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IGF in Rio de Janeiro, November 2007 Mainstream Media and the Internet The Internet Landscape Commercial Strategies Public Strategies Future Developments Alexander Shulzycki European Broadcasting Union ...
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IGF in Rio de Janeiro, November 2007 Mainstream Media and the Internet The Internet Landscape Commercial Strategies Public Strategies Future Developments Alexander Shulzycki European Broadcasting Union
... “Internet governance is the development and application by Governments, the private sector and civil society, in their respective roles, of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the internet.” - UN Working group (WGIG) in July 2005 ...
Global Internet ActivityOnline population growth over time (1995-2007) Source: EBU based on comScore Only half of Europeans use the internet regularly and broadband penetration remains below 20% in many markets.
Global Internet ActivityInternet users per world region (Jun'07) Source: EBU based on comScore
Global Internet ActivityAverage hours per visitor per month (Mar'07) Source: EBU based on comScore
The Long Tail Top 100 websites in Europe by total unique visitors (000) Source: EBU based on comScore, May 2007 The Long Tail - a relatively small number of web sites control vast amounts of traffic flow across the Internet.
Global Internet Activity15 most visited Internet properties, August 2007, Worldwide Source: EBU based on comScore These top sites have shown an average 25% increase in the last year.
The Long Tail In the measurable universe of 15,000 sites, the total usage of the first 750 sites equals the usage of all the rest. The top 5% of the measurable internet universe has the same number of users as the bottom 95%. (Unique Monthly Visitors)
Brief selected history of the internet • The internet infrastructure was created by large subsidies from the United States Department of Defense from the late 1960’s • Scientific, academic institutions lead development of applications • The creation of www and browser software made the internet accessible the general public • In 1995 the US government gave up its backbone to seven private companies • Studies in late 90’s clearly indicated that the overwhelming majority of users were strongly opposed to advertising. • Advertising, subscription, shopping developed rapidly • Someone said “Monolithic empires of mass media are dissolving into an array of cottage industries....” • The dot com bust, over-investment by media groups • web 2.0, high advertising growth, increasing role of media companies ...
Commercial Media Quarterly Internet ad revenues Source: EBU based on Interactive Advertising Bureau / PricewaterhouseCoopers Many advertisers shifting budgets from traditional media (radio, Newspapers)
Commercial Media Evolution of large media groups' web properties Source: EBU based on Comscore With subsidiaries included, the top 3 media companies control 900 million users. (unique monthly visitors not unduplicated)
The Long Tail? “I listed every Internet property by subcategory and then distinguished between the media-related properties and the non media-related ones. Once I’d bifurcated the properties, I calculated a ‘power rating’—a volume metric measuring total user minutes—to assess user engagement,” Miron explained. “While page views and unique audience are important, my power rating reveals share of time: Since interactive-media properties are supported by advertising and subscriptions, this seemed to me a good indicator of performance in today’s environment. Interestingly enough, I found that the 42% of Internet properties identified as being media related accounted for 70% of the power rating. What’s more, the top 10 media properties accounted for approximately 76% of the power rating when compared to the media property universe, and the top 100 media properties accounted for approximately 91% of that power rating. These findings alone do not support the existence of a long tail in interactive media. In fact, they support just the opposite: Interactive media is indeed the ‘land of the large.” Lex Miron, executive director of CIBC World Markets’ Media and Entertainment ...
Commercial Medianegative effects of over-commercialization • Pluralism – diverse points of view not heard; control • Advertising – most people don’t like it • Pay Models – exclude part of the population from content • Diversity of content – homogenised product dominates • Thwarted innovation – acquisition-monetization cycle ...
Public Broadcaster Strategies EBU Members website reach - Aug'07 (% reach among national population) More than one fifth of internet users in Europe visit an EBU Member web site at least once a month.
Public Broadcaster Strategies Public radio ranks first or second among radio sites.
