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Digitisation 2010 Digitisation 2010 Broadcasting gearing up for the internet the changing face of structures and actors Digitisation 2010 Broadcasting gearing up for the internet the changing face of structures and actors published by Kommission für Zulassung und Aufsicht (ZAK) der Landesmedienanstalten Commission on Licensing and Supervision (ZAK) of the German media authorities Preface 5 Thomas Langheinrich Chairman of the Commission on Dr. Hans Hege Licensing and Supervision (ZAK) ZAK Representative for platform of the German media authorities regulation and digital access The sixth digitisation report of the media authorities provides on the initiative of the media authorities. Over the next few evidence of the positive development digitisation is taking in months, the ”klardigital 2012“ initiative will inform the satel- Germany. Since 2005, the number of digital TV households lite households affected and will provide advice to the special- has trebled and now stands at 23 million, allowing digital ac- ist trade, craftsmen, the housing industry and cable network cess to the media in 61 per cent of all homes. Even cable operators, thus accompanying switchover. This impulse could which has been the problem child of distribution platforms lend momentum to the digitisation of cable. during this period is now beginning to speed up digitisa- The data collected by TNS Infratest during the period tion, and DSL-TV is also gaining ground, even if penetration May – June also point to developments presenting new chal- is still at a low level. HDTV is a definite driver for digiti- lenges for users, distributers, platforms, the receiver industry sation: the rising number of offers is good reason for users and, not least, content providers. The market has undoubtedly to switch to digital reception, especially since they can now become more dynamic, competition has grown considerably see the benefits with their own eyes. The new flat screens and open and closed systems vie for market shares, click rates with integrated receivers also pave the way for digitisation as and paying customers. Behind the scenes, sustainable business services and features can now be easily accessed with a sin- models for the time after the heyday of traditional TV adver- gle remote control, making TV consumption child’s play for tising, necessitating new addressable services to compensate even the technically most ignorant viewers. In addition, new any loss in revenue, have been looked at for a long time. The promising developments will soon make internet applications direct connection to the customer will become absolutely es- visible on the TV screen in a user-friendly way thanks to the sential; for this reason, platforms, network operators and the new HbbTV standard. Consumers can therefore now more receiver industry are currently all defining their respective and more appreciate the added value digitisation has to offer, claims. As a consequence, technical progress regarding digiti- which thus loses the blemish of only providing countless new sation is increasingly slowed down since the new options and offers. And convincing arguments for digitisation are needed technical choices are not necessarily welcomed by all players. as more than 14 million German households are still firmly locked in the analogue world. The digitisation report shows up all these developments; it provides not just the relevant facts and figures but also offers In this respect it was an important step that ARD, RTL expert analyses and opinions, raises the right issues and points Deutschland group, ProSiebenSat.1 and ZDF agreed on the to potential developments in the digital world. switch-off of analogue satellite transmission in Germany to- gether with the commercial broadcasters’ association, VPRT, CONTENT 7 Content Broadcasting gearing up for the internet the changing face of structures and actors. 3 Platforms 2.0: Broadcasting platform meets internet platform . 13 Dr. Hans Hege Traditional broadcasting platforms: can they get away from the transport model?. 14 Internet platforms. 16 Open worlds – closed worlds. 18 Effects on the broadcasting world. 20 Infrastructure providers and platforms. 21 Challenges for regulation. 22 Securing basic access to television and the internet . 22 Specific rules for broadcasting platforms . 23 Selection through internet platforms. 24 Provisions concerning vertical integration. 24 Data protection and copyright – the key funding issue. 25 Uniform regulation – is the protection of minors an appropriate example?. 25 Digitisation of the German television market: Facts and figures Current state of digitisation in German TV households, June 2010. 28 Andreas Hamann Continuous increase in digital households. 28 Slight shift in the shares of transmission routes. 28 Upwards trend of digital continues. 29 Satellite to switch over in 2012 . 30 Cable continually on the road to digital . 32 Rate of digitisation on the up with the number of sets . 33 Terrestrial reception stable. 34 TV reception on the PC and the laptop on the up . 34 Watching TV online: reach and acceptance of web TV . .36 Johannes Kors Types of offer and developments . 36 IP-TV . 36 Web-TV . 36 Audience reach and acceptance of IP-TV and web TV. 38 Hybrid-TV. 42 8 CONTENT Digitisation in Europe on the move. 44 Mario Hubert Methodology. 48 Defining cable and satellite reception. 48 Establishing transmission platforms and transmission technologies . 48 Regulating platforms and securing digital access: the remit of the regulatory authorities . 51 Regulating platforms. 51 Digital access . 52 Analogue-digital switchover. 52 Tools of regulation and convergence of the media. 52 The authors . 53 Glossary. .54 Imprint . 58 11 Broadcasting gearing up for the internet the changing face of structures and actors 13 Platforms 2.0: Broadcasting platform meets internet platform Dr. Hans Hege Two terms or concepts currently dominate the Will the network operators put particular efforts Net neutrality in doubt debate: platforms and net neutrality. Apple, Google into promoting those uses of the internet which due to new platform developments and Facebook make good ground as regards me- earn them the lion share of their income, and thus dia consumption. The extension of broadband cause constraints for others? Do broadband infra- provides the basis for distributing audiovisual me- structure operators have to be permitted some- dia in the internet while offering new options of thing which was granted to broadcasting platforms collecting and utilizing user data. According to by the legislator a long time ago: the decision on estimates by experts, the available capacities will the use of the capacity they have built up includ- increase ten-fold by 2014; by then, 90 per cent of ing the selection of media content, but exclusive the capacities will be used up by video consump- of minimum obligations for the benefit of public- tion in the internet. This raises a lot of questions: service channels and regional services? Asked in Who will pay for this? Who will gain control of reverse: Can trade privileges of network operators the particularly attractive content which will con- be put into question, e.g. that users cannot choose tinue to be in scarce supply in the future? Who the cable network operator providing the majority will control the receivers? Who will obtain data on of TV services they want to watch but have to ac- user behaviour which form the basis for financing cept the provider selected by the landlord, or that and expanding services? Will the internet be pre- users have no influence on what channels they served in what represents its open character so far receive which is basically the opposite of what – the enigmatic catchword being ”net neutrality“, would ideally constitute and is demanded as net i.e. the possibility of the direct and uncontrolled neutrality? connection between content providers and their This article aims at outlining and comparing de- users, but also among users exchanging videos and velopments of traditional platforms in the world of music? The term ”net neutrality“ comprises many broadcasting and the new platform world in the issues, and the solutions to them are almost always internet. Answers found to questions in this context linked to platforms which operate networks, con- will be outnumbered by questions remaining unan- trol receivers, aggregate content, assist with navi- swered. The article would like to contribute to the gation and collect data for funding activities. contexts being better understood, thus providing a first basis for solving the question which public in- terests command which form of regulation. 14 Broadcasting GEARING UP FOR THE INTERNET Traditional broadcasting platforms: can they Satellite copied the cable transport model and get away from the transport model? also reaches a large audience; marketing does not, Broadcasting platforms serve for transporting and however, take place. Satellite could attain its large – where possible – marketing television in closed audience share because, unlike in almost all other networks. The operators decide on the content to countries, no payment is charged for programme be distributed; in so doing, they have to pay re- reception. In Germany, households invest in a sat- gard to some minimum provisions. Even in dig- ellite receiver, but do not have to pay any monthly ital networks, capacities are limited. Unlike in the fees in return. This corresponds to the old – and, analogue world, however, this no longer results in following switchover,
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