CANOLFAN MATERION CYFREITHIOL CYMREIG: YR 8FED DDARLITH FLYNYDDOL Jason Chess, Partner, Wiggin LLP

1. CANOLFAN MATERION CYFREITHIOL CYMREIG: YR 8FED DDARLITH FLYNYDDOL Jason Chess, Partner, Wiggin LLP

2. Tonight A. THE ESSENTIAL BACKGROUND: DIGITISATION and CONVERGENCE – the transformation of the media industry B. BROADCASTING IN WALES – Current provision • THE FUTURE – Will the cataclysm of change in the media allow Wales to retain a media personality in either language?

3. Who Am I? • Born Porthcawl, educated Porthcawl Comprehensive School and University College, Oxford • Read English (MA 1986) and Mediaeval Languages (MPhil, 1990) • Specialised in the religious verse of the Gogynfeirdd and the palaeography and transmission of Celtic manuscripts to Saxon Wessex. • Partner at No. 1 specialist media law firm Wiggin LLP. Advise a range of media clients including ITV, Channel 4, Five, BT, S4C, Granada, Virgin Media, UKTV, Discovery, Al Jazeera (Arabic and English), HBO, Setanta, Emap Plc, Conde Nast, Hearst Corp. • Recent work = BBC/ITV/C4 Public Service VOD JV announced this week. • Negotiated and established Astra 2A digital satellite transmission chain for S4C in 1998

4. Come on the journey… Lle’r ei di Twn Pen Ceunant Lle’r ei di ar draws y byd A’r Sioned bron a hollti A’i hwyliau’n garpiau gyd? Yn ol i’r Felinheli Rwy’n mynd co bach, ho,ho, Ym morio am fy mywyd Saith mis o Callao… Where go you, Twn Pen Ceunant Where go you across the seas And the Sioned almost broken Sails ragged in the breeze? Back to Felinheli I’m going, my lad, ho, ho Sailing like a maniac Seven months from Callao Ynys yr Hud, (W.J. Gruffydd); Euryn Ogwen Williams: “Byw ynghanol chwyldro”, Darlith Cymru Heddiw, Eisteddfod Genedlaethol Bro Ogwr, 1998

5. Part One: What is “the Media” and why is it changing at present??

6. 1982: Analogue Television Broadcasting Analogue Terrestrial Television Television • BBC 1 • BBC2 • ITV • Channel 4/S4C

7. Analogue Terrestrial Television BT Distribution Network Production • What is ATT? • Broadcast from 1154 sites UK Wide • 211 sites in Wales – Moel-y-Parc, Wenvoe • 4 or 5 television services with ‘universal coverage’ • Wasteful of capacity • Only able to broadcast a small number of national channels • DSO process to be completed in 2012 1154 Transmitter Sites

8. Analogue Terrestrial Television Broadcasting Platforms 1990 Analogue Cable Television Television Analogue Satellite Television

9. Cable Television Enc1 MUX Enc2 Real Time TV services QAM Modulator ATM Distribution Network Content “on-demand” servers • What is Cable Television? • 2 UK operators – ntl and Telewest – now merged into Virgin Media • Limited geographic availability • Virgin – Cardiff and Swansea • A closed network requiring subscription • Provides digital video and audio • Provides NVOD / VOD, internet access & telephony • Every television requires an STB • Requires installation of a coax feed to the home Local Node (HFC) Cable link to the home

11. Enc1 MUX Enc2 Direct to Home Satellite Television Real Time TV services QPSK Modulator Content “on demand” servers Services uplinked to Satellites • What is Direct to HomeSatellite Television? • Sky platform dominant in the UK • Provides access to 600+ channels: slots on the electronic programme guide (“EPG”) have just run out • Provides NVOD services (“near video on demand”) • Provides PPV services (“pay-per-view”) • Provides interactive services via Open TV and WML • Provides PVR functionality via Sky+ • Requires a set-top-box • ITV and BBC to launch a ‘Freesat’ alternative service Services downlinked via receive satellite dish and fed in to STB

13. “Terrestrial Television” Analogue and Digital : Cable TV: Analogue and Digital Digital Satellite 1998: Digitisation and Digital Broadcasting Television

