Digital Rights Working Group Update NETA Board Planning Conference July 25, 2006

1. Digital Rights Working Group UpdateNETA Board Planning ConferenceJuly 25, 2006

2. Today’s Agenda • Times are Changing • Public Television’s Viewpoint • Open Questions • Key Takeaways • Next Step: The Feedback Loop

3. Why Are Times Changing? Home broadband Internet access is growing rapidly. Total U.S. Households with Broadband Connections SOURCE: The Home Technology Monitor

4. Radio & Television Computer NEW INTERACTIONS Downloaded Handheld Mobile Device Live Streaming Interactive How Are Times Changing? Therefore, we can more easily interact with new platforms in new ways. NEW PLATFORMS

5. Streaming Download to Own Podcasts Mobile Media How Do These Changes Affect PTV? They allow new players to deliver video & other media to the audience. Broadcast

6. Today’s Agenda • Times are Changing • Public Television’s Viewpoint • Open Questions • Key Takeaways • Next Step: The Feedback Loop

7. The Digital Working Group’s Process Digital WorkingGroup Formed Held Rounds Robins • Includes representatives from various affinity groups, PBS and CPB • Goal is to provide clarity and recommendation for a digital rights strategy • Digital rights emerged as a critical issue 1 2 Developed Initial Perspective • Issues are complex • There is urgency to Act • PTV should maintain Core Values Seeking Greater Input • Broadly sharing findings from group • Soliciting input and dialogue from the system 3 4

8. How Do We Approach This Topic? Answering the strategic question will help us answer the tactical question. STRATEGIC How should public television’s core mission translate onto new media platforms? TACTICAL What combination of programs and platforms sustain PTV’s mission over the long term?

9. The Strategic Question STRATEGIC How should public television’s core mission translate onto new media platforms? By offering… Public Service Content with the… Maximum Possible Access in order to… Deepen Community Service

10. The Strategic Question: A Fundamental Approach How can we broadly achieve this strategy? INITIALLY… All content free on all possible platforms. THEN… Where sustainable, maintain free access to content. Where appropriate, generate revenues. or

11. The Strategic Question : Example NewsHour NewsHour offers an extensive archive of streaming video clips dating as far back as 1996.

12. The Tactical Question TACTICAL What combination of programs and platforms sustain PTV's mission over the long term? • Program Type • Platform Type • Time Period • Revenue Opportunity Common Vocabulary • Assess Rights Individually • Benefit the Entire System • Experiment Ground Rules +

13. The Tactical Question : A Common Vocabulary What are the four key variables in determining a rights strategy? VARIABLES EXAMPLES Program Type Public Affairs  History Local Science Platform Type Download to Own  Streaming Podcast  VOD Time Period One Day  Two Weeks  One Year Indefinitely Revenue Opportunity Free Pay Per Use  Member Premium Sponsorship

14. The Tactical Question : A Common Vocabulary How do these rights combine into a rights strategy? Program Type Time Period Platform Type Revenue Opportunity

15. Ground Rules: Evaluate Rights Individually New platforms complicate rights acquisition and increasecosts exponentially. Time Periods Terms of Use • Broadcast • One Week • One Year • Perpetuity • Revenue Model • Types of use Rights Holders Platforms • Talent • Music • Stock Footage • Literature • VOD • Streaming • Download • DVD X X X

16. Ground Rules: Benefit Our Entire System The public broadcasting system is a complex, interdependent economy. Producers Stations PBS Audience Funders

17. Ground Rules: Experiment The evolving, decentralized nature of new media favors experimentation. Small At this early stage, there are too many unknowns to risk large investments. Experiments We are decentralized and close to our audience, well suited to experiment. This space is rapidly evolving, so we must act now to maintain our relevance. Now

18. Today’s Agenda • Times are Changing • Public Television’s Viewpoint • Open Questions • Key Takeaways • Next Step: The Feedback Loop

19. Open Questions: Educational Digital Rights How can we develop an educational digital rights strategy? Education environment provide another layer of complexity to the issue of digital rights • Question • Who is using the content? • How the content is being consumed? • On what terms is the content being used? • What is the business model? • Potential Answers • K-12, higher education, distance learning • Viewed, cited, mashed-up • Licensed for school site use, for broadly accessible use, etc. • State funded, school/student subscription Depending on the answers, our rights position might change

20. Open Questions: Digital Archive Should we establish a significant public Digital Archive? Why a Digital Archive? What Are the Rights Issues? • The American people provide substantial funding for public television and should have access and use of public broadcasting’s content • There is a need voiced by a growing variety of constituents for a trusted source for media on the emerging platforms • Long-term access to content can help advance public broadcasting’s mission • How much and what type of content would it contain? • How much control over the content would users be given? • Who, if anyone, would be an appropriate partner in this enterprise? • What rights would be needed and how could we afford to pay for them? • What implications would this have for producers and other underlying rights holders?

21. Open Questions: Unresolved issues What are the questions that the system needs to answer to effectively move forward? • Are there certain types of properties where we all agree that having the most comprehensive rights package is critical (e.g., primetime national shows, children’s programs, local programs)? • For any given deal, how do we balance the needs of the national players with the local stations? • How will costs be covered on new platforms? • How will revenues be generated and shared?

22. Today’s Agenda • Times are Changing • Public Television’s Viewpoint • Open Questions • Key Takeaways • Next Step: The Feedback Loop

23. The Four Critical Ideas To advance our mission, we need to offer the broadest free access possible Digital rights must be individually evaluated Successful innovation requires rapid experimentation On balance, new business models must benefit our entire system

24. We Are Flying This Plane at the Same Time We Are Building the Plane Success lies in simultaneously moving and interacting in four areas: Innovation Talking Consensus Action

25. Today’s Agenda • Times are Changing • Public Television’s Viewpoint • Open Questions • Key Takeaways • Next Step: The Feedback Loop

26. Next Steps Where do we go from here? • AGC will facilitate input from affinity groups • Input will provide clarity to issues in the paper that appear unclear Broader System Input • White Paper • White Paper will provide guidance and recommendations for national and local digital rights strategies Other Feedback Tools • Wikis • Web Conferences • Feedback from station experimentation