Public BroadcastersCase Study: SVT SVT uses interactive solutions and services to invite the audience to have their say in public debates: • Argument - programme connected to public opinion. • Bobster - users can record their best joke and the video might be shown in TV. • Folkets kommentator - users could make their own videos commenting a football game and the winner, selected by the audience, was invited to comment an actual game for the World Championship in 2006. This is an example of users’ creativity starting on the web and ending in a TV studio. • Packat & Klart, travel programme - users are invited to send in pictures from all over the world and be part of a weekly competition to get the pictures published on Svt.se. They are also encouraged to make a video of their own reportage. Attitudinal research shows that SVT's most prominent quality is trustworthiness. Professionalism, quality and diversity are other characteristics that are associated with the SVT brand.
Public BroadcastersCase Study: SR • As one of SR's missions is to make content for children, they launched a special website focusing only on content for this target group in 2002. • In 2006/07 children became a highlighted focus area and obtained extra resources to create a new distribution form for children, combining both FM content and web unique content. • SR Bubbel - a new web channel, launched in December 2006, playing only children's music. It was also aimed at supporting the production of children's music. • Radio-apans ljudjakt (the Radio-monkey's sound hunt) - a game integrating radio and web letting children experience different sounds in an interactive way. • Additional content - making more in-depth web content in connection to all radio programmes for children. ....
Public BroadcastersCase Study: BBC • Website for disabled persons - reflecting the lives of disabled people including features, quizzes, podcasting, blogging, a community message board etc. • Have your say - users can propose discussion subjects, ideas for a news spot, send their own videos or photos, vote on various topics etc. Sometimes e-mails get read out directly on air. • Climate change experiment - in partnership with Oxford University inviting users to participate in the world's biggest climate prediction project and contribute to the debate on global warming. • One day in Afghanistan - project initiated by BBC News Interactive, showing pictures of Afghanistan from people around the world. Raising awareness about living conditions in other countries. • Live from Ethiopia - UGC project - reportage made live from Ethiopia. e-mailed questions set the agenda and the villagers tell their stories direct. According to the Superbrands UK Web Survey, the BBC is the most trusted brand on the web.
Public BroadcastersCase Study: DR • To promote freedom of speech, democracy and dialogue Dr.dk has established many different services: • Debate - this forum is led by DR hosts moderators. The hosts invite users to contribute their thoughts and ideas on topics they introduce. • DR Blogs - consists of blogs from DR experts only and not from users. However, a new expert group made up of users will be added to this section. • Local Heroes - a local pilot project where citizens could use the site as a platform for ideas and initiatives they would like to carry out. • Candidate database - candidates in the municipal elections can display their profiles and explain their positions on Dr.dk. ....
Importance of professional content "...Internet over the past five years: blogs and (more recently) video-sharing websites have opened up new creative outlets to tens of millions of people around the world. At the same time, the appetite for professional produced content....continues to grow.“ “... no matter which medium or platform consumers turn to, the demand for high-quality content will always exist .” - Vint Cerf, Google VP ...
Importance of professional content Professional videos are preferred to amateur productions online, but amateur content appeals to coveted segments of the young male audience. Overall, 62% of online video viewers say that their favourite videos are those that are professionally produced, while less than a fifth prefer amateur video. Another 11% say they enjoy both professionally produced video and amateur online video equally. For young adult men there is a much narrower gap: 43% opt for professional video, while 34% say they prefer amateur content. http://www.pewInternet.org/, July 2007 ...
Increasing demand for video content • Social networking and UGC sites have driven the online video market and prompted media companies to act. • Online video consumption tends to be additive and does not replace normal TV viewing • Disputes with Apple • New advertising techniques • Launch of peer-to-peer networks • Separation between the PC and the television breaking down ...
Net neutrality: a looming crisis? As online video reaches a mass market capacity problems will emerge resulting in renegotiation between content providers and network owners. Costs are likely to rise for broadcasters and consumers who are heavy online video users. This may result in a toll-based internet which threatens net neutrality. ...