14. Digital Terrestrial Television Enc1 Enc1 MUX MUX Enc2 Enc2 Enc3 Real Time TV services Regional (RPOC) and National (NPOC) Multiplexing Systems • What is DTT? • 6 Multiplexes of 24.1Mbit/s • Up to 10 services in a multiplex • High quality video and audio • ‘interactivity’ via MHEG-5 • NB no return path • Mix of free-to-air services and Pay-tv • Currently limited core coverage from 80 transmitter sites UK Wide • 9 sites - Wales • Reception can be patchy • At DSO, core coverage of PSB multiplexes expected to reach 98% • Further capacity possible, subject to Ofcom and RRC06 BT Distribution Network COFDM Modulator 80 Transmitter Sites

15. Analogue…Digital

16. DSL (IPTV) Terrestrial (Analogue & Digital) Content Distribution Platforms 2002 Cable Satellite

17. DSL (IPTV) ‘Internet’ (Usually dedicated ATM circuits) Enc1 MUX Enc2 Real Time TV Services IP Encapsulator Content “on demand” servers Local BT exchange (DSLAM) • What is IPTV? • Direct to consumer service, offering: • Broadcast television • Video on demand • Deliver over a closed IP network • Offering a high QOS • Fixed wire delivery, currently DSL in the UK (Homechoice in London and Kingston in Hull) • “Soft Launch” of BT Vision Local Loop (twisted pair) to the home

18. Terrestrial Content Distribution Platforms 2004 Television CATV PC Satellite Mobile Phones (3G) DSL (IPTV) Mobile Phone (3G)

19. Mobile Telephony (3G) MPEG4 Encoded Content Content Server 3G Distribution Network • What is Mobile Telephony (3G)? • Direct to consumer service carried in-band over 3G mobile telephone networks, offering: • Recorded video-clips • Could provide ‘mobisodes’ • Video messaging between handsets • Content can be FTV or pay-tv 3G cellular transceiver network 3G handset

20. Terrestrial TV 2007: The Modern Media Cable PC Satellite Mobile Phone (3G) DSL (IPTV) Media Players Internet Mobile TV devices (DVB-H and T-DMB) Mobile Telephony (3G) Mobile Television (DVB-H and T-DMB)

21. Internet Windows Media Encoded Content WM Server Internet Streaming Server ISP Connection Real Time Encoder Live Content • What is Internet Delivery? • Delivery of content encoded using e.g. Windows Media or Real Networks. • Usually Unicasting • TCP/IP based delivery • Viewed on a PC with a client application • Can be accessed from various terminals and various connectivity (e.g. PC, handheld, 3G mobile phones) Windows Media Player Client

22. Mobile Television (DVB-H) Enc1 MUX Distribution Network Enc2 Enc3 Real Time TV services • What is DVB-H? • Delivery of live television programming to mobile devices via DVB-H transmissions • Cellular transmission network likely • Single Frequency Network topography likely • Frequency availability and licensing framework not yet decided. • Capacity subject to post-DSO frequency plan and RRC06 decisions. • Ability to receive high quality digital pictures and sound • Whilst on the move (cell roaming) • O2, Nokia & Arqiva trialled a DVB-H network in Oxford. DVB-H Modulator DVB-H Transmitter Network DVB-H Equipped receiver

23. Modern Media Platforms : How do they work? The Media Platforms: How do they sell content and how can users access content?

24. Analogue Terrestrial Television Business Model : 1982 Analogue Terrestrial Television “Free to Air” or “FTA” TV

25. Broadcasting Platforms Business Models: 1990 Analogue Television Free to Air Analogue Cable TV Basic Pay-TV Packages TV Analogue Satellite TV Premium Packages (Sports, Films/ Adult)

26. Broadcasting Platforms Business Models: 1998 Digital and Analogue Terrestrial Television Free to Air Analogue and Digital Cable TV TV Basic Packages and Themed Packages (“music” package; “family” package) Digital Satellite Premium Packages (Sport/Films/Adult) “Pay-Per-View” or PPV

27. Digital and Analogue Terrestrial Broadcasting Platforms: Business Models 2002 Free to Air Basic and Themed Packages TV Cable Premium Packages (sport, films) PC Satellite Pay-Per-View Mobile Phone (3G) Pay-Per-Day/Week/Month DSL (IPTV)

