The challenges of digitization for broadcasters in Eastern Europe

1. The challenges of digitization for broadcasters in Eastern Europe Philip Laven Chairman, DVB e-mail: laven@ebu.ch Financing Digitalization in Eastern Europe Vienna, 29 October 2012`

2. Contents1 INTRODUCTION2 digital transmission3 DIGITAL Production4 Broadcasters' archives5 the digital challenge6 conclusions The challenges of digitization for broadcasters in Eastern Europe

3. Introduction • We are in the midst of a digital revolution • Physical objects (e.g. tapes, CDs, DVDs, newspapers, magazines) are being replaced by virtual objects (e.g. networked files) • Major consequences for businesses based on distribution of all types of digital content (content owners, distributors, retailers) • Broadcasting is not immune to the effects of this digital revolution • Broadcasters must use digital technologies to: • reduce their operating costs • offer enhanced services to the public The challenges of digitization for broadcasters in Eastern Europe

4. DIGITAL TRANSMISSION • Digital transmission offers many benefits compared with analogue transmission: • An analogue transmitter can carry a single TV service • A digital transmitter can carry up to 12 SDTV (standard-definition) programmes or 4 HDTV (high-definition) programmes • Lower transmission costs per programme • Lower transmitter power (= less electricity) • Improved spectrum efficiency also allows broadcasters to release spectrum that can be re-deployed for other purposes The challenges of digitization for broadcasters in Eastern Europe

5. DIGITAL TRANSMISSION • In 2005, the European Commission proposed the beginning of 2012 as the deadline for completing analogue TV switch-off in all EU Member States • By the end of 2012, 22 EU Member States will have completed analogue TV switch-off • The remaining 5 EU countries are: • Poland (July 2013) • Bulgaria (September 2013) • Greece (2014?) • Hungary (2015) • Romania (2015) • Plans for other countries remain vague . . . The challenges of digitization for broadcasters in Eastern Europe

6. DIGITAL TRANSMISSION • Why does it take so long to change from analogue to digital transmission? • New digital transmitter networks need to built alongside the existing analogue transmitters • Although digital transmitters are cheaper to operate, broadcasters must pay for TWO transmitter networks (analogue & digital) until analogue switch-off • Broadcasters want the transition to be as quick as possible The challenges of digitization for broadcasters in Eastern Europe

7. DIGITAL TRANSMISSION • To watch the digital TV services, consumers need to buy new equipment (set-top boxes or new integrated digital TV sets) • The analogue TV services cannot be switched off until ~99% of consumers have changed over to digital TV • People like digital TV when they get it, but • some are “digital refuseniks” • others cannot afford to buy a set-top box • It is easy to get to 50% of homes, but the last 5% are much more difficult to convert • This process can take 10 years – or more! The challenges of digitization for broadcasters in Eastern Europe

8. DIGITAL Production • In the past, TV productions relied heavily on video-tape (or film) • Modern TV production system use computer servers with massive hard-disks allowing networked storage of: • unedited content (e.g. from news cameras) • partially-edited content • content ready for transmission • Networked storage allows multiple users to have simultaneous access to the same material for editing, viewing and research • Such systems offer faster editing, improved productivity and better security The challenges of digitization for broadcasters in Eastern Europe

9. DIGITAL Production • Although digital production systems offer many benefits for broadcasters, they come at a substantial price • at the same time as broadcasters are having to pay for the expensive transition from analogue transmission to digital transmission • Unfortunately, the real benefits of digital production can be achieved only when ALL production has become digital • A mixed environment of analogue and digital production brings increased complexity for production staff The challenges of digitization for broadcasters in Eastern Europe

10. DIGITAL Production • Existing staff need intensive training on the new technologies, because they need to learn completely new skills • Broadcasters also need to overcome the widespread suspicion that their primary aim in introducing digital production systems is to reduce staffing levels • New entrants to broadcasting face no such problems – indeed, the reduced costs of digital production lower the barriers to entry for new broadcasters The challenges of digitization for broadcasters in Eastern Europe

11. ARCHIVES • Most broadcasters’ archives started on a small scale with a few people filing films or tapes • Eventually, archives become so large (millions of items) that they need complex processes to: • accept (or reject) material for archiving • produce indexes or catalogues • manage the use of archive material • The storage requirements often become so large that the archives have to be moved to a separate site – typically remote from the users (producers) • The result is that archives are not immediately accessible to production staff – and lose value The challenges of digitization for broadcasters in Eastern Europe

12. ARCHIVES • Networked storage of archives offers the perfect solution to this problem • Digital production systems can “liberate” the archives by giving producers easy access to the entire archive • Most broadcasters typically do not spend much money on their archives because there is no short-term benefit • Archives suffer from many problems: • multiple and obsolete tape formats • deteriorating film (“vinegar syndrome”) • Archives need to be protected by digitising their contents as soon as possible The challenges of digitization for broadcasters in Eastern Europe

13. ARCHIVES • The task of digitising broadcasters’ archives is not trivial because even small broadcasters have huge archives • Converting all of the films and tapes into digital formats requires specialised equipment and huge amounts of effort • perhaps, 3 hours per hour of content • The archives of national broadcasters contain material which is of great social, cultural and historical importance • these archives are just as important as National Museums – and need protecting • they are nationally important The challenges of digitization for broadcasters in Eastern Europe

14. THE DIGITAL CHALLENGE • Many public service broadcasters in Eastern Europe are chronically under-funded • some can barely cover their day-to-day running costs (staff salaries, electricity for studios and transmitters, telecoms facilities, transmitter networks) • capital investment in new equipment has often been a low priority for many years, resulting in “worn-out” obsolete equipment • In a high-technology industry such as broadcasting, failure to invest in infrastructure will result in increased costs, lack of competiveness and, ultimately, failure The challenges of digitization for broadcasters in Eastern Europe

15. CONCLUSIONS Digital is BETTER and CHEAPER than analogue • But the transition from analogue to digital takes a lot of time and is very expensive • Public service broadcasters in Eastern Europe need financial assistance to help them: • convert to digital transmission • convert to digital production • modernise their archives The challenges of digitization for broadcasters in Eastern Europe