Digital Stress and Key Industry Issues

1. Digital StressandKey Industry Issues Sharad Sadhu Asia-Pacific Broadcasting Union BES EXPO 2010 International Conference & Exhibition, New Delhi

2. Digital Stress

3. The Small Ones TV production – IT equipment islands appearing / established TV transmission – digital trials and trails, but…. Archives – in tapes and films; lists, index cards Radio studios - digital-IT based production, fully or in part Radio transmission - digital trials, but…. Newsrooms: mostly IT assisted

4. The Big Broadcasters TV production – IT based in some areas – but there is a problem TV transmission – accomplished – but a big problem Archives – progressing Radio studios – fully automated digital-IT based Radio transmission – yes for many, some not keen Newsrooms: Fully IT based

5. Digital Transition in Studios: Impact • Larger TV b’casters have huge production facilities • Multi-channel, multi-studio set up • Big task to change everything to IT based • Managing the change needs great effort • Money is not the only problem • Inter-operability problems persist

6. Digital Transition in Transmissions: Impact • For large TV b’casters, setting up digital transmission networks needed big investments • Operating simulcast is another drain on resources • Broadcasters who have taken the plunge are in financial and resource crunch • Everybody is waiting for the ASO

7. Broadcasters Under Stress • Taking up digital services has put broadcasters under financial stress • Infrastructure investments are huge, content creation is costly • Re-training staff is expensive • Simulcast is a big drain on resources • Ad revenues have not seen a big jump • Stress has impacted even the big ones • Analogue Switch-Off may provide some relief

8. Analogue Switch-off • Many non-technical issues to be resolved for successful ASO • Public acceptance • Affordable STBs / TVs • Broadcaster stress, resource depletion • Needs national effort • US example: Not fully successful despite State help • Gave away 59 M coupons, used only 31 M • 2.9% yet to change

9. Industry Issues

10. Broadcast Environment • Analogue layout completed, Digital creeping up • Audiences seek multi-channel, anywhere-anytime-any platform, Hi Def services • Satellite TV has flooded environment • Convergent media players, Blue Ray, DVD, PVR, IPTV, HBBtv, fragment markets • State funding down, new investments needed • Horizontal markets in content, delivery • Smallest broadcasters need help to consolidate • Green broadcasting, green footprints • Small public broadcasters set up joint ventures for pay-DTV: Laos, Cambodia

11. Industry’s Concerns • Sustaining operations, finding finances for investments • Finding new revenue streams • Shrinking ad market share • Transition to digital broadcasting • New content genres, more sports, live events, niche market services, lower production costs • Using Internet to enhance customer value • Pragmatic editorial independence • Preserving, harvesting of archival material • European views differ on many issues

12. Asia Does Not Speak Out Despite protestations to otherwise, A-P does not speak out • Little transfer of info, culture outside of region, except by “Western” media • News predominantly shown across the region is • Either directly from western sources • Or by taking coverage from such sources • Illustration: Copenhagen conference – Obama, Brown highlighted, carried by all stations here • Not much news about 190 leaders’ contribution • Imbalance needs to be addressed effectively

13. Social Networking Sites Broadcasters’ need presence on Social Networking sites • Provide news, content downloads, snapshots • But 66% of most viewed material professionally made * • Make use of material after verification • Cannot use: Bus Uncle (HK), Maru Cat (Japan) type material _________ * EBU , Burgess & Green, Intl. Journal of Digital TV

14. Internet TV, IPTV Hype • Hype on uptake of Internet TV, IPTV • Facts - monthly hrs spent per user * • Broadcast TV: 151 • Internet TV: 3 • Facts: Uptake of IPTV ** as %age of population • China: 0.1 %, Japan: 0.2 % • Hong Kong: 13.1 %, France: 2.3 % __________ * Three Screens Survey 2009 (US) - Nielson Company ** R. Briel and Wikipedia

15. Advertising: How Much • Reviewing regional guidelines for Advertising • How many ad breaks in 30 min? How many ads • Ads in children's / school programming • Abrupt level changes in picture, sound • Advertising in UK (1 Dec 2009) • One ad break 30 min news programme period • No ad breaks in 30 min children's programme slots • No abrupt changes in picture, sound • Practices for EPG providers • Prominence for public service channels • Features for people with disabilities

16. Producing Content • Need high efficiency in content production • Super-compressions like MPEG-4 • “Audio Video Objects” helps greater efficiency • Multi-platform, desk-Top, networked production • Non-linear techniques • Virtual Studios innovate production, savings • File servers provide efficient workflow, asset management