28. Terrestrial Media Business Models 2007 onwards TV Cable Free to Air PC Basic and themed Pay-Packages Satellite Mobile Phone (3G) Premium Pay-Packages (Film, Sport) DSL (IPTV) Pay-Per-View Mobile Receiver Pay-Per Day/Week/Month Internet Mobile TV receiving device (DVB-H) Video-On-Demand Mobile Phone (3G) DVB-H & T-DMB Mobile TV (DVB-H & T-DMB)

29. What More? • BBC iMP • BBC Local • ITV Local • Sky & Easynet / Sky VOD • Sky HD • BBC HD • PVRs • iTunes • Google Video • BT Vision • Virgin & Nokia DVB – H • MobiTV • Vodafone/Sky/ • Orange/3

30. For example….

31. Mobile – 3G handsets Nokia 6630 Apple iphone (2.5G) Sony EricssonV600i

33. High Definition • Improved picture quality • Sky and BBC HD plans • BBC, ITV, C4 & Five MOU • Al Jazeera English language service acquired global 15 mb p/s satellite feed • HD simulcast of S4C?

35. Portable Devices PVR2G0 Pace Microsoft Mobile Media Centers Samsung a Creative Sony’s Play Station Portable (Sony PSP)

36. PVR Allows preferred content to be Identified and recorded

37. BBCiPlayer

38. "Our ambition is not to become a major production company. Our ambition is to be a major distribution company, a major platform," Terry Semel Yahoo!

39. Wales…

40. Welsh Broadcasting: Where are we on the journey? “The challenge will be to innovate and compete, with relatively limited resources……” E.B. Hughes The S4C Authority seeks to rise to the challenge of the beginning of this new digital era. This is truly a crossroads…. (Yr Athro Elan Closs Stephens)

41. Why do we need “public” television anyway? • There are 400 channels on Sky…something for everyone…why interfere…why tax? • There are several pressing reasons why society needs to control the media different viewpoints reflect and encourage democracy and tolerance PLURALITY increase our understanding of our society and the world including arts, science, history INFORMATION to reflect and strengthen our British and regional – Welsh, Irish, Scottish identity CULTURE

42. Wales ROYAL CHARTER & DCMS Agreement BROADCASTING ACTS BROADCASTING ACTS BROADCASTING ACTS Channel 4 UK Channel 3 Franchises Five Content Supply 4 FIVE Don’t care about Wales Commercial company Wales programming obligations S4C2

43. Wales: Status Quo English Language Welsh – orientated content BBC WALES Content supply S4C “Wholly or primarily in Welsh” Content supply S4C2 Independent Producers Regional Programming obligations HTV Daytime analogue content C4 C4 FIVE FIVE

44. Wales: Finance Models LICENCE FEE DIRECT DCMS GRANT £90m? AD SALES £4m? Advertising/Sponsorship/interactive revenues

45. Ed Richards, OFCOM • High quality • Innovative • Challenging • Original • Widely available • Diverse PSB Programmes in sufficient quantity?

48. Devolution & Broadcasting Commission in Scotland “Broadcasting has a crucial and central role in our democracy, but also in obtaining the full cultural and economic benefits of our creative industries” Alex Salmond 8th August 2007

49. Chris Bryant, MP Should remain bilingual for the “whole of Wales” Not enough spectrum for BBC2 content Sporting fixtures should have English AND Welsh commentary S4C & BBC Devolved to Assembly in Cardiff…along with rest of Welsh language policy S4C BUDGET • News = 5.5 hours per week –287 hours p.a • Current Affairs = 47 minutes per week – 41 hours p.a • Other Regional = 13 minutes per week – 167 hours p.a Retain as a MINIMUM

50. Wales…pressure points and challenges threat to viewer numbers if C4 content declines political attacks: Somalis in Cardiff more important ANALOGUE SWITCH OFF loss of C4 analogue content to S4C loss of regional focus? salami slicing? Financial pressures: Quality and diversity under pressure BBC CUTS loss of regional focus? Regional content uneconomic Need to compete against all Sky and Freeview channels without analogue audience ITV Welsh/regional content needs to compete harder for audience share Need for more investment in content; better content very popular Keen consumers of digital TV…not necessarily “loyal” to Welsh or even regional English output WELSH VIEWERS