Intelligence technologies ........................................................................... 7 1.2.2. Examples of Artificial Intelligence uses ............................................................................................ 8 1.2.2. Who uses Artificial Intelligence ..................................................................................................... 13 1.2.3. Artificial Intelligence ethics ............................................................................................................ 17 1.3. Impact of Artificial Intelligence........................................................................................................ 19 1.3.2. Impact on Production .................................................................................................................... 19 1.3.2. Impact on Distribution: Filter Bubbles ....................................................................................... 22 1.3.3. Impact on Consumers .................................................................................................................... 25 1.4. Future of Artificial Intelligence, New Services and Business Models .............................................. 25 Key Findings of Chapter 1 ................................................................................................................................ 28 2. The growing series market ...................................................................................................................... 30 2.1. A new market context paving the road to series ............................................................................ 30 2.1.1. New Convergent usage .............................................................................................................. 30 2.1.2. New players accelerating convergence and content production .............................................. 31 2.2. Towards a new series segment ....................................................................................................... 34 2.2.1. Definition ................................................................................................................................... 34 2.2.2. Main Figures .............................................................................................................................. 34 2.3. Main player descriptions& strategies .............................................................................................. 37 2.3.1. Description of the series ecosystem .......................................................................................... 37 2.3.2. Close-up analysis per player ...................................................................................................... 38 2.3.3. Role of national and European institutions ............................................................................... 47 2.4. Countries close ups and diversity .................................................................................................... 54 2.4.1. Overall situation ......................................................................................................................... 54 2.4.2. Best practice countries: DK, UK, Israel, Belgium, France ........................................................... 55 2.4.3. National measures to frame OTTs development: ..................................................................... 59 Key Findings of Chapter 2 ................................................................................................................................ 63 3. Analysis of the series sector needs .......................................................................................................... 64 3.1. Commercial and editorial practice and needs ................................................................................. 64 3.1.1. Case studies with insights: ......................................................................................................... 64 3.1.2. Focus on four main issues .......................................................................................................... 69 Key Findings of the chapter 3.1 ....................................................................................................................... 76 3.2. First Analysis on the Impact of the Public Support Systems series ................................................. 76 Key Findings Chapter 3.2 ................................................................................................................................. 79 3 3.3. European production stakeholders’ overall needs and options ..................................................... 79 3.3.1. Seizing the AI opportunity for the media sector and avoiding its potential risks ..................... 80 3.3.2. Developing a common cultural identity .................................................................................... 80 3.3.3. Catching the international series market opportunity .............................................................. 81 3.3.4. Preserving cultural pluralism in the member States ................................................................. 82 4. Recommendations for the Council of Europe and Eurimages ................................................................ 83 5. Appendices .............................................................................................................................................. 86 5.1. Appendix 1: Algorithms ................................................................................................................... 86 5.2. Appendix 2: AI and Advertising ....................................................................................................... 87 5.3. Appendix 3: Thumbnails on Netflix ................................................................................................. 88 5.4. Appendix 4: Youtube Filtering ......................................................................................................... 89 5.5. Appendix 5: AI in Production ........................................................................................................... 90 5.6. Appendix 6: mapping of public support for series .......................................................................... 91 5.7. Appendix 7: Definition, objectives, criteria and examples of public support: ................................ 92 5.8. Appendix 8: Interviews list ............................................................................................................ 100 5.9. Appendix 9: Glossary ..................................................................................................................... 102 Bibliography ................................................................................................................................................... 103 4 Introduction: This study is the result of a Tender awarded on 10 May 2019 by the Directorate General of Democracy (DG2) of the Council of Europe and Eurimages to commission a study exploring the feasibility of the Council of Europe’s intervention in the sector responsible for producing and distributing Television series. The series sector has changed dramatically in the last few years with the recent development of online video platforms (“OTT platforms”) offering large catalogues of content accessed via pay subscription models (“SVOD” offers). These offers have gained many customers worldwide and are strongly changing the way content is consumed and produced. Even though local SVOD platforms are now emerging throughout Europe, the rapid penetration and success of global platforms like Netflix and Amazon in most markets raise issues on their disruptive approach to marketing and content production. This study and analysis will focus on the growing fictional series segment which is henceforth referred to as “Series” in this Study. 1 This study will provide key research elements and analysis of the series sector in key Eurimages- member markets. It will also present recommendations to assist Eurimages position itself as a potential new player in this market segment. If Eurimages is also willing to explore its potential role within the framework of its prerogatives i.e supporting cultural diversity of all its member States and defending the fundamental values of the Council of Europe in the audio-visual sector, there may be a larger role for Eurimages to play. In this respect, a specific analysis on new AI methods has also
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