17. Signal and Content Protection • 1961 Rome Convention grossly outdated • WIPO unable to conclude on signal protection • Crucial element: Digital content copying is easy • Premium content providers unwilling to supply without protection • Protection needed at broadcaster, consumer ends • Networked content • Protection needed over entire network

18. Revisiting ABU CEN • Basic issue is: Do ABU members want to share content? • What type of content can they offer • Is it useful for other members, given • Diversity of language, Culture • Political sensitivities, other factors • Set up CEN Content Working Party / Forum / Consortium to research • How much content would be available? Would that sustain any exchange network in the long run? • Guidelines on type of content required • Do we require subtitling? • What about radio content, how do we deal with it? • Only after these issues are resolved, can a meaningful step be taken towards setting up CEN

19. Managing Digital Business • Huge investments need consultation with technical, content offering, marketing, business • To secure new investments, identify workable revenue streams • Navigate in crowded market where media players fight for customers, revenues • Motivate consumers, retailers, manufacturers • Adapt to new business, commercial environment • Exploit short, long tailed content

20. Freeview: Way to go Digital • Digital Pay-TV model failed • Consumers did not pay for what was free on analogue • Success model: Freeview – free digital offering • Bundles up many broadcasters, channels • UK, New Zealand, Australia, DTH in India

21. Hybrid Broadcast Broadband • On TV set, viewer gets to watch broadcast TV or on-line TV content or both • This has placed initiative in hands of TV audiences • Main issue is: Who will control the TV screen with HBB • Will broadcasters be dominant or will Internet TV providers offer better content?

22. And what about Shortwave Radio? 7000 daily transmissions, 10,000 hrs Enormous operating costs, capex Genuine b’casting service, usually ignored by the industry I see great potential Digital services operating fromJapan, China, New Zealand, Sri Lanka, Korea Republic Newcomers: Malaysia, Bangladesh, India, Bhutan, Papua New Guinea

23. PSB Functions: E W B S • Broadcasters’ role in disaster warning, risk reduction, post-disaster relief, is crucial • EWBS system alerts public instantly on radio, TV, satellite (Japan, Korea) • ABU has helped spread this message, plan for implementation • Radio-in-a-Box very useful: Padang example

24. Emergency Warning: Public Service Radio, TV, sat. b’casters offer effective emergency warning systems in the Asia-Pacific Macro management is the problem

25. Will ABU Have to Change?

26. Impact of Convergence • Convergence has altered industry profile • Traditional structures are fading away • New players from other industries try to dominate content creation, delivery • Will current industry structure remain relevant in near future, if so, how? • What will it be like in 5 /10 years? • With new players, industry profile will have a marked change • Industry will reflect new audience needs • Even management of broadcasting entities will undergo changes

27. ABU Should Provide Thought Leadership to Industry • In changing environment, how should broadcasters • Chart their course of action? • Deal with new technologies in market place? • Who is to advise them on regional, global perspectives? • Where should they obtain unbiased professional advice? • How to take informed decisions on huge investments? • The ABU’s role needs to respond to all these requirements • Shepherd broadcasters, businesses towards new directions • The ABU should concern itself with the totality of broadcasting • ABU should provide thought leadership to industry • Advocate, protect common interests of members

28. Some Views from Europe

29. Europe’s Views on FTA • Many countries limit number of FTA broadcasters • Certain events reserved FTA TV, distorts competition against pay-TV • EC requires 50 % content broadcast be of “European works”

30. Europe’s Views on FTA • Whether sports rights should be sold individually, by teams or by a sports league • High degree of control with one entity • Finland, PSB controls all TV distribution networks • Norway, telco owns most networks • Mexico, Italy, largest FTA broadcasters 85% audience

31. EU Views • Dual broadcasting system of State public service broadcasting and commercial broadcasting fails to provide a balanced public forum for all political perspectives • In new media environment, public service broadcasting is no longer justified, despite its potential for creation of value-based content

32. EU Views Content & Technology • "the growth of news distributors through digital technology is accompanied by an unprecedented loss of the value of reference that the media had in analogue world“ • EBU: Cultural diversity and media pluralism have always been the touchstones of Europe's public service broadcasters • The principles of cultural diversity and media pluralism are today acknowledged and defended internationally by the UNESCO

33. THANK YOUFOR YOUR ATTENTION